* Sen. Glowiak Hilton…

To support retailers, update prosecuting resources and promote statewide economic growth, the Illinois Senate adopted a measure led by State Senator Suzy Glowiak Hilton (D-Western Springs) to curb organized retail crime and hold ringleaders accountable.

“Organized retail crimes across the state have disturbed residents, wreaked havoc on businesses and stunted growth within local economies,” Glowiak Hilton said. “By advancing the Organized Retail Crime Act, Illinois has an opportunity to enact one of the most comprehensive crime-curbing efforts in the nation.”

In partnership with the Illinois Retail Merchants Association and the office of the attorney general, Glowiak Hilton’s initiative defines organized retail crime as a criminal charge and gives prosecutors additional resources to charge crime ringleaders. Specifically, the measure codifies ORC as the theft of retail merchandise with the intent to sell.

Under the proposal, prosecutors would have new opportunities to bring charges against offenders regardless of where the crimes takes place. For example, if the conspiracy, theft and selling occurred in different jurisdictions, each jurisdiction would have the ability to prosecute the entire crime. The Illinois attorney general would also have the ability to prosecute via a statewide grand jury.

“The measure targets individuals stealing for profit, not anyone engaging in petty shoplifting,” Glowiak Hilton said. “Deterring retail crime starts with supporting law enforcement, holding criminals responsible and making it tougher to resell stolen goods.”

To prevent stolen goods from being sold online, the measure also creates the Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers Act, or the INFORM Act, to require third-party sellers to verify users’ identity with bank account numbers or other personal identifying information. Sellers who do not comply may be suspended.

As amended, House Bill 1091 moves for concurrence consideration in the House.

* IRMA…

On behalf of retailers across the state, the Illinois Retail Merchants Association (IRMA) applauds lawmakers in the Senate for their bipartisan support and passage of HB1091, a comprehensive proposal to combat organized retail crime that has plagued neighborhoods across Chicago and communities throughout the state.

Crafted by IRMA in partnership with Illinois Attorney General Kwame Raoul, the measure represents one of the most sweeping efforts in the nation to combat organized retail crime by addressing the problem from multiple angles. This includes providing prosecutors with more tools to hold criminals accountable, dedicating state funds to investigate and prosecute the criminal rings carrying out these brazen thefts, requiring more oversight of third-party marketplaces where stolen goods are sold, stronger rights for victims of organized retail crime and the creation of a statewide intelligence gathering and sharing platform to allow retailers and law enforcement agencies to better coordinate.

“Organized retail crime robs our communities of tax dollars, threatens the safety of employees and customers, and puts our communities at risk of further crime including illegal firearm purchases, human trafficking and terrorism. By passing this measure, Illinois lawmakers are sending a message to criminals that these brazen thefts will not be tolerated and they will be prosecuted to the full extent of the law,” said Rob Karr, president & CEO, IRMA. “I want to personally thank Attorney General Raoul for his partnership and tireless work on this issue and offer our appreciation to Sen. Suzy Glowiak Hilton and Rep. Kam Buckner for their leadership as well as every lawmaker who voted in favor of this important measure.”

The bill creates and defines the violation of organized retail crime, providing the emphasis and focus required to combat this dangerous form of retail theft, which is performed by criminal groups with the goal of reselling stolen items to fund illicit activities. The legislation specifically targets those organizing these crimes, which is defined as an individual who knowingly recruits, organizes, supervises, manages, finances or otherwise directs others to commit organized retail crime, which includes smash and grab robberies as well as the looting of supply chain vehicles. Prosecutors would be given wider discretion to bring charges regardless of where the crime takes place. For instance, if the conspiracy, theft and selling all occurred in different jurisdictions, each jurisdiction would have the ability to prosecute the whole crime.

In addition, organized retail crime could be prosecuted by the Attorney General via the Statewide Grand Jury. This would give law enforcement officials another avenue by which to hold leaders of criminal rings accountable. Further, victims of organized retail crime must be given at least seven days’ notice of all court proceedings, which must be sent to the establishment where the crime occurred as well as any persons the victims designate.

To support these efforts, the proposal calls for earmarking state funds on an annual basis to create new positions in the Attorney General’s office and various State’s Attorneys offices dedicated to investigating and prosecuting retail theft and illicit trade.

“Organized retail crime is committed by sophisticated criminal enterprises that harm our communities in ways that extend beyond lost revenue and stolen products. These complex operations rely on theft and resale of stolen products to fund and perpetuate the cycle of violence through even more dangerous illegal activities like trafficking drugs and firearms,” Raoul said. “The Organized Retail Crime Act will give my office and other law enforcement agencies the additional tools needed to continue to disrupt these criminal enterprises and combat the rise in organized retail crime. I appreciate Senator Glowiak Hilton’s leadership on this matter and the bipartisan support for this effort.”

