S. 1404 — Combating Organized Retail Crime Act

This section expresses the sense of Congress that organized theft groups are increasing retail and supply chain crimes—including a 93% rise in larceny incidents and 90% increase in average dollar loss from 2019 to 2023 (per National Retail Federation), with over 84% of retailers reporting heightened violence since 2022, and a 27% rise in cargo theft incidents with average value over $202,000 in 2024 (per CargoNet)—threatening economic security, consumer safety, and national interests, while calling for amendments to federal criminal law and a central coordination center for law enforcement efforts.

This section amends Part I of title 18, United States Code, as follows: (1) expands criminal forfeiture under §982(a)(5) to include property involved in offenses under §§659 (theft from interstate or foreign carrier shipments), 2314 (transportation of stolen goods), and 2315 (sale or receipt of stolen goods); (2) in the money laundering statute (§1956(c)), expands the definition of monetary instruments to include general-use prepaid cards, gift certificates, and store gift cards (in addition to money orders) and adds §§659, 2314, and 2315 as specified unlawful activities; (3) revises §2314 to extend to use of any facility of interstate or foreign commerce (i.e., including the internet), to goods that are embezzled or taken by false pretense or other illegal means (in addition to stolen or taken by fraud), and to goods with an aggregate value of $5,000 or more during any 12-month period (Thus, enabling prosecution of multiple smaller thefts totaling $5,000 annually.); and (4) revises §2315 to extend to goods with an aggregate value of $5,000 or more during any 12-month period and to goods stolen, unlawfully converted, or taken by use of any facility of interstate or foreign commerce (Thus, broadening federal jurisdiction beyond goods physically crossing state lines.).

This section establishes the Organized Retail and Supply Chain Crime Coordination Center within U.S. Immigration and Customs Enforcement's Homeland Security Investigations not later than 90 days after enactment of the Combating Organized Retail Crime Act. The Center coordinates federal investigations of organized retail and supply chain crimes (i.e., specified theft offenses under 18 U.S.C. §§659, 2117, 2314, and 2315 committed by or with organizations, related aiding/abeting/conspiracies, and similar crimes); builds relationships and shares information with state/local law enforcement, organized retail crime associations, cargo theft associations, and affected private companies; assists state/local investigations; creates a secure federal information-sharing system; tracks trends via annual public reports; and supports training and technical assistance. The Center is led by a Senior Executive Service Director appointed by the ICE Director and a Deputy Director appointed on a two-year rotational basis from the FBI, Secret Service, or Postal Inspection Service; staffed by Homeland Security Investigations personnel and detailees from U.S. Customs and Border Protection, Secret Service, Postal Inspection Service, ATF, DEA, FBI, and FMCSA (plus possible state/local detailees); and coordinates with other federal organized crime centers, including potential resource-sharing with the National Intellectual Property Rights Coordination Center. The Center Director may enter agreements with federal, state, local, Tribal, and private entities and—subject to the Director's non-delegable approval—share otherwise confidential information restricted by 18 U.S.C. §1905 (i.e., trade secrets, financial data) if operationally necessary. (Thus, this creates a targeted exception to federal nondisclosure rules for Center operations.) The Center must submit an initial report to Congress not later than one year after enactment.