Senate File 317
SENATE FILE
BY COMMITTEE ON JUDICIARY
(SUCCESSOR TO SSB 1050)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to fraudulent use of a credit card, scanning
2 device, or reencoder, and providing a penalty.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2031SV 80
5 jm/cf/24
PAG LIN
1 1 Section 1. Section 715A.6, subsection 2, Code 2003, is
1 2 amended to read as follows:
1 3 2. An offense under this section is a class "D" "C" felony
1 4 if the value of the property or services secured or sought to
1 5 be secured by means of the credit card is greater than one ten
1 6 thousand dollars. If the value of the property or services
1 7 secured or sought to be secured by means of the credit card is
1 8 greater than one thousand dollars but not more than ten
1 9 thousand dollars, an offense under this section is a class "D"
1 10 felony, otherwise the offense is an aggravated misdemeanor.
1 11 Sec. 2. Section 715A.6, Code 2003, is amended by adding
1 12 the following new subsection:
1 13 NEW SUBSECTION. 3. For purposes of this section, the
1 14 value of the property or services is the highest value of the
1 15 property or services determined by any reasonable standard at
1 16 the time the violation occurred. Any reasonable standard
1 17 includes but is not limited to market value within the
1 18 community, actual value, or replacement value. If property or
1 19 services are secured by two or more acts from the same person
1 20 or location, or from different persons by two or more acts
1 21 which occur in approximately the same location or time period
1 22 so that the acts are attributable to a single scheme, plan, or
1 23 conspiracy, the acts may be considered as a single act and the
1 24 value may be the total value of all property or services
1 25 involved.
1 26 Sec. 3. NEW SECTION. 715A.10 ILLEGAL USE OF SCANNING
1 27 DEVICE OR REENCODER.
1 28 1. A person commits a class "D" felony if the person does
1 29 any of the following:
1 30 a. Uses a scanning device to access, read, obtain,
1 31 memorize, or store, temporarily or permanently, information
1 32 encoded on the magnetic strip or stripe of a payment card
1 33 without the permission of the authorized user of the payment
1 34 card, and with the intent to defraud the authorized user, the
1 35 issuer of the authorized user's payment card, or a merchant.
2 1 b. Uses a reencoder to place information encoded on the
2 2 magnetic strip or stripe of a payment card onto the magnetic
2 3 strip or stripe of a different card without the permission of
2 4 the authorized user of the card from which the information is
2 5 being reencoded, and with the intent to defraud the authorized
2 6 user, the issuer of the authorized user's payment card, or a
2 7 merchant.
2 8 2. A second or subsequent violation of this section is a
2 9 class "C" felony.
2 10 3. As used in this section:
2 11 a. "Merchant" means an owner or operator of a retail
2 12 mercantile establishment or an agent, employee, lessee,
2 13 consignee, officer, director, franchisee, or independent
2 14 contractor of such owner or operator. A "merchant" also means
2 15 a person who receives from an authorized user of a payment
2 16 card, or someone the person believes to be an authorized user,
2 17 a payment card or information from a payment card, or what the
2 18 person believes to be a payment card or information from a
2 19 payment card, as the instrument for obtaining, purchasing, or
2 20 receiving goods, services, money, or anything else of value
2 21 from the person.
2 22 b. "Payment card" means a credit card, charge card, debit
2 23 card, or any other card that is issued to an authorized card
2 24 user and that allows the user to obtain, purchase, or receive
2 25 goods, services, money, or anything else of value from a
2 26 merchant.
2 27 c. "Reencoder" means an electronic device that places
2 28 encoded information from the magnetic strip or stripe of a
2 29 payment card onto the magnetic strip or stripe of a different
2 30 payment card.
2 31 d. "Scanning device" means a scanner, reader, or any other
2 32 electronic device that is used to access, read, scan, obtain,
2 33 memorize, or store, temporarily or permanently, information
2 34 encoded on the magnetic strip or stripe of a payment card.
2 35 EXPLANATION
3 1 This bill relates to the criminal offense of fraudulent use
3 2 of a credit card, scanning device, or reencoder.
3 3 The bill provides that the value of property or services
3 4 fraudulently obtained or attempted to be obtained by use of a
3 5 credit card is to be determined by any reasonable standard,
3 6 including the market value within the community, actual value,
3 7 or replacement value. The bill also provides that if the
3 8 property or services are fraudulently obtained by two or more
3 9 acts from the same person or location, or from different
3 10 persons by two or more acts which occur in approximately the
3 11 same location or time period so that the acts are attributable
3 12 to a single scheme, plan, or conspiracy, the acts may be
3 13 considered as a single act and the value may be the total
3 14 value of all property or services involved. The bill provides
3 15 that if the value of the property or services obtained or
3 16 attempted to be obtained is greater than $10,000 the person
3 17 commits a class "C" felony. If the value of the property or
3 18 services is greater than $1,000 but not more than $10,000 then
3 19 the offense is a class "D" felony; otherwise the offense is an
3 20 aggravated misdemeanor.
3 21 The bill provides that a person who illegally uses a
3 22 scanning device or reencoder commits a class "D" felony for a
3 23 first offense and a class "C" felony for a second or
3 24 subsequent offense. A scanning device is defined under the
3 25 bill to mean a scanner, reader, or other electronic device
3 26 that is used to access or read information encoded on a
3 27 magnetic strip. A reencoder means an electronic device that
3 28 places encoded information from a magnetic strip of a payment
3 29 card onto the magnetic strip of a different payment card.
3 30 An aggravated misdemeanor is punishable by confinement for
3 31 no more than two years and a fine of at least $500 but not
3 32 more than $5,000. A class "D" felony is punishable by
3 33 confinement for no more than five years and a fine of at least
3 34 $750 but not more than $7,500. A class "C" felony is
3 35 punishable by confinement for no more than 10 years and a fine
4 1 of at least $1,000 but not more than $10,000.
4 2 LSB 2031SV 80
4 3 jm/cf/24