The governors of New York and California this week announced sweeping plans to combat retail crime, as trade associations and police departments push for government action to curb theft.
The plans include new legislation designed to increase penalties for crimes committed in retail businesses and more funding for police departments and district attorney's offices to help them combat theft.
Both governors. Kathy Hochul of New York and Gavin Newsom of California, who represent the nation's largest Democratic strongholds, made preventing shoplifting a top priority this year, as voters on both sides of the aisle point to crime as one of their biggest concerns before the 2024 elections. . The mere fact that the main “tough on crime” platforms come from Democratic governors of progressive states also threatens to end decades of partisan political divisions. In the modern era, Republicans have traditionally fought to toughen criminal penalties, while Democrats have sought to address deeper causes of crime, such as poverty, inequality and urban unemployment.
But not anymore.
As of 2022, at least nine states (including six in 2023) have passed laws to impose harsher penalties for organized retail crime offenses, and New York and California could join that list. Retailers and trade associations across the country have worked to draft the bills and get them over the finish line.
It is difficult to determine whether theft crimes have increased nationally, as it is a crime that is often underreported and undetected. It is also unclear how effective the proposed legislation will be.
Experts previously told CNBC that laws that increase penalties for retail-related crimes may not actually reduce theft crimes and could disproportionately harm marginalized groups. Similar strategies implemented to address drug trafficking have done little to reduce the use or availability of illegal narcotics. Like low-level drug dealers, many serial thieves face mental illness, poverty or drug addiction, law enforcement officials previously told CNBC.
Hochul, in his State of the State address Tuesday, said he plans to introduce bills that would create criminal penalties for online marketplaces and third-party sellers that contribute to the sale of stolen goods. He also intends to work with the legislature to strengthen penalties for those who assault retail employees.
In addition, Hochul plans to create two new task forces dedicated to combating theft: one to prepare cases against organized retail theft rings and another to deal with so-called crush and grab thefts.
As part of the initiatives, Hochul called for increased funding for state police departments and district attorney's offices to better equip them to deal with retail theft and other property crimes such as theft. He also wants to establish a tax credit for business owners who implement safety measures in stores to help them offset those costs.
“Across our nation and our state, retail theft has increased, creating fear among customers and workers. Thieves brazenly rip items off shelves and threaten employees. Owners are going bankrupt replacing broken windows and stolen goods, leading many to bankruptcy,” Hochul said in his address.
“These attacks are nothing less than a breakdown of social order. I say: enough. The chaos must end.”
Newsom said Wednesday that California will invest $1.1 billion over the next four years to address “safety and security,” of which $373.5 million will go toward combating organized retail theft, according to his office.
In his state budget speech, Newsom said 52 sheriff and police departments have already received more than $250 million in new grants to combat retail theft. He added that the district attorney's offices are receiving assistance to advance prosecution efforts.
“We are serious in this space,” Newsom said.
Newsom this week also called for new legislation addressing organized retail crime. He wants to target in particular people accused of repeatedly stealing from the same stores and “professional thieves” who resell stolen goods.
The proposals include new penalties targeting people who engage in retail theft, including increasing penalties for serious crimes and prison terms, and strengthening existing laws so that police can arrest those suspected of robbery even if they did not witness the crime while it was happening.
Newsom is also calling for changes to the state criminal code that would allow police to aggregate robbery incidents within a set time period to make it easier to charge repeat offenders with grand theft and other serious crimes. Currently, someone has to steal more than $950 in property in a single incident to be charged with grand theft in California.
— CNBC's Christina Wilkie contributed to this report.
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