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SUBSTITUTE
SENATE BILL 5704
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AS RECOMMENDED BY
THE CONFERENCE COMMITTEE
Passed
Legislature - 1993 Regular Session
State
of Washington 53rd Legislature 1993
Regular Session
By
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, with intent to commit
fraud or theft against a cardholder, credit card issuer, or financial
institution, causes any such party or parties to suffer actual monetary damages
that in the aggregate exceed one thousand dollars, 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.
