,,ib ,union ,calendar ,no4 #djb #aaith ,,congress #b;d ,session ,h4 ,r4 #bhec ,report ,no4 #aai-dga ,,in ,,the ,,house ,,of ,,representatives ,april #aj1 #bjbe ,mr4 ,joyce of ,ohio 7for himself1 ,ms4 ,lee of ,nevada1 ,mr4 ,valadao1 ,ms4 ,titus1 ,mr4 ,baumgartner1 ,mr4 ,schneider1 ,ms4 ,lee of ,florida1 ,mr4 ,correa1 ,mr4 ,knott1 ,mr4 ,neguse1 ,mr4 ,la,lota1 ,mr4 ,morelle1 ,mr4 ,amodei of ,nevada1 ,mr4 ,carbajal1 ,mr4 ,ciscomani1 ,mr4 ,cuellar1 ,mr4 ,nehls1 ,mr4 ,costa1 ,ms4 ,malliotakis1 and ,mr4 ,panetta7 introduced the following bill2 which was referred to the ,committee on the ,judiciary ,january #cj1 #bjbf ,additional sponsors3 ,mr4 ,wied1 ,mr4 ,womack1 ,mr4 ,magaziner1 ,ms4 ,del,bene1 ,mr4 ,edwards1 ,mr4 ,carter of ,georgia1 ,ms4 ,strickland1 ,mr4 ,moore of ,alabama1 ,mr4 ,bean of ,florida1 ,mr4 ,allen1 ,mr4 ,moore of ,north ,carolina1 ,ms4 ,houlahan1 ,mr4 ,carey1 ,mr4 ,gooden1 ,mrs4 ,miller of ,west ,virginia1 ,mr4 ,peters1 ,mr4 ,stauber1 ,ms4 ,tenney1 ,mr4 ,webster of ,florida1 ,mr4 ,des,jarlais1 ,mr4 ,johnson of ,south ,dakota1 ,mr4 ,fong1 ,mr4 ,harrigan1 ,mr4 ,buchanan1 ,mr4 ,hurd of ,colorado1 ,mr4 ,strong1 ,mr4 ,schmidt1 ,mr4 ,yakym1 ,mr4 ,garcia of ,california1 ,mr4 ,meuser1 ,mr4 ,rulli1 ,mr4 ,moolenaar1 ,ms4 ,bynum1 ,mr4 ,harder of ,california1 ,mr4 ,cohen1 ,ms4 ,gillen1 ,mr4 ,wittman1 ,mr4 ,bacon1 ,ms4 ,schrier1 ,ms4 ,scholten1 ,mr4 ,finstad1 ,ms4 ,mc,donald ,rivet1 ,mr4 ,onder1 ,mr4 ,figures1 ,mr4 ,vindman1 ,ms4 ,brownley1 ,mr4 ,mann1 ,mr4 ,mc,guire1 ,mr4 ,tiffany1 ,mr4 ,taylor1 ,mr4 ,case1 ,mr4 ,khanna1 ,mr4 ,williams of ,texas1 ,mr4 ,fitzpatrick1 ,mr4 ,gottheimer1 ,mr4 ,barrett1 ,mr4 ,van ,drew1 ,mr4 ,mfume1 ,mr4 ,lawler1 ,mr4 ,graves1 ,mrs4 ,mc,bath1 ,mr4 ,kiley of ,california1 ,mr4 ,cline1 ,mr4 ,evans of ,colorado1 ,mr4 ,scott ,franklin of ,florida1 ,mr4 ,boyle of ,pennsylvania1 ,mr4 ,davis of ,north ,carolina1 ,mr4 ,obernolte1 ,ms4 ,ross1 ,ms4 ,crockett1 ,ms4 ,craig1 ,mr4 ,flood1 ,ms4 ,tokuda1 ,mr4 ,bost1 ,mr4 ,wilson of ,south ,carolina1 ,ms4 ,van ,duyne1 ,mr4 ,weber of ,texas1 ,ms4 ,pou1 ,ms4 ,salinas1 ,ms4 ,salazar1 ,mr4 ,burchett1 ,mr4 ,gill of ,texas1 ,mr4 ,grothman1 ,mr4 ,higgins of ,louisiana1 ,ms4 ,lois ,frankel of ,florida1 ,mr4 ,westerman1 ,mr4 ,bresnahan1 ,mr4 ,ogles1 ,mr4 ,sorensen1 ,mr4 ,ezell1 ,mr4 ,vasquez1 ,mrs4 ,cherfilus-,mc,cormick1 ,mr4 ,kelly of ,mississippi1 ,mr4 ,haridopolos1 ,mr4 ,ivey1 ,mrs4 ,torres of ,california1 ,mr4 ,quigley1 ,ms4 ,sewell1 ,mr4 ,david ,scott of ,georgia1 ,mr4 ,latimer1 ,mr4 ,mc,cormick1 ,mr4 ,kean1 ,mr4 ,moran1 ,mrs4 ,hinson1 ,ms4 ,wilson of ,florida1 ,mr4 ,rouzer1 ,mr4 ,turner of ,ohio1 ,mr4 ,owens1 ,mr4 ,hill of ,arkansas1 ,ms4 ,perez1 ,mr4 ,thompson of ,california1 ,mr4 ,stanton1 ,mr4 ,timmons1 ,mr4 ,mackenzie1 ,mr4 ,min1 ,mrs4 ,luna1 ,mr4 ,issa1 ,mr4 ,moskowitz1 ,mr4 ,goldman of ,new ,york1 ,mr4 ,loudermilk1 ,mrs4 ,foushee1 ,mr4 ,crawford1 ,ms4 ,davids of ,kansas1 ,mrs4 ,kiggans of ,virginia1 ,mr4 ,vicente ,gonzalez of ,texas1 ,mrs4 ,trahan1 ,mr4 ,pappas1 ,mr4 ,collins1 ,mr4 ,hunt1 ,mr4 ,sessions1 ,ms4 ,escobar1 ,ms4 ,mc,bride1 ,mr4 ,moulton1 ,mrs4 ,bice1 ,mr4 ,conaway1 ,ms4 ,wasserman ,schultz1 ,mr4 ,lynch1 ,mr4 ,bera1 ,mr4 ,austin ,scott of ,georgia1 ,mr4 ,guest1 ,mr4 ,garbarino1 ,mr4 ,steil1 ,mr4 ,mannion1 ,mr4 ,jack1 ,ms4 ,mace1 ,mr4 ,smith of ,washington1 ,mr4 ,deluzio1 ,mr4 ,fitzgerald1 ,mr4 ,calvert1 ,mrs4 ,biggs of ,south ,carolina1 ,ms4 ,barragn1 ,mr4 ,carter of ,texas1 ,mr4 ,begich1 ,mrs4 ,houchin1 ,mr4 ,donalds1 ,mr4 ,feenstra1 ,mr4 ,rogers