senate Bill S6954A

2011-2012 Legislative Session

Creates the crime of criminal practices with an access device

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 18, 2012 referred to codes
delivered to assembly
passed senate
Jun 11, 2012 amended on third reading (t) 6954b
Jun 04, 2012 advanced to third reading
May 31, 2012 2nd report cal.
May 30, 2012 1st report cal.924
Apr 19, 2012 print number 6954a
amend and recommit to consumer protection
Apr 16, 2012 referred to consumer protection

Votes

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Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S6954 - Bill Details

See Assembly Version of this Bill:
A10324
Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §520-d, Gen Bus L; add §165.21, Pen L

S6954 - Bill Texts

view summary

Creates the crime of criminal practices with an access device.

view sponsor memo
BILL NUMBER:S6954

TITLE OF BILL:
An act
to amend the general business law and
the penal law, in relation to creating the crime of criminal
practices with an access device

PURPOSE OR GENERAL IDEA OF BILL:
This bill prohibits criminal practices with an access device and
classifies such crime as a class B misdemeanor. This crime would
subject individuals to criminal liability for certain actions taken
with a fraudulent or counterfeit credit card or other devices that
grant the holder access to money, goods, or services.

SUMMARY OF PROVISIONS:
Section One amends the general business law by adding a new section
527 which defines criminal practices with an access device. For
purposes of this section an "access device" shall mean any card,
service, number, instrument, service or any means of account access
that can be used alone or in conjunction with another device to
obtain money, goods, services, or anything of value or a transfer of
funds; a "counterfeit access device" shall mean any access device
that is not an authentic access device; an "unauthorized access
device" shall mean any access device that is lost, stolen, expired,
revoked, canceled, or obtained with intent to defraud; and "device
making equipment" shall mean any equipment, mechanism, or impression
designed or primarily used for making an access device or a
counterfeit access device.

Section Two amends the penal law by adding a new section 165.21. The
crime of criminal practices with an access device is categorized as a
class B misdemeanor under the penal law. A person is guilty of this
crime when they knowingly and with the intent to defraud: produces,
uses or traffics one or more counterfeit access devices; uses one or
more unauthorized access device and obtains anything of value
exceeding one thousand dollars in the aggregate over a period of one
year;
possesses fifteen or more counterfeit or unauthorized access devices;
has control, custody, or possesses device making equipment; effects
transactions with one or more access devices issued to another person
or persons without such persons consent and with intent to receive
payment or any other thing of value during a one year period with an
aggregate value equal or greater to one thousand dollars; or solicits
a person to offer an access device for the purpose of selling
information regarding an access device or an application to obtain an
access device.

Section Three is the effective date.

JUSTIFICATION:

According to the Federal Bureau of Investigation, organized retail
theft is an industry that costs United States retailers about $30
billion per year. Organized retail crime comprises a wide spectrum of
high-volume and highly organized theft rings that cost New York
retailers hundreds of millions of dollars annually and, more
importantly, compromise the health, safety, and wallet of
unsuspecting New York consumers. And for every item stolen, New
York's state and local governments lose out on sales tax revenue -
again, adding up to millions annually. Organized retail theft is the
most serious security issue facing many retail merchants, including
apparel and accessory retailers, mass merchandisers, do-it-yourself
stores, drug stores, and supermarkets. It's a crime that has grown
substantially over the past decade, with the emergence of organized
criminal theft at an unprecedented level. Retailers are forced to
offset these significant costs through higher prices - meaning that
honest consumers are forced to endure the impact of organized retail
theft and professional shoplifters.

One of the ways that criminals commit these offenses is through the
use of counterfeit or fraudulently obtained credit cards, account
numbers, gift cards, or other means that grant access to funds or
things of value. In addition to harming retailers, these offenses
also harm other consumers when their account numbers are stolen. This
bill seeks to crack down on these criminals by penalizing them when
they knowingly and with the intent to defraud engage in transactions
that rise to the level of organized retail theft. An offense in
violation of this section could include possession of a counterfeit
or unauthorized access devices, sale of access device information,
producing or trafficking access devices, as well as certain
unauthorized uses of an access device. Criminalizing these acts
deters individuals or members of crime rings from using access
devices fraudulently.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the
first of November
next succeeding the date on which it shall have become a law.

