HF 842 (LSB 2221HV (1) 91)

HOUSE FILE 842

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HSB 181)

(COMPANION TO SF 266 BY WEBSTER)

A BILL FOR

An Act relating to theft, forgery, and fraud involving a gift card, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  714.2D  Crimes involving gift cards.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Cardholder” means any person in possession of a physical or digital gift card issued through a purchase by the person, or received by the person from a willing party.
   b.  “Card issuer” means any person that issues a gift card or the agent of a gift card issuer.
   c.  “Gift card” means a physical or digital card, code, or device that is issued to a consumer on a prepaid basis primarily for personal, family, or household purposes in a specified amount, regardless of whether that amount may be increased or reloaded in exchange for payment, and is redeemable upon presentation by a consumer either at a single merchant, a group of affiliated merchants, or at multiple unaffiliated merchants for goods or services within the payment card network.
   d.  “Gift card redemption information” means information unique to each gift card that allows the cardholder to access, transfer, or spend the funds on that gift card.
   e.  “Gift card seller” means a merchant that is engaged in the business of selling gift cards to consumers.
   f.  “Value” means the greatest amount of economic loss the owner of the property might reasonably suffer including, in the case of a gift card, the full monetary face value or potential value for variable-load gift cards.
   2.  a.  Any person who, with intent to defraud, acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller commits theft and is guilty of an aggravated misdemeanor.
   b.  Any person who, with intent to defraud, alters or tampers with a gift card commits forgery and is guilty of an aggravated misdemeanor.
   c.  Any person who, with intent to defraud, devises a scheme to obtain a gift card or gift card redemption information from a card holder, card issuer, or gift card seller by means of false or fraudulent pretenses, representations, or promises engages in a fraudulent practice and is guilty of the following:
   (1)  A class “C” felony if the amount of money or value of property or services involved exceeds five thousand dollars.
   (2)  A class “D” felony if the amount of money or value of property or services involved exceeds one thousand dollars but does not exceed five thousand dollars.
   (3)  An aggravated misdemeanor if the amount of money or value of property or services involved exceeds five hundred dollars but does not exceed one thousand dollars.
   (4)  A serious misdemeanor if the amount of money or value of property or services involved is five hundred dollars or less.
   d.  Any person who, with intent to defraud, uses, for the purpose of obtaining money, goods, services, or anything else of value, a gift card or gift card redemption information that has been obtained in violation of this section commits theft and is guilty of the following:
   (1)  A class “C” felony if the value of the property stolen exceeds five thousand dollars.
   (2)  A class “D” felony if the value of the property stolen is more than one thousand dollars but not more than five thousand dollars.
   (3)  An aggravated misdemeanor if the value of the property stolen is more than five hundred dollars but not more than one thousand dollars.
   (4)  A serious misdemeanor if the value of the property stolen is five hundred dollars or less.
   3.  The value of the retail merchandise received by the person in violation of this section within any six-month period may be aggregated and the defendant charged accordingly in applying the provisions of this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to theft, forgery, and fraud involving a gift card.
   The bill provides that any person who, with intent to defraud, acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller commits theft and is guilty of an aggravated misdemeanor.
   The bill provides that any person who, with intent to defraud, alters or tampers with a gift card commits forgery and is guilty of an aggravated misdemeanor.
   The bill provides that any person who, with intent to defraud, devises a scheme to obtain a gift card or gift card redemption information from a card holder, card issuer, or gift card seller by means of false or fraudulent pretenses, representations, or promises engages in a fraudulent practice and is guilty as follows: a class “C” felony if the amount of money or value of property or services involved exceeds $5,000; a class “D” felony if the amount of money or value of property or services involved exceeds $1,000 but does not exceed $5,000; an aggravated misdemeanor if the amount of money or value of property or services involved exceeds $500 but does not exceed $1,000; and a serious misdemeanor if the amount of money or value of property or services involved does not exceed $500.
   The bill provides that any person who, with intent to defraud, uses, for the purpose of obtaining money, goods, services, or anything else of value, a gift card or gift card redemption information that has been obtained in violation of the bill commits theft and is guilty as follows: a class “C” felony if the value of the property stolen exceeds $5,000; a class “D” felony if the value of the property stolen is more than $1,000 but not more than $5,000; an aggravated misdemeanor if the value of the property stolen is more than $500 but not more than $1,000; and a serious misdemeanor if the value of the property stolen is $500 or less. The bill provides that the value of the retail merchandise received by a person in violation of the bill within any six-month period may be aggregated and the defendant charged accordingly.
   A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $855 but not more than $8,540. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245. A class “C” felony is punishable by confinement for no more than 10 years and a fine of at least $1,370 but not more than $13,660.
   The bill includes definitions.