Senate Study Bill 1241 SENATE FILE BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CO=CHAIRPERSONS KREIMAN and MILLER) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the criminal offense of theft of leased or 2 rented personal property and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1059SC 81 5 kk/sh/8 PAG LIN 1 1 Section 1. Section 714.1, subsection 2, Code 2005, is 1 2 amended to read as follows: 1 3 2. Misappropriates property which the person has in trust, 1 4 or property of another which the person has in the person's 1 5 possession or control, whether such possession or control is 1 6 lawful or unlawful, by using or disposing of it in a manner 1 7 which is inconsistent with or a denial of the trust or of the 1 8 owner's rights in such property, or conceals found property, 1 9 or appropriates such property to the person's own use, when 1 10 the owner of such property is known to the person.
Failure1 11 Except as provided in section 714.4A, failure by a bailee or 1 12 lesseeof personal property to return the property within 1 13 seventy=two hours after a time specified in a written 1 14 agreement of lease orbailment shall be evidence of 1 15 misappropriation. 1 16 Sec. 2. NEW SECTION. 714.4A THEFT OF LEASED OR RENTED 1 17 PERSONAL PROPERTY == EVIDENCE. 1 18 1. The fact that a person who has leased or rented 1 19 personal property of another willfully fails to return or make 1 20 arrangements acceptable with the lessor or owner to return the 1 21 personal property to the lessor or owner within seventy=two 1 22 hours after proper notice following expiration or termination 1 23 of the lease or rental agreement, or willfully conceals the 1 24 property from the lessor or owner, or sells, pawns, loans, 1 25 abandons, or gives away the leased or rented property, is 1 26 material evidence of intent to deprive the lessor or owner of 1 27 the use and possession of the personal property. 1 28 2. If the personal property leased or rented is a motor 1 29 vehicle, this section shall not apply if return of the motor 1 30 vehicle is made more difficult or expensive by a defect in 1 31 such vehicle which renders the vehicle inoperable, if the 1 32 lessee or renter notifies the lessor or owner of the location 1 33 of such vehicle and such defect prior to the expiration of the 1 34 lease or rental agreement. 1 35 3. The fact that a person obtains possession of personal 2 1 property subject to a lease or rental agreement by means of 2 2 deception, including but not limited to furnishing a false 2 3 name, address, place of employment, or other identification to 2 4 the owner, is evidence that possession was obtained with 2 5 intent to deprive the lessor or owner of the use and 2 6 possession of the personal property. 2 7 4. Unless otherwise agreed to in writing, for the purpose 2 8 of determining whether a theft as described in this section 2 9 has occurred, personal property which is the subject of a 2 10 lease or rental agreement providing the option to buy the 2 11 personal property is owned by the owner until such time as the 2 12 owner endorses the sale and transfer of ownership of the 2 13 leased or rented property to the lessee or renter. 2 14 5. This section applies to all forms of leases and rental 2 15 agreements concerning personal property, including but not 2 16 limited to contracts providing the consumer options to buy the 2 17 leased or rented personal property, lease=purchase agreements, 2 18 and rent=to=own contracts. 2 19 6. For purposes of this section, "proper notice" means a 2 20 written confirmation of the expiration or termination of the 2 21 lease or rental agreement sent to the lessee or renter by 2 22 certified or restricted certified mail to the last known 2 23 address of the lessee or renter. The notice shall be 2 24 considered effective on the date of the mailing of the notice 2 25 regardless of whether or not the lessee or renter signs a 2 26 receipt for the notice. 2 27 EXPLANATION 2 28 This bill provides evidentiary rules for the criminal 2 29 offense of theft of personal property that is leased or 2 30 rented. The bill provides that willfully failing to return or 2 31 making acceptable arrangements to return personal property 2 32 within 72 hours after proper notice following expiration or 2 33 termination of the lease or rental agreement is material 2 34 evidence of intent to deprive of use and possessions. The 2 35 bill provides that the willful concealment, or the sale, 3 1 pawning, loan, abandonment, or giving away of the leased or 3 2 rented personal property is material evidence of intent to 3 3 deprive of use and possession. 3 4 The bill provides that the provision does not apply if the 3 5 personal property that is leased or rented is a motor vehicle 3 6 if the reason the vehicle is not timely returned is due to a 3 7 defect in the vehicle making the vehicle inoperable and the 3 8 lessee or renter has given notice of the defect to the lessor 3 9 or owner prior to the expiration of the lease or rental 3 10 agreement. Obtaining possession of personal property by means 3 11 of deception is also made evidence of intent to deprive of use 3 12 and possession. 3 13 The owner of the personal property is deemed to be the 3 14 owner of property until the owner has endorsed the sale and 3 15 transfer of ownership or unless there has been a written 3 16 agreement to the contrary. The bill's provisions apply to all 3 17 forms of leases and rental agreements concerning personal 3 18 property. Proper notice is defined as written notice sent by 3 19 certified or restricted certified mail to the last known 3 20 address of the lessee or renter regardless of whether or not 3 21 the lessee or renter signs a receipt for the notice. 3 22 The penalties in Code section 714.2 apply to theft of 3 23 leased or rented personal property. Theft of property 3 24 exceeding $10,000 in value is a class "C" felony. Theft of 3 25 property exceeding $1,000 but not more than $10,000 in value 3 26 is a class "D" felony. Theft of property exceeding $500 but 3 27 not more than $1,000 in value is an aggravated misdemeanor. 3 28 Theft of property exceeding $200 but not more than $500 in 3 29 value is a serious misdemeanor. Theft of property with a 3 30 value of $200 or less is a simple misdemeanor. 3 31 LSB 1059SC 81 3 32 kk:nh/sh/8