view full text
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6954

                            I N  S E N A T E

                             April 16, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law and the penal law, in  relation
  to creating the crime of criminal practices with an access device

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.   The general business law  is  amended  by  adding  a  new
section 527 to read as follows:
  S 527. CRIMINAL PRACTICES WITH AN ACCESS DEVICE.  1. A PERSON IS GUIL-
TY OF CRIMINAL PRACTICES WITH AN ACCESS DEVICE WHEN HE OR SHE:
  (A)  KNOWINGLY  AND WITH INTENT TO DEFRAUD PRODUCES, USES, OR TRAFFICS
IN ONE OR MORE COUNTERFEIT ACCESS DEVICE; OR
  (B) KNOWINGLY AND WITH INTENT TO DEFRAUD TRAFFICS IN OR  USES  ONE  OR
MORE UNAUTHORIZED DEVICE DURING ANY ONE-YEAR PERIOD, AND BY SUCH CONDUCT
OBTAINS  ANYTHING  OF  VALUE  AGGREGATING  ONE  THOUSAND DOLLARS OR MORE
DURING THAT PERIOD; OR
  (C) KNOWINGLY AND WITH INTENT TO DEFRAUD  POSSESSES  FIFTEEN  OR  MORE
DEVICES WHICH ARE COUNTERFEIT OR UNAUTHORIZED ACCESS DEVICES; OR
  (D)  KNOWINGLY  AND  WITH INTENT TO DEFRAUD PRODUCES, TRAFFICS IN, HAS
CONTROL OR CUSTODY OF, OR POSSESSES DEVICE-MAKING EQUIPMENT; OR
  (E) KNOWINGLY AND WITH INTENT TO DEFRAUD EFFECTS TRANSACTIONS WITH ONE
OR MORE ACCESS DEVICES ISSUED TO ANOTHER  PERSON  OR  PERSONS  AND  USED
WITHOUT  THE  CONSENT  OF  SUCH  PERSON, TO RECEIVE PAYMENT OR ANY OTHER
THING OF VALUE DURING ANY ONE-YEAR PERIOD THE AGGREGATE VALUE  OF  WHICH
IS EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; OR
  (F) WITHOUT THE AUTHORIZATION OF THE ISSUER OF THE ACCESS DEVICE KNOW-
INGLY AND WITH INTENT TO DEFRAUD SOLICITS A PERSON FOR THE PURPOSE OF:
  (I) OFFERING AN ACCESS DEVICE; OR
  (II)  SELLING  INFORMATION  REGARDING  OR  AN APPLICATION TO OBTAIN AN
ACCESS DEVICE.
  2. CRIMINAL PRACTICES WITH AN ACCESS DEVICE IS A CLASS B MISDEMEANOR.
  S 2. The penal law is amended by adding a new section 165.21  to  read
as follows:
S 165.21 CRIMINAL PRACTICES WITH AN ACCESS DEVICE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15090-03-2

