BILL NUMBER: SB 1259	CHAPTERED
	BILL TEXT

	CHAPTER  861
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2002
	PASSED THE SENATE  AUGUST 22, 2002
	PASSED THE ASSEMBLY  AUGUST 15, 2002
	AMENDED IN ASSEMBLY  JUNE 19, 2002
	AMENDED IN SENATE  APRIL 2, 2002
	AMENDED IN SENATE  FEBRUARY 21, 2002

INTRODUCED BY   Senator Ackerman
   (Principal coauthor:  Senator Peace)
   (Coauthors:  Senators Battin, Haynes, Johannessen, Knight,
Margett, and Oller)
   (Coauthors:  Assembly Members Ashburn, Bates, Bill Campbell, John
Campbell, Cox, Diaz, Koretz, La Suer, Leach, Maddox, Maldonado,
Robert Pacheco, Strickland, Wyman, and Zettel)

                        JANUARY 10, 2002

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


	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.