The legislation builds on the work of the Attorney General’s Organized Retail Crime Task Force, which is designed to investigate these crimes and trace them to their source. In December, the task force and the Chicago Police Department Force recovered stolen goods worth millions of dollars during a sting operation. IRMA also works with the United to Safeguard America from Illicit Trade (USA-IT) Coalition, which aims to address organized retail crime at the national level.

Increasingly, goods stolen during the execution of organized retail crime are often sold on third party electronic marketplaces. The proposal would require these online marketplaces to verify the identity of high-volume sellers using bank account numbers, taxpayer IDs or other information. Those sellers would be required to provide valid contact information, and marketplaces would be required to suspend the activity of third-party sellers for non-compliance. This is a vital public safety component as these sales are used to fund illegal activity including drug trade, weapons smuggling, human trafficking and terrorism. The proposal is identical to the agreed proposal being sponsored in Washington, D.C. by U.S. Senator Dick Durbin and Congresswoman Jan Schakowsky.

A recent study by the Retail Industry Leaders Association found that as much as $68.9 billion in products were stolen from retailers nationwide in 2019, with retail crime resulting in $125.7 billion in lost economic activity and 658,375 fewer jobs. It’s estimated that retail theft costs federal and state governments nearly $15 billion in personal and business tax revenues, not including sales tax losses. These are conservative estimates as some jurisdictions discourage organized retail theft complaints and prosecutions.

* Chicagoland Chamber…

The Chicagoland Chamber of Commerce released the following statement after the Illinois Senate passed HB1091, a comprehensive proposal to combat organized retail crime:

“The impact of violent crime has been felt across the Chicago area, including the suburbs, and addressing it remains a top priority of the business community as both an economic and social imperative. Doing so requires bold action by our lawmakers, which is why we applaud the bipartisan legislation put forth by the Illinois Retail Merchants Association and the Attorney General’s office to combat organized retail crime and illicit trade. By providing the tools and resources needed to hold these criminals accountable, we can establish stronger protections for those impacted by organized retail crime, including Chicago’s retail, tourism, and hospitality sectors that have been particularly affected. The additional investment enables law enforcement to investigate these particular cases efficiently and effectively so we can better safeguard our communities and prevent further crime that threatens jobs and economic opportunity,” said Jack Lavin, president & CEO, Chicagoland Chamber of Commerce.

* IRMA dot points…

Focuses on Organized Retail Crime The proposal creates and specifically defines a violation of organized retail crime (ORC). ORC is usually committed by two or more individualswho work together to steal merchandise with value over the current retail theft threshold and resell the item(s) for profit to fund other illegal activities such as gun, drug, and human trafficking.

Deters Smash-and-Grab Thefts Smash-and-grab thefts occur when a group of individuals rush into a retailer and destroy retail property or threaten retail team members while stealing a great amount of inventory in a short period of time. This sometimes involves the use of vehicles and other tools to gain entry into the retailer or to the merchandise.

Deters Supply Chain Thefts Individuals are increasingly involved in stealing merchandise while it is in transit between the manufacture and distributor and the retailer. This involves raiding delivery trucks and cargo containers on trains.

Reduces Criminals’ Ability to Avoid Prosecution The proposal provides jurisdiction to any state’s attorney where any element of ORC takes place to prosecute the whole crime. For instance, if the conspiracy, theft, and selling all occurred in different jurisdictions, each jurisdiction would have the ability to prosecute the whole crime. It also provides the Attorney General the use of the statewide grand jury to prosecute ORC.

Provides Dedicated Enforcement ResourcesThe proposal seeks to provide annual funds to the Office of the Attorney General for additional investigators and attorneys to focus exclusively on ORC. It also provides grant money to states attorneys across Illinois whose communities tend to be the focus of ORC. This grant money will be used to add additional states attorneys dedicated exclusively to ORC.

Addresses Online Fencing ORC rings increasingly use technology and the anonymity of online third-party marketplaces to sell their stolen goods. The proposal requires online third-party marketplaces to verify the seller and the goods offered for sale and the seller to provide contact information. This action will help police outlets used to monetize stolen merchandise, which often funds other illicit activities including gun, drug and human trafficking. The proposal mirrors an agreement that was reached on the federal level by stakeholders and currently sponsored by U.S. Senator Dick Durbin and Congresswoman Jan Schakowsky.

Enhances Public and Private CoordinationThe proposal calls for a formal collaboration of all stakeholders involved in addressing ORC. The collaboration is designed to provide real-time information and intelligence-sharing and collaboration between asset protection investigators and federal, state, and local law enforcement partners involved in combating ORC related issues at the local, regional, and national levels

Requires Timely and Proper Notice The proposal requires timely and accurate notice of court proceeding to retailers that are victims of ORC, ensuring they can participate in the legal process.

The following changes were made at the request of stakeholders

• Racketeer Influenced and Corrupt Organizations Act (RICO) provisions were removed;
• A threshold was included for ORC which is consistent with retail theft;
• ORC only applies to two or more individuals rather than one individual; and
• The legislation specifically targets those organizing these crimes, which is defined as an individual who knowingly recruits, organizes, supervises, manages, finances or otherwise directs others to commit ORC.