of ,alabama1 ,mr4 ,pfluger1 ,mr4 ,shreve1 ,mr4 ,simpson1 ,mr4 ,levin1 ,mr4 ,mc,dowell1 ,mr4 ,miller of ,ohio1 ,mr4 ,tony ,gonzales of ,texas1 ,mr4 ,horsford1 ,mr4 ,langworthy1 ,mr4 ,ellzey1 ,mr4 ,mrvan1 ,mrs4 ,harshbarger1 ,mr4 ,soto1 ,mr4 ,tran1 ,mrs4 ,wagner1 ,mr4 ,smith of ,new ,jersey1 ,mr4 ,zinke1 ,ms4 ,garcia of ,texas1 ,mr4 ,riley of ,new ,york1 ,mr4 ,johnson of ,georgia1 ,mr4 ,newhouse1 ,ms4 ,elfreth1 ,mr4 ,hernndez1 ,mr4 ,rutherford1 ,ms4 ,pettersen1 ,ms4 ,morrison1 ,mr4 ,nunn of ,iowa1 ,mr4 ,joyce of ,pennsylvania1 ,mr4 ,moore of ,west ,virginia1 and ,mrs4 ,kim ,january #cj1 #bjbf ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,april #aj1 #bjbe ,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 marketplaces4 #a4 ,short title ,this ,act may be cited as the ,combating ,organized ,retail ,crime ,act of #bjbe4 #b4 ,findings ,it is the sense of ,congress that-- 7#a7 organized theft groups1 involving sophisticated and structured groups of individuals1 continue to increase criminal activities carried out by the groups against the retail industry and the supply chain of the ,nation1 and these activities1 at unprecedented levels1 involve theft and fraud of both physical and digital goods1 leading to escalating financial losses and violence in the workplace--all impacting the national economy and security of the ,united ,states2 7#b7 retailers face mounting thefts and fraud because of organized retail crime in and around stores1 online1 and throughout the retail ecosystem1 and1 according to the ,national ,retail ,federation1 larceny incidents increased by #ic percent in #bjbc compared to #bjai1 with a #ij percent rise in average dollar loss2 7#c7 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 activity1 and more than #hd percent of retailers report that violence and aggression from these criminal activities has become more of a concern since #bjbb1 resulting in injuries and deaths among employees1 customers1 security officers1 and law enforcement personnel2 7#d7 product manufacturers and the supply chain of the ,nation are victims of alarming increases in cargo theft across rails1 roads1 and the various distribution points across the ,nation2 7#e7 ,cargo,net1 a database of reported incidents in the ,united ,states1 reported a #bg percent increase in cargo theft incidents in #bjbd compared to the previous year1 while during the same period1 the average value per theft rose to over #bjb1jjj2 7#f7 these thefts range from large-scale physical theft of goods from containers and storage to sophisticated cybercriminal methods that divert shipments to illicit receivers1 causing significant financial losses and operational supply chain disruptions2 7#g7 since #bjbb1 more than #cj ,state laws have been enacted to address organized theft1 allow for aggregation of thefts1 and adjust penalties and enhancements1 includin in #bjbd1 ,california voters overwhelmingly approving a constitutional reform to allow aggregation of multiple or repeated thefts2 7#h7 although larceny and organized retail crime are sometimes prosecuted at ,state and local levels1 ,states face resource and investigative challenges from groups operating beyond local1 ,state1 and regional law enforcement capabilities1 and more needs to be done to address the cross-jurisdictional1 interstate1 and international aspects of these crimes2 7#i7 organized theft groups vary in scope and scale1 operating across ,state jurisdictions to avoid or disrupt local1 ,state1 and ,tribal law enforcement response1 and 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 safety2 7#aj7 the groups exist and operate at the local1 regional1 and transnational level1 targeting goods that include raw and finished materials1 various branded retail products across all consumer categories1 operational assets in retail commerce such as reusable transport packaging products1 and consumable goods including agriculture1 food products1 and medicines2 7#aa7 these groups are often polycriminal organizations1 using profit from the reselling of stolen goods to support crimes involving drugs and weapons trafficking2 7#ab7 the organized theft groups engage in human smuggling and have been known to use migrants to commit crimes to support the organizations2 7#ac7 the groups move products and illicit proceeds beyond the borders of the ,united ,states1 funding nefarious groups and activities and threatening the integrity of the international economy2 7#ad7 organized theft groups-- 7,a7 threaten the safety and liberty of individuals in the ,united ,states when those individuals engage in commerce2 7,b7 impact the ability of the ,nation to distribute goods to consumers1 undermine consumer confidence in the supply chain1 and threaten the integrity of agricultural and consumable goods2 7,c7 erode the national economy by increasing the cost of goods1 resulting in higher prices for consumers1 reducing tax revenues1 and impacting employees1 customers1 and businesses alike2 and 7,d7 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 organizations2 and 7#ae7 it has become necessary for ,congress to-- 7,a7 amend title #ah1 ,united ,states ,code1 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 chain2 and 7,b7 direct the executive branch to create a central coordination center to align ,federal1 ,state1 local1 territorial1 and ,tribal efforts to combat organized retail crime and organized supply chain crime4 #c4 ,amendments to title #ah1 ,united ,states ,code ,part ,i of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in section #ihb7;a77#e7-- 7,a7 by redesignating subparagraphs 7,c71 7,d71 and 7,e7 as subparagraphs 7,d71 7,e71 and 7,f71 respectively2 7,b7 by inserting after subparagraph 7,b7 the following3 7,c7 section #fei 7interstate or foreign shipments by carrier2 ,state prosecutions72 2 7,c7 in subparagraph 7,e71 as so redesignated1 by striking 2 or and inserting a semicolon2 and 7,d7 by inserting after subparagraph 7,f71 as so redesignated1 the following3 7,g7 section #bcad 7transportation of stolen goods1 securities1 moneys1 fraudulent ,state tax stamps1 or articles used in counterfeiting72 or 7,h7 section #bcae 7sale or receipt of stolen goods1 securities1 moneys1 or fraudulent ,state tax stamps72 2 7#b7 in section #aief7;c7-- 7,a7 in paragraph 7#e71 by striking and money orders and inserting money orders1 general-use prepaid cards1 gift certificates1 and store gift cards2 and 7,b7 in paragraph 7#g77;,d7-- 7i7 by inserting section #fei 7interstate or foreign shipments by carrier2 ,state prosecutions71 after section #feh 7relating to property mortgaged or pledged to farm credit agencies71 2 and 7ii7 by inserting section #bcad 7transportation of stolen goods1 securities1 moneys1 fraudulent ,state tax stamps1 or articles used in counterfeiting71 section #bcae 7sale or receipt of stolen goods1 securities1 moneys1 or fraudulent ,state tax stamps71 after section #bbha 7relating to violence against maritime