Bill S6955A-2011

Creates the crime of fraudulent retail sales receipts or universal product code fraud

Creates the crime of fraudulent retail sales receipts or universal product code fraud.

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  • Jun 21, 2012: COMMITTED TO RULES
  • Jun 4, 2012: ADVANCED TO THIRD READING
  • May 31, 2012: 2ND REPORT CAL.
  • May 30, 2012: 1ST REPORT CAL.925
  • Apr 19, 2012: PRINT NUMBER 6955A
  • Apr 19, 2012: AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • Apr 16, 2012: REFERRED TO CONSUMER PROTECTION

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Votes

VOTE: COMMITTEE VOTE: - Consumer Protection - May 30, 2012
Ayes (10): Zeldin, Ball, Fuschillo, Little, Marcellino, O'Mara, Adams, Hassell-Thompson, Huntley, Squadron

Memo

BILL NUMBER:S6955A

TITLE OF BILL: An act to amend the general business law and the penal law, in relation to creating a crime of retail sales receipt fraud or universal product code fraud

PURPOSE OR GENERAL IDEA OF BILL: This bill prohibits retail sales receipt fraud and universal product code fraud and provides for criminal penalties for such crimes.

SUMMARY OF PROVISIONS: Section One amends the general business law by adding, new sections 393-e, 393-f and 393-g which define and prohibit retail sales receipt fraud or universal product code fraud in the second degree, retail sales receipt fraud or universal product code fraud in the first degree, and possession of fraudulent retail sales receipt or universal product code manufacturing devices respectively.

Section Two makes corresponding amendments to the penal law by adding new sections 165.80, 165.81, and 165.82. Retail sales receipt fraud or universal product code fraud in the second degree is classified as a class A misdemeanor. Retail sales receipt fraud or universal product code fraud in the first degree is classified as a class E felony. Possession of fraudulent retail sales receipt or universal product code manufacturing devices is also classified as a class E felony.

Section Three is 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. And 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 tactic 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

general business law and the penal law to criminalize this type of scheme, organized retail crime can be further deterred.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the first of November next succeeding the date on which it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 6955--A IN SENATE April 16, 2012 ___________
Introduced by Sen. ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law and the penal law, in relation to creating a crime of retail sales receipt fraud or universal product code fraud THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general business law is amended by adding three new sections 393-e, 393-f and 393-g to read as follows: S 393-E. RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE. A PERSON IS GUILTY OF RETAIL SALES RECEIPT FRAUD 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, COUNTER- FEITS OR REPRODUCES A RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE KNOWING SUCH TO BE COUNTERFEIT. RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE IS A CLASS A MISDEMEANOR. S 393-F. RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE. A PERSON IS GUILTY OF RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST 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, COUNTER- FEITS OR REPRODUCES FIFTEEN OR MORE RETAIL SALES RECEIPTS OR UNIVERSAL PRODUCT CODES OR COMBINATION THEREOF KNOWING SUCH TO BE COUNTERFEIT. RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE IS A CLASS E FELONY. S 393-G. POSSESSION OF A FRAUDULENT RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE MANUFACTURING DEVICE. A PERSON IS GUILTY OF POSSESSION OF A FRAUDULENT RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE MANUFACTUR- ING DEVICE WHEN, WITH INTENT TO DECEIVE OR DEFRAUD A PERSON OR PERSON ENGAGED IN THE RETAIL SALE OF GOODS OR SERVICES, HE OR SHE POSSESSES A
DEVICE THAT MANUFACTURES FRAUDULENT RETAIL SALES RECEIPTS OR UNIVERSAL PRODUCT CODE LABELS. POSSESSION OF A FRAUDULENT RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE MANUFACTURING DEVICE IS A CLASS E FELONY. S 2. The penal law is amended by adding three new sections 165.80, 165.81 and 165.82 to read as follows: S 165.80 RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE. A PERSON IS GUILTY OF RETAIL SALES RECEIPT FRAUD 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 COUN- TERFEIT. (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 BY 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 POINT OF PURCHASE FOR PURPOSES OF ESTABLISHING THE SALE PRICE OF A GOOD. RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE SECOND DEGREE IS A CLASS A MISDEMEANOR. S 165.81 RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE. A PERSON IS GUILTY OF RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST 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 FIFTEEN OR MORE RETAIL SALES RECEIPTS OR UNIVERSAL PRODUCT CODES OR COMBINATION THEREOF KNOWING SUCH TO BE COUNTERFEIT. (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 BY 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 POINT OF PURCHASE FOR PURPOSES OF ESTABLISHING THE SALE PRICE OF A GOOD. RETAIL SALES RECEIPT FRAUD OR UNIVERSAL PRODUCT CODE FRAUD IN THE FIRST DEGREE IS A CLASS E FELONY. S 165.82 POSSESSION OF A FRAUDULENT RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE MANUFACTURING DEVICE. A PERSON IS GUILTY OF POSSESSION OF A FRAUDULENT RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE MANUFACTURING DEVICE WHEN, WITH INTENT TO DECEIVE OR DEFRAUD A PERSON OR PERSON ENGAGED IN THE RETAIL SALE OF GOODS OR SERVICES, HE OR SHE POSSESSES A DEVICE THAT MANUFACTURES FRAU- DULENT RETAIL SALES RECEIPTS OR UNIVERSAL PRODUCT CODE LABELS. (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 BY 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 POINT OF PURCHASE FOR PURPOSES OF ESTABLISHING THE SALE PRICE OF A GOOD. POSSESSION OF A FRAUDULENT RETAIL SALES RECEIPT OR UNIVERSAL PRODUCT CODE MANUFACTURING DEVICE IS A CLASS E FELONY. S 3. This act shall take effect on the first of November next succeed- ing the date on which it shall have become a law.

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