STUDY FINANCIAL TRANSACTION CARD FRAUD. (NEW)

View NCGA Bill Details2015-2016 Session
House Bill 627 (Public) Filed Thursday, April 9, 2015
AN ACT TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY METHODS TO PROVIDE ADDITIONAL PROTECTIONS TO USERS OF FINANCIAL TRANSACTION CARDS.
Intro. by McNeill.

Status: Re-ref Com On Rules, Calendar, and Operations of the House (House Action) (Apr 27 2015)

SOG comments (1):

Change Short and Long Titles

House committee substitute to 1st edition changed short and long titles.  The short title was Study Financial Transaction Card Fraud.  The long title was AN ACT TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY METHODS TO PROVIDE ADDITIONAL PROTECTIONS TO USERS OF FINANCIAL TRANSACTION CARDS.

H 627

Bill Summaries:

  • Summary date: Apr 27 2015 - More information

    House committee substitute deletes the provisions of the 1st edition, which provided additional protections to users of financial transaction cards and increased penalties for credit card fraud. Replaces them with a provision directing the Legislative Research Commission (LRC) to study the problem of credit card fraud in North Carolina.

    Includes among the issues and topics to be studied: (1) the implementation of EMV Chip and Pin Technology in North Carolina, (2) the impact of the implementation of EMV Chip and Pin Technology on merchants and financial institutions in this state, (3) what the EMV Chip and Pin technology in our state will include and when the technology will be implemented, (4) whether North Carolina needs to enact any laws governing the use of banking devices and scanning devices, (5) the adequacy of current state laws governing fraud and identity theft, and (6) why the conviction rate for misdemeanor and felony credit card fraud is so low. Includes additional issues and topics to be studies and directs the Commission to study any other areas that it believes are necessary to determine how to reduce credit and debit card fraud.

    Provides that the LRC may make an interim report that includes findings and legislative proposals to the 2015 General Assembly when it convenes in 2016. Directs LRC to make its final report to the 2017 General Assembly when it convenes.

    Amends the long and short title to reflect the content of the bill as amended by the committee substitute.


  • Summary date: Apr 13 2015 - More information

    Enacts new GS 75-67 in Article 2A, Identity Theft Protection Act, in GS Chapter 75. Subsection (a) of GS 75-67 requires that a person who owns or operates a scanning device or an automated banking device to ensure that the device is not capable of accepting a financial transaction card unless the card user first enters the five-digit zip code of the cardholder's billing address. Subsection (b) of this section makes it an infraction as defined in GS 14-3.1 for a person to violate the previously stated requirement. Sets the penalty for a violation of this requirement at $500 per violation and caps the amount at no more than $500 in any calendar month or $2,000 in any calendar year. Provides that a person who receives a citation for violating GS 75-67(a) is not subject to the penalty under subsection (b) if the person complied with this statute within 30 days of the issuance of the citation and has remained in compliance. Subsection (c) defines the following terms as having the same meaning as in Article 19B of GS Chapter 14: (1) automated banking device, (2) cardholder, (3) financial transaction card, (4) presenting, and (5) scanning device. Effective July 1, 2015.

    Amends GS 75-67(a), as enacted by Section 1 of this act, effective October 1, 2016, to add the requirement that the owner or operator of a scanning device or an automated banking device ensure that the device is not capable of accepting a financial transaction card unless the card user first enters the five-digit zip code of the cardholder's billing address and the cardholder's personal identification card. Amends subsection (c) to add that the termpersonal identification codealso has the same meaning as in Article 19B of GS Chapter 14.

    Amends GS 14-113.17, effective December 1, 2015, to make a person subject to the punishment and penalties of Article 19B, Financial Transaction Card Crime Act, guilty of a Class I felony (was, a Class 2 misdemeanor). Provides that a crime punishable under Article 19B is punishable as a Class G felony (was, a Class I felony).


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