Purpose of the Bill

The bill aims to address gift card fraud associated with organized retail theft. It focuses on updating legal definitions and penalties related to the theft of retail merchandise, including the misuse of gift cards within the context of organized retail crime.

Main Provisions

• Definitions: This bill clarifies several key terms, including defining "closed-loop" and "open-loop" gift cards, which refer to gift cards that can be used at either a single merchant or multiple merchants, respectively.
• Retail Theft Patterns: Establishes what constitutes a "pattern of retail theft," requiring at least two instances of theft within six months.
• Organized Retail Theft: The bill defines organized retail theft as involving individuals who are part of a retail theft enterprise and engage in repetitive theft activities or direct others to do so. It specifies criminal behaviors such as reselling stolen goods, advertising stolen merchandise, and returning stolen items for value.

Significant Changes

• The bill introduces and amends legal definitions to better categorize and respond to organized retail theft activities.
• It includes gift cards as part of tangible property subject to theft laws, emphasizing the full monetary face value as potential economic loss.
• Enhancements in the legal framework are intended to improve prosecution of organized retail theft, particularly when it involves multiple individuals operating as part of an enterprise.

Relevant Terms

gift card, closed-loop, open-loop, organized retail theft, retail theft enterprise, retail merchandise, economic loss, tangible property, retail establishment.