S. 1404

114 S1404 IS: Combating Organized Retail Crime Act
 U.S. Senate
 2025-04-10
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 1404  IN THE SENATE OF THE UNITED STATES   April 10, 2025   Mr. Grassley  (for himself,  Ms. Cortez Masto ,  Mrs. Blackburn ,  Ms. Klobuchar ,  Mr. Risch ,  Ms. Rosen ,  Mr. Cassidy ,  Mr. Heinrich ,  Mr. Budd ,  Mr. Kelly ,  Mr. Hagerty ,  Mr. Graham ,  Mr. Daines ,  Mrs. Britt , and  Mr. Cruz ) introduced the following bill; which was read twice and referred to the  Committee on the Judiciary    A BILL
To combat organized crime involving the illegal acquisition of retail goods and cargo for the purpose of selling those illegally obtained goods through physical and online retail marketplaces.
1.
Short title
This Act may be cited as the   Combating Organized Retail Crime Act  .
2.
Findings
It is the sense of Congress that—
(1)
organized theft groups, involving sophisticated and structured groups of individuals, continue to increase criminal activities carried out by the groups against the retail industry and the supply chain of the Nation. These activities, at unprecedented levels, involve theft and fraud of both physical and digital goods, leading to escalating financial losses and violence in the workplace—all impacting the national economy and security of the United States;
(2)
retailers face mounting thefts and fraud because of organized retail crime in and around stores, online, and throughout the retail ecosystem. According to the National Retail Federation, larceny incidents increased by 93 percent in 2023 compared to 2019, with a 90 percent rise in average dollar loss. These thefts are often orchestrated by organized theft groups reselling and redistributing the stolen goods back into the economy of the United States or overseas to gain illicit profit and to finance other criminal activity. More than 84 percent of retailers report that violence and aggression from these criminal activities has become more of a concern since 2022, resulting in injuries and deaths among employees, customers, security officers, and law enforcement personnel;
(3)
product manufacturers and the supply chain of the Nation are victims of alarming increases in cargo theft across rails, roads, and the various distribution points across the Nation. CargoNet, a database of reported incidents in the United States, reported a 27 percent increase in cargo theft incidents in 2024 compared to the previous year. During the same period, the average value per theft rose to over $202,000. These thefts range from large-scale physical theft of goods from containers and storage to sophisticated cybercriminal methods that divert shipments to illicit receivers, causing significant financial losses and operational supply chain disruptions;
(4)
since 2022, more than 30 State laws have been enacted to address organized theft, allow for aggregation of thefts, and adjust penalties and enhancements. In 2024, California voters overwhelmingly approved a constitutional reform to allow aggregation of multiple or repeated thefts. Although larceny and organized retail crime are sometimes prosecuted at State and local levels, States face resource and investigative challenges from groups operating beyond local, State, and regional law enforcement capabilities. More needs to be done to address the cross-jurisdictional, interstate, and international aspects of these crimes;
(5)
organized theft groups vary in scope and scale, operating across State jurisdictions to avoid or disrupt local, State, and Tribal law enforcement response. These organized theft groups build hierarchies to easily redistribute stolen goods and illicit profits back into the economy of the United States or overseas with disregard for product and consumer safety. The groups exist and operate at the local, regional, and transnational level, targeting goods that include raw and finished materials, various branded retail products across all consumer categories, operational assets in retail commerce such as reusable transport packaging products, and consumable goods including agriculture, food products, and medicines;
(6)
these groups are often polycriminal organizations, using profit from the reselling of stolen goods to support crimes involving drugs and weapons trafficking. The organized theft groups engage in human smuggling and have been known to use migrants to commit crimes to support the organizations. The groups move products and illicit proceeds beyond the borders of the United States, funding nefarious groups and activities and threatening the integrity of the international economy;
(7)
organized theft groups—
(A)
threaten the safety and liberty of individuals in the United States when those individuals engage in commerce;
(B)
impact the ability of the Nation to distribute goods to consumers, undermine consumer confidence in the supply chain, and threaten the integrity of agricultural and consumable goods;
(C)
erode the national economy by increasing the cost of goods, resulting in higher prices for consumers, reducing tax revenues, and impacting employees, customers, and businesses alike; and
(D)
impact the national security of the United States through financing transnational criminal activity and providing profit and proceeds supporting larger criminal goals of the criminal organizations; and
(8)
it has become necessary for Congress to—
(A)
amend title 18, United States Code, to ensure that law enforcement has the legal tools necessary to combat organized retail crime in the same capacity that law enforcement is able to combat theft and diversion from other portions of the supply chain; and
(B)
direct the executive branch to create a central coordination center to align Federal, State, local, territorial, and Tribal efforts to combat organized retail crime and organized supply chain crime.
3.
