Connecticut 2025 Regular Session

Connecticut House Bill HB06990 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO 1 of 7
	3	+	LCO No. 5018 1 of 7
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5		-	General Assembly ~~Substitute~~ Bill No. 6990
	5	+	General Assembly Raised Bill No. 6990
6	6		January Session, 2025
	7	+	LCO No. 5018
	8	+
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
	15	+
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10	19		AN ACT CONCERNING THE SEIZURE AND FORFEITURE OF DIGITAL
11	20		WALLETS AND VIRTUAL CURRENCY.
12	21		Be it enacted by the Senate and House of Representatives in General
13	22		Assembly convened:
14	23
15	24		Section 1. Subsection (a) of section 54-36a of the general statutes is 1
16	25		repealed and the following is substituted in lieu thereof (Effective October 2
17	26		1, 2025): 3
18	27		(a) As used in this section, sections 53-278c and 54-36c: (1) 4
19	28		"Contraband" means any property, the possession of which is 5
20	29		prohibited by any provision of the general statutes; (2) ["stolen 6
21	30		property" shall include, but not be limited to, cash or the proceeds from 7
22	31		the sale of such property obtained by theft or other illegal means; (3)] 8
23	32		"digital wallet" means any electronic or digital functionality that (A) 9
24	33		stores account or payment credentials for a consumer, including, but not 10
25	34		limited to, in encrypted or tokenized form, and (B) transmits, routes or 11
26	35		otherwise processes such stored account or payment credentials to 12
27	36		facilitate a consumer payment transaction; (3) "owner" means a person 13
28	37		or persons entitled to seized property as a matter of law or fact; (4) 14
29	38		"property" includes, but is not limited to, digital wallets and virtual 15
	39	+	Raised Bill No. 6990
	40	+
	41	+
	42	+
	43	+	LCO No. 5018 2 of 7
	44	+
30	45		currency; (5) "stolen property" includes, but is not limited to, cash, 16
31	46		digital wallets, virtual currency or the proceeds from the sale of such 17
32	47		property obtained by theft or other illegal means; and (6) "virtual 18
33		-	currency" has the same meaning as provided in section 36a-596. 19 Substitute Bill No. 6990
34		-
35		-
36		-	LCO 2 of 7
37		-
	48	+	currency" has the same meaning as provided in section 36a-596. 19
38	49		Sec. 2. Section 54-36h of the general statutes is repealed and the 20
39	50		following is substituted in lieu thereof (Effective October 1, 2025): 21
40	51		(a) As used in this section, (1) "digital wallet" means any electronic or 22
41	52		digital functionality that (A) stores account or payment credentials for a 23
42	53		consumer, including, but not limited to, in encrypted or tokenized form, 24
43	54		and (B) transmits, routes or otherwise processes such stored account or 25
44	55		payment credentials to facilitate a consumer payment transaction; (2) 26
45	56		"property" includes, but is not limited to, digital wallets and virtual 27
46	57		currency; and (3) "virtual currency" has the same meaning as provided 28
47	58		in section 36a-596. 29
48		-	~~[(a)]~~ (b) The following property shall be subject to forfeiture to the 30
49		-	~~state~~ pursuant to subsection [(b)] (c) of this section: 31
	59	+	(b) The following property shall be subject to forfeiture to the state 30
	60	+	pursuant to subsection [(b)] (c) of this section: 31
50	61		(1) All moneys used, or intended for use, in the procurement, 32
51	62		manufacture, compounding, processing, delivery or distribution of any 33
52	63		controlled substance, as defined in section 21a-240; 34
53	64		(2) All property constituting the proceeds obtained, directly or 35
54	65		indirectly, from any sale or exchange of any such controlled substance 36
55	66		in violation of section 21a-277 or 21a-278; 37
56	67		(3) All property derived from the proceeds obtained, directly or 38
57	68		indirectly, from any sale or exchange for pecuniary gain of any such 39
58	69		controlled substance in violation of section 21a-277 or 21a-278; 40
59	70		(4) All property used or intended for use, in any manner or part, to 41
60	71		commit or facilitate the commission of a violation for pecuniary gain of 42
61		-	section 21a-277 or 21a-278; ~~and~~ 43
	72	+	section 21a-277 or 21a-278; 43
