Overview
Title
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.
ELI5 AI
H.R. 2853 is a bill that wants to help police catch people who steal things from stores and then try to sell them online or in other stores. It also plans to make a special place where police and other law people can work together to stop this stealing.
Summary AI
H.R. 2853, titled the "Combating Organized Retail Crime Act," aims to tackle organized crime related to the theft and illegal sale of retail goods. The bill acknowledges the increase in organized retail theft, which has led to significant financial losses and threats to safety. It proposes amendments to Title 18 of the United States Code to provide law enforcement with better tools to combat these crimes. Additionally, the bill calls for the establishment of a centralized center to improve coordination among federal, state, local, and tribal agencies in addressing organized retail and supply chain crime.
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AnalysisAI
The Combating Organized Retail Crime Act aims to address the rising problem of organized theft involving retail goods and the broader supply chain. This piece of legislation highlights the concerning increase in theft and fraud affecting retailers, manufacturers, and distribution channels in the United States. Congress acknowledges the cross-jurisdictional and sometimes international nature of these crimes, necessitating federal intervention. The bill proposes amendments to existing laws while also setting up a new entity to tackle these issues systematically.
Summary of the Bill
The bill has two main components: updating legal provisions and establishing a new coordination center. The amendments to the United States Code focus on clarifying and expanding the current laws regarding the handling of stolen goods and addressing how thefts involving substantial dollar amounts should be pursued. These amendments aim to make the laws robust enough to cover a broader range of fraudulent activities, especially those impacting commerce across state and national borders.
The second major component is the creation of the Organized Retail and Supply Chain Crime Coordination Center. This center is designed to bring together federal, state, and local efforts to combat retail and supply chain crimes more effectively. The center is tasked with coordinating law enforcement actions, sharing crucial information, and tracking crime trends.
Significant Issues
A few significant issues stand out upon examining the bill. Firstly, there is concern about how the new center will be funded, as the bill does not specify a budget or funding sources, potentially leading to overspending or misallocation of funds. Additionally, changes to legal provisions could inadvertently criminalize minor offenses that occur across state lines, placing a heavier burden on the courts.
The authority given to the center's director to share confidential information introduces potential conflicts with existing privacy laws, raising ethical and legal challenges. Also, requiring non-reimbursable state support could stress local law enforcement budgets, potentially disadvantaging areas with fewer resources.
Moreover, the bill lacks clear criteria for assessing the center's effectiveness, as it includes a sunset clause without specifying metrics for evaluation. Lastly, the broad language regarding what constitutes organized retail and supply chain crime may lead to misinterpretations and enforcement difficulties.
Broad Public Impact
For the public, the bill could mean increased safety and reduced prices over time, as tackling organized retail crime may reduce overall crime rates and the associated costs businesses face. However, businesses might experience initial growing pains as they adapt to new compliance or reporting requirements.
Stakeholder Impact
Retailers and manufacturers stand to benefit significantly if the bill achieves its goals by reducing theft-related losses and enhancing security across supply chains. Improved coordination between different levels of law enforcement might make crime prevention more effective.
However, state and local law enforcement agencies might face strains; the requirement for non-reimbursable resource sharing might disproportionately affect less affluent jurisdictions, creating a gap in enforcement capabilities across different regions.
In conclusion, while the bill is well-intentioned in its quest to tackle escalating organized retail crime, careful attention will be needed to address potential financial and operational challenges, ensuring that its implementation benefits all stakeholders equally without imposing undue burdens.
Financial Assessment
The Combating Organized Retail Crime Act, H.R. 2853, addresses the growing issue of organized retail theft, which has resulted in considerable financial losses. The bill seeks to amend certain sections of Title 18 of the United States Code to enhance law enforcement's ability to combat the theft and illegal sale of retail goods. The amendments involve financial thresholds and definitions to establish more explicit legal grounds for prosecuting these types of crimes.
Spending and Financial References:
The bill does not explicitly mention new federal spending, appropriations, or specific financial allocations to fund its initiatives, particularly the creation of the Organized Retail and Supply Chain Crime Coordination Center. However, financial references are embedded in the amendments to Title 18:
Dollar Thresholds in Legal Definitions: The amendments propose including goods of an aggregate value of $5,000 or more during any 12-month period as significant for prosecution. This specific dollar amount is important for clarifying the scale of crimes that fall under federal jurisdiction.
Increased Dollar Loss from Crimes: According to the National Retail Federation, incidents of larceny have increased by 93 percent from 2019 to 2023, with a 90 percent rise in average dollar loss. These figures underscore the financial impact on the retail industry that the bill aims to mitigate through tougher legal measures.
