SENATE BILL 318

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Mary Kay Papen

AN ACT

RELATING TO PERSONAL FINANCE; CRIMINALIZING SKIMMING OR THE USE OF A SCANNING DEVICE OR RE-ENCODER TO DEFRAUD CREDIT, DEBIT OR OTHER PAYMENT CARD HOLDERS; PROVIDING A PENALTY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. SKIMMING PROHIBITED.--

          A. It is unlawful for a person to skim or 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 cardholder of the payment card and with the intent to defraud the cardholder, the issuer of the cardholder's payment card or a merchant; or

                (2) a re-encoder 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 cardholder of the card from which the information is being re-encoded and with the intent to defraud the cardholder, the issuer of the cardholder's payment card or a merchant.

          B. A person who willfully and intentionally violates any provision of this section is guilty of a fourth degree felony and shall be punished pursuant to Section 31-18-15 NMSA 1978.

          C. A person who violates any provision of this section a second or subsequent time is guilty of a third degree felony and shall be punished pursuant to Section 31-18-15 NMSA 1978.

          D. As used in this section:

                (1) "cardholder" means a person with the empowerment or permission to act in the usage of a payment card;

                (2) "merchant" means an owner or operator of a retail mercantile establishment or an agent, employee, lessee, consignee, officer, director, franchisee or independent contractor of the owner or operator who receives from a cardholder of a payment card, or someone the merchant believes to be a cardholder, a payment card or information from a payment card, or what the merchant believes to be a payment card or information from a payment card, as the instrument for obtaining, purchasing or receiving goods, services, money or anything else of value from the merchant; and

                (3) "payment card" means a credit card, charge card, debit card, hotel key card, stored value card or other card that is issued to a cardholder and that allows the user to obtain, purchase or receive goods, services, money or anything else of value from a merchant.

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