GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

SESSION LAW 2017-162

HOUSE BILL 384

AN ACT TO STRENGTHEN THE ORGANIZED RETAIL THEFT LAWS.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 14‑72.11 reads as rewritten:

"§ 14‑72.11.  Larceny from a merchant.

A person is guilty of a Class H felony if the person commits larceny against a merchant under any of the following circumstances:

(1)        If the property taken By taking property that has a value of more than two hundred dollars ($200.00), by using an exit door erected and maintained to comply with the requirements of 29 C.F.R. § 1910.36 and 29 C.F.R. § 1910.37 upon which door has been placed a notice, sign, or poster providing information about the felony offense and punishment provided under this subsection, 29 C.F.R. § 1910.37, to exit the premises of a store.

(2)        By removing, destroying, or deactivating a component of an antishoplifting or inventory control device to prevent the activation of any antishoplifting or inventory control device.

(3)        By affixing a product code created for the purpose of fraudulently obtaining goods or merchandise from a merchant at less than its actual sale price.

(4)        When the property is infant formula valued in excess of one hundred dollars ($100.00). As used in this subsection, the term "infant formula," has the same meaning as found in 21 U.S.C. § 321(z).

(5) By exchanging property for cash, a gift card, a merchandise card, or some other item of value, knowing or having reasonable grounds to believe the property is stolen."

SECTION 2.  G.S. 14‑86.6 reads as rewritten:

"§ 14‑86.6.  Organized retail theft.

(a)        A person is guilty of a Class H felony if the person:person does either of the following:

(1)        Conspires with another person to commit theft of retail property from retail establishments, with a value exceeding one thousand five hundred dollars ($1,500) aggregated over a 90‑day period, with the intent to sell that retail property for monetary or other gain, and who takes or causes that retail property to be placed in the control of a retail property fence or other person in exchange for consideration.

(2)        Receives or possesses any retail property that has been taken or stolen in violation of subdivision (1) of this subsection while knowing or having reasonable grounds to believe the property is stolen.

(a1) A person is guilty of a Class G felony if the person does either of the following:

(1) Conspires with another person to commit theft of retail property from one or more retail establishments, with a value exceeding twenty thousand dollars ($20,000) aggregated over a 90‑day period, with the intent to sell that retail property for monetary or other gain, and who takes or causes that retail property to be placed in the control of a retail property fence or other person in exchange for consideration.

(2) Conspires with two or more other persons as an organizer, supervisor, financier, leader, or manager to engage for profit in a scheme or course of conduct to effectuate the transfer or sale of property stolen from a merchant in violation of this section.

(b)        Any interest a person has acquired or maintained in violation of this section shall be subject to forfeiture pursuant to the procedures for forfeiture set out in G.S. 18B‑504.

(c) Thefts of retail property occurring in more than one county may be aggregated into an alleged violation of this section. Each county where a part of the charged offense occurs has concurrent venue as described in G.S. 15A‑132."

SECTION 3.  G.S. 66‑387 reads as rewritten:

"§ 66‑387.  Definitions.

The following definitions apply in this Part:

(1)        Cash. – Lawful currency of the United States.

(2)        Currency converter. – A personEither (i) a person engaged in the business of purchasing goods from the public for cash at a permanently located retail store or (ii) an itinerant merchant as defined in G.S. 66‑250(1) who holds himself or herself out to the public by signs, advertising, or other methods as engaging in that business. The term does not include any of the following:

a.         Pawnbrokers.Pawnbrokers, except with regard to the purchase of a gift card or merchandise card.

b.         Persons whose goods purchases are made directly from manufacturers or wholesalers for their inventories.

c.         Precious metals dealers, to the extent that their transactions are regulated under Part 2 of this Article.

d.         Purchases by persons primarily in the business of obtaining from the public, either by purchase or exchange, used clothing, children's furniture, and children's products, provided provided (i) the amount paid for the individual item purchased is less than fifty dollars ($50.00).($50.00) and (ii) the individual item purchased is not a gift card or merchandise card of any value.

e.         Purchases by persons primarily in the business of obtaining from the public, either by purchase or exchange, sporting goods and sporting equipment, provided provided (i) the amount paid for the individual item purchased is less than fifty dollars ($50.00).($50.00) and (ii) the individual item purchased is not a gift card or merchandise card of any value.

(2a) E‑buyer. – A currency converter engaged in the business of purchasing gift cards or merchandise cards online.

(3)        Pawn or pawn transaction. – A written bailment of personal property as security for a debt, redeemable on certain terms within 180 days, unless renewed, and with an implied power of sale on default.

(4)        Pawnbroker. – A person engaged in the business of lending money on the security of pledged goods and who may also purchase merchandise for resale from dealers and traders.

(5)        Pawnshop. – The location at which, or premises in which, a pawnbroker regularly conducts business.

(6)        Person. – Any individual, corporation, joint venture, association, or any other legal entity, however organized.

(7)        Pledged goods. – Tangible personal property which is deposited with, or otherwise actually delivered into, the possession of a pawnbroker in the course of his business in connection with a pawn transaction.

(8)        Purchase. – An item purchased from an individual for the purpose of resale whereby the seller no longer has a vested interest in the item."

SECTION 4.  G.S. 66‑392 reads as rewritten:

"§ 66‑392.  Record‑keeping requirements for currency converters.converters and e‑buyers.

…

(d) Notwithstanding subsection (a) of this section, an e‑buyer shall record all of the following information, which shall be typed or written in ink and in the English language:

(1) A clear and accurate description of the goods purchased by the currency converter from the seller, including the brand of the gift card or merchandise card and the last four digits of the card number.

(2) The name, address, and phone number or e‑mail address of the seller.

(3) The date of the purchase.

(4) If identification is captured by the e‑buyer, the type of identification and the identification number provided to the e‑buyer, including any photograph of the seller, if obtained.

(5) The IP address utilized by the seller if captured by the e‑buyer.

(6) The purchase price and value of the gift card or merchandise card.

(7) A statement to the effect that "THE SELLER OF THIS ITEM ATTESTS THAT IT IS NOT STOLEN, HAS NO LIENS OR ENCUMBRANCES, AND IS THE SELLER'S TO SELL."

Unless subject to an active investigation by law enforcement, an e‑buyer shall make the records described in this subsection available electronically via a secure connection upon a reasonable request to the law enforcement officials described in subsection (b) of this section, but no more frequently than on a monthly basis. If the request for information is related to an active investigation, an e‑buyer shall make the record available to the investigating law enforcement agency electronically via a secure connection within one business day of the request."

SECTION 5.  This act becomes effective December 1, 2017, and applies to offenses committed on or after that date."

In the General Assembly read three times and ratified this the 29^th day of June, 2017.

                                                                    s/  Daniel J. Forest

                                                                         President of the Senate

                                                                    s/  Tim Moore

                                                                         Speaker of the House of Representatives

                                                                    s/  Roy Cooper

                                                                         Governor

Approved 11:40 a.m. this 21^st day of July, 2017