II
119THCONGRESS
1
STSESSION 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
APRIL10, 2025
Mr. G
RASSLEY(for himself, Ms. CORTEZMASTO, Mrs. BLACKBURN, Ms. KLO-
BUCHAR, Mr. RISCH, Ms. ROSEN, Mr. CASSIDY, Mr. HEINRICH, Mr.
B
UDD, Mr. KELLY, Mr. HAGERTY, Mr. GRAHAM, Mr. DAINES, Mrs.
B
RITT, 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Combating Organized 4
Retail Crime Act’’. 5
SEC. 2. FINDINGS. 6
It is the sense of Congress that— 7
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(1) organized theft groups, involving sophisti-1
cated and structured groups of individuals, continue 2
to increase criminal activities carried out by the 3
groups against the retail industry and the supply 4
chain of the Nation. These activities, at unprece-5
dented levels, involve theft and fraud of both phys-6
ical and digital goods, leading to escalating financial 7
losses and violence in the workplace—all impacting 8
the national economy and security of the United 9
States; 10
(2) retailers face mounting thefts and fraud be-11
cause of organized retail crime in and around stores, 12
online, and throughout the retail ecosystem. Accord-13
ing to the National Retail Federation, larceny inci-14
dents increased by 93 percent in 2023 compared to 15
2019, with a 90 percent rise in average dollar loss. 16
These thefts are often orchestrated by organized 17
theft groups reselling and redistributing the stolen 18
goods back into the economy of the United States or 19
overseas to gain illicit profit and to finance other 20
criminal activity. More than 84 percent of retailers 21
report that violence and aggression from these crimi-22
nal activities has become more of a concern since 23
2022, resulting in injuries and deaths among em-24
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ployees, customers, security officers, and law en-1
forcement personnel; 2
(3) product manufacturers and the supply chain 3
of the Nation are victims of alarming increases in 4
cargo theft across rails, roads, and the various dis-5
tribution points across the Nation. CargoNet, a 6
database of reported incidents in the United States, 7
reported a 27 percent increase in cargo theft inci-8
dents in 2024 compared to the previous year. Dur-9
ing the same period, the average value per theft rose 10
to over $202,000. These thefts range from large- 11
scale physical theft of goods from containers and 12
storage to sophisticated cybercriminal methods that 13
divert shipments to illicit receivers, causing signifi-14
cant financial losses and operational supply chain 15
disruptions; 16
(4) since 2022, more than 30 State laws have 17
been enacted to address organized theft, allow for 18
aggregation of thefts, and adjust penalties and en-19
hancements. In 2024, California voters overwhelm-20
ingly approved a constitutional reform to allow ag-21
gregation of multiple or repeated thefts. Although 22
larceny and organized retail crime are sometimes 23
prosecuted at State and local levels, States face re-24
source and investigative challenges from groups op-25
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erating beyond local, State, and regional law en-1
forcement capabilities. More needs to be done to ad-2
dress the cross-jurisdictional, interstate, and inter-3
national aspects of these crimes; 4
(5) organized theft groups vary in scope and 5
scale, operating across State jurisdictions to avoid or 6
disrupt local, State, and Tribal law enforcement re-7
sponse. These organized theft groups build hierar-8
chies to easily redistribute stolen goods and illicit 9
profits back into the economy of the United States 10
or overseas with disregard for product and consumer 11
safety. The groups exist and operate at the local, re-12
gional, and transnational level, targeting goods that 13
include raw and finished materials, various branded 14
retail products across all consumer categories, oper-15
ational assets in retail commerce such as reusable 16
transport packaging products, and consumable goods 17
including agriculture, food products, and medicines; 18
