Organized Retail Theft Task Force final report

              Capitol Complex
1700 West Washington
Phoenix, AZ 85007
December 17, 2008
The Honorable Janet Napolitano
Governor of Arizona
1700 West Washington
Phoenix, AZ 85007
The Honorable Timothy S. Bee
President of the Senate
1700 West Washington
Phoenix, AZ 85007
The Honorable James P. Weiers
Speaker of the House of Representatives
1700 West Washington
Phoenix, AZ 85007
Dear Governor Napolitano, President Bee and Speaker Weiers:
Laws 2007, Chapter 233, established the Organized Retail Theft Task Force, which is
required to report its findings and recommendations to the Legislature on or before December 1,
2008. The attached final report details the actions of the Task Force.
Sincerely,
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Amber O'Dell
Legislative Research Analyst
Senate Public Safety & Human Services Committee
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Cc: Committee Members
Javan Mesnard, Senate Policy Advisor
Barbara Guenther, Counsel to Senate Democrats
Helena Whitney, House Democratic Staff
Diana O'Dell, House Research Staff
ORGANIZED RETAIL THEFT TASK FORCE FINAL REPORT
Background
The Organized Retail Theft Task Force (Task Force), enacted by Laws 2007, Chapter
233, consists of 11 members, including police chiefs, sheriffs, county attorneys, persons actively
engaged in retail business and the Director of the Department of Public Safety. The legislation
defines "organized retail theft" as: the stealing, embezzlement or obtaining by fraud, false
pretenses or other illegal means, of retail merchandise for the purpose of reselling the items or
for reentering the items into commerce; or the coordination, organization, facilitation or
recruitment of persons to undertake such stealing, embezzlement or obtaining. The Task Force is
required to do the following: 1) determine the scope of the problem of organized retail theft,
including particular areas of the state where the problem is greatest; 2) analyze the various
methods of combating the problem of organized retail theft; 3) determine recommendations for
statutory changes regarding organized retail theft; 4) facilitate the state's communication with the
Federal Organized Retail Theft Task Force created within the Federal Bureau of Investigation;
and 5) identify the appropriate law enforcement agencies of the state to receive funding, if made
available by the federal government for the purpose of fighting organized retail theft. The Task
Force must report its findings and recommendations to the Legislature on or before December 1,
2008.
Task Force Meetings
The Task Force held public meetings on October 23,2007, January 8, 2008, December 2,
2008 (no quorum - did not meet) and December 16, 2008 to hear presentations, receive public
testimony and make recommendations regarding organized retail theft.
Task Force Recommendations
The Task Force recommends that the Legislature do the following: 1) change Arizona
law to make organized retail theft a separate offense; 2) require the Arizona Peace Officer
Standards and Training Board (AzPOST) to train all law enforcement officers regarding
organized retail theft; and 3) form an organized retail theft proactive law enforcement task force
to combat organized retail theft on a full-time basis.
Attachments
1. Task Force Enabling Legislation.
2. Meeting Notices.
3. Minutes of Task Force meetings.
ATTACHMENT1
State of Arizona
Senate
Forty-eighth Legislature
First Regular Session
2007
CHAPTER 233
House Engrossed Senate Bill
FILED
JANICE K. BREWER
SECRETARY OF STATE
SENATE BILL 1547
AN ACT
ESTABLISHING THE ORGANIZED RETAIL THEFT TASK FORCE.
(TEXT OF BILL BEGINS ON NEXT PAGE)
- i -
S.B. 1547
1 1. The stealing, embezzlement or obtaining by fraud, false pretenses
2 or other illegal means, of retail merchandise for the purpose of reselling
3 the items or for reentering the items into commerce.
4 2. The coordi nati on, organi zati on, faci 1i tati on or recrui tment of
5 persons to undertake such stealing, embezzlement or obtaining.
6 Sec. 2. Delayed repeal
7 This act is repealed from and after September 30, 2009.
BY THE GOVERNOR MAY 24, 2007.