Amendments to title 18, United States Code
Part I of title 18, United States Code, is amended—
(1)
in section 982(a)(5)—
(A)
by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively;
(B)
by inserting after subparagraph (B) the following:
(C)
section 659 (interstate or foreign shipments by carrier; State prosecutions);
 ;
(C)
in subparagraph (E), as so redesignated, by striking  ; or  and inserting a semicolon;
(D)
in subparagraph (F), as so redesignated, by striking the period at the end and inserting a semicolon; and
(E)
by inserting after subparagraph (F), as so redesignated, the following:
(G)
section 2314 (transportation of stolen goods, securities, moneys, fraudulent State tax stamps, or articles used in counterfeiting); or
(H)
section 2315 (sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps);
 ;
(2)
in section 1956(c)—
(A)
in paragraph (5), by striking  and money orders  and inserting  money orders, general-use prepaid cards, gift certificates, and store gift cards ; and
(B)
in paragraph (7)(D)—
(i)
by inserting  section 659 (interstate or foreign shipments by carrier; State prosecutions),  after  section 658 (relating to property mortgaged or pledged to farm credit agencies),  ; and
(ii)
by inserting  section 2314 (transportation of stolen goods, securities, moneys, fraudulent State tax stamps, or articles used in counterfeiting), section 2315 (sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps),   after  section 2281 (relating to violence against maritime fixed platforms), ;
(3)
in section 2314, in the first paragraph—
(A)
by inserting  , or by using any facility of interstate or foreign commerce,  after  commerce ;
(B)
by inserting  or of an aggregate value of $5,000 or more during any 12-month period,  after  more,  ;
(C)
by inserting  , embezzled,  after  stolen ; and
(D)
by inserting  , false pretense, or other illegal means  after  fraud ; and
(4)
in section 2315, in the first paragraph—
(A)
by inserting  or of an aggregate value of $5,000 or more during any 12-month period,  after  $5,000 or more,  ; and
(B)
by striking  ; or  and inserting  , or have been stolen, unlawfully converted, or taken by the use of any facility of interstate or foreign commerce in the commission of said act; or .
4.
Establishment of a Center to Combat Organized Retail and Supply Chain Crime
(a)
In general
Title III of the Trade Facilitation and Trade Enforcement Act of 2015 ( 19 U.S.C. 4341 et seq. ) is amended by inserting after section 305 the following:
305A.
Organized Retail and Supply Chain Crime Coordination Center
(a)
Definitions
In this section:
(1)
Center
The term  Center  means the Organized Retail and Supply Chain Crime Coordination Center established pursuant to subsection (b)(1).
(2)
Organized retail and supply chain crime
The term  organized retail and supply chain crime  includes—
(A)
any crime described in section 659, 2117, 2314, or 2315 of title 18, United States Code that is committed by, in coordination with, or at the instruction of an organization;
(B)
aiding or abetting the commission of, or conspiring to commit, any act that is in furtherance of a violation of a crime referred to in subparagraph (A); and
(C)
other crimes related to those described in subparagraphs (A) and (B).
(3)
Secretary
The term  Secretary  means the Secretary of Homeland Security.
(4)
Executive Associate Director
The term  Executive Associate Director  means the Executive Associate Director of Homeland Security Investigations.
(b)
Organized Retail and Supply Chain Crime Coordination Center
(1)
Establishment
Not later than 90 days after the date of enactment of the  Combating Organized Retail Crime Act , the Secretary shall direct the Executive Associate Director to establish the Organized Retail and Supply Chain Crime Coordination Center.
(2)
Duties
The duties of the Center shall include—
(A)
coordinating Federal law enforcement activities related to organized retail and supply chain crime, including investigations of national and transnational criminal organizations that are engaged in organized retail and supply chain crime;
(B)
establishing relationships with State and local law enforcement agencies and organizations, including organized retail crime associations and cargo theft associations, and sharing information regarding organized retail and supply chain crime threats with such agencies and organizations;
(C)
assisting State and local law enforcement agencies with State and local investigations of organized retail and supply chain crime groups;
(D)
establishing relationships with retail, transportation, and other companies determined by the Executive Associate Director to have significant interests relating to organized retail and supply chain crime threats, sharing information with those companies regarding such threats, collaborating on investigations and loss prevention activities as appropriate, and providing a mechanism for the receipt of investigative information on such threats;
(E)
establishing a secure system for sharing information regarding organized retail and supply chain crime threats by leveraging existing information systems at the Department of Homeland Security and the Department of Justice;
(F)
tracking trends with respect to organized retail and supply chain crime and releasing annual public reports on such trends; and
(G)
supporting the provision of training and technical assistance in accordance with subsection (c).
(3)
Leadership; staffing
(A)
Director
The Center shall be headed by a Director, who shall be—
(i)
an experienced law enforcement officer;
(ii)
appointed by the Director of U.S. Immigration and Customs Enforcement; and
(iii)
in a Senior Executive Service position as defined in section 3132 of title 5, United States Code.
(B)
Deputy Director
The Director of the Center shall be assisted by a Deputy Director, who shall be appointed, on a 2-year rotational basis, upon request from the Executive Associate Director, by—
(i)
the Director of the Federal Bureau of Investigation;
(ii)
the Director of the United States Secret Service; or
(iii)
the Chief Postal Inspector.
