SENATE, No. 2617

 

STATE OF NEW JERSEY

 

211th LEGISLATURE

 

INTRODUCED JUNE 16, 2005

 

 

Sponsored by:

Senator STEPHEN M. SWEENEY

District 3 (Salem, Cumberland and Gloucester)

Senator FRED MADDEN

District 4 (Camden and Gloucester)

 

Co-Sponsored by:

Senators Gill, Coniglio and Sarlo

 

 

 

 

SYNOPSIS

    Makes the unlawful use or possession of a scanning device or reencoder a crime.

 

CURRENT VERSION OF TEXT

    As introduced.

 

(Sponsorship Updated As Of: 7/1/2005)


An Act concerning scanning devices and reencoders and supplementing chapter 20 of Title 2C of the New Jersey Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. a. Definitions. As used in this section:

    (1) "Merchant" means any owner or operator of any store or other retail mercantile establishment, or any agent, servant, employee, lessee, consignee, officer, director, franchisee or independent contractor of such owner or proprietor.

    (2) "Payment card" means a credit card, charge card, debit card 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 of value from a merchant.

    (3) "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 or any electronic medium that allows a transaction to occur.

    (4) "Scanning device" means a scanner, skimmer, 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.

    b. It shall be a crime of the third degree for a person, with the intent to defraud an authorized user of a payment card, the issuer of the authorized user's payment card or a merchant, to use:

    (1) 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; or

    (2) a reencoder to place information encoded on the magnetic strip or stripe of a payment card onto the magnetic strip or stripe of a different card or any electronic medium that allows a transaction to occur without the permission of the authorized user of the card from which the information is being reencoded.

    c. It shall be a crime of the fourth degree for a person to knowingly possess with intent to commit a violation of paragraphs (1) or (2) of subsection b. of this section any device, apparatus, equipment, software, article, material, good, property or supply that is specifically designed or adapted for use as or in a scanning device or reencoder.

 

    2. This act shall take effect immediately.


STATEMENT

 

    This bill prohibits the use of scanning devices or reencoders to access or scan the encoded information on any ATM or debit card, credit card or other payment card, without the permission of the authorized user of the payment card.

    The bill defines a "scanning device" as any scanner, skimmer, reader or any other electronic device, such as a reencoder, 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. A "reencoder" is 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 or any electronic medium that allows a transaction to occur.

    The bill makes it a crime of the third degree for any person, with the intent to defraud an authorized user of a payment card, the issuer of the authorized user's payment card or a merchant, to use a scanning device to access, read, obtain, memorize or store, temporarily or permanently, any information encoded on the magnetic strip or stripe of a payment card without the permission of the authorized user of the payment card; or to use a reencoder to place the information encoded on the magnetic strip onto a different card, or any electronic medium that allows a transaction to occur, without the permission of the authorized cardholder, issuer or merchant.

    The bill also makes it a crime of the fourth degree for a person to knowingly possess, with intent to commit a violation of the bill, any device, apparatus, equipment, software, article, material, good, property or supply that is specifically designed or adapted for use as or in a scanning device or reencoder.