Bill Text: IA HF2199 | 2017-2018 | 87th General Assembly | Enrolled

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Bill Title: A bill for an act relating to the criminal offenses of the illegal use of a scanning device or encoding machine and criminal mischief in the third degree, and providing penalties. (Formerly HSB 507.) Effective 7-1-18.

Sponsorship: Committee Bill

Status: (Passed) 2018-03-15 - Signed by Governor. H.J. 595. [HF2199 Detail]

Download: Iowa-2017-HF2199-Enrolled.html

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House File 2199 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON JUDICIARY

                              (SUCCESSOR TO HSB 507)
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                                   A BILL FOR
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                                        House File 2199

                             AN ACT
 RELATING TO THE CRIMINAL OFFENSES OF THE ILLEGAL USE OF
    A SCANNING DEVICE OR ENCODING MACHINE AND CRIMINAL MISCHIEF
    IN THE THIRD DEGREE, AND PROVIDING PENALTIES.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  Section 715A.10, Code 2018, is amended to read
 as follows:
    715A.10  Illegal use of scanning device or reencoder encoding
 machine.
    1.  A person commits a class "D" felony if the person does
 any of the following:
    a.  Uses Directly or indirectly uses a scanning device
 to access, read, obtain, memorize, or store, temporarily
 or permanently, information encoded on the magnetic strip
 or stripe of a payment card without the permission of the
 authorized user of the payment card, and with the intent to
 defraud the authorized user, the issuer of the authorized
 user's payment card, or a merchant.
    b.  Uses a reencoder Directly or indirectly uses an encoding
 machine to place information encoded on the magnetic strip or
 stripe of a payment card onto the magnetic strip or stripe of a
 different payment card without the permission of the authorized
 user of the payment card from which the information is being
 reencoded was obtained, and with the intent to defraud the
 authorized user, the issuer of the authorized user's payment
 card, or a merchant.
    1A.  A person commits an aggravated misdemeanor if the person
 possesses a scanning device with the intent to use such device
 to obtain information encoded on a payment card without the
 permission of the authorized user of the payment card, the
 issuer of the authorized user's payment card, or a merchant, or
 possesses a scanning device with knowledge that a person other
 than the authorized user, the issuer of the authorized user's
 payment card, or a merchant intends to use the scanning device
 to obtain information encoded on a payment card without the
 permission of the authorized user, the issuer of the authorized
 user's payment card, or a merchant.
    2.  A second or subsequent violation of this section is a
 class "C" felony.
    3.  As used in this section:
    a.  "Encoding machine" means an electronic device that is
 used to encode information onto a payment card. 
    a.  b.  "Merchant" means an owner or operator of a retail
 mercantile establishment or an agent, employee, lessee,
 consignee, officer, director, franchisee, or independent
 contractor of such owner or operator. A "merchant" also means
  includes an establishing financial institution referred to
 in section 527.5, a person who receives from an authorized
 user of a payment card, or someone the person believes to
 be an authorized user, a payment card or information from a
 payment card, or what the person believes to be a payment card
 or information from a payment card, as the instrument for
 obtaining, purchasing, or receiving goods, services, money, or
 anything else of value from the person.
    b.  c.  "Payment card" means a credit card, charge card,
 debit card, access device as defined in section 527.2, or
 any other card that is issued to an authorized card user and
 that allows the user to obtain, purchase, or receive goods,
 services, money, or anything else of value from a merchant.
    c.  "Reencoder" means an electronic device that places
 encoded information from the magnetic strip or stripe of a
 payment card onto the magnetic strip or stripe of a different
 payment card.
    d.  "Scanning device" means a scanner, reader, wireless
 access device, radio frequency identification scanner, an
 electronic device that utilizes near field communications
 technology, or any other electronic device that is used to
 access, read, scan, obtain, memorize, or store, temporarily
 or permanently, information encoded on the magnetic strip or
 stripe of a payment card.
    Sec. 2.  Section 716.5, subsection 1, Code 2018, is amended
 by adding the following new paragraph:
    NEW PARAGRAPH.  f.  The act is committed upon property that
 consists of a device that has the ability to process a payment
 card as defined in section 715A.10.


                                                                                            LINDA UPMEYER


                                                                                            JACK WHITVER


                                                                                            CARMINE BOAL


                                                                                            KIM REYNOLDS

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