(C)
Federal staff
The staff of the Center shall include—
(i)
special agents and analysts from Homeland Security Investigations; and
(ii)
detailed criminal investigators, analysts, and liaisons from other Federal agencies who have responsibilities related to organized retail and supply chain crime, including detailees from—
(I)
U.S. Customs and Border Protection;
(II)
the United States Secret Service;
(III)
the United States Postal Inspection Service;
(IV)
the Bureau of Alcohol, Tobacco, Firearms and Explosives;
(V)
the Drug Enforcement Administration;
(VI)
the Federal Bureau of Investigation; and
(VII)
the Federal Motor Carrier Safety Administration.
(D)
State and local staff
The staff of the Center may include detailees from State and local law enforcement agencies, who shall serve at the Center on a nonreimbursable basis.
(4)
Coordination
(A)
In general
The Center shall coordinate its activities, as appropriate, with other Federal agencies and centers responsible for countering transnational organized crime threats.
(B)
Shared resources
In establishing the Center, the Executive Associate Director may co-locate or otherwise share resources and personnel, including detailees and agency liaisons, with—
(i)
the National Intellectual Property Rights Coordination Center established pursuant to section 305(a)(1); or
(ii)
other existing interagency centers within the Department of Homeland Security.
(C)
Agreements
The Director of the Center, or his or her designee, may enter into agreements with Federal, State, local, and Tribal agencies and private sector entities to facilitate carrying out the duties described in paragraph (2).
(D)
Information sharing
(i)
In general
Subject to the approval of the Director of the Center, information that would otherwise be subject to the limitation on the disclosure of confidential information set forth in section 1905 of title 18, United States Code, may be shared if such disclosure is operationally necessary.
(ii)
Non-delegable authority
The Director may not delegate his or her authority under this subparagraph.
(5)
Reporting requirements
(A)
Initial report
(i)
In general
Not later than 1 year after the date of enactment of the  Combating Organized Retail Crime Act , the Secretary shall submit a report regarding the establishment of the Center to—
(I)
the  Committee on the Judiciary of the Senate ;
(II)
the  Committee on Homeland Security and Governmental Affairs of the Senate ;
(III)
the  Committee on the Judiciary of the House of Representatives ; and
(IV)
the  Committee on Homeland Security of the House of Representatives .
(ii)
Contents
The report required under clause (i) shall include a description of—
(I)
the organizational structure of the Center;
(II)
the agencies and partner organizations that are represented within the Center;
(III)
any challenges required to be addressed while establishing the Center;
(IV)
any lessons learned from establishing the Center, including successful prosecutions resulting from the activities of the Center;
(V)
recommendations for ways to strengthen the enforcement of laws involving organized retail and supply chain crime;
(VI)
the intersections and commonalities between organized retail crime organizations and other organized theft groups, including supply chain diversion and theft; and
(VII)
the impact of organized theft groups on the scarcity of vital products, including medicines, personal protective equipment, and infant formula.
(B)
Annual report
Beginning on the date that is 1 year after the submission of the report required under subparagraph (A), and each year thereafter, the Secretary shall submit an annual report that describes the activities of the Center during the previous year to the congressional committees listed in subparagraph (A)(i).
(6)
Sunset
(A)
In general
The authority of the Center shall terminate on the date that is 7 years after the date on which the Center is established under paragraph (1).
(B)
Wind down
The Secretary shall take such actions as may be necessary to wind down the Center in accordance with subparagraph (A).
(c)
Training and technical assistance
(1)
Evaluation
Not later than 180 days after the date of enactment of the  Combating Organized Retail Crime Act , the Secretary and the Attorney General shall conduct an evaluation of existing Federal programs that provide grants, training, and technical support to State, local, and Tribal law enforcement to assist in countering organized retail and supply chain crime.
(2)
Evaluation scope
The evaluation required under paragraph (1) shall evaluate, at a minimum—
(A)
the Homeland Security Grant Program at the Federal Emergency Management Agency;
(B)
grant programs at the Office of Justice Programs within the Department of Justice; and
(C)
relevant training programs at the Federal Law Enforcement Training Center.
(3)
Report
Not later than 45 days after the completion of the evaluation required under paragraph (1), the Secretary and the Attorney General shall jointly submit a report to the congressional committees listed in subsection (b)(5)(A)(i) that—
(A)
describes the results of such evaluation; and
(B)
includes recommendations on ways to expand grants, training, and technical assistance for combating organized retail and supply chain crime.
(4)
Enhancing or modifying training and technical assistance
Not later than 45 days after submitting the report required under paragraph (3), the Secretary and the Attorney General shall jointly issue formal guidance to relevant agencies and offices within the Department of Homeland Security and the Department of Justice for modifying or expanding, as appropriate, the prioritization of training and technical assistance designed to counter organized retail and supply chain crime.
 .
(b)
Clerical amendment
The table of contents for the Trade Facilitation and Trade Enforcement Act of 2015 ( Public Law 114–125 ; 130 Stat. 122) is amended by inserting after the item relating to section 305 the following:
Sec. 305A. Organized Retail and Supply Chain Crime Coordination Center.
  .