senate Bill S6955A

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

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

Summary

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

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Bill Details

See Assembly Version of this Bill:
A10325
Versions:
S6955
S6955A
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Add §§393-e - 393-g, Gen Bus L; add §§165.80 - 165.82, Pen L

Votes

10
0
10
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Consumer Protection committee vote details

Sponsor 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.

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

                                 6955--A

                            I N  S E N A T E

                             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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15279-03-2

S. 6955--A                          2

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

S. 6955--A                          3

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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