THE OFFICE OF THE SECRETARY OF STATE MAY 24, 2007.
- 2 -
ATTACHMENT2
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.us/lnterimCommittees.asp
ARIZONA STATE SENATE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
ORGANIZED RETAIL THEFT TASK FORCE
Date:
Time:
Place:
Tuesday, October 23, 2007
10:00 A.M.
HHR3
AGENDA
1. Call to Order
2. Introductions and Opening Remarks
3. Vote on Chairman
4. Charge of the Task Force
5. Law enforcement perspectives regarding organized retail theft
• Detective David Lake, Organized Property Crimes Bureau-South, Phoenix Police
Department
6. Retail perspectives regarding organized retail theft
• Bob Folks, Director of Loss Prevention, Safeway
7. Adjourn
Members:
Sheriff Joseph M. Arpaio
Brenda Harris
John Meza
Michael Mirand
Steve Schieman
Jon Smith
10/22/07
br
Andrew Thomas
Edward Torpoco
Roger Vanderpool
Richard Vidaurri
Steve Waugh
People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or assistance with physical
accessibility. If you require accommodations, please contact the Chief Clerk's Office at (602) 926-3032, TOO (602) 926-3241.
Page 1 of 4
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.usllnterimCommittees.asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
ORGANIZED RETAIL THEFT TASK FORCE
Date: Tuesday, January 8, 2008
Time: 10:00 A.M.
Place: HHR4
AGENDA
1. Defining the Organized Retail Theft Task Force relating to future legislative
consideration
• Current National Retail Federation definition - Michael Mirand
2. Challenges facing law enforcement and retail professionals in combating organized
retail theft in Arizona:
• Law enforcement professionals - Detective Michael Carlow, Peoria Police
Department
• Retail professional - Michael Siupinski, Safeway, Organized Retail Crime
Investigator
3. Creation of an Organized Retail Theft Task Force
• Presentation and discussion of interaction and investigative methodologies
between the Organized Retail Theft Task Force, retailers and law enforcement
agencies:
• Deputy Chief, Bill Knight, Criminal Investigations Bureau
4. Utilizing Arizona Peace Officer Standards and Training Board for law enforcement
training opportunities relating to organized retail theft - Lyle Mann, Deputy Director
and Training Manager, Peace Officer Standards and Training Board
Members:
Sheriff Joseph M. Arpaio
Brenda Harris
John Meza
Michael Mirand
Steve Schieman
Jon Smith
1/3/08
jmb
Andrew Thomas
Edward Torpoco
Roger Vanderpool
Richard Vidaurri
Steve Waugh
People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or assistance with physical
accessibility. If you require accommodations, please contact the Chief Clerk's Office at (602) 926-3032, TOO (602) 926-3241.
Page 2 of 4
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.us/lnterimCommittees.asp
ARIZONA STATE SENATE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
ORGANIZED RETAIL THEFT TASK FORCE
Date:
Time:
Place:
Tuesday, December 2,2008
10:00 A.M.
SHR 1
AGENDA
1. Call to Order
2. Introductions and Opening Remarks
3. Public testimony
4. Discussion
5. Recommendations
• Changes to current theft/shoplifting laws
• Organized retail theft training through the Arizona Peace Officers Standard and Training
Board
• Statewide organized retail theft task force
6. Adjourn
Members:
Michael Mirand, Chair
Sheriff Joseph M. Arpaio
Brenda Harris
John Meza
Steve Schieman
Jon Smith
12/1/08
br
Andrew Thomas
Edward Torpoco
Roger Vanderpool
Richard Vidaurri
Steve Waugh
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: (602)926-4231 (voice). Requests should be made as early as possible to allow time to arrange the accommodation.
Page 3 of4
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.us/lnterimCommittees.asp
ARIZONA HOUSE OF REPRESENTATIVES
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
ORGANIZED RETAIL THEFT TASK FORCE
Date:
Time:
Place:
Tuesday, December 16,2008
10:00 A.M.
