Changes to Existing Law

Terms used in §§ 22-40-11 to 22-40-14, inclusive, mean: (1)"Reencoder," any electronic device that places encoded information from the18 magnetic strip or stripe of a payment card or a computer chip embedded in a payment card onto the magnetic strip or stripe or computer chip of a different payment card; (2)"Scanning device," any scanner, reader, or any other electronic device that is used to21 access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe or on a computer chip of a23 payment card.24

No A person may use is guilty of a Class 6 felony if the person directly or indirectly uses a scanning device to access, read, obtain, memorize, or store, temporarily or6 permanently, information encoded on the magnetic strip or stripe of a payment card with the intent to defraud. A violation of this section is a Class 6 felony or encoded on a chip embedded on a payment card without the permission of the authorized user of the payment card, the issuer of the authorized user's payment card, or a merchant.

No A person may use is guilty of a Class 6 felony if the person directly or indirectly uses a reencoder to place information encoded on the magnetic strip or stripe of a13 payment card or encoded on a computer chip embedded on a payment card onto the magnetic14 100 copies were printed on recycled paper by the South DakotaLegislative Research Council at a cost of $.167 per page.v Insertions into existing statutes are indicated by underscores.Deletions from existing statutes are indicated by overstrikes. - 2 -HB 1050 strip or stripe or computer chip of a different payment card without the permission of the1 authorized user of the payment card from which the information is being reencoded and with the intent to defraud. A violation of this section is a Class 6 felony, the issuer of the authorized user's payment card, or a merchant.

No A person may own or possess is guilty of a Class 6 felony if the person owns or possesses a scanning device or a reencoder with the intent to use such the scanning device7 or reencoder to defraud. A violation of this section is a Class 1 misdemeanor obtain or alter information encoded or embedded on a payment card without the permission of the authorized user of the payment card, the issuer of the authorized user's payment card, or a merchant. A person is guilty of a Class 6 felony if the person owns or possesses a scanning device or reencoder with knowledge that a person other than an authorized user, the issuer of the authorized user's payment card, or a merchant intends to use the scanning device or reencoder to obtain information encoded or embedded on a payment card without the permission of the authorized user, the issuer of the authorized user's payment card, or any merchant.