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SB-1259 Payment card theft.(2001-2002)

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SB1259:v94#DOCUMENT

Senate Bill No. 1259
CHAPTER 861

An act to add Section 502.6 to the Penal Code, relating to payment card theft.

[ Filed with Secretary of State  September 25, 2002. Approved by Governor  September 25, 2002. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1259, Ackerman. Payment card theft.
Existing law establishes various offenses for theft.
This bill would provide that the possession or use, knowingly, willfully, and with the intent to defraud, as specified, of a device designed to scan or reencode information from or to the magnetic strip of a payment card, as defined, would be punishable by a term of imprisonment in a county jail not to exceed one year, or a $1,000 fine, or both the imprisonment and fine. This bill would also provide for destruction of those devices owned by the defendant and possessed or used in violation of these provisions, and seizure of various other computer equipment used to store illegally obtained data, as specified.
By creating a new crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:


SECTION 1.

 Section 502.6 is added to the Penal Code, to read:

502.6.
 (a) Any person who knowingly, willfully, and with the intent to defraud, possesses a scanning device, or who knowingly, willfully, and with intent to defraud, 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 is guilty of a misdemeanor, punishable by a term in a county jail not to exceed one year, or a fine of one thousand dollars ($1,000), or both the imprisonment and fine.
(b) Any person who knowingly, willfully, and with the intent to defraud, possesses a reencoder, or who knowingly, willfully, and with intent to defraud, uses a reencoder to place encoded information on the magnetic strip or stripe of a 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 is guilty of a misdemeanor, punishable by a term in a county jail not to exceed one year, or a fine of one thousand dollars ($1,000), or both the imprisonment and fine.
(c) Any scanning device or reencoder described in subdivision (e) owned by the defendant and possessed or used in violation of subdivision (a) or (b) may be seized and be destroyed as contraband by the sheriff of the county in which the scanning device or reencoder was seized.
(d) Any computer, computer system, computer network, or any software or data, owned by the defendant, which is used during the commission of any public offense described in this section or any computer, owned by the defendant, which is used as a repository for the storage of software or data illegally obtained in violation of this section shall be subject to forfeiture.
(e) As used in this section, the following definitions apply:
(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 magnetic strip or stripe of a payment card.
(2) “Reencoder” means an electronic device that places encoded information from the magnetic strip or stripe of a payment card on to the magnetic strip or stripe of a different payment card.
(3) “Payment card” means a credit card, debit card, or any other card that is issued to an authorized user and that allows the user to obtain, purchase, or receive goods, services, money, or anything else of value.
(f) Nothing in this section shall preclude prosecution under any other provision of law.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.