Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1575 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 1978 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1575
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Bradley H. Jones, Jr.
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to profits from crime.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Bradley H. Jones, Jr.20th Middlesex1/17/2023Nicholas A. Boldyga3rd Hampden1/26/2023F. Jay Barrows1st Bristol1/26/2023Angelo L. D'Emilia8th Plymouth1/29/2023Paul K. Frost7th Worcester1/31/2023Kimberly N. Ferguson1st Worcester1/31/2023 1 of 7
16	16	HOUSE DOCKET, NO. 1978 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 1575
18	18	By Representative Jones of North Reading, a petition (accompanied by bill, House, No. 1575) of
19	19	Bradley H. Jones, Jr. and others for legislation to authorize the Division of Victim Compensation
20	20	and Assistance to monitor profits from criminal activities of incarcerated persons. The Judiciary.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 1686 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act relative to profits from crime.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. The General Laws, as appearing in the 2020 Official Edition, are hereby
32	32	2amended by inserting after chapter 258E the following new chapter:-
33	33	3 “CHAPTER 258F
34	34	4 Section 1. (a) The following words as used in this section shall have the following
35	35	5meanings, unless the context otherwise requires:
36	36	6 "Contracting party", any person, firm, corporation, partnership, association or other
37	37	7private legal entity which contracts for, pays, or agrees to pay a defendant consideration which it
38	38	8knows or reasonably should know may constitute proceeds from a crime. 2 of 7
39	39	9 “Conviction”, a finding or verdict guilty or of not guilty by reason of insanity, a plea of
40	40	10guilty or a finding of sufficient facts to warrant a finding of guilty whether or not final judgment
41	41	11or sentence is imposed, or an adjudication of delinquency or of youthful offender status as
42	42	12defined in section 52 of chapter 119.
43	43	13 "Crime", any violation of Massachusetts law that is punishable by imprisonment in state
44	44	14prison and any federal offense committed in the commonwealth that is punishable by death or
45	45	15imprisonment for a term of more than one year. Crime shall also include any offense committed
46	46	16by a juvenile which would be a crime if the juvenile were an adult.
47	47	17 "Defendant", a person who has been charged with or convicted of a crime, or has
48	48	18voluntarily admitted the commission of a crime.
49	49	19 "Division", the division of victim compensation and assistance within the department of
50	50	20the attorney general.
51	51	21 "Proceeds of the crime", any assets, material objects, monies, and property obtained
52	52	22through the use of unique knowledge or notoriety acquired by means and in consequence of the
53	53	23commission of a crime from whatever source received by or owing to a defendant or his
54	54	24representative, whether earned, accrued, or paid before or after the disposition of criminal
55	55	25charges against the defendant.
56	56	26 "Victim", any natural person who suffers direct or threatened physical, emotional, or
57	57	27financial harm as the result of the commission of a crime, or the estate, legal guardian, and other
58	58	28family members of such person if the person is a minor, incompetent or deceased. 3 of 7
59	59	29 (b) Any contracting party which contracts for, pays or agrees to pay a defendant or his
60	60	30representative consideration which it knows or reasonably should know may constitute proceeds
61	61	31of a crime shall, within 30 days of the agreement, submit to the division a copy of its contract or
62	62	32a summary of the terms of any oral agreement.
63	63	33 (c) Until such time as the division makes its determinations under subsection (g), the
64	64	34contracting party shall file a bond, executed by the contracting party and by a surety company
65	65	35authorized to do business within the commonwealth, with the division equal in amount to any
66	66	36proceeds of the crime which by the terms of the contract would otherwise be owing to a
67	67	37defendant or his representative. Said bond shall be payable to the commonwealth, for the benefit
68	68	38of any victim aggrieved by the activity of the defendant or contracting party.
69	69	39 (d) If the provisions of subsections (b) or (c) are violated, the division may petition the
70	70	40superior court for an order of enforcement. Such action shall be brought in the county in which
71	71	41the contracting party resides or has his principle place of business, or in Suffolk county if the
72	72	42contracting party does not reside or have a principal place of business in the commonwealth.
73	73	43Upon a finding that a contracting party has violated either subsections (b) or (c) the court shall,
74	74	44in addition to any other relief, impose on the contracting party a civil penalty of the value of the
75	75	45contract or agreement. If the court finds such violation to have been knowing or willful, it shall
76	76	46impose a civil penalty up to three, but not less than two, times the value of the contract or
77	77	47agreement. To the extent monies or other consideration received by the division as a result of
78	78	48such order exceed the value of the contract or agreement, they shall be deposited into the victim
79	79	49compensation fund maintained by the treasurer in accordance with section 4(c). Any remaining
80	80	50monies or consideration shall be held by the division pending the determinations required by
81	81	51subsection (g). 4 of 7
82	82	52 (e) The division, upon receipt of a contract or other agreement to pay a defendant, shall
83	83	53take reasonable steps to notify all known victims of the crime about the existence of a contract or
84	84	54agreement. Notifications shall be made by certified mail to the victim's last known address. The
85	85	55division shall also provide legal notice in a newspaper of general circulation in the county in
86	86	56which the crime was committed to publicize the existence of proceeds related to the crime. Such
87	87	57notice shall be made by the division once every six months for one year from the date of receipt
88	88	58of the contract or agreement. The division may provide for such additional notice as it deems
89	89	59necessary. Failure to notify the victim shall not result in liability beyond the amount of any
90	90	60consideration in escrow at the time any judgment arising out of such liability is executed upon.
