Establishes crimes relating to false receipts and universal product code labels; defines terms.
TITLE OF BILL: An act to amend the penal law, in relation to establishing crimes relating to false receipts and universal product code labels
PURPOSE: This bill establishes the crime of Retail sales receipt or universal product code fraud in the first and second degrees as well as Possession of a fraudulent retail sales receipt or universal product code manufacturing device.
SUMMARY OF PROVISIONS:
Section 1 adds three new sections to the penal law:
o 165.80 provides definitions of "retail sales receipt" and "uniform product code label"
o 165.81 creates the crime of Retail sales receipt of universal product code fraud in the second degree
o 165.82 creates the crime of Retail sales receipt of universal product code fraud in the first degree
Section 2 provides the effective date.
JUSTIFICATION: According to the Federal Bureau of Investigation, organized retail theft is an industry that costs United States retailers about $30 billion per year. Organized retail crime comprises a wide spectrum of high-volume and highly organized theft rings that cost New York retailers hundreds of millions of dollars annually and, more importantly, compromise the health, safety, and wallet of unsuspecting New York consumers. For every item stolen, New York's state and local governments lose out on sales tax revenue - again, adding up to millions annually. Organized retail theft is the most serious security issue facing many retail merchants, including apparel and accessory retailers, mass merchandisers, do-it-yourself stores, drug stores, and supermarkets. It's a crime that has grown substantially over the past decade, with the emergence of organized criminal theft at an unprecedented level. Retailers are forced to offset these significant costs through higher prices - meaning that honest consumers are forced to endure the impact. of organized retail theft and professional shoplifters.
Organized retail crime groups have employed numerous tactics to defraud retailers and obtain merchandise. Receipt fraud and Uniform Product Code (UPC) fraud are some of the emerging tactics used by these criminals. In receipt fraud, thieves steal merchandise, create counterfeit receipts, and collect money off of their fraudulent returns. In UPC fraud, thieves transfer, make, or alter counterfeit UPC labels and then purchase items at below cost. By amending the Penal Law to criminalize this type of scheme, organized retail crime can be further deterred.
LEGISLATIVE HISTORY: 2012: Passed the Senate (S.7370/A.10554)
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: November 1 succeeding the date on which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 6289 IN SENATE January 9, 2014 ___________Introduced by Sens. ZELDIN, LAVALLE, RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Codes AN ACT to amend the penal law, in relation to establishing crimes relat- ing to false receipts and universal product code labels THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The penal law is amended by adding three new sections 165.80, 165.81 and 165.82 to read as follows: S 165.80 DEFINITIONS; APPLICATION TO OFFENSES REGARDING RETAIL SALES RECEIPTS AND UNIVERSAL PRODUCT CODE LABELS. AS USED IN SECTIONS 165.81 AND 165.82 OF THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. THE TERM "RETAIL SALES RECEIPT" SHALL MEAN ANY HANDWRITTEN OR MACHINE OR COMPUTER PRODUCED DOCUMENT AS PROPERLY ISSUED BY A RETAILER TO ACKNOWLEDGE PAYMENT RECEIVED FROM A CUSTOMER. 2. THE TERM "UNIFORM PRODUCT CODE LABEL" SHALL MEAN ANY BAR CODE OR OTHER CODING SYSTEM DESIGNED TO BE READ BY COMPUTER WHICH CONTAINS PRIC- ING INFORMATION AND OTHER RELATED INFORMATION USED BY A RETAILER AND READ BY A COMPUTER AT A POINT OF PURCHASE FOR PURPOSES OF ESTABLISHING THE SALE PRICE OF A GOOD. S 165.81 RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE. A PERSON IS GUILTY OF RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE WHEN, WITH INTENT TO DECEIVE OR DEFRAUD A PERSON OR PERSONS ENGAGED IN THE RETAIL SALE OF GOODS OR SERVICES, HE OR SHE USES, TRANSFERS, MAKES, ALTERS, COUNTERFEITS OR REPRODUCES A RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE KNOWING SUCH TO BE COUNTERFEIT. RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE IS A CLASS A MISDEMEANOR. S 165.82 RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE. A PERSON IS GUILTY OF RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE WHEN, WITH INTENT TO DECEIVE OR DEFRAUD AEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01453-01-3 S. 6289 2
PERSON OR PERSONS ENGAGED IN THE RETAIL SALE OF GOODS OR SERVICES, HE OR SHE USES, TRANSFERS, MAKES, ALTERS, COUNTERFEITS OR REPRODUCES FIFTEEN OR MORE RETAIL SALES RECEIPTS OR UNIVERSAL PRODUCT CODES OR COMBINATION THEREOF KNOWING SUCH TO BE COUNTERFEIT. RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE IS A CLASS E FELONY. S 2. This act shall take effect on the first of November next succeed- ing the date on which it shall have become a law.