Senate File 2238 S-5080 Amend Senate File 2238 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 715A.10, Code 2018, is amended to read 4 as follows: 5 715A.10 Illegal use of scanning device or reencoder encoding 6 machine . 7 1. A person commits a class “D” felony if the person does 8 any of the following: 9 a. Uses Directly or indirectly uses a scanning device 10 to access, read, obtain, memorize, or store, temporarily 11 or permanently, information encoded on the magnetic strip 12 or stripe of a payment card without the permission of the 13 authorized user of the payment card, and with the intent to 14 defraud the authorized user, the issuer of the authorized 15 user’s payment card, or a merchant. 16 b. Uses a reencoder Directly or indirectly uses an encoding 17 machine to place information encoded on the magnetic strip or 18 stripe of a payment card onto the magnetic strip or stripe of a 19 different payment card without the permission of the authorized 20 user of the payment card from which the information is being 21 reencoded was obtained , and with the intent to defraud the 22 authorized user, the issuer of the authorized user’s payment 23 card, or a merchant. 24 1A. A person commits an aggravated misdemeanor if the person 25 possesses a scanning device with the intent to use such device 26 to obtain information encoded on a payment card without the 27 permission of the authorized user of the payment card, the 28 issuer of the authorized user’s payment card, or a merchant, or 29 possesses a scanning device with knowledge that a person other 30 than the authorized user, the issuer of the authorized user’s 31 payment card, or a merchant intends to use the scanning device 32 to obtain information encoded on a payment card without the 33 permission of the authorized user, the issuer of the authorized 34 user’s payment card, or a merchant. 35 -1- SF2238.4257 (2) 87 (amending this SF 2238 to CONFORM to HF 2199) jm/rh 1/ 3 #1.

2. A second or subsequent violation of this section is a 1 class “C” felony. 2 3. As used in this section : 3 a. “Encoding machine” means an electronic device that is 4 used to encode information onto a payment card. 5 a. b. “Merchant” means an owner or operator of a retail 6 mercantile establishment or an agent, employee, lessee, 7 consignee, officer, director, franchisee, or independent 8 contractor of such owner or operator. A “merchant” also means 9 includes an establishing financial institution referred to 10 in section 527.5, a person who receives from an authorized 11 user of a payment card, or someone the person believes to 12 be an authorized user, a payment card or information from a 13 payment card, or what the person believes to be a payment card 14 or information from a payment card, as the instrument for 15 obtaining, purchasing, or receiving goods, services, money, or 16 anything else of value from the person. 17 b. c. “Payment card” means a credit card, charge card, 18 debit card, access device as defined in section 527.2, or 19 any other card that is issued to an authorized card user and 20 that allows the user to obtain, purchase, or receive goods, 21 services, money, or anything else of value from a merchant. 22 c. “Reencoder” means an electronic device that places 23 encoded information from the magnetic strip or stripe of a 24 payment card onto the magnetic strip or stripe of a different 25 payment card. 26 d. “Scanning device” means a scanner, reader, wireless 27 access device, radio frequency identification scanner, an 28 electronic device that utilizes near field communications 29 technology, or any other electronic device that is used to 30 access, read, scan, obtain, memorize, or store, temporarily 31 or permanently, information encoded on the magnetic strip or 32 stripe of a payment card. 33 Sec. 2. Section 716.5, subsection 1, Code 2018, is amended 34 by adding the following new paragraph: 35 -2- SF2238.4257 (2) 87 (amending this SF 2238 to CONFORM to HF 2199) jm/rh 2/ 3

NEW PARAGRAPH . f. The act is committed upon property that 1 consists of a device that has the ability to process a payment 2 card as defined in section 715A.10. > 3 2. Title page, by striking lines 1 through 3 and inserting 4 < An Act relating to the criminal offenses of the illegal use of 5 a scanning device or encoding machine and criminal mischief in 6 the third degree, and providing penalties. > 7 ______________________________ BRAD ZAUN -3- SF2238.4257 (2) 87 (amending this SF 2238 to CONFORM to HF 2199) jm/rh 3/ 3 #2.