Issues Related to Financial Considerations:
The bill raises several financial issues and concerns that need addressing:
Lack of Clear Funding Sources: The establishment of the Organized Retail and Supply Chain Crime Coordination Center is not accompanied by specific budgetary allocations. Without designated funding, the implementation of these initiatives relies on existing resources from various federal and local law enforcement agencies, potentially leading to financial strain and inefficiencies.
Cost Evaluation and Oversight: The absence of detailed cost evaluations and oversight measures in the bill may lead to potential overspending or misallocation of funds. Having no clear mechanism to assess effectiveness or return on investment raises accountability concerns about the center's financial management and operational efficiency.
Economic Strain on Local Jurisdictions: The requirement for non-reimbursable detailees from state and local law enforcement could impose economic burdens on certain jurisdictions. This expectation benefits wealthier areas that can afford such contributions, potentially leading to disparities in enforcement capabilities across different regions.
Potential Litigation Costs: Expanding the scope of criminalization to include transactions across any facility of interstate or foreign commerce could complicate jurisdictional issues. This broadening may lead to increased litigation costs as individuals and organizations challenge the interpretations of the law within federal courts.
In summary, while H.R. 2853 aims to address organized retail crime, it raises several financial concerns regarding how effectively it will be implemented and funded. The lack of specific financial allocations and clear oversight mechanisms poses challenges to ensuring efficient use of resources and equitable enforcement across jurisdictions.
Issues
The establishment and funding of the Organized Retail and Supply Chain Crime Coordination Center are not clearly defined in terms of budget or funding sources, raising concerns about potential overspending or misallocation of funds. The lack of detailed cost evaluation could lead to inefficiencies or financial burdens on existing agencies (Sections 4 and 305A).
The amendments to title 18, United States Code, could lead to over-criminalization, particularly of minor thefts that cross state lines, resulting in an increased burden on the judicial system. Expanding the scope to include transactions by any facility of interstate or foreign commerce might complicate jurisdictional issues, potentially leading to increased litigation costs (Section 3).
The bill provides authority for the Director of the Center to share confidential information, which might conflict with existing privacy laws and raise legal challenges. This could lead to breaches of confidentiality and ethical concerns if not properly managed (Section 305A).
The requirement for non-reimbursable detailees from state and local law enforcement to staff the Center may place an undue economic strain on those jurisdictions, favoring wealthier areas that can afford such contributions, potentially creating inequities in enforcement capabilities (Sections 4 and 305A).
The sunset clause for the Center, with an automatic termination after seven years, lacks detailed criteria or metrics for assessing the Center's effectiveness, which could lead to continued operation without adequate evaluation of its impact and effectiveness. This raises accountability concerns (Section 305A).
The language describing organized retail and supply chain crime in the bill is broad, potentially encompassing unintended activities. This lack of precision might lead to misinterpretation and enforcement challenges (Section 4).
The absence of detailed oversight and evaluation measures for the Center raises issues related to accountability and efficiency in achieving its stated objectives. There is no clear mechanism for evaluating the Center's success or learning from its challenges (Section 305A).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill states that it can be referred to as the “Combating Organized Retail Crime Act.”
2. Findings Read Opens in new tab
Summary AI
Congress acknowledges the growing threat of organized theft groups that are causing increased rates of theft and violence in the retail industry and supply chain, leading to significant economic and security issues in the United States. To address this problem, Congress plans to update federal laws and coordinate efforts with different levels of government to combat organized retail and supply chain crime more effectively.
Money References
- 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.
- During the same period, the average value per theft rose to over $202,000.
3. Amendments to title 18, United States Code Read Opens in new tab
Summary AI
The amendments to title 18 of the United States Code make several changes: they include new provisions for dealing with interstate and foreign shipments of stolen goods, clarify existing laws by adding more types of financial transactions like prepaid cards, and adjust the definitions for transporting and selling stolen items, emphasizing cases involving larger values over twelve months.
Money References
- 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”.
4. Establishment of a Center to Combat Organized Retail and Supply Chain Crime Read Opens in new tab
Summary AI
The bill establishes the Organized Retail and Supply Chain Crime Coordination Center, a new body directed by the Secretary of Homeland Security to combat organized retail and supply chain crime. The Center's duties include coordinating law enforcement activities, sharing information with state, local, and private entities, tracking crime trends, and providing training, with its activity reviewed annually and set to expire in seven years unless renewed.
305A. Organized Retail and Supply Chain Crime Coordination Center Read Opens in new tab
Summary AI
The Organized Retail and Supply Chain Crime Coordination Center is established to coordinate federal, state, and local efforts against organized theft involving retail and supply chains. The Center will collaborate with various law enforcement agencies and private sector companies, issue public reports on crime trends, and provide training and assistance. It has specific leadership and staffing requirements and will eventually phase out in seven years unless renewed.