(6) these groups are often polycriminal organi-19
zations, using profit from the reselling of stolen 20
goods to support crimes involving drugs and weap-21
ons trafficking. The organized theft groups engage 22
in human smuggling and have been known to use 23
migrants to commit crimes to support the organiza-24
tions. The groups move products and illicit proceeds 25
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beyond the borders of the United States, funding ne-1
farious groups and activities and threatening the in-2
tegrity of the international economy; 3
(7) organized theft groups— 4
(A) threaten the safety and liberty of indi-5
viduals in the United States when those individ-6
uals engage in commerce; 7
(B) impact the ability of the Nation to dis-8
tribute goods to consumers, undermine con-9
sumer confidence in the supply chain, and 10
threaten the integrity of agricultural and 11
consumable goods; 12
(C) erode the national economy by increas-13
ing the cost of goods, resulting in higher prices 14
for consumers, reducing tax revenues, and im-15
pacting employees, customers, and businesses 16
alike; and 17
(D) impact the national security of the 18
United States through financing transnational 19
criminal activity and providing profit and pro-20
ceeds supporting larger criminal goals of the 21
criminal organizations; and 22
(8) it has become necessary for Congress to— 23
(A) amend title 18, United States Code, to 24
ensure that law enforcement has the legal tools 25
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necessary to combat organized retail crime in 1
the same capacity that law enforcement is able 2
to combat theft and diversion from other por-3
tions of the supply chain; and 4
(B) direct the executive branch to create a 5
central coordination center to align Federal, 6
State, local, territorial, and Tribal efforts to 7
combat organized retail crime and organized 8
supply chain crime. 9
SEC. 3. AMENDMENTS TO TITLE 18, UNITED STATES CODE. 10
Part I of title 18, United States Code, is amended— 11
(1) in section 982(a)(5)— 12
(A) by redesignating subparagraphs (C), 13
(D), and (E) as subparagraphs (D), (E), and 14
(F), respectively; 15
(B) by inserting after subparagraph (B) 16
the following: 17
‘‘(C) section 659 (interstate or foreign ship-18
ments by carrier; State prosecutions);’’; 19
(C) in subparagraph (E), as so redesig-20
nated, by striking ‘‘; or’’ and inserting a semi-21
colon; 22
(D) in subparagraph (F), as so redesig-23
nated, by striking the period at the end and in-24
serting a semicolon; and 25
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(E) by inserting after subparagraph (F), 1
as so redesignated, the following: 2
‘‘(G) section 2314 (transportation of stolen 3
goods, securities, moneys, fraudulent State tax 4
stamps, or articles used in counterfeiting); or 5
‘‘(H) section 2315 (sale or receipt of stolen 6
goods, securities, moneys, or fraudulent State tax 7
stamps);’’; 8
(2) in section 1956(c)— 9
(A) in paragraph (5), by striking ‘‘and 10
money orders’’ and inserting ‘‘money orders, 11
general-use prepaid cards, gift certificates, and 12
store gift cards’’; and 13
(B) in paragraph (7)(D)— 14
(i) by inserting ‘‘section 659 (inter-15
state or foreign shipments by carrier; State 16
prosecutions),’’ after ‘‘section 658 (relating 17
to property mortgaged or pledged to farm 18
credit agencies),’’; and 19
(ii) by inserting ‘‘section 2314 (trans-20
portation of stolen goods, securities, mon-21
eys, fraudulent State tax stamps, or arti-22
cles used in counterfeiting), section 2315 23
(sale or receipt of stolen goods, securities, 24
moneys, or fraudulent State tax stamps),’’ 25
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after ‘‘section 2281 (relating to violence 1
against maritime fixed platforms),’’; 2
(3) in section 2314, in the first paragraph— 3
(A) by inserting ‘‘, or by using any facility 4
of interstate or foreign commerce,’’ after ‘‘com-5
merce’’; 6
(B) by inserting ‘‘or of an aggregate value 7
of $5,000 or more during any 12-month pe-8
