S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    646
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Consumer Affairs and Protection
 
 AN  ACT to amend the general business law, in relation to communications
   by mercantile establishments attempting to settle civil actions deriv-
   ing from larceny prosecutions

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 349-g to read as follows:
   §  349-G. CIVIL PROCEEDINGS DERIVATIVE OF ALLEGED LARCENY. 1. WHENEVER
 A MERCANTILE ESTABLISHMENT ATTEMPTS TO SETTLE A CIVIL ACTION PURSUANT TO
 SECTION 11-105  OF  THE  GENERAL  OBLIGATIONS  LAW,  ALL  COMMUNICATIONS
 PERTAINING  TO  SUCH  ATTEMPTED  SETTLEMENT  SHALL CONTAIN THE FOLLOWING
 STATEMENT, WHICH SHALL, IF WRITTEN, BE IN A CONSPICUOUS PLACE,  IN  FONT
 LARGER  THAN THE REMAINDER OF THE COMMUNICATION, AND, IF SPOKEN, READ IN
 ITS ENTIRETY:
   "THIS IS AN ATTEMPT TO REACH A CIVIL  SETTLEMENT  AGREEMENT  RESULTING
 FROM  A  LARCENY THAT ALLEGEDLY INVOLVES YOU. SHOULD YOU CHOOSE TO AGREE
 TO THIS SETTLEMENT, YOU WILL BE SUBJECT TO THE TERMS AND  CONDITIONS  OF
 SUCH AGREEMENT, WHICH ARE GOVERNED BY §11-105 OF NEW YORK STATE'S GENER-
 AL OBLIGATIONS LAW.
   SHOULD  YOU REFUSE THIS AGREEMENT, YOU ARE STILL SUBJECT TO §11-105 OF
 NEW YORK STATE'S GENERAL OBLIGATIONS LAW, WHICH INDICATES  THAT  PERSONS
 WHO  COMMIT  LARCENY  AGAINST THE PROPERTY OF A MERCANTILE ESTABLISHMENT
 ARE CIVILLY LIABLE TO SUCH MERCANTILE ESTABLISHMENT IN THE AMOUNT OF THE
 RETAIL PRICE OF THE MERCHANDISE (ONLY IF SUCH MERCHANDISE IS NOT  RECOV-
 ERED  IN  SALEABLE CONDITION), UP TO $1,500, AND A PENALTY IN THE AMOUNT
 THAT IS THE GREATER OF $75 OR FIVE-TIMES THE RETAIL PRICE, UP  TO  $500.
 THE  MERCANTILE  ESTABLISHMENT  MAY  FILE A CIVIL LAWSUIT AGAINST YOU TO
 PURSUE THE RECOVERY OF THESE DAMAGES. THESE CIVIL  PENALTIES  PRESCRIBED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00607-01-3
 A. 646                              2
              

 
 BY  LAW  ARE  ENTIRELY  SEPARATE FROM ANY CRIMINAL PENALTIES THAT MAY BE
 BROUGHT AGAINST YOU.
   SHOULD YOU ACCEPT OR REFUSE A CIVIL SETTLEMENT AGREEMENT, A MERCANTILE
 ESTABLISHMENT MAY STILL BRING CRIMINAL CHARGES AGAINST YOU IN A COURT OF
 LAW,  UNLESS SUCH CIVIL SETTLEMENT AGREEMENT BETWEEN YOU AND THE MERCAN-
 TILE ESTABLISHMENT PRECLUDES THE MERCANTILE ESTABLISHMENT FROM  PURSUING
 CRIMINAL CHARGES."
   2.  A  MERCANTILE  ESTABLISHMENT  THAT  VIOLATES THIS SECTION SHALL BE
 STRICTLY LIABLE FOR:
   (A) ANY ACTUAL DAMAGES SUSTAINED BY DEFENDANT  AS  A  RESULT  OF  SUCH
 FAILURE;
   (B)  TREBLE  THE  AMOUNT SOUGHT BY THE MERCANTILE ESTABLISHMENT IN ANY
 SUCH SETTLEMENT AGREEMENT. IN THE CASE OF  MULTIPLE  SETTLEMENT  OFFERS,
 THE  AMOUNT  TO BE TREBLED SHALL BE THE HIGHEST SETTLEMENT AMOUNT SOUGHT
 BY SUCH MERCANTILE ESTABLISHMENT;
   (C) IN THE CASE OF ANY SUCCESSFUL  ACTION  TO  ENFORCE  THE  FOREGOING
 LIABILITY,  THE  COSTS  OF THE ACTION, TOGETHER WITH A REASONABLE ATTOR-
 NEYS' FEE AS DETERMINED BY THE COURT.
   § 2. This act shall take effect immediately and  shall  apply  to  any
 prospective attempted settlements of such civil actions.