HB319 Alabama 2016 Session

Under existing law, a person commits the crime of encoded data fraud by (1) possessing a scanning device and using or attempting to use the device to read, obtain, memorize, or store information encoded on an identification document by means of a magnetic strip; or (2) possessing or using a reencoder to place encoded information on an identification document by means of a magnetic strip.

This bill would expand the crime of encoded data fraud to include the possession of a purported credit or debit card that was not legitimately issued by a financial institution or other entity for fraudulent purposes.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

To amend Section 13A-8-113, Code of Alabama 1975, relating to the crime of encoded data fraud, to expand the crime to include the possession of a purported credit or debit card that was not legitimately issued by a financial institution or other entity for fraudulent purposes; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.