Relates to the prevention of organized retail crime.

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S6956-2011 Actions

• Jun 18, 2012: referred to codes
• Jun 18, 2012: DELIVERED TO ASSEMBLY
• Jun 18, 2012: PASSED SENATE
• Jun 11, 2012: AMENDED ON THIRD READING (T) 6956A
• Jun 4, 2012: ADVANCED TO THIRD READING
• May 31, 2012: 2ND REPORT CAL.
• May 30, 2012: 1ST REPORT CAL.926
• Apr 16, 2012: REFERRED TO CONSUMER PROTECTION

S6956-2011 Meetings

Consumer Protection: May 30, 2012

S6956-2011 Calendars

Floor Calendar: May 31, 2012 , Floor Calendar: Jun 4, 2012 , Floor Calendar: Jun 5, 2012 , Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012

S6956-2011 Votes

S6956-2011 Memo

BILL NUMBER:S6956

TITLE OF BILL:
An act
to amend the general business law and the penal law, in relation to the
prevention of organized retail crime

PURPOSE OR GENERAL IDEA OF BILL:
This bill defines organized retail crime, adds to the general business
law the crime of theft of retail merchandise with an aggregated value
of $1,000, and makes corresponding changes to the penal law to define
such crime as grand larceny in the fourth degree.

SUMMARY OF PROVISIONS:
Section One adds a new article 29-BB to the General Business Law which
contains legislative findings and determinations as they relate to
the prevention of organized retail crime, defines relevant terms for
purposes of this article, and provides for prohibitions against
organized retail crime.

Section Two amends section 155.30 of the penal law by adding new
subdivisions 12 and 13. Pursuant to section 12, grand larceny in the
fourth degree shall include the stealing of property from a retail
mercantile establishment when the aggregated value of price tags,
sticker tags, or otherwise advertised retail prices of such property
exceeds one thousand dollars. Subdivision 13 provides that the
aggregate amount for grand larceny in the fourth degree with regard
to theft of retail merchandise can be calculated by including
property that is stolen over a thirty day period by one or more
persons working in association.

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 welfare of
unsuspecting New York consumers. For every item stolen, New York
state and our 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 and has continued to grow at
unprecedented levels. Retailers
are forced to offset these significant costs through higher
prices meaning that honest and consumers are forced to endure the
impact of organized retail theft and professional shoplifters. The

highly intelligent criminals engaged in organized retail crime are
aware of the monetary limitations under our penal system and
intentionally steal merchandise under these limits in each store.
This legislation would give law enforcement an additional tool in
curbing this form of organized crime.

LEGISLATIVE HISTORY:
None.

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.

S6956-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    6956

                              I N  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

  AN ACT to amend the general business law and the penal law, in  relation
    to the prevention of organized retail crime

    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 a new article
  29-BB to read as follows:


                                ARTICLE 29-BB
                    PREVENTION OF ORGANIZED RETAIL CRIME

  SECTION 527.   LEGISLATIVE FINDINGS AND DETERMINATIONS.
          527-A. ORGANIZED RETAIL CRIME.
          527-B. ORGANIZED RETAIL THEFT WITH AGGREGATE VALUE OF ONE  THOU-
                   SAND DOLLARS OR MORE.

    S  527.  LEGISLATIVE  FINDINGS AND DETERMINATIONS. (A) THE LEGISLATURE
  FINDS AND DETERMINES THAT ORGANIZED RETAIL CRIME IS A DISTURBING  CRIMI-
  NAL  ENTERPRISE  THAT  INVOLVES  THE LARGE SCALE THEFT OF CONSUMER ITEMS
  FROM RETAIL COMMERCIAL ESTABLISHMENTS. SUCH CRIMINAL ACTIVITY HAS  BROAD
  AND DETRIMENTAL IMPLICATIONS FOR NEW YORK, ITS BUSINESSES AND CONSUMERS,
  AND  ADVERSELY  AFFECTS  THE HEALTH, SAFETY AND WELFARE OF ALL CITIZENS.
  ORGANIZED RETAIL CRIME IS UNDERTAKEN  BY  PROFESSIONAL  SHOPLIFTERS  WHO
  STEAL  OR FRAUDULENTLY OBTAIN MERCHANDISE WITH THE INTENT TO RESELL SUCH
  ITEMS TO INDIVIDUALS OR COMMERCIAL MARKETPLACES.
    (B) THE LEGISLATURE FURTHER  FINDS  AND  DECLARES  THAT  THE  ECONOMIC
  IMPACT  OF  ORGANIZED  RETAIL CRIME EXTENDS FAR BEYOND THE MANUFACTURING
  AND RETAIL INDUSTRY, AND INCLUDES COSTS AND INCONVENIENCES  INCURRED  BY
  CONSUMERS,  A  REDUCTION  IN  POTENTIAL  COMMERCIAL  EMPLOYMENT  AND JOB
  GROWTH, AND A LOSS OF SALES TAX REVENUE FOR THE STATE  AND  ITS  LOCALI-
  TIES.  THE  SCOPE,  SIZE  AND SOPHISTICATION OF LOSS PREVENTION MEASURES
  DEPLOYED BY RETAILERS TO PREVENT SUCH CRIMINAL ACTIVITY  ARE  ULTIMATELY
  BORNE BY CONSUMERS IN THE FORM OF HIGHER PRICES OF RETAIL GOODS, AND THE