HHR4
AGENDA
1. Call to Order
2. Introductions and Opening Remarks
3. Public Testimony
4. Discussion
5. Recommendations
• Changes to current theft/shoplifting laws
• Organized retail theft training through the Arizona Peace Officers Standard
and Training Board
• Statewide organized retail theft task force
6. Adjourn
Members:
Michael Mirand, Chair
Sheriff Joseph M. Arpaio
Brenda Harris
John Meza
Steve Schieman
Jon Smith
12/10108
din
Andrew Thomas
Edward Torpoco
Roger Vanderpool
Richard Vidaurri
Steve Waugh
People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or assistance with physical
accessibility. If you require accommodations, please contact the Chief Clerk's Office at (602) 926-3032, TOO (602) 926-3241.
Page 4 of4
ATTACHMENT3
ARIZONA STATE LEGISLATURE
Organized Retail Theft Task Force
Minutes of the Meeting
Tuesday, October 23,2007
10:00 a.m., House Hearing Room 3
Members Present:
Bill Knight representing Sheriff Joseph
M. Arpaio
Brenda Harris
John Meza
Michael Mirand
Members Absent:
Andrew Thomas
Edward Torpoco
Staff:
Amber O'Dell, Senate Research Analyst
Diana O'Dell, House Research Analyst
Steve Schieman
Jon Smith
David Felix representing Roger Vanderpool
Dan Bourland representing Richard Vidaurri
Scott Mascher representing Steve Waugh
Michael Mirand called the meeting to order at 10:15 a.m. and the attendance was
noted.
Introduction and Opening Remarks
Each member of the committee introduced themselves and gave a brief
description of their backgrounds.
Vote on Chairman
Mr. Mirand moved that without objection Michael Mirand be
nominated Chairman of the Organized Retail Theft Task Force.
There being no objections, the motion CARRIED by voice vote.
Charge of the Task Force
Amber O'Dell, Senate Research Analyst, explained the charge of the
Task Force (Attachment A).
Law Enforcement Perspectives Regarding Organized Retail Theft
Detective David Lake, Organized Property Crimes Bureau-South,
Phoenix Police Department, presented a PowerPoint presentation regarding
organized retail theft and the steps law enforcement is taking to deal with this
1VI\I'\IUI .... ~ ,. _
CHIEF CLERK'S OFFICE
'1- /ltJ -OF ARIZONA HOUSE OF REPRESENTATIVES
Forty-eighth Legislature - First Regular Session
ORGANIZED RETAIL THEFT TASK FORCE
Minutes of Meeting
Tuesday, January 8, 2008
House Hearing Room 4 -- 10:00 a.m.
Chairman Mirand called the meeting to order at 10:03 a.m. and attendance was noted by the
secretary.
Members Present
Brenda Harris
Bill Knight (for Sheriff Joseph M. Arpaio)
Philip 1. MacDonnell (for Andrew Thomas)
Scott Mascher (for Steve Waugh)
John Meza
Roger Nelson (for Jon Smith)
Steve Schieman
Michael Mirand, Chairman
Members Absent
Edward Torpoco
Roger Vanderpool
Richard Vidaurri
Defining the Organized Retail Theft Task Force Relating to Future Legislative
Consideration: Current National Retail Federation Definition
Chairman Michael Mirand, Walgreen Loss Prevention, explained the general goal of the meeting
was to provide a definition of organized retail theft (ORT), how it affects Arizona, and to define
possible methods and/or legislation to combat organized retail crime (Attachment 1).
Challenges Facing Law. Enforcement and Retail Professionals in Combating Organized
Retail Theft in Arizona
Law Enforcement Professionals:
Detective Michael Carlow, Peoria Police Department, explained the case of a chronic shoplifter
who has been arrested more than 25 times for shoplifting in Arizona. Detective Carlow
responded to questions posed by Task Force members as follows:
ORGANIZED RETAIL THEFT TASK FORCE
January 8, 2008
• Harsher convictions may be more effective than lowering the dollar amount of theft
required for a felony conviction.
