HF 980

2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to crimes; prohibiting use of electronic 
  1.3             scanning devices to capture encoded information from a 
  1.4             credit or other financial transaction card, and 
  1.5             placing it on another card, with intent to defraud; 
  1.6             prohibiting merchants who accept credit cards from 
  1.7             printing more than the last five digits of the card; 
  1.8             prescribing penalties; proposing coding for new law in 
  1.9             Minnesota Statutes, chapters 325F; 609. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [325F.983] [CREDIT CARD RECEIPTS.] 
  1.12     (a) Except as provided in this section, no person that 
  1.13  accepts credit cards for the transaction of business shall print 
  1.14  more than the last five digits of the credit card account number 
  1.15  or the expiration date upon any receipt provided to the 
  1.16  cardholder. 
  1.17     (b) This section applies only to receipts that are 
  1.18  electronically printed and does not apply to transactions in 
  1.19  which the sole means of recording the person's credit card 
  1.20  number is by handwriting or by an imprint or copy of the credit 
  1.21  card. 
  1.22     Sec. 2.  [609.822] [SKIMMING CARD FRAUD.] 
  1.23     Subdivision 1.  [SHORT TITLE.] This section shall be cited 
  1.24  as the "Anti-Skimming Act." 
  1.25     Subd. 2.  [DEFINITIONS.] As used in this section, the 
  1.26  following terms have the meanings given them. 
  1.27     (a) "Scanning device" means a scanner, reader, or any other 
  2.1   electronic device that is used to access, read, scan, obtain, 
  2.2   memorize, or store, temporarily or permanently, information 
  2.3   encoded on the magnetic strip or stripe of a payment card. 
  2.4      (b) "Re-encoder" means an electronic device that places 
  2.5   encoded information from the magnetic strip or stripe of a 
  2.6   payment card onto the magnetic strip or stripe of a different 
  2.7   payment card. 
  2.8      (c) "Payment card" means a credit card, charge card, debit 
  2.9   card, or any other card that is issued to an authorized card 
  2.10  user and that allows the user to obtain, purchase, or receive 
  2.11  goods, services, money, or anything of value from a merchant. 
  2.12     (d) "Merchant" is defined as an owner or operator of any 
  2.13  retail mercantile establishment or any agent, employee, lessee, 
  2.14  consignee, officer, director, franchisee, or independent 
  2.15  contractor of such owner or operator.  A merchant means a person 
  2.16  who receives from an authorized user of a payment card, or 
  2.17  someone the person believes to be an authorized user, a payment 
  2.18  card or information from a payment card, or what the person 
  2.19  believes to be a payment card or information from a payment 
  2.20  card, as the instrument for obtaining, purchasing, or receiving 
  2.21  goods, services, money, or anything of value from the person. 
  2.22     Subd. 3.  [SKIMMING CARD FRAUD.] (a) A person who does any 
  2.23  of the following commits skimming card fraud: 
  2.24     (1) uses a scanning device to access, read, obtain, 
  2.25  memorize, or store, temporarily or permanently, information 
  2.26  encoded on the magnetic strip or stripe of a payment card 
  2.27  without the permission of the authorized user of the payment 
  2.28  card and with the intent to defraud the authorized user, the 
  2.29  issuer of the authorized user's payment card, or a merchant; or 
  2.30     (2) uses a re-encoder to place information encoded on the 
  2.31  magnetic strip or stripe of a payment card onto the magnetic 
  2.32  strip or stripe of a different card without the permission of 
  2.33  the authorized user of the card from which the information is 
  2.34  being re-encoded and with the intent to defraud the authorized 
  2.35  user, the issuer of the authorized user's payment card, or a 
  2.36  merchant. 
  3.1      Subd. 4.  [PENALTIES.] (a) If no money, property, or 
  3.2   services is obtained by skimming card fraud, as defined in 
  3.3   subdivision 3, the person shall be sentenced to imprisonment for 
  3.4   not more than 90 days, or to payment of a fine of not more than 
  3.5   $1,000. 
  3.6      (b) If money, property, or services is obtained by skimming 
  3.7   card fraud, as defined in subdivision 3, the value of the loss 
  3.8   shall be determined as provided in section 609.52, subdivision 
  3.9   1, clause (3), and the person obtaining the money, property, or 
  3.10  services may be sentenced as provided in section 609.52, 
  3.11  subdivision 3. 
  3.12     Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
  3.13     Section 1 is effective January 1, 2004, with respect to any 
  3.14  receipt printed using a cash register or other machine or device 
  3.15  that is first put into use on or after January 1, 2004. 
  3.16     Section 1 is effective July 1, 2006, with respect to any 
  3.17  receipt printed using a cash register or other machine or device 
  3.18  that is in use before January 1, 2004. 
  3.19     Section 2 is effective August 1, 2003, and applies to 
  3.20  crimes committed on or after that date.