S. 6954                             2

  1.  DEFINITIONS.  FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "ACCESS  DEVICE" SHALL MEAN ANY CARD, INCLUDING GIFT CARD, PLATE,
CODE, INCLUDING UNIVERSAL PRICE CODE LABEL, ACCOUNT  NUMBER,  ELECTRONIC
SERIAL  NUMBER,  MOBILE  IDENTIFICATION  NUMBER, PERSONAL IDENTIFICATION
NUMBER, OR OTHER TELECOMMUNICATIONS SERVICE,  EQUIPMENT,  OR  INSTRUMENT
IDENTIFIER,  INCLUDING  A RADIO FREQUENCY IDENTIFICATION TRANSPONDER, OR
OTHER MEANS OF ACCOUNT ACCESS THAT CAN BE USED, ALONE OR IN  CONJUNCTION
WITH  ANOTHER  ACCESS  DEVICE,  TO OBTAIN MONEY, GOODS, SERVICES, OR ANY
OTHER THING OF VALUE, OR THAT CAN BE USED  TO  INITIATE  A  TRANSFER  OF
FUNDS (OTHER THAN A TRANSFER ORIGINATED SOLELY BY PAPER INSTRUMENT);
  (B)  "COUNTERFEIT  ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT IS
COUNTERFEIT, FICTITIOUS, ALTERED, OR FORGED, OR AN  IDENTIFIABLE  COMPO-
NENT OF AN ACCESS DEVICE OR A COUNTERFEIT ACCESS DEVICE;
  (C)  "UNAUTHORIZED ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT IS
LOST, STOLEN, EXPIRED, REVOKED, CANCELED, OR  OBTAINED  WITH  INTENT  TO
DEFRAUD;
  (D)  "PRODUCE"  SHALL  MEAN DESIGN, ALTER, AUTHENTICATE, DUPLICATE, OR
ASSEMBLE;
  (E) "TRAFFIC" SHALL MEAN TRANSFER, OR OTHERWISE DISPOSE OF, TO ANOTHER
IN A FRAUDULENT MANNER, OR OBTAIN CONTROL OF WITH INTENT TO FRAUDULENTLY
TRANSFER OR DISPOSE OF;
  (F) "DEVICE-MAKING EQUIPMENT" SHALL MEAN ANY EQUIPMENT, MECHANISM,  OR
IMPRESSION  DESIGNED OR PRIMARILY USED FOR MAKING AN UNAUTHORIZED ACCESS
DEVICE OR A COUNTERFEIT ACCESS DEVICE;
  (G) "CREDIT CARD SYSTEM NUMBER" SHALL MEAN A FINANCIAL INSTITUTION  OR
OTHER  ENTITY  THAT  IS  A  MEMBER OF A CREDIT CARD SYSTEM, INCLUDING AN
ENTITY, WHETHER AFFILIATED WITH OR IDENTICAL TO THE CREDIT CARD  ISSUER,
THAT IS THE SOLE MEMBER OF A CREDIT CARD SYSTEM.
  2. A PERSON IS GUILTY OF CRIMINAL PRACTICES WITH AN ACCESS DEVICE WHEN
HE OR SHE:
  (A)  KNOWINGLY  AND WITH INTENT TO DEFRAUD PRODUCES, USES, OR TRAFFICS
IN ONE OR MORE COUNTERFEIT ACCESS DEVICE; OR
  (B) KNOWINGLY AND WITH INTENT TO DEFRAUD TRAFFICS IN OR  USES  ONE  OR
MORE UNAUTHORIZED DEVICE DURING ANY ONE-YEAR PERIOD, AND BY SUCH CONDUCT
OBTAINS  ANYTHING  OF  VALUE  AGGREGATING  ONE  THOUSAND DOLLARS OR MORE
DURING THAT PERIOD; OR
  (C) KNOWINGLY AND WITH INTENT TO DEFRAUD  POSSESSES  FIFTEEN  OR  MORE
DEVICES WHICH ARE COUNTERFEIT OR UNAUTHORIZED ACCESS DEVICES; OR
  (D)  KNOWINGLY  AND  WITH INTENT TO DEFRAUD PRODUCES, TRAFFICS IN, HAS
CONTROL OR CUSTODY OF, OR POSSESSES DEVICE-MAKING EQUIPMENT; OR
  (E) KNOWINGLY AND WITH INTENT TO DEFRAUD EFFECTS TRANSACTIONS WITH ONE
OR MORE ACCESS DEVICES ISSUED TO ANOTHER  PERSON  OR  PERSONS  AND  USED
WITHOUT  THE  CONSENT  OF  SUCH  PERSON, TO RECEIVE PAYMENT OR ANY OTHER
THING OF VALUE DURING ANY ONE-YEAR PERIOD THE AGGREGATE VALUE  OF  WHICH
IS EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; OR
  (F) WITHOUT THE AUTHORIZATION OF THE ISSUER OF THE ACCESS DEVICE KNOW-
INGLY AND WITH INTENT TO DEFRAUD SOLICITS A PERSON FOR THE PURPOSE OF:
  (I) OFFERING AN ACCESS DEVICE; OR
  (II)  SELLING  INFORMATION  REGARDING  OR  AN APPLICATION TO OBTAIN AN
ACCESS DEVICE.
  CRIMINAL PRACTICES WITH AN ACCESS DEVICE IS A CLASS B MISDEMEANOR.
  S 3. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

S6954A - Bill Details

See Assembly Version of this Bill:
A10324
Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §520-d, Gen Bus L; add §165.21, Pen L

S6954A - Bill Texts

view summary

Creates the crime of criminal practices with an access device.

view sponsor memo
BILL NUMBER:S6954A

TITLE OF BILL:
An act to amend the general business law and the penal law, in
relation to creating the crime of criminal practices with an access
device

PURPOSE OR GENERAL IDEA OF BILL:
This bill prohibits criminal practices with an access device and
classifies such crime as a class B misdemeanor. This crime would
subject individuals to criminal liability for certain actions taken
with a fraudulent or counterfeit credit card or other devices that
grant the holder access to money, goods, or services.

