READ FIRST TIME 03/05/03.   

     AN ACT Relating to possession of instruments or equipment of financial fraud; amending RCW 9A.56.280, 9A.56.290, and 9A.60.020; reenacting and amending RCW 9A.82.010, 9.94A.515, and 9.94A.515; adding new sections to chapter 9A.56 RCW; prescribing penalties; providing an effective date; and providing an expiration date.

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:
     (1) A person is guilty of unlawful production of payment instruments if he or she prints or produces a check or other payment instrument in the name of a person or entity, or with the routing number or account number of a person or entity, without the permission of the person or entity to manufacture or reproduce such payment instrument with such name, routing number, or account number.
     (2)(a) A person is guilty of unlawful possession of payment instruments if he or she possesses two or more checks or other payment instruments, alone or in combination:
     (i) In the name of a person or entity, or with the routing number or account number of a person or entity, without the permission of the person or entity to possess such payment instrument, and with intent either to deprive the person of possession of such payment instrument or to commit theft, forgery, or identity theft; or
     (ii) In the name of a fictitious person or entity, or with a fictitious routing number or account number of a person or entity, with intent to use the payment instruments to commit theft, forgery, or identity theft.
     (b) (a)(i) of this subsection does not apply to:
     (i) A person or financial institution that has lawful possession of a check, which is endorsed to that person or financial institution; and
     (ii) A person or financial institution that processes checks for a lawful business purpose.
     (3) A person is guilty of unlawful possession of a personal identification device if the person possesses a personal identification device with intent to use such device to commit theft, forgery, or identity theft. "Personal identification device" includes any machine or instrument whose purpose is to manufacture or print any driver's license or identification card issued by any state or the federal government, or any employee identification issued by any employer, public or private, including but not limited to badges and identification cards, or any credit or debit card.
     (4) A person is guilty of unlawful possession of fictitious identification if the person possesses a personal identification card with a fictitious person's identification with intent to use such identification card to commit theft, forgery, or identity theft, when the possession does not amount to a violation of RCW 9.35.020.
     (5) A person is guilty of unlawful possession of instruments of financial fraud if the person possesses a check-making machine, equipment, or software, with intent to use or distribute checks for purposes of defrauding an account holder, business, financial institution, or any other person or organization.
     (6) This section does not apply to:
     (a) A person, business, or other entity, that has lawful possession of a check, which is endorsed to that person, business, or other entity;
     (b) A financial institution or other entity that processes checks for a lawful business purpose;
     (c) A person engaged in a lawful business who obtains another person's personal identification in the ordinary course of that lawful business;
     (d) A person who obtains another person's personal identification for the sole purpose of misrepresenting his or her age; and
     (e) A law enforcement agency that produces or displays counterfeit credit or debit cards, checks or other payment instruments, or personal identification devices for investigative or educational purposes.
     (7) In a proceeding under this section that is related to an identity theft under RCW 9.35.020, the crime will be considered to have been committed in any locality where the person whose means of identification or financial information was appropriated resides, or in which any part of the offense took place, regardless of whether the defendant was ever actually in that locality.
     (8) A violation of this section is a class C felony.

NEW SECTION.  Sec. 2   A new section is added to chapter 9A.56 RCW to read as follows:
     (1) A person is guilty of possession of another's identification if the person knowingly possesses personal identification bearing another person's identity, when the person possessing the personal identification does not have the other person's permission to possess it, and when the possession does not amount to a violation of RCW 9.35.020.
     (2) This section does not apply to:
     (a) A person who obtains, by means other than theft, another person's personal identification for the sole purpose of misrepresenting his or her age;
     (b) A person engaged in a lawful business who obtains another person's personal identification in the ordinary course of business;
     (c) A person who finds another person's lost personal identification, does not intend to deprive the other person of the personal identification or to use it to commit a crime, and takes reasonably prompt steps to return it to its owner; and
     (d) A law enforcement agency that produces or displays counterfeit credit or debit cards, checks or other payment instruments, or personal identification for investigative or educational purposes.
     (3) In a proceeding under this section that is related to an identity theft under RCW 9.35.020, the crime will be considered to have been committed in any locality where the person whose means of identification or financial information was appropriated resides, or in which any part of the offense took place, regardless of whether the defendant was ever actually in that locality.
     (4) A violation of this section is a gross misdemeanor.

