Assembly Bill A9153

                                BILL NUMBER:A9153

TITLE OF BILL:  An act to amend the general business law and the penal
law, in relation to written false statements made by any person to a
collateral loan broker or second hand dealer regarding any loan made by
such broker or sale to such dealer

PURPOSE OF GENERAL IDEA OF BILL:  Add false declaration of ownership of
pledged property to a pawnbroker to the definition of larceny.

To amend the Penal Law to make it a crime when a pledgor issues a false
declaration of ownership to a pawnbroker in connection with making a
loan.

SUMMARY OF SPECIFIC PROVISIONS:  1. General Business Law § 44 is amended
by adding a new subdivision 4 to authorize the inclusion in a note or
memorandum used in connection with a collateral loan transaction
language advising the borrower that in signing the document, he or she
is affirming that the statements therein are trued under penalty of the
offenses of larceny and/or making a punishable false written statement.

2. The Penal Law is amended by adding anew § 210.45(2) specifically
providing that a person commits the crime of making a punishable false
written statement when he or she knowingly makes a false statement,
which he or she does not believe to be true in connection with obtaining
a loan from a collateral loanbroker or proceeds of sale to a second hand
              

dealer. The loan/ sale document must contain a from notice to the effect
that the false statements made therein are punishable. The crime is
punishable as a class A misdemeanor.

JUSTIFICATION:  A party seeking to secure a loan from a collateral loan-
broker uses personal property (typically jewelry) as collateral. The
borrower is required to affirm, in writing, that he or she is the owner
of the property. Only a relatively small number of collateral loanbroker
transactions involve stolen property. Career criminals are well aware of
the record keeping requirements regarding property pledged to a collat-
eral loanbroker. Nevertheless, in instances where a collateral loanbrok-
er, without knowledge, receives stolen property as collateral from the
general public, the collateral loanbroker mush return the property to
the true owner and in virtually all cases is unable to recover anything
from the wrongdoer. This bill will help reduce the frequency of these
cases by increasing the likelihood of prosecutions and will also help
the collateral loanbroker in his or her effort to secure recovery from
the wrongdoer, since restitution often times can be included as a condi-
tion of any early release, plea arrangement or probation. Second hand
dealers face a similar threat and this bill will afford second hand
dealers the same protection.

LEGISLATIVE HISTORY: New bills

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: 60th day after it becomes a law