91	91	61 (f) Notwithstanding any other provision of the General Laws with respect to the timely
92	92	62bringing of an action, any victim shall have the right to bring a civil action to recover money
93	93	63damages from a defendant or his legal representative within three years of the last mandatory
94	94	64published public notice provided for in subsection (e).
95	95	65 (g) Within 30 days from the receipt of a contract or agreement, or upon its own initiative
96	96	66if no contract or agreement is submitted, the division shall determine whether the terms of the
97	97	67contract or agreement include proceeds as defined in subsection (a), and, if so, whether such
98	98	68proceeds arise from activity that is substantially related to a crime. An activity is substantially
99	99	69related to a crime if it principally derives from the unique knowledge or notoriety acquired by
100	100	70means and in consequence of the commission of a crime for which the defendant has been
101	101	71charged or convicted, or which the defendant has voluntarily admitted. Activity that is
102	102	72tangentially related to a crime, or that contains only a passing reference to a crime, shall not be
103	103	73determined to be substantially related. 5 of 7
104	104	74 (h) In order to make the determinations required by subsection (g) the division shall be
105	105	75authorized to issue written civil investigative demands which may be served by certified mail,
106	106	76and which shall be returned within 15 days from the date of service. Whenever a person fails to
107	107	77comply with a civil investigative demand served on him pursuant to this section, the division
108	108	78may petition the superior court for an order of enforcement. Such action shall be brought in the
109	109	79county in which the party resides or has his principal place of business, or in Suffolk county if
110	110	80the party does not reside or have a principal place of business in the commonwealth. Failure to
111	111	81comply with an order entered under this section shall be punished as a contempt of court. All
112	112	82information collected by the division pursuant to this section shall be kept in accordance with the
113	113	83provisions of chapters 4, 66, and 66A.
114	114	84 (i) Upon making the determinations required by subsection (g), the division may continue
115	115	85to hold the bond filed in accordance with subsection (c), or may require the contracting party to
116	116	86file a new bond equal to the amount determined by the division to constitute proceeds arising
117	117	87from activity that is substantially related to a crime. The bond held by the division shall be used
118	118	88to satisfy, in part or in full, any civil judgment obtained by a victim against the defendant arising
119	119	89from the crime.
120	120	90 (j) Within 15 days of the determination required by subsection (g), the division shall
121	121	91notify the contracting party of its determinations by certified mail.
122	122	92 (k) Within 15 days of the date of mailing of the notice of the division’s determination, a
123	123	93contracting party aggrieved by the division’s determination may appeal to the attorney general,
124	124	94by serving on the attorney general a written notice to that effect. Thereupon the attorney general
125	125	95shall immediately cause the division or his designee to hold a public hearing on the division’s 6 of 7
126	126	96action appealed from. The division shall notify the contracting party by certified mail of the
127	127	97determination upon appeal within 10 days of the closing of the hearing. Such notice shall include
128	128	98information regarding the contracting party’s right to a petition for judicial review of the
129	129	99determination of the division.
130	130	100 (l) Within 30 days of the date of mailing of the notice of the division’s determination, the
131	131	101contracting party may file a complaint for judicial review in the superior court in the county in
132	132	102which the contracting party resides or has his principle place of business, or in Suffolk County if
133	133	103the contracting party does not reside or have a principal place of business in the commonwealth.
134	134	104Proceedings upon any such complaint shall be in accordance with chapter 30A. If no petition is
135	135	105filed within the time specified, the decision of the division shall be final.
136	136	106 (m) The bond required in subsections (c) and (i) shall not be used to satisfy any civil
137	137	107judgment for a victim until the defendant has been fully and finally convicted of the crime for
138	138	108which he has been charged or until the defendant has voluntarily admitted the commission of the
139	139	109crime.
140	140	110 (n) The division shall return to the contracting party the bond required in subsections (c)
141	141	111and (i) if the defendant is fully and finally prosecuted and is not convicted of the crime, or has
142	142	112not voluntarily admitted the commission of the crime.
143	143	113 (o) After all civil claims instituted by victims against the defendant have been satisfied,
144	144	114or if no claims have been filed after three years after the last mandatory published public notice
145	145	115provided for in subsection (e), one half of the value of the bond required in subsections (c) and
146	146	116(i) shall be returned to the contracting party. The remaining portion of the bond shall be 7 of 7
147	147	117deposited into the victim compensation fund maintained by the department of the attorney
148	148	118general in accordance with section 4C of chapter 258C.
149	149	119 (p) The division, acting on behalf of any victim, shall have the right to apply for any and
150	150	120all provisional remedies, available under civil practice law and rules, including, but not limited
151	151	121to, attachment, injunction, receivership and notice of pendency.
152	152	122 (q) Any action taken by a defendant, or his representative, whether by way of execution
153	153	123of a power of attorney, creation of corporate entities or otherwise, to defeat the purpose of this
154	154	124section shall be null and void.”
155	155	125 SECTION 2. Section 2A of chapter 260 of the General Laws, as so appearing, is hereby
156	156	126amended by inserting after the first sentence the following sentence:- “Actions for torts against a
157	157	127criminal defendant by the victim as defined by section 1 of chapter 258D shall be tolled during
158	158	128any period of incarceration, parole or probation of the defendant for the crime committed against
159	159	129the victim.”