62	73		(5) All property constituting, or derived from, the proceeds obtained, 44
	74	+	Raised Bill No. 6990
	75	+
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	77	+
	78	+	LCO No. 5018 3 of 7
	79	+
63	80		directly or indirectly, by a corporation as a result of a violation of section 45
64	81		53a-276, 53a-277 or 53a-278. 46
65	82		[(b)] (c) Not later than ninety days after the seizure of moneys or 47
66	83		property subject to forfeiture pursuant to subsection [(a)] (b) of this 48
67		-	section, in connection with a lawful criminal arrest or a lawful search 49 Substitute Bill No. 6990
68		-
69		-
70		-	LCO 3 of 7
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	84	+	section, in connection with a lawful criminal arrest or a lawful search 49
72	85		that results in an arrest, the Chief State's Attorney or a deputy chief 50
73	86		state's attorney, state's attorney or assistant or deputy assistant state's 51
74	87		attorney may petition the court in the nature of a proceeding in rem to 52
75	88		order forfeiture of said moneys or property. Such proceeding shall be 53
76	89		deemed a civil suit in equity, in which the state shall have the burden of 54
77	90		proving all material facts by clear and convincing evidence. The court 55
78	91		shall identify the owner of said moneys or property and any other 56
79	92		person as appears to have an interest therein, and order the state to give 57
80	93		notice to such owner and any interested person by certified or registered 58
81	94		mail. No testimony offered or evidence produced by such owner or 59
82	95		interested person at such hearing and no evidence discovered as a result 60
83	96		of or otherwise derived from such testimony or evidence, may be used 61
84	97		against such owner or interested person in any proceeding, except that 62
85	98		no such owner or interested person shall be immune from prosecution 63
86	99		for perjury or contempt committed while giving such testimony or 64
87	100		producing such evidence. At such hearing the court shall hear evidence 65
88	101		and make findings of fact and enter conclusions of law and shall issue a 66
89	102		final order, from which the parties shall have such right of appeal as 67
90	103		from a decree in equity. 68
91	104		[(c)] (d) The court shall hold a hearing on the petition filed pursuant 69
92	105		to subsection [(a)] (b) of this section not more than two weeks after the 70
93	106		criminal proceeding that occurred as a result of the arrest has been 71
94	107		nolled, dismissed or otherwise disposed of. The court shall deny the 72
95	108		petition and return the property to the owner if the criminal proceeding 73
96	109		does not result in (1) a plea of guilty or nolo contendere to any offense 74
97	110		charged in the same criminal information, (2) a guilty verdict after trial 75
98	111		to a forfeiture-eligible offense for which the property was possessed, 76
99	112		controlled, designed or intended for use, or which was or had been used 77
	113	+	Raised Bill No. 6990
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	117	+	LCO No. 5018 4 of 7
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100	119		as a means of committing such offense, or which constitutes the 78
101	120		proceeds of the commission of such offense, or (3) a dismissal resulting 79
102	121		from the completion of a pretrial diversionary program. 80
103	122		[(d)] (e) No property shall be forfeited under this section to the extent 81
104	123		of the interest of an owner or lienholder by reason of any act or omission 82
105		-	committed by another person if such owner or lienholder did not know 83 Substitute Bill No. 6990
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107		-
108		-	LCO 4 of 7
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	124	+	committed by another person if such owner or lienholder did not know 83
110	125		and could not have reasonably known that such property was being 84
111	126		used or was intended to be used in, or was derived from, criminal 85
112	127		activity. 86
113	128		[(e)] (f) Notwithstanding the provisions of subsection [(a)] (b) of this 87
114	129		section, no moneys or property used or intended to be used by the 88
115	130		owner thereof to pay legitimate attorney's fees in connection with his 89
116	131		defense in a criminal prosecution shall be subject to forfeiture under this 90
117	132		section. 91
118	133		[(f)] (g) Any property ordered forfeited pursuant to subsection [(b)] 92
119	134		(c) of this section shall be sold at public auction conducted by the 93
120	135		Commissioner of Administrative Services or his designee. 94
121	136		[(g)] (h) The proceeds from any sale of property under subsection [(f)] 95
122	137		(g) of this section and any moneys forfeited under this section shall be 96
123	138		applied: (1) To payment of the balance due on any lien preserved by the 97
124	139		court in the forfeiture proceedings; (2) to payment of any costs incurred 98
125	140		for the storage, maintenance, security and forfeiture of such property; 99
126	141		and (3) to payment of court costs. The balance, if any, shall be deposited 100
127	142		in the drug assets forfeiture revolving account established under section 101
128	143		54-36i. 102
129	144		Sec. 3. Section 54-36o of the general statutes is repealed and the 103
130	145		following is substituted in lieu thereof (Effective October 1, 2025): 104
131	146		(a) As used in this section, (1) "digital wallet" means any electronic or 105
132	147		digital functionality that (A) stores account or payment credentials for a 106
133	148		consumer, including, but not limited to, in encrypted or tokenized form, 107
	149	+	Raised Bill No. 6990
	150	+
	151	+
	152	+
	153	+	LCO No. 5018 5 of 7
	154	+
134	155		and (B) transmits, routes or otherwise processes such stored account or 108
135	156		payment credentials to facilitate a consumer payment transaction; (2) 109
136	157		"property" includes, but is not limited to, digital wallets and virtual 110
137	158		currency; and (3) "virtual currency" has the same meaning as provided 111
138	159		in section 36a-596. 112
139		-	[(a)] (b) All property constituting, or derived from, the proceeds 113
140		-	obtained, directly or indirectly, by a person as a result of a violation of 114 Substitute Bill No. 6990
141		-
142		-
143		-	LCO 5 of 7
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145		-	section 53a-129a of the general statutes, revision of 1958, revised to 115
146		-	January 1, 2003, or section 53a-127g, 53a-129b, 53a-129c, 53a-129d, 53a-116
147		-	129e, 53a-130, 21-120 or 21-121 shall be subject to forfeiture to the state 117
148		-	pursuant to subsection [(b)] (c) of this section. 118
	160	+	(b) All property constituting, or derived from, the proceeds obtained, 113
	161	+	directly or indirectly, by a person as a result of a violation of section 53a-114
	162	+	129a of the general statutes, revision of 1958, revised to January 1, 2003, 115
	163	+	or section 53a-127g, 53a-129b, 53a-129c, 53a-129d, 53a-129e, 53a-130, 21-116
	164	+	120 or 21-121 shall be subject to forfeiture to the state pursuant to 117
	165	+	subsection [(b)] (c) of this section. 118
149	166		[(b)] (c) Not later than ninety days after the seizure of property subject 119
150	167		to forfeiture pursuant to subsection [(a)] (b) of this section, in connection 120
151	168		with a lawful arrest or a lawful search that results in an arrest, the Chief 121
152	169		State's Attorney or a deputy chief state's attorney, state's attorney or 122
153	170		assistant or deputy assistant state's attorney may petition the court in 123
154	171		the nature of a proceeding in rem to order forfeiture of said moneys or 124
155	172		property. Such proceeding shall be deemed a civil suit in equity, in 125
156	173		which the state shall have the burden of proving all material facts by 126
157	174		clear and convincing evidence. The court shall identify the owner of 127
158	175		such property and any other person as appears to have an interest 128
159	176		therein, and order the state to give notice to such owner and any 129
160	177		interested person by certified or registered mail. No testimony offered 130
161	178		or evidence produced by such owner or interested person at such 131
162	179		hearing and no evidence discovered as a result of or otherwise derived 132
163	180		from such testimony or evidence, may be used against such owner or 133
164	181		interested person in any proceeding, except that no such owner or 134
165	182		interested person shall be immune from prosecution for perjury or 135
166	183		contempt committed while giving such testimony or producing such 136
167	184		evidence. At such hearing the court shall hear evidence and make 137
168	185		findings of fact and enter conclusions of law and shall issue a final order, 138
169	186		from which the parties shall have such right of appeal as from a decree 139
170	187		in equity. 140
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	192	+	LCO No. 5018 6 of 7
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171	194		[(c)] (d) The court shall hold a hearing on the petition filed pursuant 141
172	195		to subsection [(a)] (b) of this section not more than two weeks after the 142
173	196		criminal proceeding that occurred as a result of the arrest has been 143
174	197		nolled, dismissed or otherwise disposed of. The court shall deny the 144
175	198		petition and return the property to the owner if the criminal proceeding 145
176	199		does not result in (1) a plea of guilty or nolo contendere to any offense 146
177	200		charged in the same criminal information, (2) a guilty verdict after trial 147
178		-	to a forfeiture-eligible offense for which the property was possessed, 148 Substitute Bill No. 6990
179		-
180		-
181		-	LCO 6 of 7
182		-
	201	+	to a forfeiture-eligible offense for which the property was possessed, 148
183	202		controlled, designed or intended for use, or which was or had been used 149
184	203		as a means of committing such offense, or which constitutes the 150
185	204		proceeds of the commission of such offense, or (3) a dismissal resulting 151
186	205		from the completion of a pretrial diversionary program. 152
187	206		[(d)] (e) No property shall be forfeited under this section to the extent 153
188	207		of the interest of an owner or lienholder by reason of any act or omission 154
189	208		committed by another person if such owner or lienholder did not know 155
190	209		and could not have reasonably known that such property was being 156
191	210		used or was intended to be used in, or was derived from, criminal 157
192	211		activity. 158
193	212		[(e)] (f) Notwithstanding the provisions of subsection [(a)] (b) of this 159
194	213		section, no property used or intended to be used by the owner thereof 160
195	214		to pay legitimate attorney's fees in connection with his defense in a 161
196	215		criminal prosecution shall be subject to forfeiture under this section. 162
197	216		[(f)] (g) Any property ordered forfeited pursuant to subsection [(b)] 163
198	217		(c) of this section shall be sold at public auction conducted by the 164
199	218		Commissioner of Administrative Services. 165
200	219		[(g)] (h) The proceeds from any sale of property under subsection [(f)] 166
201	220		(g) of this section shall be applied: (1) To payment of the balance due on 167
202	221		any lien preserved by the court in the forfeiture proceedings; (2) to 168
203	222		payment of any costs incurred for the storage, maintenance, security 169
204	223		and forfeiture of such property; and (3) to payment of court costs. The 170
205	224		balance, if any, shall be deposited in the privacy protection guaranty 171
	225	+	Raised Bill No. 6990
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	229	+	LCO No. 5018 7 of 7
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206	231		and enforcement account established under section 42-472a. 172
207	232		This act shall take effect as follows and shall amend the following
208	233		sections:
209	234
210	235		Section 1 October 1, 2025 54-36a(a)
211	236		Sec. 2 October 1, 2025 54-36h
212	237		Sec. 3 October 1, 2025 54-36o
213		-	Substitute Bill No. 6990
214	238
	239	+	Statement of Purpose:
	240	+	To specify that digital wallets and virtual currency are included in the
	241	+	term "property" as such term is used in various statutes concerning the
	242	+	seizure and forfeiture of property.
215	243
216		-	LCO 7 of 7
217		-
218		-	Statement of Legislative Commissioners:
219		-	In Section 2(b)(4), "and" was added at the end of the Subdiv. for
220		-	consistency with standard drafting conventions.
221		-
222		-	BA Joint Favorable Subst. -LCO
	244	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	245	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	246	+	underlined.]
223	247