S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2254
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2019
                                ___________
 
 Introduced  by M. of A. GANTT -- read once and referred to the Committee
   on Codes
 
 AN ACT to amend the penal law, in relation to prohibiting criminal pros-
   ecution under certain rental-purchase agreements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Section 165.00 of the penal law, as amended by chapter 372
 of the laws of 1995, is amended to read as follows:
 § 165.00 Misapplication of property.
   1. A person is guilty of misapplication of  property  when,  knowingly
 possessing  personal  property  of another pursuant to an agreement that
 the same will be returned to the owner at a future time,
   (a) he OR SHE loans, leases, pledges,  pawns  or  otherwise  encumbers
 such property without the consent of the owner thereof in such manner as
 to  create  a risk that the owner will not be able to recover it or will
 suffer pecuniary loss; or
   (b) he OR SHE intentionally refuses to return personal property valued
 in excess of one hundred dollars to the owner pursuant to the  terms  of
 the  rental  agreement provided that the owner shall have made a written
 demand for the return of such personal property in person or  by  certi-
 fied  mail at an address indicated in the rental agreement and he OR SHE
 intentionally refuses to return such personal property for a  period  of
 thirty  days  after  such  demand has been received or should reasonably
 have been received by him OR HER. Such written demand shall  state:  (i)
 the  date  and  time  at  which  the  personal property was to have been
 returned under the rental  agreement;  (ii)  that  the  owner  does  not
 consent to the continued withholding or retaining of such personal prop-
 erty and demands its return; and (iii) that the continued withholding or
 retaining  of the property may constitute a class A misdemeanor punisha-
 ble by a fine of up to one thousand dollars or by a sentence to  a  term

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00449-01-9
              

 A. 2254                             2
 
 of  imprisonment for a period of up to one year or by both such fine and
 imprisonment.
   (c)  as  used  in paragraph (b) of this subdivision and in subdivision
 three of this section, the terms owner, personal  property,  and  rental
 agreement  shall  be  defined  as  [in  subdivision one of section three
 hundred ninety-nine-w of the general business law.] FOLLOWS:
   (I) "OWNER" SHALL INCLUDE ANY PERSON, PARTNERSHIP, FIRM,  ASSOCIATION,
 OR  CORPORATION ENGAGED IN THE BUSINESS OF RENTING PERSONAL PROPERTY FOR
 PROFIT;
   (II) "PERSONAL PROPERTY" SHALL INCLUDE BUT NOT BE LIMITED TO  TANGIBLE
 CHATTELS  USED  FOR  PERSONAL, HOUSEHOLD, OR BUSINESS PURPOSES BUT SHALL
 NOT INCLUDE MOTOR VEHICLES; AND
   (III) "RENTAL AGREEMENT" SHALL MEAN THE TOTAL  LEGAL  OBLIGATION  THAT
 RESULTS  FROM  A  WRITTEN RENTAL CONTRACT BETWEEN A PERSON AND THE OWNER
 FOR THE RENTAL OF PERSONAL PROPERTY.
   2. In any prosecution under paragraph (a) of subdivision one  of  this
 section,  it  is  a  defense  that,  at  the  time  the  prosecution was
 commenced, (a) the defendant had recovered possession of  the  property,
 unencumbered  as a result of the unlawful disposition, and (b) the owner
 had suffered no material economic loss  as  a  result  of  the  unlawful
 disposition.
   3.  In  any prosecution under paragraph (b) of subdivision one of this
 section, it is a defense that at the time the prosecution was commenced,
 (a) the owner had recovered possession  of  the  personal  property  and
 suffered  no  material  economic  loss  as  a  result  of  the  unlawful
 retention; or (b) the defendant is unable to return such personal  prop-
 erty  because  it  has been accidentally destroyed or stolen; or (c) the
 owner failed to comply with the  provisions  of  section  three  hundred
 ninety-nine-w  of  the  general  business  law AS ADDED BY CHAPTER THREE
 HUNDRED SEVENTY-TWO OF THE LAWS OF NINETEEN HUNDRED NINETY-FIVE.
   4. THIS SECTION SHALL NOT APPLY TO PROPERTY SUBJECT TO  A  RENTAL-PUR-
 CHASE  AGREEMENT.  A  "RENTAL-PURCHASE AGREEMENT" MEANS AN AGREEMENT FOR
 THE USE OF MERCHANDISE BY A CONSUMER FOR PERSONAL, FAMILY, OR  HOUSEHOLD
 PURPOSES,  FOR AN INITIAL PERIOD OF FOUR MONTHS OR LESS, THAT IS RENEWA-
 BLE WITH EACH PAYMENT AFTER THE INITIAL  PERIOD  AND  THAT  PERMITS  THE
 LESSEE TO BECOME THE OWNER OF THE PROPERTY.
   Misapplication of property is a class A misdemeanor.
   § 2. This act shall take effect immediately.