• The creation of a proactive law enforcement task force, which could work closely with a
designated unit of the County Attorney's Office, would result in higher conviction rates
for organized retail theft.
Retail Professionals:
Michael Slupinski, Organized Retail Crime Investigator, Safeway, suggested ORT should be
separated from shoplift statutes, and that ORT should be considered theft, not shoplifting. He
said the definition of ORT should not be limited to two or more persons, but should also include
a person working alone. Mr. Slupinski responded to questions posed by Task Force members as
follows:
• The definition of "intent to resell" should be clarified by the County Attorney.
• Stricter laws would help law enforcement to get information from "boosters" and to
locate the "fences." (See Attachment 2 for Organized Retail Theft "Booster" and
"Fencing" Operations: Defined).
Creation of an Organized Retail Theft Task Force (ORTTF)
Bill Knight, Deputy Criminal Investigations Bureau, explained funds would be required to create
an ORTTF, and he suggested several resources. Once funds become available, it is necessary to
have a "host" agency, i.e., the Maricopa County Sheriffs Office. There must be a clearly
defined problem, a clearly defined mission, and projected expenses. He said a six member
investigative group would cost approximately $450,000 to $550,000, which would include
salaries and employee related costs. In addition, one prosecutor dedicated solely to ORTTF
would cost approximately $70,000 to $90,000 per year. Other costs would be overtime, travel,
training, supplies, office space, and vehicles. Grant funding for the ORTTF would ensure that a
host agency would be compensated for loss of resources. Deputy Knight explained intelligence
gathering support services for the ORTTF would require coordination among agencies.
Mr. Meza said he believes the ORTTF should also focus on the single organized person who is
stealing many items.
Chairman Mirand explained that retail crime investigators provide a great deal of intelligence
and information to law enforcement personnel. He said the goal of the ORTTF would be to
combat high level fencing operations.
Utilizing Arizona Peace Officer Standards and Training Board for Law Enforcement
Training Opportunities Relating to Organized Retail Theft
Lyle Mann, Deputy Director and Training Manager, Peace Officer Standards Training Board,
explained that retail theft investigators are aware of the identity of most large "boosters," but are
unable to coordinate that information with other agencies. In addition, penalties for shoplifters
2
ORGANIZED RETAIL THEFT TASK FORCE
January 8, 2008
and boosters have been so "watered down" that the bad guys really do not care if they are
arrested.
Mr. Mann explained the Training Board sets the hiring standards and basic training standards for
peace officers. Training for the ORTFF would be an advanced course and that course could be
created at the request of the Committee. Mr. Mann responded to questions posed by Committee
members as follows:
• Training videos would be the preferred tool to educate peace officers as to the
differences between shoplifters, boosters and fencing operations.
Mr. MacDonnell questioned whether there would be a way, under statute, to define a booster,
and to create a felony offense for that definition.
Mr. Schieman explained it would be difficult for a peace officer to clearly differentiate between a
booster and a shoplifter.
Committee members discussed possible ways to amend Arizona law to achieve the purpose of
the ORTTF.
Chairman Mirand stated the meeting had been constructive from the standpoint of sharing
information on how to make effective changes to ORT. The date of the next meeting will be
determined by Legislative Staff.
Michelle Ahlmer, Executive Director, Arizona Retailers Association (ARA), said each state has
different laws that address ORT. The ARA is currently working on legislation to provide a
definition for ORT.
Without objection, the meeting adjourned at 11 :28 a.m.
(Original minutes, attachments and audio on file in the Office of the Chief Clerk; video archives
available at http://www.azleg.gov/)
3
ORGANIZED RETAIL THEFT TASK FORCE
January 8, 2008
ARIZONA STATE LEGISLATURE
ORGANIZED RETAIL THEFT TASK FORCE
Date:
Time:
Place:
Tuesday, January 8, 2008
10:00 A.M.