…Adding…. IRMA…

Moments ago, the IL House passed the ORC legislation by a vote of 96-5. Earlier this morning the IL Senate passed the legislation by a vote of 42-10.

…Adding… AG Raoul…

Attorney General Kwame Raoul today applauded the Illinois General Assembly’s bipartisan passage of legislation to combat the rise in organized retail crime and disrupt the criminal enterprises that engage in and profit from organized retail theft.

Attorney General Raoul initiated House Bill (HB) 1091 to address organized retail crime in partnership with the Illinois Retail Merchants Association (IRMA). The legislation closes gaps in current Illinois law that criminals exploit and provides law enforcement with more tools to address organized retail crimes.

“Organized retail crime is committed by sophisticated criminal enterprises that harm our communities in ways that extend beyond lost revenue and stolen products. These complex operations rely on theft and resale of stolen products to fund and perpetuate the cycle of violence through even more dangerous illegal activities like trafficking drugs and firearms,” Raoul said. “House Bill 1091 will give my office and other law enforcement agencies the additional tools needed to continue to disrupt these criminal enterprises and combat the rise in organized retail crime. I appreciate Senator Glowiak Hilton and Representative Kam Buckner’s leadership on this matter and the bipartisan support for this effort.”

“Organized retail crime threatens our local economies and public safety,” Glowiak Hilton said. “HB 1091 gives prosecutors additional resources to hold perpetrators accountable and expands the comprehensive approach to help stop the rise in organized retail crime across the state. I am proud to work with Attorney General Raoul and our other partners on this effort.”

“By obstructing these criminal networks at their core, we are going after the individuals who are behind this growing public safety issue,” Buckner said. “I would like to thank Attorney General Raoul for his work in making the passage of this proposal today a reality.”

“Organized retail crime robs our communities of tax dollars, threatens the safety of employees and customers, and puts our communities at risk of further crime including illegal firearm purchases, human trafficking and terrorism. By passing this measure, Illinois lawmakers are sending a message to criminals that these brazen thefts will not be tolerated and they will be prosecuted to the full extent of the law,” Rob Karr, President & CEO of IRMA said. “I want to personally thank Attorney General Raoul for his partnership and tireless work on this issue and offer our appreciation to Sen. Suzy Glowiak Hilton, Sen. John Curran and Rep. Kam Buckner for their leadership as well as every lawmaker who voted in favor of this important measure.”

House Bill 1091 creates and, for the first time, specifically defines organized retail crime in state law. Organized retail crime and retail fraud are often mistakenly viewed as being isolated incidents, however, organized crime rings are often behind these acts. Organized criminal enterprises connected to the drug trade, human trafficking and other criminal activities target big box stores, pharmacies, hardware stores, auto dealerships and other retailers to carry out sophisticated theft operations, and these operations cross county and state borders. Enterprises use boosters and mules to coordinate thefts of large amounts of merchandise, which is then resold below market value using online marketplaces in order to fund the enterprise’s other illegal activities.

The legislation puts in place stronger oversight of those taking advantage of these online marketplaces and creates a statewide intelligence platform to help retailers and law enforcement agencies better coordinate their enforcement efforts. Additionally, the legislation requires online marketplaces to verify the identity of high-volume sellers. This will help police outlets used to monetize stolen merchandise, which often funds other illicit activities including gun, drug and human trafficking.

The proposal also aims to reduce a criminal’s ability to avoid prosecution for organized retail crime. House Bill 1091 would allow any state’s attorney where any element of organized retail crime takes place to prosecute the whole crime. Those participating in smash and grab robberies, as well as looting of supply chain vehicles such as trains and cargo trucks, could also be prosecuted for organized retail crime. Additionally, the legislation would provide the Attorney General’s office to utilize the statewide grand jury to prosecute organized retail crime. In addition, the legislature appropriated $5 million to the Attorney General’s office to allow the office to award grants to State’s attorney’s offices and law enforcement agencies that investigate and prosecute organized retail crime.

House Bill 1091 builds on the work of Attorney General Raoul’s Organized Retail Crime Task Force. The Organized Retail Crime Task Force is the first statewide, public-private collaboration of its kind in Illinois and is designed to foster cooperation among retailers, online marketplaces, law enforcement agencies and state’s attorneys dedicated to targeting organized retail crime enterprises. The task force allows Raoul’s office to utilize data and tips provided by retailers and partner across jurisdictions with law enforcement agencies to investigate organized retail crimes and trace thefts to the source. For example, the Organized Retail Crime Task Force, with support from Chicago law enforcement recovered more than $1 million worth of stolen goods from several Chicago-area storage units during December 2021. Raoul’s goal in establishing the task force is to continue to improve communication among public and private entities and utilize a multifaceted approach to combatting organized retail theft and related criminal activity.

House Bill 1091 passed the Illinois Senate and House today on bipartisan votes. The legislation will now head to the governor for his approval.