BILL ANALYSIS H.B. 1523 By: Guillen Criminal Jurisprudence Committee Report (Unamended) BACKGROUND AND PURPOSE Texas law enforcement agencies have reported an increase in the number of people being detained with stored value cards on principal drug trafficking corridors in Texas. Drug traffickers tend to use stored value cards for money laundering activities, as these cards can be used like currency but have certain characteristics that make the cards attractive to criminals, including anonymity and lack of traceability. H.B. 1523 seeks to incorporate stored value cards into provisions regarding money laundering offenses. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1523 amends the Penal Code to expand the definition of "funds," for purposes of money laundering offenses, to include a stored value card, defined in the Business & Commerce Code as a record, including a gift card or gift certificate, that evidences a promise made for monetary consideration by the seller or issuer of the record that goods or services will be provided to the owner of the record in the value shown in the record, that is prefunded, and the value of which is reduced on redemption. EFFECTIVE DATE September 1, 2013.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 1523
By: Guillen
Criminal Jurisprudence
Committee Report (Unamended)
H.B. 1523
By: Guillen
Criminal Jurisprudence
Committee Report (Unamended)
BACKGROUND AND PURPOSE Texas law enforcement agencies have reported an increase in the number of people being detained with stored value cards on principal drug trafficking corridors in Texas. Drug traffickers tend to use stored value cards for money laundering activities, as these cards can be used like currency but have certain characteristics that make the cards attractive to criminals, including anonymity and lack of traceability. H.B. 1523 seeks to incorporate stored value cards into provisions regarding money laundering offenses.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 1523 amends the Penal Code to expand the definition of "funds," for purposes of money laundering offenses, to include a stored value card, defined in the Business & Commerce Code as a record, including a gift card or gift certificate, that evidences a promise made for monetary consideration by the seller or issuer of the record that goods or services will be provided to the owner of the record in the value shown in the record, that is prefunded, and the value of which is reduced on redemption.
EFFECTIVE DATE September 1, 2013.
BACKGROUND AND PURPOSE
Texas law enforcement agencies have reported an increase in the number of people being detained with stored value cards on principal drug trafficking corridors in Texas. Drug traffickers tend to use stored value cards for money laundering activities, as these cards can be used like currency but have certain characteristics that make the cards attractive to criminals, including anonymity and lack of traceability. H.B. 1523 seeks to incorporate stored value cards into provisions regarding money laundering offenses.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1523 amends the Penal Code to expand the definition of "funds," for purposes of money laundering offenses, to include a stored value card, defined in the Business & Commerce Code as a record, including a gift card or gift certificate, that evidences a promise made for monetary consideration by the seller or issuer of the record that goods or services will be provided to the owner of the record in the value shown in the record, that is prefunded, and the value of which is reduced on redemption.
EFFECTIVE DATE
September 1, 2013.