Sec. 3   RCW 9A.56.280 and 1993 c 484 s 1 are each amended to read as follows:
     As used in RCW 9A.56.280 ((and)), 9A.56.290, 9A.60.020, and 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) "Check" means a negotiable instrument that meets the definition of "check" under RCW 62A.3-104 or a blank form instrument that would meet the definition of "check" under RCW 62A.3-104 if it were completed and signed.
     (3) "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))) (4) "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))) (5) "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))) (6) "Debit card" means a card used to obtain goods or services by a transaction that debits the cardholder's account, rather than extending credit.
     (7) "Financial information" means financial information as defined in RCW 9.35.005.
     (8) "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))) (9) "Means of identification" means means of identification as defined in RCW 9.35.005.
     (10) "Merchant" means a person authorized by a financial institution to honor or accept credit cards in payment for goods or services.
     (((7))) (11) "Person" means an individual, partnership, corporation, trust, or unincorporated association, but does not include a financial institution or its authorized employees, representatives, or agents.
     (12) "Personal identification" means any driver's license, passport, or identification card actually or purportedly issued by any federal, state, local or foreign governmental entity; any credit card or debit card; or any employee identification card actually or purportedly issued by any employer, public or private, including but not limited to a badge or identification or access card.

Sec. 4   RCW 9A.56.290 and 1993 c 484 s 2 are each amended 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) In a proceeding under this section that is related to an identity theft under RCW 9.35.020, the crime will be considered to have been committed in any locality where the person whose means of identification or financial information was appropriated resides, or in which any part of the offense took place, regardless of whether the defendant was ever actually in that locality.
     (4) Unlawful factoring of a credit card transaction is a class C felony.

Sec. 5   RCW 9A.60.020 and 1975-'76 2nd ex.s. c 38 s 13 are each amended to read as follows:
     (1) A person is guilty of forgery if, with intent to injure or defraud:
     (a) He falsely makes, completes, or alters a written instrument or;
     (b) He possesses, utters, offers, disposes of, or puts off as true a written instrument which he knows to be forged.
     (2) In a proceeding under this section that is related to an identity theft under RCW 9.35.020, the crime will be considered to have been committed in any locality where the person whose means of identification or financial information was appropriated resides, or in which any part of the offense took place, regardless of whether the defendant was ever actually in that locality.
     (3) Forgery is a class C felony.

Sec. 6   RCW 9A.82.010 and 2001 c 222 s 3 and 2001 c 217 s 11 are each reenacted and amended to read as follows:
     Unless the context requires the contrary, the definitions in this section apply throughout this chapter.
     (1)(a) "Beneficial interest" means:
     (i) The interest of a person as a beneficiary under a trust established under Title 11 RCW in which the trustee for the trust holds legal or record title to real property;
     (ii) The interest of a person as a beneficiary under any other trust arrangement under which a trustee holds legal or record title to real property for the benefit of the beneficiary; or
     (iii) The interest of a person under any other form of express fiduciary arrangement under which one person holds legal or record title to real property for the benefit of the other person.
     (b) "Beneficial interest" does not include the interest of a stockholder in a corporation or the interest of a partner in a general partnership or limited partnership.
     (c) A beneficial interest is considered to be located where the real property owned by the trustee is located.
     (2) "Control" means the possession of a sufficient interest to permit substantial direction over the affairs of an enterprise.
     (3) "Creditor" means a person making an extension of credit or a person claiming by, under, or through a person making an extension of credit.
     (4) "Criminal profiteering" means any act, including any anticipatory or completed offense, committed for financial gain, that is chargeable or indictable under the laws of the state in which the act occurred and, if the act occurred in a state other than this state, would be chargeable or indictable under the laws of this state had the act occurred in this state and punishable as a felony and by imprisonment for more than one year, regardless of whether the act is charged or indicted, as any of the following:
     (a) Murder, as defined in RCW 9A.32.030 and 9A.32.050;
     (b) Robbery, as defined in RCW 9A.56.200 and 9A.56.210;
     (c) Kidnapping, as defined in RCW 9A.40.020 and 9A.40.030;
     (d) Forgery, as defined in RCW 9A.60.020 and 9A.60.030;
     (e) Theft, as defined in RCW 9A.56.030, 9A.56.040, 9A.56.060, and 9A.56.080;
     (f) Unlawful sale of subscription television services, as defined in RCW 9A.56.230;
     (g) Theft of telecommunication services or unlawful manufacture of a telecommunication device, as defined in RCW 9A.56.262 and 9A.56.264;
     (h) Child selling or child buying, as defined in RCW 9A.64.030;
     (i) Bribery, as defined in RCW 9A.68.010, 9A.68.020, 9A.68.040, and 9A.68.050;
     (j) Gambling, as defined in RCW 9.46.220 and 9.46.215 and 9.46.217;
     (k) Extortion, as defined in RCW 9A.56.120 and 9A.56.130;
     (l) Unlawful production of payment instruments, unlawful possession of payment instruments, unlawful possession of a personal identification device, unlawful possession of fictitious identification, or unlawful possession of instruments of financial fraud, as defined in section 1 of this act;
     (m) Extortionate extension of credit, as defined in RCW 9A.82.020;
     (((m))) (n) Advancing money for use in an extortionate extension of credit, as defined in RCW 9A.82.030;
     (((n))) (o) Collection of an extortionate extension of credit, as defined in RCW 9A.82.040;
     (((o))) (p) Collection of an unlawful debt, as defined in RCW 9A.82.045;
     (((p))) (q) Delivery or manufacture of controlled substances or possession with intent to deliver or manufacture controlled substances under chapter 69.50 RCW;
     (((q))) (r) Trafficking in stolen property, as defined in RCW 9A.82.050;
     (((r))) (s) Leading organized crime, as defined in RCW 9A.82.060;
     (((s))) (t) Money laundering, as defined in RCW 9A.83.020;
     (((t))) (u) Obstructing criminal investigations or prosecutions in violation of RCW 9A.72.090, 9A.72.100, 9A.72.110, 9A.72.120, 9A.72.130, 9A.76.070, or 9A.76.180;
     (((u))) (v) Fraud in the purchase or sale of securities, as defined in RCW 21.20.010;
     (((v))) (w) Promoting pornography, as defined in RCW 9.68.140;
     (((w))) (x) Sexual exploitation of children, as defined in RCW 9.68A.040, 9.68A.050, and 9.68A.060;
     (((x))) (y) Promoting prostitution, as defined in RCW 9A.88.070 and 9A.88.080;
     (((y))) (z) Arson, as defined in RCW 9A.48.020 and 9A.48.030;
     (((z))) (aa) Assault, as defined in RCW 9A.36.011 and 9A.36.021;
     (((aa))) (bb) Assault of a child, as defined in RCW 9A.36.120 and 9A.36.130;
     (((bb))) (cc) A pattern of equity skimming, as defined in RCW 61.34.020;
     (((cc))) (dd) Commercial telephone solicitation in violation of RCW 19.158.040(1);
     (((dd))) (ee) Trafficking in insurance claims, as defined in RCW 48.30A.015;
     (((ee))) (ff) Unlawful practice of law, as defined in RCW 2.48.180;
     (((ff))) (gg) Commercial bribery, as defined in RCW 9A.68.060;
     (((gg))) (hh) Health care false claims, as defined in RCW 48.80.030;
     (((hh))) (ii) Unlicensed practice of a profession or business, as defined in RCW 18.130.190(7);
     (((ii))) (jj) Improperly obtaining financial information, as defined in RCW 9.35.010; or
     (((jj))) (kk) Identity theft, as defined in RCW 9.35.020.
     (5) "Dealer in property" means a person who buys and sells property as a business.
     (6) "Debtor" means a person to whom an extension of credit is made or a person who guarantees the repayment of an extension of credit or in any manner undertakes to indemnify the creditor against loss resulting from the failure of a person to whom an extension is made to repay the same.
