AN ACT CONCERNING THE UNLAWFUL USE OR POSSESSION OF SCANNING DEVICES AND REENCODERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2006) (a) As used in this section and sections 2 and 3 of this act:

(1) "Scanning device" means a scanner, reader or any other electronic device that is used to access, read, scan, obtain, memorize or store, temporarily or permanently, information encoded on the computer chip or magnetic strip or stripe of a payment card;

(2) "Reencoder" means an electronic device that places encoded information from the computer chip or magnetic strip or stripe of a payment card onto the computer chip or magnetic strip or stripe of a different payment card or any electronic medium that allows an authorized transaction to occur; and

(3) "Payment card" means a credit card, charge card, debit card or any other card that is issued to an authorized user and that allows the user to obtain, purchase or receive money, goods, services or anything else of value.

Sec. 2. (NEW) (Effective October 1, 2006) (a) A person is guilty of using a scanning device or reencoder with intent to defraud when such person, with intent to defraud the authorized user of the payment card, the issuer of the payment card, any person providing money, goods, services or anything else of value or any other person, knowingly (1) uses a scanning device to access, read, obtain, memorize or store, temporarily or permanently, information encoded on the computer chip or magnetic strip or stripe of a payment card without the permission of the authorized user of the payment card, or (2) uses a reencoder to place information encoded on the computer chip or magnetic strip or stripe of a payment card onto the computer chip or magnetic strip or stripe of a different payment card or any electronic medium that allows an authorized transaction to occur without the permission of the authorized user of the payment card from which the information is being reencoded.

(b) Using a scanning device or reencoder with intent to defraud is a class D felony.

Sec. 3. (NEW) (Effective October 1, 2006) (a) A person is guilty of unlawful possession of a scanning device or reencoder when such person has in such person's possession a scanning device or reencoder under circumstances manifesting an intent to use the same in the commission of a violation of section 2 of this act.

(b) Unlawful possession of a scanning device or reencoder is a class A misdemeanor.

Statement of Purpose:

To provide specific criminal penalties for "skimming" wherein a person, without permission and with intent to defraud, copies information encoded on a customer's credit, debit or other payment card by using a scanning device or reencoder.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]