HHR4
"Proposed Definitions of Organized Retail Theft (ORT) for Arizona State
Legislature"
Brief Overview:
Organized retail theft (ORT) refers to an offense wherein individuals who are associated with a
professional crime ring steal large quantities of merchandise and then sell it back into the marketplace.
ORC is a growing.problem throughout the United States and affects a wide range of retail establishments
including supermarkets, chain drug stores, independent pharmacies, mass merchandisers and
convenience stores, among others. It has become the most pressing security problem confronting
retailers and suppliers and accounts for as much as $40 billion in losses at store level, according to the
Federal Bureau of Investigation's (FBI) interstate theft task force (Source; Coalition Against ORC).
NOTE: ORT is separate and distinct from petty shoplifting in that it involves professional theft rings that
move qUickly from community to community and across state lines to pilfer large amounts of merchandise
that is fenced and sold back into the marketplace. Petty shoplifting, as defined, is limited to items stolen
for personal use or consumption.
Definition One:
Organized Retail Theft act is committed when "two or more persons working in conjunction with each
other who steal property from retail stores with the intent to resell or trade that property for money or for
other values, or those who knowingly bUy stolen retail property. "
Definition Two:
Organized Retail Theft act is committed when "a person working alone or in conjunction with other
persons who steal property from retail stores with the intent to resell or trade that property for money or
for other values, or those who knowingly buy stolen retail property. "
Definition Three (as defined in United States Congress; S. 1553 (1 Oath): ORT Act of 2003):
Organized Retail Theft act is committed when "whoever in any material way or degree obstructs, delays,
or affects commerce or the movement of any article or commodity in commerce, by taking possession of,
carrying away, or transferring or causing to be carried away, with intent to steal, any goods offered for
retail sale. "
The information provided above is for the purpose stimulating discussion among the CRT Task Force
committee members, state legislators, prosecutors, law enforcement and retail professionals, and the
general public on what definition of CRT would best fit the needs of the state in combating ORT. By no
means are the three listed definitions a complete representation of possible definitions.
Michael Mirand
Chairman, Arizona State Legislature Organized Retail Theft Task Force
ATIACHMENT l
ARIZONA STATE LEGISLATURE
Forty-eighth Legislature - Second Regular Session
ORGANIZED RETAIL THEFT TASK FORCE
Minutes of Meeting
Tuesday, December 2,2008
Senate Hearing Room 1 -- 10:00 a.m.
No meeting was held due to lack of a quorum,
Linda Taylor, Comm'
December 2, 2008
ORGANIZED RETAIL THEFT TASK FORCE
December 2, 2008
I
/ <:
ARIZONA STATE LEGISLATURE
Forty-eighth Legislature - Second Regular Session
ORGANIZED RETAIL THEFT TASK FORCE
Minutes of Meeting
Tuesday, December 16,2008
HHR 4 -- 10:00 a.m.
Chairman Mirand called the meeting to order at 10:00 a.m. and attendance was noted by the
secretary.
Members Present
John Meza
Steve Schieman
Jon Smith (Roger Nelson, designee) Andrew Thomas (philip MacDonnell, designee)
Roger Vanderpool (Bruce Campbell, designee)
Steve Waugh (Scott Mascher, designee)
Michael Mirand, Chair
PRESENTATION:
Public Testimony:
John Thomas, representing Mesa Marketplace and Goodyear Marketplace, explained that the
difference between swap meets and flea markets is geographical; swap meet is a term used west
of the Mississippi, while flea markets are east of the Mississippi. He related that the Mesa swap
meet and the Goodyear swap meet have over 80,000 people attending in the winter. In all, they
pay over $5 million in State and city taxes. The National Flea Market Association represents
$1.5 billion in tax revenue across the country and flea markets represent the third largest retailer
in the country. He said the Association is aware of organized retail theft problems that occur at
all swap meets.
Chairman Mirand asked whether there is a formal process to notify law enforcement if the seller
is engaging in questionable sales practices. Mr. Thomas replied that security is generally made
up of off-duty officers who notify law enforcement.
