Bill Text: MI SB0228 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Agriculture; other; security measures to combat credit card skimmers; require on retail motor fuel pumps with scanning devices. Amends sec. 10a of 1984 PA 44 (MCL 290.650a) & adds sec. 4b.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-03-09 - Referred To Committee On Agriculture [SB0228 Detail]

Download: Michigan-2017-SB0228-Introduced.html

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SENATE BILL No. 228

 

 

March 9, 2017, Introduced by Senators SCHMIDT, BIEDA, MARLEAU and NOFS and referred to the Committee on Agriculture.

 

 

     A bill to amend 1984 PA 44, entitled

 

"Motor fuels quality act,"

 

by amending section 10a (MCL 290.650a), as amended by 2002 PA 13,

 

and by adding section 4b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4b. (1) If a pump for dispensing motor fuel for sale at a

 

roadside retail location includes a scanning device for reading a

 

customer payment card as an integral part of the pump, the pump

 

must include a security measure to restrict the unauthorized access

 

of customer payment card information. The security measure must

 

include 1 or more of the following:

 

     (a) Pressure-sensitive security tape that is imprinted with a

 

customized graphic and placed over the panel opening leading to the

scanning device so as to restrict unauthorized opening of the

 

panel.

 

     (b) A device or system to render the pump or the scanning

 

device inoperable if the panel is opened without proper

 

authorization.

 

     (c) A means for encrypting the customer payment card

 

information in the scanning device.

 

     (d) Any other measure approved by the department.

 

     (2) If the owner or agent of the owner of a pump required to

 

have a security measure under subsection (1) receives a written

 

notice of noncompliance, he or she shall bring the pump into

 

compliance. If the violation is not corrected within 5 days after

 

receipt of the notice of noncompliance, the department may only

 

prohibit the use of the pump until a properly functioning security

 

measure is installed on the device.

 

     (3) As used in this section:

 

     (a) "Customer payment card" means a credit or debit card or

 

other card encoded to provide an electronic means for initiating a

 

fund transfer from the customer's deposit account or for initiating

 

electronic billing.

 

     (b) "Pump" means a device for measuring and dispensing motor

 

fuel used to propel vehicles on the highways of this state.

 

     (c) "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 magnetic strip or stripe of a customer payment card.

 

     Sec. 10a. (1) A Except as otherwise provided in section 4b, a

person who individually, or by the action of his or her agent or

 

employee, or as the agent or employee of another violates this act

 

or a rule promulgated under this act is subject to an

 

administrative fine. Upon the request of a person to whom an

 

administrative fine is issued, the director shall conduct a hearing

 

conducted pursuant to the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328. A fine authorized by this

 

section shall must be as follows:

 

     (a) For a first violation, not less than $100.00 or more than

 

$500.00, plus actual costs of the investigation and double the

 

amount of any economic benefit associated with the violation.

 

     (b) For a second violation within 5 years after the first

 

violation, not less than $500.00 or more than $1,000.00, plus

 

actual costs of the investigation and double the amount of any

 

economic benefit associated with the violation.

 

     (c) For a third violation within 5 years after the date of the

 

first violation, not less than $1,000.00 or more than $2,000.00,

 

plus actual costs of the investigation and double the amount of any

 

economic benefit associated with the violation.

 

     (2) A decision of the director under this section is subject

 

to judicial review as provided by law.

 

     (3) The director shall advise the attorney general of the

 

failure of any person to pay an administrative fine imposed under

 

this section. The attorney general shall bring an action in court

 

of competent jurisdiction to recover the fine.

 

     (4) Any administrative fine, costs, and the recovery of any

 

economic benefit associated with a violation collected under this

section shall must be paid to the state treasury and deposited into

 

the gasoline inspection and testing fund.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.