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD15354-01-2

 S. 6956                             2

  THEFT  AND UNREGULATED RESALE OF STOLEN RETAIL ITEMS, SUCH AS CONSUMABLE
  AND HEALTH AND BEAUTY PRODUCTS, CAN PRESENT SUBSTANTIAL  HEALTH,  SAFETY
  AND  QUALITY  CONCERNS FOR INDIVIDUAL CONSUMERS WHO PURCHASE THESE GOODS
  UNAWARE THAT THEY ARE BEING OFFERED FOR SALE AS A RESULT OF AN ORGANIZED
  RETAIL CRIME TRANSACTION.
    (C)  THE  LEGISLATURE  FURTHER  FINDS AND DECLARES THAT THE STATE MUST
  TAKE SERIOUS ACTION TO COMBAT THE ISSUE OF ORGANIZED RETAIL  CRIME,  AND
  TO  PREVENT  ITS  OCCURRENCE. THAT MEASURES MUST BE ENACTED IN BOTH THIS
  ARTICLE AND THE PENAL LAW, TO DETER AND PUNISH  SUCH  BEHAVIOR,  AND  TO
  PROMOTE  A RETAIL ATMOSPHERE IN NEW YORK WHERE THIS TYPE OF CONDUCT WILL
  NOT OCCUR. THROUGH THE ESTABLISHMENT OF SUCH MEASURES, IT IS THE  INTEN-
  TION OF THIS LEGISLATURE TO DETER AND PUNISH ORGANIZED RETAIL CRIME, AND
  TO  PROMOTE AND PROTECT THE HEALTH, SAFETY AND ECONOMIC AFFORDABILITY OF
  NEW YORK'S CONSUMERS.
    S 527-A. ORGANIZED RETAIL CRIME. (A) DEFINITIONS. FOR THE PURPOSES  OF
  THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:

    1.  "ACCESS  DEVICE"  SHALL MEAN ANY CARD, INCLUDING GIFT CARD, PLATE,
  CODE, INCLUDING UNIVERSAL PRICE CODE LABEL, ACCOUNT  NUMBER,  ELECTRONIC
  SERIAL  NUMBER,  MOBILE  IDENTIFICATION  NUMBER, PERSONAL IDENTIFICATION
  NUMBER, OR OTHER TELECOMMUNICATIONS SERVICE,  EQUIPMENT,  OR  INSTRUMENT
  IDENTIFIER,  INCLUDING  A RADIO FREQUENCY IDENTIFICATION TRANSPONDER, OR
  OTHER MEANS OF ACCOUNT ACCESS THAT CAN BE USED, ALONE OR IN  CONJUNCTION
  WITH  ANOTHER  ACCESS  DEVICE,  TO OBTAIN MONEY, GOODS, SERVICES, OR ANY
  OTHER THING OF VALUE, OR THAT CAN BE USED  TO  INITIATE  A  TRANSFER  OF
  FUNDS (OTHER THAN A TRANSFER ORIGINATED SOLELY BY PAPER INSTRUMENT);
    2. "ANTI-SHOPLIFTING OR INVENTORY CONTROL DEVICE COUNTERMEASURE" SHALL
  MEAN  ANY  ITEM  OR DEVICE WHICH IS DESIGNED, MANUFACTURED, MODIFIED, OR
  ALTERED TO DEFEAT ANY ANTI-SHOPLIFTING OR INVENTORY CONTROL DEVICE;
    3. "CONCEAL" SHALL MEAN TO HIDE, COVER, OR OTHERWISE DISGUISE MERCHAN-
  DISE SO THAT, ALTHOUGH THERE MAY BE SOME NOTICE OF ITS PRESENCE,  IT  IS
  NOT VISIBLE THROUGH ORDINARY OBSERVATION;
    4.  "CREDIT  CARD SYSTEM NUMBER" SHALL MEAN A FINANCIAL INSTITUTION OR
  OTHER ENTITY THAT IS A MEMBER OF A  CREDIT  CARD  SYSTEM,  INCLUDING  AN
  ENTITY,  WHETHER AFFILIATED WITH OR IDENTICAL TO THE CREDIT CARD ISSUER,
  THAT IS THE SOLE MEMBER OF A CREDIT CARD SYSTEM;
    5. "COUNTERFEIT ACCESS DEVICE" SHALL MEAN ANY ACCESS  DEVICE  THAT  IS
  COUNTERFEIT,  FICTITIOUS,  ALTERED, OR FORGED, OR AN IDENTIFIABLE COMPO-
  NENT OF AN ACCESS DEVICE OR A COUNTERFEIT ACCESS DEVICE;
    6. "DEVICE-MAKING EQUIPMENT" SHALL MEAN ANY EQUIPMENT,  MECHANISM,  OR
  IMPRESSION  DESIGNED OR PRIMARILY USED FOR MAKING AN UNAUTHORIZED ACCESS
  DEVICE OR A COUNTERFEIT ACCESS DEVICE;
    7. "FULL RETAIL VALUE" SHALL MEAN THE MERCHANT'S STATED OR  ADVERTISED
  PRICE OF THE MERCHANDISE;
    8.  "MERCHANDISE"  SHALL MEAN ANY GOODS, CHATTELS, FOODSTUFFS OR WARES
  OF ANY TYPE AND DESCRIPTION, REGARDLESS OF THE VALUE THEREOF;
    9. "MERCHANT" SHALL MEAN ANY OWNER OR OPERATOR OF ANY STORE  OR  OTHER
  RETAIL   MERCANTILE  ESTABLISHMENT,  OR  ANY  AGENT,  EMPLOYEE,  LESSEE,
  CONSIGNEE, OFFICER, DIRECTOR, FRANCHISEE, OR INDEPENDENT  CONTRACTOR  OF
  SUCH OWNER OR PROPRIETOR;
    10.  "ORGANIZED  RETAIL  THEFT" SHALL MEAN (1) THE STEALING, EMBEZZLE-
  MENT, OR OBTAINING BY FRAUD, FALSE PRETENSES, OR OTHER ILLEGAL MEANS, OF
  RETAIL MERCHANDISE IN QUANTITIES THAT WOULD NOT  NORMALLY  BE  PURCHASED
  FOR  PERSONAL  USE OR CONSUMPTION FOR THE PURPOSE OF RESELLING OR OTHER-
  WISE REENTERING SUCH RETAIL MERCHANDISE IN COMMERCE, OR (2) THE RECRUIT-
  MENT OF PERSONS TO UNDERTAKE,  OR  THE  COORDINATION,  ORGANIZATION,  OR

