Combating Organized Retail Crime Act of 2023

Subjects: Crime and Law Enforcement, Congressional oversight, Department of Homeland Security, Executive agency funding and structure, Federal officials, Fraud offenses and financial crimes, Organized crime, Performance measurement, Retail and wholesale trades

Summary:  <p><b>Combating Organized Retail Crime Act of 2023</b></p> <p>This bill expands federal enforcement of criminal offenses related to organized retail crime. Organized retail crime typically refers to large-scale retail theft and fraud by organized groups of professional shoplifters, or boosters, who make money by stealing merchandise and reselling it for a fraction of the retail cost.</p> <p>First, with respect to criminal offenses involving the transportation of stolen property across state lines and the sale or receipt of stolen goods, the bill broadens the scope of conduct that qualifies as offenses. Additionally, the bill makes the offenses predicate offenses (i.e., underlying offenses) for prosecutions under the federal money laundering statute and authorizes the criminal forfeiture of any property representing or traceable to the gross proceeds obtained as a result of an offense or a conspiracy to commit an offense. </p> <p>Second, with respect to criminal offenses involving theft from an interstate or foreign shipment, the bill makes an offense an underlying offense for prosecution under the federal money laundering statute and authorizes the criminal forfeiture of any property representing or traceable to the gross proceeds obtained as a result of an offense or a conspiracy to commit an offense. </p> <p>Finally, the bill establishes a center&#8212;the Organized Retail Crime Coordination Center&#8212;within the Department of Homeland Security to coordinate the federal law enforcement activities related to organized retail crime.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 140 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 140

 To combat organized crime involving the illegal acquisition of retail 
goods for the purpose of selling those illegally obtained goods through 
                physical and online retail marketplaces.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2023

    Mr. Grassley (for himself and Ms. Cortez Masto) 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 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 
of 2023''.

SEC. 2. FINDINGS.

    It is the sense of Congress that--
            (1) organized retail crime, a crime involving groups of 
        individuals specifically targeting retail stores, often by 
        using violence or threats of violence to subdue employees and 
        shoppers while robbing stores of their most valuable and easily 
        diverted merchandise, has been a growing concern to retailers, 
        industry, and law enforcement;
            (2) retailers have seen a dramatic increase in occurrences 
        of organized retail crime, costing retailers approximately 
        $720,000 per every $1,000,000,000 in sales in 2019, 
        representing more than a 50-percent increase in such losses 
        since 2015. Further, according to the National Retail 
        Federation, the use of violence or aggression is increasing in 
        the commission of these crimes, with \2/3\ of retailers 
        reporting an increase of violence during the commission of 
        retail theft;
            (3) organized retail crime--
                    (A) threatens the safety and liberty of individuals 
                in the United States when those individuals engage in 
                commerce;
                    (B) erodes the retail economy for customers and 
                businesses alike; and
                    (C) finances transnational criminal organizations 
                that use the proceeds of those thefts to support the 
                criminal goals of the criminal organizations; and
            (4) it has become necessary for Congress--
                    (A) to 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 as law enforcement is able to combat theft and 
                diversion from other portions of the supply chain; and
                    (B) to direct the executive branch to create a 
                central coordination center to align Federal, State, 
                local, territorial, and Tribal efforts to combat 
                organized retail 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)(7)(D)--
                    (A) 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
                    (B) 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 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 CRIME COORDINATION CENTER.

    ``(a) Definitions.--In this section:
            ``(1) Center.--The term `Center' means the Organized Retail 
        Crime Coordination Center established pursuant to subsection 
        (b)(1).
            ``(2) Organized retail crime.--The term `organized retail 
        crime' includes--
                    ``(A) any crime described in section 2314 or 2315 
                of title 18, United States Code; and
                    ``(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 paragraph (1).
    ``(b) Organized Retail Crime Coordination Center.--
            ``(1) Establishment.--Not later than 90 days after the date 
        of the enactment of the Combating Organized Retail Crime Act of 
        2023, the Secretary of Homeland Security shall direct the 
        Executive Associate Director of Homeland Security 
        Investigations to establish the Organized Retail Crime 
        Coordination Center.
            ``(2) Duties.--The duties of the Center shall include--
                    ``(A) coordinating Federal law enforcement 
                activities related to organized retail crime, including 
                investigations of national and transnational criminal 
                organizations that are engaged in organized retail 
                crime;
                    ``(B) establishing relationships with State and 
                local law enforcement agencies and organizations, 
                including organized retail crime associations, and 
                sharing information regarding organized retail crime 
                threats with such agencies and organizations;
                    ``(C) assisting State and local law enforcement 
                agencies with their investigations of organized retail 
                crime groups;
                    ``(D) establishing relationships with retail 
                companies, sharing information with such companies 
                regarding organized retail crime threats, and providing 
                mechanisms for the receipt of investigative information 
                on such threats;
                    ``(E) establishing a secure system for sharing 
                information regarding organized retail 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 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 the Senior Executive Service (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 of Homeland 
                Security Investigations, 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 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; and
                                    ``(V) the Drug Enforcement 
                                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 of Homeland 
                Security Investigations 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.--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. 
                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 the enactment of the 
                        Combating Organized Retail Crime Act of 2023, 
                        the Secretary of Homeland Security 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) should 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 that had 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 crime;
                                    ``(VI) recommendations for ways to 
                                include organized retail crime within a 
                                holistic supply chain security 
                                enforcement framework;
                                    ``(VII) the intersections and 
                                commonalities between organized retail 
                                crime organizations and other organized 
                                theft groups, including supply chain 
                                diversion and theft; and
                                    ``(VIII) 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), the Director 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).
    ``(c) Training and Technical Assistance.--
            ``(1) Evaluation.--Not later than 180 days after the date 
        of the enactment of the Combating Organized Retail Crime Act of 
        2023, the Secretary of Homeland Security 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 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 
        of Homeland Security 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 crime.
            ``(4) Enhancing or modifying training and technical 
        assistance.--Not later than 45 days after submitting the report 
        required under paragraph (3), the Secretary of Homeland 
        Security 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 crime.''.
    (b) Clerical Amendment.--The table of contents for the Trade 
Facilitation and Trade Enforcement Act of 2015 (Public Law 107-296) is 
amended by inserting after the item relating to section 305 the 
following:

``Sec. 305A. Organized Retail Crime Coordination Center.''.
                                 &lt;all&gt;
</pre></body></html>