riod,’’ after ‘‘more,’’; 9
(C) by inserting ‘‘, embezzled,’’ after ‘‘sto-10
len’’; and 11
(D) by inserting ‘‘, false pretense, or other 12
illegal means’’ after ‘‘fraud’’; and 13
(4) in section 2315, in the first paragraph— 14
(A) by inserting ‘‘or of an aggregate value 15
of $5,000 or more during any 12-month pe-16
riod,’’ after ‘‘$5,000 or more,’’; and 17
(B) by striking ‘‘; or’’ and inserting ‘‘, or 18
have been stolen, unlawfully converted, or taken 19
by the use of any facility of interstate or foreign 20
commerce in the commission of said act; or’’. 21
SEC. 4. ESTABLISHMENT OF A CENTER TO COMBAT ORGA-22
NIZED RETAIL AND SUPPLY CHAIN CRIME. 23
(a) I
NGENERAL.—Title III of the Trade Facilitation 24
and Trade Enforcement Act of 2015 (19 U.S.C. 4341 et 25
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seq.) is amended by inserting after section 305 the fol-1
lowing: 2
‘‘SEC. 305A. ORGANIZED RETAIL AND SUPPLY CHAIN CRIME 3
COORDINATION CENTER. 4
‘‘(a) D
EFINITIONS.—In this section: 5
‘‘(1) C
ENTER.—The term ‘Center’ means the 6
Organized Retail and Supply Chain Crime Coordina-7
tion Center established pursuant to subsection 8
(b)(1). 9
‘‘(2) O
RGANIZED RETAIL AND SUPPLY CHAIN 10
CRIME.—The term ‘organized retail and supply 11
chain crime’ includes— 12
‘‘(A) any crime described in section 659, 13
2117, 2314, or 2315 of title 18, United States 14
Code that is committed by, in coordination 15
with, or at the instruction of an organization; 16
‘‘(B) aiding or abetting the commission of, 17
or conspiring to commit, any act that is in fur-18
therance of a violation of a crime referred to in 19
subparagraph (A); and 20
‘‘(C) other crimes related to those de-21
scribed in subparagraphs (A) and (B). 22
‘‘(3) S
ECRETARY.—The term ‘Secretary’ means 23
the Secretary of Homeland Security. 24
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‘‘(4) EXECUTIVE ASSOCIATE DIRECTOR .—The 1
term ‘Executive Associate Director’ means the Exec-2
utive Associate Director of Homeland Security In-3
vestigations. 4
‘‘(b) O
RGANIZEDRETAIL ANDSUPPLYCHAINCRIME 5
C
OORDINATIONCENTER.— 6
‘‘(1) E
STABLISHMENT.—Not later than 90 days 7
after the date of enactment of the Combating Orga-8
nized Retail Crime Act, the Secretary shall direct 9
the Executive Associate Director to establish the Or-10
ganized Retail and Supply Chain Crime Coordina-11
tion Center. 12
‘‘(2) D
UTIES.—The duties of the Center shall 13
include— 14
‘‘(A) coordinating Federal law enforcement 15
activities related to organized retail and supply 16
chain crime, including investigations of national 17
and transnational criminal organizations that 18
are engaged in organized retail and supply 19
chain crime; 20
‘‘(B) establishing relationships with State 21
and local law enforcement agencies and organi-22
zations, including organized retail crime asso-23
ciations and cargo theft associations, and shar-24
ing information regarding organized retail and 25
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supply chain crime threats with such agencies 1
and organizations; 2
‘‘(C) assisting State and local law enforce-3
ment agencies with State and local investiga-4
tions of organized retail and supply chain crime 5
groups; 6
‘‘(D) establishing relationships with retail, 7
transportation, and other companies determined 8
by the Executive Associate Director to have sig-9
nificant interests relating to organized retail 10
and supply chain crime threats, sharing infor-11
mation with those companies regarding such 12
threats, collaborating on investigations and loss 13
prevention activities as appropriate, and pro-14
viding a mechanism for the receipt of investiga-15
tive information on such threats; 16
‘‘(E) establishing a secure system for shar-17
ing information regarding organized retail and 18
supply chain crime threats by leveraging exist-19
ing information systems at the Department of 20
Homeland Security and the Department of Jus-21
tice; 22
‘‘(F) tracking trends with respect to orga-23
nized retail and supply chain crime and releas-24
