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.