Combating Organized Retail Crime Act
- Bill Number
- S. 1404
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Crime and Law Enforcement
- Status
- Introduced
- Latest Action
- 2025-04-10: Read twice and referred to the Committee on the Judiciary.
- Last Updated
- 2026-06-25T12:18:23Z
AI-Generated Summary
Purpose of the Legislation
The Combating Organized Retail Crime Act aims to address the growing problem of organized theft groups that steal retail goods and cargo, then resell them through physical stores and online marketplaces. It seeks to strengthen federal laws against these crimes, improve coordination among law enforcement agencies, and reduce their economic, safety, and security impacts on the U.S. retail sector and supply chain.
Key Provisions
- Congressional Findings: The bill outlines the scale of organized retail and supply chain theft, including a 93% rise in larceny incidents from 2019 to 2023, increased violence, cargo theft up 27% in 2024 with average losses over $202,000 per incident, and links to broader crimes like drug and weapons trafficking. It emphasizes the need for federal tools to handle interstate and international aspects beyond state capabilities.
- Amendments to Federal Criminal Code (Title 18, U.S. Code):
- Expands criminal forfeiture (Section 982) to include property from theft of interstate shipments (Section 659), transportation of stolen goods (Section 2314), and sale or receipt of stolen goods (Section 2315).
- Broadens money laundering definitions (Section 1956) to cover instruments like prepaid cards and gift cards, and adds the above theft sections as "specified unlawful activities."
- Updates transportation of stolen goods (Section 2314) to include use of interstate or foreign commerce facilities (e.g., internet or highways), embezzlement, false pretense, or other illegal means, with a new $5,000 aggregate value threshold over any 12-month period.
- Revises sale or receipt of stolen goods (Section 2315) to include the $5,000 aggregate threshold and theft via interstate or foreign commerce.
- Creation of the Organized Retail and Supply Chain Crime Coordination Center:
- Established within 90 days under the Department of Homeland Security (DHS), led by U.S. Immigration and Customs Enforcement (ICE).
- Defines "organized retail and supply chain crime" as coordinated thefts of goods under specified federal laws, plus related aiding, abetting, or conspiracies.
- Duties include coordinating federal investigations of national and transnational crime groups; building partnerships with state, local, tribal law enforcement, retail associations, and private companies; sharing threat information via secure systems; tracking crime trends with annual public reports; and providing training/technical assistance.
- Staffing: Director (Senior Executive Service from ICE), rotational Deputy Director from FBI, Secret Service, or Postal Inspection Service; includes agents/analysts from DHS, DOJ agencies (e.g., FBI, ATF, DEA), and non-reimbursable state/local detailees.
- Allows resource-sharing with existing centers (e.g., Intellectual Property Rights Coordination Center), agreements with partners, and limited exceptions to confidentiality rules for operational needs.
- Reporting: Initial report within 1 year on setup and recommendations; annual reports thereafter to congressional committees (Judiciary and Homeland Security in both chambers).
- Sunset: Center authority ends after 7 years, with a wind-down process.
- Training and Technical Assistance:
- Requires DHS and DOJ to evaluate existing federal grant/training programs (e.g., Homeland Security Grants, DOJ Office of Justice Programs, Federal Law Enforcement Training Center) within 180 days.
- Joint report with expansion recommendations within 225 days, followed by guidance to prioritize anti-theft training.
Significant Changes to Existing Law
- Lowered Thresholds for Federal Jurisdiction: Previously, federal prosecution under Sections 2314 and 2315 required stolen goods worth $5,000 or more per incident; now includes aggregate value of $5,000 or more over 12 months, capturing repeated smaller thefts by organized groups.
- Expanded Scope of Crimes: Adds "embezzlement," "false pretense," and interstate/foreign commerce facilities (e.g., online platforms) to theft definitions; links retail/cargo theft to money laundering and forfeiture, treating them like other supply chain crimes.
- New Coordination Mechanism: Inserts a dedicated center into the Trade Facilitation and Trade Enforcement Act of 2015, filling gaps in federal response to cross-jurisdictional organized theft, unlike prior fragmented efforts.
Potential Impacts
- On Government Agencies: Enhances DHS and DOJ coordination, potentially increasing federal investigations and prosecutions of interstate/transnational theft; requires resource allocation for the center (staffing, systems) but allows cost-sharing; state/local agencies gain support for investigations, reducing resource strains.
