[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1404 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1404
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.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Combating Organized Retail Crime
Act''.
SEC. 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.
SEC. 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''.
SEC. 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:
``SEC. 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.''.
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