SUMMARY OF PROVISIONS:
Section One amends the general business law by adding a new section
520-d which defines criminal practices with an access device. For
purposes of this section an "access device" shall mean any card,
service number, instrument, service or any means of account access
that can be used alone or in conjunction with another device to obtain
money, goods, services, or anything of value or a transfer of funds; a
"counterfeit access device" shall mean any access device that is not
an authentic access device; an "unauthorized access device" shall mean
any access device that is lost, stolen, expired, revoked, canceled, or
obtained with intent to defraud; and "device making equipment" shall
mean any equipment, mechanism, or impression designed or primarily
used for making an access device or a counterfeit access device.

Section Two amends the penal law by adding a new section 165.21. The
crime of criminal practices with an access device is categorized as a
class B misdemeanor under the penal law. A person is guilty of this
crime when they knowingly and with the intent to defraud: produces,
uses or traffics one or more counterfeit access devices; uses one or
more unauthorized access device and obtains anything of value
exceeding one thousand dollars in the aggregate over a period of one
year; possesses fifteen or more counterfeit or unauthorized access
devices; has control, custody, or possesses device making equipment;
effects transactions with one or more access devices issued to another
person or persons without such persons consent and with intent to
receive payment or any other thing of value during a one year period
with an aggregate value equal or greater to one thousand dollars; or
solicits a person to offer an access device for the purpose of selling
information regarding an access device or an application to obtain an
access device.

Section Three is the effective date.

JUSTIFICATION:
According to the Federal Bureau of Investigation, organized retail
theft is an industry that costs United States retailers about $30
billion per year. Organized retail crime comprises a wide spectrum of
high-volume and highly organized theft rings that cost New York
retailers hundreds of millions of dollars annually and, more
importantly, compromise the health, safety, and wallet of unsuspecting
New York consumers. And for every item stolen, New York's state and
local governments lose out on sales tax revenue - again, adding up to


millions annually. Organized retail theft is the most serious security
issue facing many retail merchants, including apparel and accessory
retailers, mass merchandisers, do-it-yourself stores, drug stores, and
supermarkets. It's a crime that has grown substantially over the past
decade, with the emergence of organized criminal theft at an
unprecedented level. Retailers are forced to offset these significant
costs through higher prices - meaning that honest consumers are forced
to endure the impact of organize~ retail theft and professional
shoplifters.

One of the ways that criminals commit these offenses is through the
use of counterfeit or fraudulently obtained credit cards, account
numbers, gift cards, or other means that grant access to funds or
things of value. In addition to harming retailers, these offenses also
harm other consumers when their account numbers are stolen. This bill
seeks to crack down on these criminals by penalizing them when they
knowingly and with the intent to defraud engage in transactions that
rise to the level of organized retail theft. An offense in violation
of this section could include possession of a counterfeit or
unauthorized access devices, sale of access device information,
producing or trafficking access devices, as well as certain
unauthorized uses of an access device. Criminalizing these acts deters
individuals or members of crime rings from using access devices
fraudulently.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of November next succeeding
the date on which it shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6954--A

                            I N  S E N A T E

                             April 16, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the general business law and the penal law, in  relation
  to creating the crime of criminal practices with an access device

