Creates a crime of leading a retail theft enterprise

2 Co-sponsors

• George D. Maziarz
• Diane J. Savino

BILL NUMBER:S2929

Title of bill

An act to amend the penal law, in relation to creating a crime of leading a retail theft enterprise

Purpose or general idea of bill

This bill relates to prohibitions and penalties against persons who lead an organized retail theft enterprise by organizing, supervising, financing or managing such criminal activ- ity.

Summary of provisions

Section One amends the penal law by adding a new section 150.50 which defines the circumstances that would give rise to the crime of leading an organized retail theft enterprise. The terms "anti-shoplifting or inventory control device countermeasures", "conceal", "full retail value", "merchandise", "merchant", "organized retail theft", "organized retail theft enterprise", "person", "premises of a store or retail mercantile establishment", "shoplifting", "store or other retail mercan- tile establishment", and "under-ring" are defined for purposes of this section.

Section Two provides that the crime of leading an organized retail theft enterprise constitutes a grand larceny in the second degree and is a class C felony.

Section Three is the effective date.

Justification

This bill is part of a package of legislation that seeks to cut down on patterns of criminal activity that rise to the level of "organized retail theft". According to the Federal Bureau of Investi- gation, organized retail theft 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 retail- ers specifically 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 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 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.

Those individuals who lead retail theft crime rings should be punished to the fullest extent possible. By amending the penal-law to allow those

convicted of leading an organized retail theft enterprise to be charged with higher level felonies, the chain of persons involved in these types of schemes can be deterred and cut off from the top.

Legislative history

S.6959B (of 2012) passed in the Senate.

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.