[Congressional Record Volume 171, Number 132 (Thursday, July 31, 2025)]
[Senate]
[Pages S5109-S5111]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3356. Mr. GRASSLEY (for himself and Ms. Cortez Masto) submitted an
amendment intended to be proposed by him to the bill S. 2296, to
authorize appropriations for fiscal year 2026 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal
[[Page S5110]]
year, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of subtitle F of title X, insert the following:
SEC. 1067. COMBATING ORGANIZED RETAIL CRIME ACT.
(a) Short Title.--This section may be cited as the
``Combating Organized Retail Crime Act''.
(b) 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.
(c) 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''.
(d) Establishment of a Center to Combat Organized Retail
and Supply Chain Crime.--
(1) 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, local,
territorial, and Tribal 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, local, territorial, and Tribal law
enforcement agencies with State, local, territorial, and
Tribal investigations of organized retail and supply chain
crime groups;
[[Page S5111]]
``(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, local, territorial, and tribal staff.--The
staff of the Center may include detailees from State, local,
territorial, and Tribal 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, territorial,
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.''.
(2) 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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