House File 2199 - Reprinted HOUSE FILE 2199 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 507) (As Amended and Passed by the House February 20, 2018 ) A BILL FOR An Act relating to the criminal offenses of the illegal use of 1 a scanning device or encoding machine and criminal mischief 2 in the third degree, and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2199 (5) 87 jm/rh/md

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

H.F. 2199 a. “Encoding machine” means an electronic device that is 1 used to encode information onto a payment card. 2 a. b. “Merchant” means an owner or operator of a retail 3 mercantile establishment or an agent, employee, lessee, 4 consignee, officer, director, franchisee, or independent 5 contractor of such owner or operator. A “merchant” also means 6 includes an establishing financial institution referred to 7 in section 527.5, a person who receives from an authorized 8 user of a payment card, or someone the person believes to 9 be an authorized user, a payment card or information from a 10 payment card, or what the person believes to be a payment card 11 or information from a payment card, as the instrument for 12 obtaining, purchasing, or receiving goods, services, money, or 13 anything else of value from the person. 14 b. c. “Payment card” means a credit card, charge card, 15 debit card, access device as defined in section 527.2, or 16 any other card that is issued to an authorized card user and 17 that allows the user to obtain, purchase, or receive goods, 18 services, money, or anything else of value from a merchant. 19 c. “Reencoder” means an electronic device that places 20 encoded information from the magnetic strip or stripe of a 21 payment card onto the magnetic strip or stripe of a different 22 payment card. 23 d. “Scanning device” means a scanner, reader, wireless 24 access device, radio frequency identification scanner, an 25 electronic device that utilizes near field communications 26 technology, or any other electronic device that is used to 27 access, read, scan, obtain, memorize, or store, temporarily 28 or permanently, information encoded on the magnetic strip or 29 stripe of a payment card. 30 Sec. 2. Section 716.5, subsection 1, Code 2018, is amended 31 by adding the following new paragraph: 32 NEW PARAGRAPH . f. The act is committed upon property that 33 consists of a device that has the ability to process a payment 34 card as defined in section 715A.10. 35 -2- HF 2199 (5) 87 jm/rh/md 2/ 2