fixed platforms712 7#c7 in section #bcad1 in the first paragraph-- 7,a7 by inserting or of an aggregate value of #e1jjj or more during any #ab-month period1 after more12 7,b7 by inserting embezzled1 after stolen12 and 7,c7 by inserting 1 false pretense1 or other illegal means after fraud2 and 7#d7 in section #bcae1 in the first paragraph1 by inserting or of an aggregate value of #e1jjj or more during any #ab-month period1 after #e1jjj or more14 #d4 ,establishment of a ,center to ,combat ,organized ,retail and ,supply ,chain ,crime 7a7 ,in general ,title ,,iii of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7#ai ,u4,s4,c4 #dcda et seq47 is amended by inserting after section #cje the following3 #cje;,a4 ,organized ,retail and ,supply ,chain ,crime ,coordination ,center 7a7 ,definitions ,in this section3 7#a7 ,center ,the term ,center means the ,organized ,retail and ,supply ,chain ,crime ,coordination ,center established pursuant to subsection 7b77#a74 7#b7 ,organized retail and supply chain crime ,the term organized retail and supply chain crime includes-- 7,a7 any crime described in section #fei1 #baag1 #bcad1 or #bcae of title #ah1 ,united ,states ,code that is committed by1 in coordination with1 or at the instruction of an organization2 7,b7 aiding or abetting the commission of1 or conspiring to commit1 any act that is in furtherance of a violation of a crime referred to in subparagraph 7,a72 and 7,c7 other crimes related to those described in subparagraphs 7,a7 and 7,b74 7#c7 ,secretary ,the term ,secretary means the ,secretary of ,homeland ,security4 7#d7 ,executive ,associate ,director ,the term ,executive ,associate ,director means the ,executive ,associate ,director of ,homeland ,security ,investigations4 7b7 ,organized ,retail and ,supply ,chain ,crime ,coordination ,center 7#a7 ,establishment ,not later than #ij days after the date of enactment of the ,combating ,organized ,retail ,crime ,act of #bjbe1 the ,secretary shall direct the ,executive ,associate ,director to establish the ,organized ,retail and ,supply ,chain ,crime ,coordination ,center4 7#b7 ,duties ,the duties of the ,center shall include-- 7,a7 coordinating ,federal law enforcement activities related to organized retail and supply chain crime1 including investigations of national and transnational criminal organizations that are engaged in organized retail and supply chain crime2 7,b7 establishing relationships with ,state and local law enforcement agencies and organizations1 including organized retail crime associations and cargo theft associations1 and sharing information regarding organized retail and supply chain crime threats with such agencies and organizations2 7,c7 assisting ,state and local law enforcement agencies with ,state and local investigations of organized retail and supply chain crime groups2 7,d7 establishing relationships with retail1 transportation1 and other companies determined by the ,executive ,associate ,director to have significant interests relating to organized retail and supply chain crime threats1 sharing information with those companies regarding such threats1 collaborating on investigations and loss prevention activities as appropriate1 and providing a mechanism for the receipt of investigative information on such threats2 7,e7 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 ,justice2 7,f7 tracking trends with respect to organized retail and supply chain crime and releasing annual public reports on such