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.   The general business law  is  amended  by  adding  a  new
section 520-d to read as follows:
  S  520-D.  CRIMINAL  PRACTICES  WITH AN ACCESS DEVICE.  1. A PERSON IS
GUILTY OF CRIMINAL PRACTICES WITH AN ACCESS DEVICE WHEN HE OR SHE:
  (A) KNOWINGLY AND WITH INTENT TO DEFRAUD PRODUCES, USES,  OR  TRAFFICS
IN ONE OR MORE COUNTERFEIT ACCESS DEVICE; OR
  (B)  KNOWINGLY  AND  WITH INTENT TO DEFRAUD TRAFFICS IN OR USES ONE OR
MORE UNAUTHORIZED DEVICE DURING ANY ONE-YEAR PERIOD, AND BY SUCH CONDUCT
OBTAINS ANYTHING OF VALUE  AGGREGATING  ONE  THOUSAND  DOLLARS  OR  MORE
DURING THAT PERIOD; OR
  (C)  KNOWINGLY  AND  WITH  INTENT TO DEFRAUD POSSESSES FIFTEEN OR MORE
DEVICES WHICH ARE COUNTERFEIT OR UNAUTHORIZED ACCESS DEVICES; OR
  (D) KNOWINGLY AND WITH INTENT TO DEFRAUD PRODUCES,  TRAFFICS  IN,  HAS
CONTROL OR CUSTODY OF, OR POSSESSES DEVICE-MAKING EQUIPMENT; OR
  (E) KNOWINGLY AND WITH INTENT TO DEFRAUD EFFECTS TRANSACTIONS WITH ONE
OR  MORE  ACCESS  DEVICES  ISSUED  TO ANOTHER PERSON OR PERSONS AND USED
WITHOUT THE CONSENT OF SUCH PERSON, TO  RECEIVE  PAYMENT  OR  ANY  OTHER
THING  OF  VALUE DURING ANY ONE-YEAR PERIOD THE AGGREGATE VALUE OF WHICH
IS EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; OR
  (F) WITHOUT THE AUTHORIZATION OF THE ISSUER OF THE ACCESS DEVICE KNOW-
INGLY AND WITH INTENT TO DEFRAUD SOLICITS A PERSON FOR THE PURPOSE OF:
  (I) OFFERING AN ACCESS DEVICE; OR
  (II) SELLING INFORMATION REGARDING OR  AN  APPLICATION  TO  OBTAIN  AN
ACCESS DEVICE.
  2. CRIMINAL PRACTICES WITH AN ACCESS DEVICE IS A CLASS B MISDEMEANOR.
  S  2.  The penal law is amended by adding a new section 165.21 to read
as follows:
S 165.21 CRIMINAL PRACTICES WITH AN ACCESS DEVICE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15090-04-2