ing annual public reports on such trends; and 25
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‘‘(G) supporting the provision of training 1
and technical assistance in accordance with sub-2
section (c). 3
‘‘(3) L
EADERSHIP; STAFFING.— 4
‘‘(A) D
IRECTOR.—The Center shall be 5
headed by a Director, who shall be— 6
‘‘(i) an experienced law enforcement 7
officer; 8
‘‘(ii) appointed by the Director of 9
U.S. Immigration and Customs Enforce-10
ment; and 11
‘‘(iii) in a Senior Executive Service 12
position as defined in section 3132 of title 13
5, United States Code. 14
‘‘(B) D
EPUTY DIRECTOR.—The Director of 15
the Center shall be assisted by a Deputy Direc-16
tor, who shall be appointed, on a 2-year rota-17
tional basis, upon request from the Executive 18
Associate Director, by— 19
‘‘(i) the Director of the Federal Bu-20
reau of Investigation; 21
‘‘(ii) the Director of the United States 22
Secret Service; or 23
‘‘(iii) the Chief Postal Inspector. 24
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‘‘(C) FEDERAL STAFF.—The staff of the 1
Center shall include— 2
‘‘(i) special agents and analysts from 3
Homeland Security Investigations; and 4
‘‘(ii) detailed criminal investigators, 5
analysts, and liaisons from other Federal 6
agencies who have responsibilities related 7
to organized retail and supply chain crime, 8
including detailees from— 9
‘‘(I) U.S. Customs and Border 10
Protection; 11
‘‘(II) the United States Secret 12
Service; 13
‘‘(III) the United States Postal 14
Inspection Service; 15
‘‘(IV) the Bureau of Alcohol, To-16
bacco, Firearms and Explosives; 17
‘‘(V) the Drug Enforcement Ad-18
ministration; 19
‘‘(VI) the Federal Bureau of In-20
vestigation; and 21
‘‘(VII) the Federal Motor Carrier 22
Safety Administration. 23
‘‘(D) S
TATE AND LOCAL STAFF .—The 24
staff of the Center may include detailees from 25
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State and local law enforcement agencies, who 1
shall serve at the Center on a nonreimbursable 2
basis. 3
‘‘(4) C
OORDINATION.— 4
‘‘(A) I
N GENERAL.—The Center shall co-5
ordinate its activities, as appropriate, with 6
other Federal agencies and centers responsible 7
for countering transnational organized crime 8
threats. 9
‘‘(B) S
HARED RESOURCES .—In estab-10
lishing the Center, the Executive Associate Di-11
rector may co-locate or otherwise share re-12
sources and personnel, including detailees and 13
agency liaisons, with— 14
‘‘(i) the National Intellectual Property 15
Rights Coordination Center established 16
pursuant to section 305(a)(1); or 17
‘‘(ii) other existing interagency cen-18
ters within the Department of Homeland 19
Security. 20
‘‘(C) A
GREEMENTS.—The Director of the 21
Center, or his or her designee, may enter into 22
agreements with Federal, State, local, and Trib-23
al agencies and private sector entities to facili-24
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tate carrying out the duties described in para-1
graph (2). 2
‘‘(D) I
NFORMATION SHARING .— 3
‘‘(i) I
N GENERAL.—Subject to the ap-4
proval of the Director of the Center, infor-5
mation that would otherwise be subject to 6
the limitation on the disclosure of con-7
fidential information set forth in section 8
1905 of title 18, United States Code, may 9
be shared if such disclosure is operationally 10
necessary. 11
‘‘(ii) N
ON-DELEGABLE AUTHORITY .— 12
The Director may not delegate his or her 13
authority under this subparagraph. 14
‘‘(5) R
EPORTING REQUIREMENTS .— 15
‘‘(A) I
NITIAL REPORT.— 16
‘‘(i) I
N GENERAL.—Not later than 1 17
year after the date of enactment of the 18
Combating Organized Retail Crime Act, 19
the Secretary shall submit a report regard-20
ing the establishment of the Center to— 21
‘‘(I) the Committee on the Judi-22
ciary of the Senate; 23
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‘‘(II) the Committee on Home-1
land Security and Governmental Af-2
fairs of the Senate; 3
‘‘(III) the Committee on the Ju-4
diciary of the House of Representa-5
tives; and 6
‘‘(IV) the Committee on Home-7
land Security of the House of Rep-8
resentatives. 9