trends2 and 7,g7 supporting the provision of training and technical assistance in accordance with subsection 7c74 7#c7 ,leadership2 staffing 7,a7 ,director ,the ,center shall be headed by a ,director1 who shall be-- 7i7 an experienced law enforcement officer2 7ii7 appointed by the ,director of ,u4,s4 ,immigration and ,customs ,enforcement2 and 7iii7 in a ,senior ,executive ,service position as defined in section #cacb of title #e1 ,united ,states ,code4 7,b7 ,deputy ,director ,the ,director of the ,center shall be assisted by a ,deputy ,director1 who shall be appointed1 on a #b-year rotational basis1 upon request from the ,executive ,associate ,director1 by-- 7i7 the ,director of the ,federal ,bureau of ,investigation2 7ii7 the ,director of the ,united ,states ,secret ,service2 or 7iii7 the ,chief ,postal ,inspector4 7,c7 ,federal staff ,the staff of the ,center shall include-- 7i7 special agents and analysts from ,homeland ,security ,investigations2 and 7ii7 detailed criminal investigators1 analysts1 and liaisons from other ,federal agencies who have responsibilities related to organized retail and supply chain crime1 including detailees from-- 7,i7 ,u4,s4 ,customs and ,border ,protection2 7,,ii7 the ,united ,states ,secret ,service2 7,,iii7 the ,united ,states ,postal ,inspection ,service2 7,,iv7 the ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives2 7,v7 the ,drug ,enforcement ,administration2 7,,vi7 the ,federal ,bureau of ,investigation2 and 7,,vii7 the ,federal ,motor ,carrier ,safety ,administration4 7,d7 ,state and local staff ,the staff of the ,center may include detailees from ,state and local law enforcement agencies1 who shall serve at the ,center on a nonreimbursable basis4 7#d7 ,coordination 7,a7 ,in general ,the ,center shall coordinate its activities1 as appropriate1 with other ,federal agencies and centers responsible for countering transnational organized crime threats4 7,b7 ,shared resources ,in establishing the ,center1 the ,executive ,associate ,director may co-locate or otherwise share resources and personnel1 including detailees and agency liaisons1 with-- 7i7 the ,national ,intellectual ,property ,rights ,coordination ,center established pursuant to section #cje7;a77#a72 or 7ii7 other existing interagency centers within the ,department of ,homeland ,security4 7,c7 ,agreements ,the ,director of the ,center1 or his or her designee1 may enter into agreements with ,federal1 ,state1 local1 and ,tribal agencies and private sector entities to facilitate carrying out the duties described in paragraph 7#b74 7,d7 ,information sharing 7i7 ,in general ,subject to the approval of the ,director of the ,center1 information that would otherwise be subject to the limitation on the disclosure of confidential information set forth in section #aije of title #ah1 ,united ,states ,code1 may be shared if such disclosure is operationally necessary4 7ii7 ,non-delegable authority ,the ,director may not delegate his or her authority under this subparagraph4 7#e7 ,reporting requirements 7,a7 ,initial report 7i7 ,in general ,not later than #a year after the date of enactment of the ,combating ,organized ,retail ,crime ,act of #bjbe1 the ,secretary shall submit a report regarding the establishment of the ,center to-- 7,i7 the ,committee on the ,judiciary of the ,senate2 7,,ii7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate2 7,,iii7 the ,committee on the ,judiciary of the ,house of ,representatives2 and 7,,iv7 