     (7) "Documentary material" means any book, paper, document, writing, drawing, graph, chart, photograph, phonograph record, magnetic tape, computer printout, other data compilation from which information can be obtained or from which information can be translated into usable form, or other tangible item.
     (8) "Enterprise" includes any individual, sole proprietorship, partnership, corporation, business trust, or other profit or nonprofit legal entity, and includes any union, association, or group of individuals associated in fact although not a legal entity, and both illicit and licit enterprises and governmental and nongovernmental entities.
     (9) "Extortionate extension of credit" means an extension of credit with respect to which it is the understanding of the creditor and the debtor at the time the extension is made that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person, reputation, or property of any person.
     (10) "Extortionate means" means the use, or an express or implicit threat of use, of violence or other criminal means to cause harm to the person, reputation, or property of any person.
     (11) "Financial institution" means any bank, trust company, savings and loan association, savings bank, mutual savings bank, credit union, or loan company under the jurisdiction of the state or an agency of the United States.
     (12) "Pattern of criminal profiteering activity" means engaging in at least three acts of criminal profiteering, one of which occurred after July 1, 1985, and the last of which occurred within five years, excluding any period of imprisonment, after the commission of the earliest act of criminal profiteering. In order to constitute a pattern, the three acts must have the same or similar intent, results, accomplices, principals, victims, or methods of commission, or be otherwise interrelated by distinguishing characteristics including a nexus to the same enterprise, and must not be isolated events. However, in any civil proceedings brought pursuant to RCW 9A.82.100 by any person other than the attorney general or county prosecuting attorney in which one or more acts of fraud in the purchase or sale of securities are asserted as acts of criminal profiteering activity, it is a condition to civil liability under RCW 9A.82.100 that the defendant has been convicted in a criminal proceeding of fraud in the purchase or sale of securities under RCW 21.20.400 or under the laws of another state or of the United States requiring the same elements of proof, but such conviction need not relate to any act or acts asserted as acts of criminal profiteering activity in such civil action under RCW 9A.82.100.
     (13) "Real property" means any real property or interest in real property, including but not limited to a land sale contract, lease, or mortgage of real property.
     (14) "Records" means any book, paper, writing, record, computer program, or other material.
     (15) "Repayment of an extension of credit" means the repayment, satisfaction, or discharge in whole or in part of a debt or claim, acknowledged or disputed, valid or invalid, resulting from or in connection with that extension of credit.
     (16) "Stolen property" means property that has been obtained by theft, robbery, or extortion.
     (17) "To collect an extension of credit" means to induce in any way a person to make repayment thereof.
     (18) "To extend credit" means to make or renew a loan or to enter into an agreement, tacit or express, whereby the repayment or satisfaction of a debt or claim, whether acknowledged or disputed, valid or invalid, and however arising, may or shall be deferred.
     (19) "Traffic" means to sell, transfer, distribute, dispense, or otherwise dispose of stolen property to another person, or to buy, receive, possess, or obtain control of stolen property, with intent to sell, transfer, distribute, dispense, or otherwise dispose of the property to another person.
     (20)(a) "Trustee" means:
     (i) A person acting as a trustee under a trust established under Title 11 RCW in which the trustee holds legal or record title to real property;
     (ii) A person who holds legal or record title to real property in which another person has a beneficial interest; or
     (iii) A successor trustee to a person who is a trustee under (a)(i) or (ii) of this subsection.
     (b) "Trustee" does not mean a person appointed or acting as:
     (i) A personal representative under Title 11 RCW;
     (ii) A trustee of any testamentary trust;
     (iii) A trustee of any indenture of trust under which a bond is issued; or
     (iv) A trustee under a deed of trust.
     (21) "Unlawful debt" means any money or other thing of value constituting principal or interest of a debt that is legally unenforceable in the state in full or in part because the debt was incurred or contracted:
     (a) In violation of any one of the following:
     (i) Chapter 67.16 RCW relating to horse racing;
     (ii) Chapter 9.46 RCW relating to gambling;
     (b) In a gambling activity in violation of federal law; or
     (c) In connection with the business of lending money or a thing of value at a rate that is at least twice the permitted rate under the applicable state or federal law relating to usury.

Sec. 7   RCW 9.94A.515 and 2002 c 340 s 2, 2002 c 324 s 2, 2002 c 290 s 2, 2002 c 253 s 4, 2002 c 229 s 2, 2002 c 134 s 2, and 2002 c 133 s 4 are each reenacted and amended to read as follows:

Sec. 8   RCW 9.94A.515 and 2002 c 340 s 2, 2002 c 324 s 2, 2002 c 290 s 7, 2002 c 253 s 4, 2002 c 229 s 2, 2002 c 134 s 2, and 2002 c 133 s 4 are each reenacted and amended to read as follows:

NEW SECTION.  Sec. 9   Section 7 of this act expires July 1, 2004.

NEW SECTION.  Sec. 10   Section 8 of this act takes effect July 1, 2004.