FUEL PUMP SKIMMER PREVENTION

House Bill 5797 as introduced

Sponsor:  Rep. Ben Glardon

Committee:  Regulatory Reform

Complete to 9-21-16

SUMMARY:

House Bill 5797 would amend the Weights and Measures Act (PA 283 of 1964) by adding a new Section 28F. This section would require that a petroleum motor fuel pump include a security measure to restrict unauthorized access of customer payment card information. The bill would take effect on October 1, 2017.

Specifically, HB 5797 requires that one of the following be installed on the pump as the security measure:

o   Pressure-sensitive security tape imprinted with a customized graphic and placed over the panel opening leading to the scanning device so as to restrict unauthorized opening of the panel.

o   A device or system to render the pump or the scanning device inoperable if the panel is opened without proper authorization.

o   A means for encrypting the customer payment card information in the scanning device.

o   Any other measure approved by the Department of Agriculture and Rural Development (MDARD).

If the owner, or agent of the owner, of a pump required to have a security measure receives a written notice of noncompliance, he or she must bring the pump into compliance within five days after receipt of the notice of noncompliance. Upon the failure to do so, the department may prohibit the use of the pump until a properly functioning security measure is installed on the device.

"Customer payment card" would mean a credit or debit card or other card encoded to provide an electronic means for initiating a fund transfer from the customer's deposit account or for initiating electronic billing.

"Scanning device" would mean a scanner, reader, or any other electronic device that is used to access, read, scan, obtain, memorize, or store, temporarily or permanently, information encoded on the magnetic strip or stripe of a customer payment card.

FISCAL IMPACT:

A fiscal analysis is in process.

                                                                                         Legislative Analyst:  Josh Roesner

                                                                                                 Fiscal Analyst:  William E. Hamilton

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.