the ,committee on ,homeland ,security of the ,house of ,representatives4 7ii7 ,contents ,the report required under clause 7i7 shall include a description of-- 7,i7 the organizational structure of the ,center2 7,,ii7 the agencies and partner organizations that are represented within the ,center2 7,,iii7 any challenges required to be addressed while establishing the ,center2 7,,iv7 any lessons learned from establishing the ,center1 including successful prosecutions resulting from the activities of the ,center2 7,v7 recommendations for ways to strengthen the enforcement of laws involving organized retail and supply chain crime2 7,,vi7 the intersections and commonalities between organized retail crime organizations and other organized theft groups1 including supply chain diversion and theft2 and 7,,vii7 the impact of organized theft groups on the scarcity of vital products1 including medicines1 personal protective equipment1 and infant formula4 7,b7 ,annual report ,beginning on the date that is #a year after the submission of the report required under subparagraph 7,a71 and each year thereafter1 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 7,a77i74 7#f7 ,sunset 7,a7 ,in general ,the authority of the ,center shall terminate on the date that is #g years after the date on which the ,center is established under paragraph 7#a74 7,b7 ,wind down ,the ,secretary shall take such actions as may be necessary to wind down the ,center in accordance with subparagraph 7,a74 7c7 ,training and technical assistance 7#a7 ,evaluation ,not later than #ahj days after the date of enactment of the ,combating ,organized ,retail ,crime ,act of #bjbe1 the ,secretary and the ,attorney ,general shall conduct an evaluation of existing ,federal programs that provide grants1 training1 and technical support to ,state1 local1 and ,tribal law enforcement to assist in countering organized retail and supply chain crime4 7#b7 ,evaluation scope ,the evaluation required under paragraph 7#a7 shall evaluate1 at a minimum-- 7,a7 the ,homeland ,security ,grant ,program at the ,federal ,emergency ,management ,agency2 7,b7 grant programs at the ,office of ,justice ,programs within the ,department of ,justice2 and 7,c7 relevant training programs at the ,federal ,law ,enforcement ,training ,center4 7#c7 ,report ,not later than #de days after the completion of the evaluation required under paragraph 7#a71 the ,secretary and the ,attorney ,general shall jointly submit a report to the congressional committees listed in subsection 7b77#e77;,a77i7 that-- 7,a7 describes the results of such evaluation2 and 7,b7 includes recommendations on ways to expand grants1 training1 and technical assistance for combating organized retail and supply chain crime4 7#d7 ,enhancing or modifying training and technical assistance ,not later than #de days after submitting the report required under paragraph 7#c71 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 expanding1 as appropriate1 the prioritization of training and technical assistance designed to counter organized retail and supply chain crime4 4 7b7 ,clerical amendment ,the table of contents for the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7,public ,law #aad-abe2 #acj ,stat4 #abb7 is amended by inserting after the item relating to section #cje the following3 ,sec4 #cje;,a4 ,organized ,retail and ,supply ,chain ,crime ,coordination ,center4 4 ,january #cj1 #bjbf ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed