Panel backs advisory board and grants to tackle organized retail theft; bill sent to appropriations

Lawmakers heard extensive testimony and bipartisan support for a bill to build a coordinated, data‑driven response to organized retail theft and gift‑card fraud, then voted to send the measure to the Appropriations Committee with a favorable recommendation.

Rep. Luke, a sponsor, said House Bill 11‑38 does not increase criminal penalties but creates an advisory board and a grant program within the Attorney General’s Office to give prosecutors and law enforcement tools to investigate cross‑jurisdictional organized theft and to fund prevention technology. “No new penalties, just accountability, better systems, and real outcomes for Colorado businesses and communities,” he said.

Retailers, chambers of commerce, local governments and law‑enforcement representatives urged approval, citing rising losses and the difficulty of building multi‑jurisdictional cases. Katie Wolf of the Colorado Retail Council and witnesses from Walgreens and other national and local retailers described gift‑card scams, fencing operations, and sophisticated schemes that often cross state lines. Several witnesses said many incidents go unreported and that local investigators lack the technology and staffing for complex, organized investigations.

Supporters proposed grants to help local agencies buy tracking and analytics tools, fund multi‑jurisdictional task forces, and provide training. An economist from the University of Colorado presented an analysis recommending stable funding rather than voluntary donations; sponsors said they are exploring funding options but initially expect gifts, grants and donations to seed the program and a 0.5 FTE to staff the advisory board in the Attorney General’s Office.

The committee adopted amendment L003 to add a public‑defender representative and other clarifications, then the sponsor moved the bill to Appropriations with a favorable recommendation. Sponsors said the advisory board would expire in 2029 and required SMART Act reporting so the legislature could evaluate effectiveness and funding needs.

Next steps: HB 11‑38 will go to the Appropriations Committee for budget review and potential appropriation language; sponsors said they will continue negotiating funding mechanisms and guardrails for grantmaking.