S. 6954--A                          2

  1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "ACCESS  DEVICE" SHALL MEAN ANY CARD, INCLUDING GIFT CARD, PLATE,
CODE, INCLUDING UNIVERSAL PRICE CODE LABEL, ACCOUNT  NUMBER,  ELECTRONIC
SERIAL  NUMBER,  MOBILE  IDENTIFICATION  NUMBER, PERSONAL IDENTIFICATION
NUMBER, OR OTHER TELECOMMUNICATIONS SERVICE,  EQUIPMENT,  OR  INSTRUMENT
IDENTIFIER,  INCLUDING  A RADIO FREQUENCY IDENTIFICATION TRANSPONDER, OR
OTHER MEANS OF ACCOUNT ACCESS THAT CAN BE USED, ALONE OR IN  CONJUNCTION
WITH  ANOTHER  ACCESS  DEVICE,  TO OBTAIN MONEY, GOODS, SERVICES, OR ANY
OTHER THING OF VALUE, OR THAT CAN BE USED  TO  INITIATE  A  TRANSFER  OF
FUNDS (OTHER THAN A TRANSFER ORIGINATED SOLELY BY PAPER INSTRUMENT);
  (B)  "COUNTERFEIT  ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT IS
COUNTERFEIT, FICTITIOUS, ALTERED, OR FORGED, OR AN  IDENTIFIABLE  COMPO-
NENT OF AN ACCESS DEVICE OR A COUNTERFEIT ACCESS DEVICE;
  (C)  "UNAUTHORIZED ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT IS
LOST, STOLEN, EXPIRED, REVOKED, CANCELED, OR  OBTAINED  WITH  INTENT  TO
DEFRAUD;
  (D)  "PRODUCE"  SHALL  MEAN DESIGN, ALTER, AUTHENTICATE, DUPLICATE, OR
ASSEMBLE;
  (E) "TRAFFIC" SHALL MEAN TRANSFER, OR OTHERWISE DISPOSE OF, TO ANOTHER
IN A FRAUDULENT MANNER, OR OBTAIN CONTROL OF WITH INTENT TO FRAUDULENTLY
TRANSFER OR DISPOSE OF;
  (F) "DEVICE-MAKING EQUIPMENT" SHALL MEAN ANY EQUIPMENT, MECHANISM,  OR
IMPRESSION  DESIGNED OR PRIMARILY USED FOR MAKING AN UNAUTHORIZED ACCESS
DEVICE OR A COUNTERFEIT ACCESS DEVICE;
  (G) "CREDIT CARD SYSTEM NUMBER" SHALL MEAN A FINANCIAL INSTITUTION  OR
OTHER  ENTITY  THAT  IS  A  MEMBER OF A CREDIT CARD SYSTEM, INCLUDING AN
ENTITY, WHETHER AFFILIATED WITH OR IDENTICAL TO THE CREDIT CARD  ISSUER,
THAT IS THE SOLE MEMBER OF A CREDIT CARD SYSTEM.
  2. A PERSON IS GUILTY OF CRIMINAL PRACTICES WITH AN ACCESS DEVICE WHEN
HE OR SHE:
  (A)  KNOWINGLY  AND WITH INTENT TO DEFRAUD PRODUCES, USES, OR TRAFFICS
IN ONE OR MORE COUNTERFEIT ACCESS DEVICE; OR
  (B) KNOWINGLY AND WITH INTENT TO DEFRAUD TRAFFICS IN OR  USES  ONE  OR
MORE UNAUTHORIZED DEVICE DURING ANY ONE-YEAR PERIOD, AND BY SUCH CONDUCT
OBTAINS  ANYTHING  OF  VALUE  AGGREGATING  ONE  THOUSAND DOLLARS OR MORE
DURING THAT PERIOD; OR
  (C) KNOWINGLY AND WITH INTENT TO DEFRAUD  POSSESSES  FIFTEEN  OR  MORE
DEVICES WHICH ARE COUNTERFEIT OR UNAUTHORIZED ACCESS DEVICES; OR
  (D)  KNOWINGLY  AND  WITH INTENT TO DEFRAUD PRODUCES, TRAFFICS IN, HAS
CONTROL OR CUSTODY OF, OR POSSESSES DEVICE-MAKING EQUIPMENT; OR
  (E) KNOWINGLY AND WITH INTENT TO DEFRAUD EFFECTS TRANSACTIONS WITH ONE
OR MORE ACCESS DEVICES ISSUED TO ANOTHER  PERSON  OR  PERSONS  AND  USED
WITHOUT  THE  CONSENT  OF  SUCH  PERSON, TO RECEIVE PAYMENT OR ANY OTHER
THING OF VALUE DURING ANY ONE-YEAR PERIOD THE AGGREGATE VALUE  OF  WHICH
IS EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; OR
  (F) WITHOUT THE AUTHORIZATION OF THE ISSUER OF THE ACCESS DEVICE KNOW-
INGLY AND WITH INTENT TO DEFRAUD SOLICITS A PERSON FOR THE PURPOSE OF:
  (I) OFFERING AN ACCESS DEVICE; OR
  (II)  SELLING  INFORMATION  REGARDING  OR  AN APPLICATION TO OBTAIN AN
ACCESS DEVICE.
  CRIMINAL PRACTICES WITH AN ACCESS DEVICE IS A CLASS B MISDEMEANOR.
  S 3. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

S6954B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A10324
Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §520-d, Gen Bus L; add §165.21, Pen L

S6954B (ACTIVE) - Bill Texts

view summary

Creates the crime of criminal practices with an access device.

view sponsor memo
BILL NUMBER:S6954B

TITLE OF BILL:
An act
to amend the penal law, in relation to creating the crime of criminal
practices with an access device

PURPOSE OR GENERAL IDEA OF BILL:
This bill prohibits criminal practices with an access device and
classifies such crime as a class B misdemeanor. This crime would
subject individuals to criminal liability for certain actions taken
with a fraudulent or counterfeit credit card or other devices that
grant the holder access to money, goods, or services.