Chairman Mirand queried whether all swap meets have representation. Mr. Thomas answered
that there is no state association. Some of the smaller swap meets have no representation.
Michelle Ahlmer, Executive Director, Arizona Retailers Association, reviewed the
recommendations to the proposed legislation made at previous meetings on organized retail theft
(Attachment 1):
ORGANIZED RETAIL THEFT TASK FORCE
December 16, 2008
• Page 2, line 11, insert "AND INCLUDES A RETAIL ESTABLISHMENT"
This applies to the burglary statute. It was previously in statute and then removed. This
puts the language back into statute.
• Page 3, lines 31-32, strike "with the intent to resell the merchandise"
This is eliminated in that section because it is included in the new section that defines
organized retail theft.
• Page 3, lines 33-35, insert "WHO IN THE COURSE OF SHOPLIFTING USES AN
ARTIFICE, INSTRUMENT, CONTAINER, DEVICE OR OTHER ARTICLE WITH
THE INTENT TO FACILITATE SHOPLIFTING OR"
• Clearly defines artifice as a Class 4 felony and refers to culpable mind. There is concern
that someone might commit a minor act of shoplifting and be charged under this statute if
a pen is in the shoplifter's pocket The intent is to capture theft committed with a
"culpable mind" if using an artifice.
• Page 3, lines 41-45 and Page 4, lines 1-9, insert new section 13-1819. Organized retail
theft; classification
The new section creates organized retail theft with the intent to resell. It specifies that the
crime is the intent to resell; not just the crime of shoplifting.
Chairman Mirand reminded members that this is a work in progress and has to go through the
legislative process. Support for these recommendations means that members support the efforts
of the task force and they identify organized retail theft as a problem within the State.
Recommendations:
Mr. MacDonnell moved that the Organized Retail Theft Task Force recommend to
the Legislature to adopt the plan to change Arizona Law to make organized retail
theft a separate offense. The motion carried by voice vote.
Mr. Schieman moved that the Organized Retail Theft Task Force recommend to the
Legislature to require AzPOST to train all law enforcement officers regarding retail
theft. The motion carried by voice vote.
Mr. MacDonnell moved that the Organized Retail Theft Task Force recommend to
the Legislature that a statewide organized retail theft proactive law enforcement
task force be formed to combat organized retail theft on a full-time basis.
In response to Mr. Nelson's concern about bundling the recommendations, Chairman Mirand
noted that each recommendation is separate, and these are recommendations the Committee will
make to the Legislature.
Mr. Campbell asked whether this is another unfunded proposal. He stated that the Department of
Public Safety will have trouble with them ifthey are not funded.
2
ORGANIZED RETAIL THEFT TASK FORCE
December 16, 2008
Chairman Mirand reiterated that these are three separate recommendations. He said it would be
helpful if there is a task force but that proposal may not be accepted in these economic times
since this will be unfunded.
Mr. Meza spoke of the need to bring law enforcement together when it comes to organized theft.
He feels there is a real need to coordinate efforts throughout the Valley.
Mr. Campbell pointed out that organized retail theft is perpetrated by organized crime, including
gangs. He said he does not want to put something forward that is so narrowly focused that it will
not be worked on if it falls outside of certain areas. He expressed reservations that it would be
something that would just be focused narrowly on, when in reality the scope is much wider.
Mr. Schieman commented that everything is looked at globally. It is a way for people to
communicate and work together on one focus but is not limited to one thing.
Question was called on Mr. Schieman's motion. The motion carried by voice vote.
Chairman Mirand advised that Senator Linda Gray is the sponsor for these legislative changes.
He thanked her for her efforts and thanked members of the task force for their work on this issue.
Without objection, the meeting adjourned at 10:30 a.m.
(Original minutes, attachments and audio on file in the Chief Clerk's Office; video archives
available at http://www.azleg.gov)
3
ORGANIZED RETAIL THEFT TASK FORCE
December 16, 2008