- On Citizens and Businesses: Retailers, manufacturers, and supply chain firms may see reduced theft losses (e.g., lower inventory disruptions, violence), leading to stabilized prices and supply of essentials like medicines or food; consumers benefit from safer shopping and fewer price hikes due to theft costs; however, increased enforcement could raise compliance burdens for online sellers.
- On International Relations: Targets transnational crime groups exporting stolen goods or funding global activities (e.g., human smuggling), potentially improving U.S. cooperation with foreign partners on cargo security and anti-trafficking, while protecting the integrity of international trade.
Main Stakeholders Affected
- Law Enforcement: Federal agencies (DHS/ICE, FBI, Secret Service, ATF, DEA, Postal Inspection), state/local/tribal police, benefiting from coordination and training.
- Retail and Supply Chain Sector: Retailers (physical/online), manufacturers, transporters (e.g., rail/road), and associations like the National Retail Federation or CargoNet, gaining threat intelligence and loss prevention support.
- Private Sector Partners: Companies in retail, transportation, and e-commerce, involved in information sharing and investigations.
- Consumers and Workers: Everyday shoppers, retail employees, and security personnel, impacted by reduced theft-related violence and economic ripple effects.
- Criminal Organizations: Organized theft groups, facing heightened federal scrutiny and penalties.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens prosecutorial tools by aligning retail/cargo theft with federal racketeering and money laundering statutes (racketeering refers to coordinated criminal enterprises), potentially leading to more unified cases across jurisdictions; the $5,000 aggregate rule may expand federal overreach into petty thefts traditionally handled locally, but includes safeguards like 12-month limits.
- Constitutional: No direct challenges noted; information-sharing exceptions to confidentiality laws (18 U.S.C. § 1905) are limited to operational needs with non-delegable oversight, respecting privacy while aiding enforcement; aligns with Commerce Clause authority over interstate trade.
- Political: Bipartisan sponsorship (e.g., Grassley, Cortez Masto, Blackburn) reflects cross-aisle concern over retail crime; 7-year sunset allows congressional review for effectiveness; builds on 30+ state laws (e.g., California's 2024 voter-approved aggregation reform), signaling federal-state synergy without preempting local efforts.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (47)
Sen. Cortez Masto, Catherine [D-NV], Sen. Blackburn, Marsha [R-TN], Sen. Klobuchar, Amy [D-MN], Sen. Risch, James E. [R-ID], Sen. Rosen, Jacky [D-NV], Sen. Cassidy, Bill [R-LA], Sen. Heinrich, Martin [D-NM], Sen. Budd, Ted [R-NC], Sen. Kelly, Mark [D-AZ], Sen. Hagerty, Bill [R-TN], Sen. Graham, Lindsey [R-SC], Sen. Daines, Steve [R-MT], Sen. Britt, Katie Boyd [R-AL], Sen. Cruz, Ted [R-TX], Sen. Crapo, Mike [R-ID], Sen. Tillis, Thomas [R-NC], Sen. Gallego, Ruben [D-AZ], Sen. Moreno, Bernie [R-OH], Sen. Capito, Shelley Moore [R-WV], Sen. Sheehy, Tim [R-MT], Sen. Moody, Ashley [R-FL], Sen. Kennedy, John [R-LA], Sen. Collins, Susan M. [R-ME], Sen. Boozman, John [R-AR], Sen. Warner, Mark R. [D-VA], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Hyde-Smith, Cindy [R-MS], Sen. Young, Todd [R-IN], Sen. Husted, Jon [R-OH], Sen. Luján, Ben Ray [D-NM], Sen. Alsobrooks, Angela D. [D-MD], Sen. Cornyn, John [R-TX], Sen. Mullin, Markwayne [R-OK], Sen. Ricketts, Pete [R-NE], Sen. McCormick, David [R-PA], Sen. Sullivan, Dan [R-AK], Sen. Fischer, Deb [R-NE], Sen. Cotton, Tom [R-AR], Sen. Fetterman, John [D-PA], Sen. Durbin, Richard J. [D-IL], Sen. Lankford, James [R-OK], Sen. Scott, Tim [R-SC], Sen. Wicker, Roger F. [R-MS], Sen. Duckworth, Tammy [D-IL], Sen. Banks, Jim [R-IN], Sen. Moran, Jerry [R-KS], Sen. Ernst, Joni [R-IA]
Recent Actions
- 2025-04-10: Read twice and referred to the Committee on the Judiciary.
- 2025-04-10: Introduced in Senate
Bill Versions
- Combating Organized Retail Crime Act — issued 2025-04-10 — PDF (20 pages)