SUMMARY OF PROVISIONS:
Section One amends the penal law by adding a new section 165.21 which
defines criminal practices with an access device. For purposes of
this section an "access device" shall mean any card, service, number,
instrument, service or any means of account access that can be used
alone or in conjunction with another device to obtain money, goods,
services, or anything of value or a transfer of funds; a "counterfeit
access device" shall mean any access device that is not an authentic
access device; an "unauthorized access device" shall mean any access
device that is lost, stolen, expired, revoked, canceled, or obtained
with intent to defraud; and "device making equipment" shall mean any
equipment, mechanism, or impression designed or primarily used for
making an access device or a counterfeit access device.

The crime of criminal practices with an access device is categorized
as a class B misdemeanor under the penal law. A person is guilty of
this crime when they knowingly and with the intent to defraud:
produces, uses or traffics one or more counterfeit access devices;
uses one or more unauthorized access device and obtains anything of
value exceeding one thousand dollars in the aggregate over a period
of one year;
possesses fifteen or more counterfeit or unauthorized access devices;
has control, custody, or possesses device making equipment; effects
transactions with one or more access devices issued to another person
or persons without such persons consent and with intent to receive
payment or any other thing of value during a one year period with an
aggregate value equal or greater to one thousand dollars; or solicits
a person to offer an access device for the purpose of selling
information regarding an access device or an application to obtain an
access device.

Section Two is the effective date.

JUSTIFICATION:
According to the Federal Bureau of Investigation, organized retail
theft is an industry that costs united States retailers about $30
billion per year. Organized retail crime comprises a wide spectrum of
high-volume and highly organized theft rings that cost New York
retailers hundreds of millions of dollars annually and, more
importantly, compromise the health, safety, and wallet of
unsuspecting New York consumers. And for every item stolen, New
York's state and local governments lose out on sales tax revenue -


again, adding up to millions annually. Organized retail theft is the
most serious security issue facing many retail merchants, including
apparel and accessory retailers, mass merchandisers, do-it-yourself
stores, drug stores, and supermarkets. It's a crime that has grown
substantially over the past decade, with the emergence of organized
criminal theft at an unprecedented level. Retailers are forced to
offset these significant costs through higher prices - meaning that
honest consumers are forced to endure the impact of organized retail
theft, and professional shoplifters.

One of the ways that criminals commit these offenses is through the
use of counterfeit or fraudulently obtained credit cards, account
numbers, gift cards, or other means that grant access to funds or
things of value. In addition to harming retailers, these offenses
also harm other consumers when their account numbers are stolen. This
bill seeks to crack down on these criminals by penalizing them when
they knowingly and with the intent to defraud engage in transactions
that rise to the level of organized retail theft. An offense in
violation of this section could include possession of a counterfeit
or unauthorized access devices, sale of access device information,
producing or trafficking access devices, as well as certain
unauthorized uses of an access device. Criminalizing these acts
deters individuals or members of crime rings from using access
devices fraudulently.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of November
next succeeding the date on which it shall have become a law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6954--B
    Cal. No. 924

                            I N  S E N A T E

                             April 16, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee -- reported favorably from said  commit-
  tee,  ordered  to first and second report, ordered to a third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN  ACT  to  amend  the  penal law, in relation to creating the crime of
  criminal practices with an access device

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The penal law is amended by adding a new section 165.21 to
read as follows:
S 165.21 CRIMINAL PRACTICES WITH AN ACCESS DEVICE.
  1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "ACCESS  DEVICE" SHALL MEAN ANY CARD, INCLUDING GIFT CARD, PLATE,
CODE, INCLUDING UNIVERSAL PRICE CODE LABEL, ACCOUNT  NUMBER,  ELECTRONIC
SERIAL  NUMBER,  MOBILE  IDENTIFICATION  NUMBER, PERSONAL IDENTIFICATION
NUMBER, OR OTHER TELECOMMUNICATIONS SERVICE,  EQUIPMENT,  OR  INSTRUMENT
IDENTIFIER,  INCLUDING  A RADIO FREQUENCY IDENTIFICATION TRANSPONDER, OR
OTHER MEANS OF ACCOUNT ACCESS THAT CAN BE USED, ALONE OR IN  CONJUNCTION
WITH  ANOTHER  ACCESS  DEVICE,  TO OBTAIN MONEY, GOODS, SERVICES, OR ANY
OTHER THING OF VALUE, OR THAT CAN BE USED  TO  INITIATE  A  TRANSFER  OF
FUNDS (OTHER THAN A TRANSFER ORIGINATED SOLELY BY PAPER INSTRUMENT);
  (B)  "COUNTERFEIT  ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT IS
COUNTERFEIT, FICTITIOUS, ALTERED, OR FORGED, OR AN  IDENTIFIABLE  COMPO-
NENT OF AN ACCESS DEVICE OR A COUNTERFEIT ACCESS DEVICE;
  (C)  "UNAUTHORIZED ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT IS
LOST, STOLEN, EXPIRED, REVOKED, CANCELED, OR  OBTAINED  WITH  INTENT  TO
DEFRAUD;
  (D)  "PRODUCE"  SHALL  MEAN DESIGN, ALTER, AUTHENTICATE, DUPLICATE, OR
ASSEMBLE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15090-06-2

