Tapia, Thiele, Zaccaro, DeStefano, McDonough, Brown K, Buttenschon, Steck, Seawright
 
MLTSPNSR
 
Add 70-d, Exec L
 
Establishes the office of organized retail theft within the department of law to receive and investigate complaints from any source, or upon its own initiative, of allegations involving the use and role of organized retail theft.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6810
SPONSOR: Dinowitz
 
TITLE OF BILL:
An act to amend the executive law, in relation to establishing the
office of organized retail theft
 
PURPOSE:
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 one of the bill adds 670-d to the executive law establishing the
office of organized retail theft ("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 commit-
ted by a person or a retail theft organization. This section also
authorizes the Office to coordinate with state agencies and law enforce-
ment to perform its duties and assist in related investigations when
necessary, establishes the powers of investigations of the Office,
requires the Office to publish an annual report summarizing its activ-
ities and to make legislative recommendations, and allows the Office to
perform any other functions and duties necessary or appropriate to
fulfill its duties and responsibilities.
Section two of the bill establishes a severability clause. Section three
of the bill provides the effective date.
 
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 Huy 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.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
Two years from when this act shall have become law.
STATE OF NEW YORK
________________________________________________________________________
6810
2023-2024 Regular Sessions
IN ASSEMBLY
May 8, 2023
___________
Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law, in relation to establishing the
office of organized retail theft
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The executive law is amended by adding a new section 70-d
2 to read as follows:
3 § 70-d. Office of organized retail theft. 1. There shall be estab-
4 lished within the department of law an office of organized retail theft.
5 Notwithstanding any other provision of law, the office of organized
6 retail theft shall receive and investigate complaints from any source,
7 or upon its own initiative, of allegations involving the use and role of
8 organized retail theft in facilitating acts as described in this subdi-
9 vision and, if warranted, prosecute any alleged criminal offense or
10 offenses committed by a person or a retail theft organization, including
11 but not limited to how such organization procures and/or steals property
12 from retailers; trains a person to procure and/or steal property from
13 retailers; resells stolen property and solicits buyers for such stolen
14 property, including but not limited to physical and internet systems of
15 resale; transfers and stores such stolen property; conceals funds
16 related to the resale of stolen property or other funds associated,
17 generated, and/or procured from illicit means related to organized
18 retail theft; and how proceeds from the resale of stolen property are
19 reinvested and used by such organization. Additionally, the office of
20 organized retail theft may communicate and consult with businesses
21 impacted or at risk to be targeted by organized retail theft, in a
22 manner prescribed by such office.
23 2. The office of organized retail theft may request and receive from
24 the division of homeland security and emergency services, the division
25 of state police, and from every department, division, board, bureau,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10742-01-3
A. 6810 2
1 commission or other agency of the state, or of any political subdivision
2 thereof, cooperation and assistance in the performance of its duties.
3 Additionally, the office of organized retail theft may provide technical
4 and other assistance to any district attorney or other local law
5 enforcement official requesting such assistance in the investigation or
6 prosecution of cases involving offenses described in subdivision one of
7 this section.
8 3. The office of organized retail theft may determine that a referral
9 to an appropriate federal, state or local law enforcement agency is
10 necessary, and may assist in such investigations, if requested by a
11 federal, state, or local law enforcement agency in their efforts to
12 counter the offenses described in subdivision one of this section.
13 4. In connection with the offenses described in subdivision one of
14 this section, the office of organized retail theft shall conduct an
15 investigation, which shall include but not be limited to: (a) gathering
16 and analyzing evidence; (b) conducting witness interviews; (c) reviewing
17 and commissioning any necessary investigative and scientific reports;
18 and (d) reviewing audio and video recordings. The office of organized
19 retail theft shall be empowered to subpoena witnesses, compel their
20 attendance, examine them under oath before such office or a magistrate
21 and require that any books, records, documents or papers relevant or
22 material to the inquiry be turned over to such office for inspection,
23 examination or audit, pursuant to the civil practice law and rules, in
24 connection with such offenses described in subdivision one of this
25 section.
26 5. The attorney general shall designate a deputy attorney general for
27 organized retail theft to exercise the powers and duties of the office
28 of retail theft, who shall be in the exempt class of the civil service.
29 The deputy attorney general may designate deputies or assistants, who
30 shall be in the exempt class of the civil service, as necessary and
31 appropriate. The other employees of the office of organized retail theft
32 within the department of law, who are not otherwise exempt, shall all be
33 in the competitive class of the civil service and shall be considered
34 for purposes of article fourteen of the civil service law to be public
35 employees in the civil service of the state, and shall be assigned to
36 the appropriate collective bargaining unit. Employees serving in posi-
37 tions in newly created titles shall be assigned to the same collective
38 bargaining units as they would have been assigned to if such titles were
39 created prior to the establishment of the office of organized retail
40 theft within the department of law pursuant to this section. The deputy
41 attorney general for organized retail theft may appear and conduct
42 proceedings in person or by his or her deputy or assistant before any
43 court or grand jury in connection with proceedings under this section.
44 6. One year after this section takes effect, and annually thereafter,
45 the office of organized retail theft shall issue a report, which shall
46 be made available to the public and posted on the website of the depart-
47 ment of law, which shall summarize the activities of the office of
48 organized retail theft and recommend specific changes to state law to
49 further the investigations and prosecutions of the office of organized
50 retail theft.
51 7. The office of organized retail theft may perform any other func-
52 tions and duties that are necessary or appropriate to fulfill the duties
53 and responsibilities of such office.
54 § 2. Severability. If any clause, sentence, paragraph, subdivision,
55 section or part of this act shall be adjudged by any court of competent
56 jurisdiction to be invalid, such judgment shall not affect, impair, or
A. 6810 3
1 invalidate the remainder thereof, but shall be confined in its operation
2 to the clause, sentence, paragraph, subdivision, section or part thereof
3 directly involved in the controversy in which such judgment shall have
4 been rendered. It is hereby declared to be the intent of the legislature
5 that this act would have been enacted even if such invalid provisions
6 had not been included herein.
7 § 3. This act shall take effect two years after it shall have become a
8 law.