Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Public Safety Committee

HB 2899

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Making the unlawful possession of instruments of financial fraud a crime.

Sponsors: Representatives Kirby and Ryu.

Brief Summary of Bill

  • Makes possession of a device that has the ability to capture, read, scan, store, record, transmit, or receive financial information from an access device, a class C felony, when the intent is to commit financial fraud.

Hearing Date: 2/2/16

Staff: Yvonne Walker (786-7841).

Background:

A person can commit financial fraud in a variety of ways including, but not limited to, the unlawful:

  1. Production of Payment Instruments: printing or producing 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 that person or entity.

  2. Possession of Payment Instruments: possessing two or more checks or other payment instruments, alone or in combination, in the name of another person, entity, or fictitious person or entity, or with a fictitious routing number or account number to commit theft, forgery, or identity theft.

  3. Possession of a Personal Identification Device: possessing a personal identification device with intent to use the device to commit theft, forgery, or identity theft.

  4. Possession of Fictitious Identification: possessing a personal identification card with a fictitious person's identification with intent to use the identification card to commit theft, forgery, or identity theft.

  5. Possession of Instruments of Financial Fraud: possessing 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 other person or organization.

Such crimes are seriousness level I, class C felony offenses. A first-time offender would receive a presumptive sentence of zero to 60 days in jail.

An "access device" means any card, plate, code, account number, or other means of account access that can be used alone or in conjunction with another access device to obtain money, goods, services, or anything else of value, or that can be used to initiate a transfer of funds, other than a transfer originated solely by paper instrument.

Summary of Bill:

The crime of Unlawful Possession of Instruments is created. A person is guilty of Unlawful Possession of Instruments of Financial Fraud if he or she possesses a device that has the ability to capture, read, scan, store, record, transmit, or receive financial information from an access device, with the intent to commit financial fraud. Unlawful Possession of Instruments of Financial Fraud is a class C felony offense.

A device that has the ability to capture, read, scan, store, record, transmit, or receive financial information may include, but is not limited to: automated teller machine (ATM) overlays, wireless devices, magnetic card readers, video recorders, memory and data storage devices, and wireless transmitters and receivers.

This act goes into effect January 1, 2017.

Appropriation: None.

Fiscal Note: Requested on January 26, 2016.

Effective Date: The bill takes effect on January 1, 2017.