BILL NUMBER: S5458
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the executive law, in relation to establishing the
office of organized retail theft
 
PURPOSE OF BILL:
The purpose of this bill is to establish the Office of Organized Retail
Theft to investigate complaints and prosecute alleged criminal offenses
committed by a person or a retail theft organization.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill would amend the Executive law by adding a new
section 70-d, which would
*establish the Office of Organized Retail Theft (the Office) to receive
and investigate complaints or allegations involving the use and role of
organized retail theft and to prosecute any alleged criminal offense or
offenses committed by a person or a retail theft organization;
*authorize the Office to coordinate with State agencies and law enforce-
ment to perform its duties and assist in related investigations when
necessary;
*establish the powers of investigations of the Office;
*require the Office to publish an annual report summarizing its activ-
ities and to make legislative recommendations; and
*allow the Office to perform any other functions and duties necessary or
appropriate to fulfill its duties and responsibilities.
Section 2 of this bill would establish a severability clause.
Section 3 of this bill provides that the effective date shall take
effect two years from when this act shall have become law.
 
JUSTIFICATION:
The United States Department of Homeland Security defines Organized
Retail Crime (ORC) as the association of two or more persons engaged in
illegally obtaining items of value from retail establishments, through
theft and/or fraud, as part of a criminal enterprise." ORC does not
comprise theft such as one individual shoplifting due to a lack of food
or clothing; it is more about multiple people turning a profit from the
mass theft of retail items. These criminals are often involved in other
organized criminal operations as well, such as narcotics trafficking,
cargo theft, money laundering, terrorism, and more.
ORC bears a significant cost to retailers, governments, and average
citizens. A 2021 joint report from the Retail Industry Leaders Associ-
ation and the Buy Safe America Coalition revealed that nearly $70
billion in goods were stolen from retailers across the country in 2019.
Unfortunately, ORC has only become more common in recent years. Not
including lost sales taxes, ORC costs federal and state governments
nearly $15 billion in lost tax revenue. The impacts of ORC also cost the
average American family more than $500 annually.
Due to the surge in ORC since the beginning of the pandemic, many
retailers across the State are suffering from consistent organized
robberies. Individuals that participate in ORC are often arrested, only
to be released and return to organized crime again. This cycle leads to
increased prices, a decline in open hours, and a loss of business for
many retailers. It is often a small group of people driving this organ-
ized retail theft; for example, in Manhattan between 2015 and 2021, 18
percent of people arrested for shoplifting accounted for about half of
all shoplifting arrests. This means that a coordinated effort to combat
ORC would start with addressing this concentrated population of repeat
offenders who are deeply involved with organized theft groups.
This bill would establish the Office of Organized Retail Theft to
receive and investigate complaints or allegations involving the use and
role of organized retail theft, and to prosecute any alleged criminal
offense or offenses committed by a person or a retail theft organiza-
tion. The Office would be instrumental in coordinating with related
agencies and police departments to stop ORC and the people behind these
criminal enterprises. This is a critical step toward a decline in ORC
across the State, which will allow retailers to do their everyday busi-
ness without fear. This will also carry positive economic effects,
reducing costs for retailers, the State and local governments, and resi-
dents alike.
 
LEGISLATIVE HISTORY:
S6334 2024; MANNION- REFERRED TO FINANCE
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect two years from when this act shall have
become law.