ASSEMBLY, No. 2769

 

STATE OF NEW JERSEY

 

211th LEGISLATURE

 

INTRODUCED MAY 10, 2004

 

 

Sponsored by:

Assemblyman NEIL M. COHEN

District 20 (Union)

Assemblyman PATRICK DIEGNAN, JR.

District 18 (Middlesex)

 

Co-Sponsored by:

Assemblyman Gusciora

 

 

 

 

SYNOPSIS

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

 

CURRENT VERSION OF TEXT

    As introduced.

 

(Sponsorship Updated As Of: 9/14/2004)


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.

    (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 without the permission of the authorized user of the card from which the information is being reencoded.

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill would prohibit 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.

    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. The bill would also make it a crime for a person to use a reencoder to place the information encoded on the magnetic strip onto a different card without the permission of the authorized cardholder, issuer or merchant.