 S. 6956                             3

  FACILITATION  OF,  SUCH  STEALING,  EMBEZZLEMENT, OR OBTAINING BY FRAUD,
  FALSE PRETENSES, OR OTHER ILLEGAL MEANS;
    11.  "ORGANIZED RETAIL THEFT ENTERPRISE" SHALL MEAN ANY ASSOCIATION OF
  TWO OR MORE PERSONS WHO ENGAGE IN THE CONDUCT OF OR ARE  ASSOCIATED  FOR
  THE PURPOSE OF EFFECTUATING ORGANIZED RETAIL THEFT OR ANY OTHER TRANSFER
  OR SALE OF SHOPLIFTED MERCHANDISE;
    12.  "PERSON"  SHALL  MEAN ANY INDIVIDUAL OR INDIVIDUALS, INCLUDING AN
  AGENT, OR EMPLOYEE OF A MERCHANT WHERE THE FACTS  OF  THE  SITUATION  SO
  REQUIRE;
    13.  "PREMISES  OF  A  STORE OR RETAIL MERCANTILE ESTABLISHMENT" SHALL
  MEAN AND INCLUDE BUT BE NOT LIMITED TO THE RETAIL MERCANTILE  ESTABLISH-
  MENT, ANY COMMON-USE AREAS IN SHOPPING CENTERS AND ALL PARKING AREAS SET
  ASIDE  BY A MERCHANT OR ON BEHALF OF A MERCHANT FOR THE PARKING OF VEHI-
  CLES FOR THE CONVENIENCE OF THE PATRONS OF SUCH RETAIL MERCANTILE ESTAB-
  LISHMENT;
    14. "PRODUCE" SHALL MEAN DESIGN, ALTER,  AUTHENTICATE,  DUPLICATE,  OR
  ASSEMBLE;
    15.  "RETAIL  SALES  RECEIPT" SHALL MEAN ANY HANDWRITTEN OR MACHINE OR
  COMPUTER PRODUCED DOCUMENT AS PROPERLY ISSUED BY A RETAILER TO  ACKNOWL-
  EDGE PAYMENT RECEIVED BY A CUSTOMER;
    16.  "SHOPLIFTING"  SHALL  MEAN  TO  (1) PURPOSELY TAKE POSSESSION OF,
  CARRY  AWAY,  TRANSFER  OR  CAUSE  TO  BE  TRANSFERRED  ANY  MERCHANDISE
  DISPLAYED,  HELD,  STORED,  OR  OFFERED  FOR  SALE BY ANY STORE OR OTHER
  RETAIL MERCANTILE ESTABLISHMENT WITH  THE  INTENTION  OF  DEPRIVING  THE
  MERCHANT  OF  THE  POSSESSION,  USE  OR  BENEFIT  OF SUCH MERCHANDISE OR
  CONVERTING THE SAME TO THE USE OF SUCH  PERSON  WITHOUT  PAYING  TO  THE
  MERCHANT THE VALUE THEREOF; (2) PURPOSELY CONCEAL UPON HIS OR HER PERSON
  OR  OTHERWISE  ANY  MERCHANDISE  OFFERED  FOR SALE BY ANY STORE OR OTHER
  RETAIL MERCANTILE ESTABLISHMENT WITH  THE  INTENTION  OF  DEPRIVING  THE
  MERCHANT  OF  THE  PROCESSES,  USE  OR  BENEFIT  OF  SUCH MERCHANDISE OR
  CONVERTING THE SAME TO THE USE OF SUCH  PERSON  WITHOUT  PAYING  TO  THE
  MERCHANT  THE  FULL  RETAIL  VALUE  THEREOF;  (3) PURPOSELY AND WITH THE
  INTENT TO DEFRAUD, TO ALTER, TRANSFER OR REMOVE ANY LABEL, PRICE TAG  OR
  MARKING  INDICIA OF VALUE OR ANY OTHER MARKINGS WHICH AID IN DETERMINING
  VALUE AFFIXED TO ANY MERCHANDISE DISPLAYED, HELD, STORED OR OFFERED  FOR
  SALE  BY  ANY  STORE  OR  OTHER  RETAIL  MERCANTILE ESTABLISHMENT AND TO
  ATTEMPT TO PURCHASE SUCH  MERCHANDISE  PERSONALLY  OR  IN  CONSORT  WITH
  ANOTHER AT LESS THAN THE FULL RETAIL VALUE WITH THE INTENTION OF DEPRIV-
  ING THE MERCHANT OF ALL OR SOME PART OF THE VALUE THEREOF; (4) PURPOSELY
  TRANSFER  ANY MERCHANDISE DISPLAYED, HELD, STORED OR OFFERED FOR SALE BY
  ANY STORE OR OTHER RETAIL MERCANTILE ESTABLISHMENT FROM THE CONTAINER IN
  OR ON WHICH THE SAME SHALL BE DISPLAYED  TO  ANY  OTHER  CONTAINER  WITH
  INTENT  TO  DEPRIVE THE MERCHANT OF ALL OR SOME PART OF THE RETAIL VALUE
  THEREOF; OR (5) PURPOSELY UNDER-RING WITH THE INTENTION OF DEPRIVING THE
  MERCHANT OF THE FULL RETAIL VALUE THEREOF;
    17. "STORE OR OTHER RETAIL  MERCANTILE  ESTABLISHMENT"  SHALL  MEAN  A
  PLACE  WHERE  MERCHANDISE  IS DISPLAYED, HELD, STORED, OR OFFERED TO THE
  PUBLIC FOR SALE;
    18. "TRAFFIC" SHALL MEAN TRANSFER, OR OTHERWISE DISPOSE OF, TO ANOTHER
  IN A FRAUDULENT MANNER, OR OBTAIN CONTROL OF WITH INTENT TO FRAUDULENTLY
  TRANSFER OR DISPOSE OF;
    19. "UNAUTHORIZED ACCESS DEVICE" SHALL MEAN ANY ACCESS DEVICE THAT  IS
  LOST,  STOLEN,  EXPIRED,  REVOKED,  CANCELED, OR OBTAINED WITH INTENT TO
  DEFRAUD;

 S. 6956                             4

    20. "UNDER-RING" SHALL MEAN TO CAUSE THE CASH REGISTER OR  OTHER  SALE
  RECORDING  DEVICE  TO  REFLECT  LESS  THAN  THE FULL RETAIL VALUE OF THE
  MERCHANDISE; AND
    21.  "UNIFORM  PRODUCT  CODE  LABEL"  SHALL MEAN ANY BAR CODE OR OTHER
  CODING SYSTEM DESIGNED TO BE READ BY  COMPUTER  WHICH  CONTAINS  PRICING
  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.
    (B) ORGANIZED RETAIL CRIME. THE PRACTICE OF  ORGANIZED  RETAIL  CRIME,
  INCLUDING  ORGANIZED  RETAIL  THEFT,  LEADING  AN ORGANIZED RETAIL THEFT
  ENTERPRISE, AND CRIMINAL  PRACTICES  WITH  AN  ACCESS  DEVICE  SHALL  BE
  PROHIBITED  AND UNLAWFUL UNDER THIS ARTICLE AND PURSUANT TO ARTICLES ONE
  HUNDRED FIFTY-FIVE AND ONE HUNDRED SIXTY-FIVE OF THE PENAL LAW.
    S 527-B. ORGANIZED RETAIL THEFT WITH AGGREGATE VALUE OF  ONE  THOUSAND
  DOLLARS  OR  MORE.  A  PERSON  SHALL BE GUILTY OF ORGANIZED RETAIL THEFT
  WHEN:

    (A) THE PROPERTY IS STOLEN FROM A RETAIL MERCANTILE  ESTABLISHMENT  AS
  DEFINED  IN SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER AND THE AGGRE-
  GATED VALUE OF PRICE TAGS, STICKER TAGS, OR OTHERWISE ADVERTISED  RETAIL
  PRICES OF SUCH PROPERTY EXCEEDS ONE THOUSAND DOLLARS.
    (B)  THE  PROPERTY  IS STOLEN BY ONE PERSON, OR BY TWO OR MORE PERSONS
  WORKING IN ASSOCIATION, FROM ONE OR  MORE  THAN  ONE  RETAIL  MERCANTILE
  ESTABLISHMENT  AS DEFINED IN SECTION TWO HUNDRED SEVENTEEN OF THIS CHAP-
  TER WITHIN A PERIOD OF THIRTY DAYS OR LESS BETWEEN THE FIRST AND  SECOND
  EPISODE,  THE  SECOND  AND  THIRD  EPISODE,  OR  BETWEEN  ANY SUCCEEDING
  EPISODES, AND THE AGGREGATED VALUE OF PRICE  TAGS,  STICKER  PRICES,  OR
  OTHERWISE ADVERTISED RETAIL PRICES OF SUCH PROPERTY EXCEEDS ONE THOUSAND
  DOLLARS.
    ORGANIZED RETAIL THEFT WITH AGGREGATE VALUE OF ONE THOUSAND DOLLARS OR
  MORE SHALL BE A CLASS E FELONY.
    S  2.  Section  155.30  of  the penal law is amended by adding two new
  subdivisions 12 and 13 to read as follows:

    12. THE PROPERTY IS STOLEN FROM A RETAIL MERCANTILE  ESTABLISHMENT  AS
  DEFINED IN SECTION TWO HUNDRED SEVENTEEN OF THE GENERAL BUSINESS LAW AND
  THE  AGGREGATED  VALUE  OF PRICE TAGS, STICKER TAGS, OR OTHERWISE ADVER-
  TISED RETAIL PRICES OF SUCH PROPERTY EXCEEDS ONE THOUSAND DOLLARS.
    13. THE PROPERTY IS STOLEN BY ONE PERSON, OR BY TWO  OR  MORE  PERSONS
  WORKING  IN  ASSOCIATION,  FROM  ONE  OR MORE THAN ONE RETAIL MERCANTILE
  ESTABLISHMENT AS DEFINED IN SECTION TWO HUNDRED SEVENTEEN OF THE GENERAL
  BUSINESS LAW WITHIN A PERIOD OF THIRTY DAYS OR LESS  BETWEEN  THE  FIRST
  AND  SECOND  EPISODE,  THE  SECOND  AND  THIRD  EPISODE,  OR BETWEEN ANY
  SUCCEEDING EPISODES, AND THE AGGREGATED VALUE  OF  PRICE  TAGS,  STICKER
  PRICES,  OR  OTHERWISE ADVERTISED RETAIL PRICES OF SUCH PROPERTY EXCEEDS
  ONE THOUSAND DOLLARS.
    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.