S-1955.1                   _______________________________________________

                                            SUBSTITUTE SENATE BILL 5704

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Senate Committee on Law & Justice (originally sponsored by Senators Prentice, Moore and Amondson)

Read first time 03/01/93.

Penalizing unlawful factoring of credit card transactions.

          AN ACT Relating to the unlawful factoring of credit card transactions; adding new sections to chapter 9A.56 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 9A.56 RCW to read as follows:

          As used in sections 1 and 2 of this act, unless the context requires otherwise:

          (1) "Cardholder" means a person to whom a credit card is issued or a person who otherwise is authorized to use a credit card.

          (2) "Credit card" means a card, plate, booklet, credit card number, credit card account number, or other identifying symbol, instrument, or device that can be used to pay for, or to obtain on credit, goods or services.

          (3) "Credit card transaction" means a sale or other transaction in which a credit card is used to pay for, or to obtain on credit, goods or services.

          (4) "Credit card transaction record" means a record or evidence of a credit card transaction, including, without limitation, a paper, sales draft, instrument, or other writing and an electronic or magnetic transmission or record.

          (5) "Financial institution" means a bank, trust company, mutual savings bank, savings and loan association, or credit union authorized under state or federal law to do business and accept deposits in Washington.

          (6) "Merchant" means a person authorized by a financial institution to honor or accept credit cards in payment for goods or services.

          (7) "Person" means an individual, partnership, corporation, trust, or unincorporated association, but does not include a financial institution or its authorized employees, representatives, or agents.

NEW SECTION. Sec. 2.  A new section is added to chapter 9A.56 RCW to read as follows:

          (1) A person commits the crime of unlawful factoring of a credit card transaction if the person intentionally, knowingly, or recklessly facilitates a violation of the Consumer Protection Act, chapter 19.86 RCW, by:

          (a) Presenting to or depositing with, or causing another to present to or deposit with, a financial institution for payment a credit card transaction record that is not the result of a credit card transaction between the cardholder and the person;

          (b) Employing, soliciting, or otherwise causing a merchant or an employee, representative, or agent of a merchant to present to or deposit with a financial institution for payment a credit card transaction record that is not the result of a credit card transaction between the cardholder and the merchant; or

          (c) Employing, soliciting, or otherwise causing another to become a merchant for purposes of engaging in conduct made unlawful by this section.

          (2) Normal transactions conducted by or through airline reporting corporation-appointed travel agents or cruise-only travel agents recognized by passenger cruise lines are not considered factoring for the purposes of this section.

          (3) Unlawful factoring of a credit card transaction is a class C felony.

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