‘‘(ii) C
ONTENTS.—The report required 10
under clause (i) shall include a description 11
of— 12
‘‘(I) the organizational structure 13
of the Center; 14
‘‘(II) the agencies and partner 15
organizations that are represented 16
within the Center; 17
‘‘(III) any challenges required to 18
be addressed while establishing the 19
Center; 20
‘‘(IV) any lessons learned from 21
establishing the Center, including suc-22
cessful prosecutions resulting from the 23
activities of the Center; 24
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‘‘(V) recommendations for ways 1
to strengthen the enforcement of laws 2
involving organized retail and supply 3
chain crime; 4
‘‘(VI) the intersections and com-5
monalities between organized retail 6
crime organizations and other orga-7
nized theft groups, including supply 8
chain diversion and theft; and 9
‘‘(VII) the impact of organized 10
theft groups on the scarcity of vital 11
products, including medicines, per-12
sonal protective equipment, and infant 13
formula. 14
‘‘(B) A
NNUAL REPORT.—Beginning on the 15
date that is 1 year after the submission of the 16
report required under subparagraph (A), and 17
each year thereafter, the Secretary shall submit 18
an annual report that describes the activities of 19
the Center during the previous year to the con-20
gressional committees listed in subparagraph 21
(A)(i). 22
‘‘(6) S
UNSET.— 23
‘‘(A) I
N GENERAL.—The authority of the 24
Center shall terminate on the date that is 7 25
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years after the date on which the Center is es-1
tablished under paragraph (1). 2
‘‘(B) W
IND DOWN.—The Secretary shall 3
take such actions as may be necessary to wind 4
down the Center in accordance with subpara-5
graph (A). 6
‘‘(c) T
RAINING ANDTECHNICALASSISTANCE.— 7
‘‘(1) E
VALUATION.—Not later than 180 days 8
after the date of enactment of the Combating Orga-9
nized Retail Crime Act, the Secretary and the Attor-10
ney General shall conduct an evaluation of existing 11
Federal programs that provide grants, training, and 12
technical support to State, local, and Tribal law en-13
forcement to assist in countering organized retail 14
and supply chain crime. 15
‘‘(2) E
VALUATION SCOPE.—The evaluation re-16
quired under paragraph (1) shall evaluate, at a min-17
imum— 18
‘‘(A) the Homeland Security Grant Pro-19
gram at the Federal Emergency Management 20
Agency; 21
‘‘(B) grant programs at the Office of Jus-22
tice Programs within the Department of Jus-23
tice; and 24
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‘‘(C) relevant training programs at the 1
Federal Law Enforcement Training Center. 2
‘‘(3) R
EPORT.—Not later than 45 days after 3
the completion of the evaluation required under 4
paragraph (1), the Secretary and the Attorney Gen-5
eral shall jointly submit a report to the congressional 6
committees listed in subsection (b)(5)(A)(i) that— 7
‘‘(A) describes the results of such evalua-8
tion; and 9
‘‘(B) includes recommendations on ways to 10
expand grants, training, and technical assist-11
ance for combating organized retail and supply 12
chain crime. 13
‘‘(4) E
NHANCING OR MODIFYING TRAINING AND 14
TECHNICAL ASSISTANCE .—Not later than 45 days 15
after submitting the report required under para-16
graph (3), the Secretary and the Attorney General 17
shall jointly issue formal guidance to relevant agen-18
cies and offices within the Department of Homeland 19
Security and the Department of Justice for modi-20
fying or expanding, as appropriate, the prioritization 21
of training and technical assistance designed to 22
counter organized retail and supply chain crime.’’. 23
(b) C
LERICALAMENDMENT.—The table of contents 24
for the Trade Facilitation and Trade Enforcement Act of 25
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2015 (Public Law 114–125; 130 Stat. 122) is amended 1
by inserting after the item relating to section 305 the fol-2
lowing: 3
‘‘Sec. 305A. Organized Retail and Supply Chain Crime Coordination Center.’’.
Æ
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