S. 6954--B                          2

  (E) "TRAFFIC" SHALL MEAN TRANSFER, OR OTHERWISE DISPOSE OF, TO ANOTHER
IN A FRAUDULENT MANNER, OR OBTAIN CONTROL OF WITH INTENT TO FRAUDULENTLY
TRANSFER OR DISPOSE OF;
  (F)  "DEVICE-MAKING EQUIPMENT" SHALL MEAN ANY EQUIPMENT, MECHANISM, OR
IMPRESSION DESIGNED OR PRIMARILY USED FOR MAKING AN UNAUTHORIZED  ACCESS
DEVICE OR A COUNTERFEIT ACCESS DEVICE;
  (G)  "CREDIT CARD SYSTEM NUMBER" SHALL MEAN A FINANCIAL INSTITUTION OR
OTHER ENTITY THAT IS A MEMBER OF A  CREDIT  CARD  SYSTEM,  INCLUDING  AN
ENTITY,  WHETHER AFFILIATED WITH OR IDENTICAL TO THE CREDIT CARD ISSUER,
THAT IS THE SOLE MEMBER OF A CREDIT CARD SYSTEM.
  2. A PERSON IS GUILTY OF CRIMINAL PRACTICES WITH AN ACCESS DEVICE WHEN
HE OR SHE:
  (A) KNOWINGLY AND WITH INTENT TO DEFRAUD PRODUCES, USES,  OR  TRAFFICS
IN ONE OR MORE COUNTERFEIT ACCESS DEVICE; OR
  (B)  KNOWINGLY  AND  WITH INTENT TO DEFRAUD TRAFFICS IN OR USES ONE OR
MORE UNAUTHORIZED DEVICE DURING ANY ONE-YEAR PERIOD, AND BY SUCH CONDUCT
OBTAINS ANYTHING OF VALUE  AGGREGATING  ONE  THOUSAND  DOLLARS  OR  MORE
DURING THAT PERIOD; OR
  (C)  KNOWINGLY  AND  WITH  INTENT TO DEFRAUD POSSESSES FIFTEEN OR MORE
DEVICES WHICH ARE COUNTERFEIT OR UNAUTHORIZED ACCESS DEVICES; OR
  (D) KNOWINGLY AND WITH INTENT TO DEFRAUD PRODUCES,  TRAFFICS  IN,  HAS
CONTROL OR CUSTODY OF, OR POSSESSES DEVICE-MAKING EQUIPMENT; OR
  (E) KNOWINGLY AND WITH INTENT TO DEFRAUD EFFECTS TRANSACTIONS WITH ONE
OR  MORE  ACCESS  DEVICES  ISSUED  TO ANOTHER PERSON OR PERSONS AND USED
WITHOUT THE CONSENT OF SUCH PERSON, TO  RECEIVE  PAYMENT  OR  ANY  OTHER
THING  OF  VALUE DURING ANY ONE-YEAR PERIOD THE AGGREGATE VALUE OF WHICH
IS EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; OR
  (F) WITHOUT THE AUTHORIZATION OF THE ISSUER OF THE ACCESS DEVICE KNOW-
INGLY AND WITH INTENT TO DEFRAUD SOLICITS A PERSON FOR THE PURPOSE OF:
  (I) OFFERING AN ACCESS DEVICE; OR
  (II) SELLING INFORMATION REGARDING OR  AN  APPLICATION  TO  OBTAIN  AN
ACCESS DEVICE.
  CRIMINAL PRACTICES WITH AN ACCESS DEVICE IS A CLASS B MISDEMEANOR.
  S 2. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

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