Texas 2023 - 88th Regular

Texas House Bill HB4635 Compare Versions

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1	1	H.B. No. 4635
2	2
3	3
4	4	AN ACT
5	5	relating to organized crime, racketeering activities, and
6	6	collection of unlawful debts; providing a civil penalty; creating
7	7	criminal offenses.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. This Act shall be known as the Texas Racketeering
10	10	Act.
11	11	SECTION 2. Title 6, Civil Practice and Remedies Code, is
12	12	amended by adding Chapter 140B to read as follows:
13	13	CHAPTER 140B. CIVIL REMEDIES AND ENFORCEMENT RELATED TO
14	14	RACKETEERING AND UNLAWFUL DEBT COLLECTION
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 140B.001. DEFINITIONS. In this chapter:
17	17	(1) "Beneficial interest":
18	18	(A) means the interest of a person:
19	19	(i) as a beneficiary under a trust
20	20	established under the Texas Trust Code (Subtitle B, Title 9,
21	21	Property Code) in which the trustee for the trust holds legal or
22	22	record title to real property;
23	23	(ii) as a beneficiary under any other trust
24	24	arrangement under which a trustee holds legal or record title to
25	25	real property for the benefit of the person; or
26	26	(iii) under any other form of express
27	27	fiduciary arrangement under which any other person holds legal or
28	28	record title to real property for the benefit of the person; and
29	29	(B) does not include the interest of a
30	30	shareholder in a corporation or the interest of a partner in either
31	31	a general partnership or a limited partnership.
32	32	(2) "Cash or cash proceeds" includes:
33	33	(A) damages, penalties, or any other monetary
34	34	payment;
35	35	(B) monetary proceeds from property forfeited to
36	36	the state under Subchapter C; or
37	37	(C) any payment made by a defendant by reason of a
38	38	decree or settlement in an action filed under Subchapter C.
39	39	(3) "Enterprise" means a legal entity, group of
40	40	individuals associated in fact, or a combination of those entities
41	41	and individuals.
42	42	(4) "Investigative agency" means the Department of
43	43	Public Safety, the attorney general, or a local prosecutor.
44	44	(5) "Local prosecutor" means a district attorney,
45	45	criminal district attorney, or county attorney with felony criminal
46	46	jurisdiction.
47	47	(6) "Money" means funds as defined by Section 34.01,
48	48	Penal Code.
49	49	(7) "Real property" means any real property or any
50	50	interest in real property, including any lease of or mortgage on
51	51	real property.
52	52	Sec. 140B.002. SPECIAL DOCKETING PROCEDURES. The attorney
53	53	general or local prosecutor may file with the clerk of the district
54	54	court in which an action is brought under this chapter a certificate
55	55	stating that the case is of special public importance. The clerk
56	56	must immediately furnish a copy of the certificate to the
57	57	administrative judge of the district court of the county in which
58	58	the action is pending. On receiving the copy of the certificate,
59	59	the administrative judge shall immediately designate a judge to
60	60	hear and determine the action. The designated judge shall promptly
61	61	assign the action for hearing, participate in hearings, make
62	62	determinations, and cause the action to be expedited.
63	63	Sec. 140B.003. PREVIOUSLY SEIZED ASSETS. Notwithstanding
64	64	any other provision of this chapter, a remedy provided by this
65	65	chapter may not be assessed against, and the attorney general may
66	66	not claim or pursue in an action brought under this chapter, any
67	67	proceeds, contraband, or other property of any kind over which a law
68	68	enforcement authority has previously asserted jurisdiction under
69	69	Chapter 59, Code of Criminal Procedure, at the time an action under
70	70	this chapter was filed.
71	71	SUBCHAPTER B. CIVIL INVESTIGATIVE AUTHORITY
72	72	Sec. 140B.051. DEFINITIONS. In this subchapter:
73	73	(1) "Civil investigative demand" means any demand
74	74	issued by the attorney general or a local prosecutor under this
75	75	subchapter.
76	76	(2) "Documentary material" means the original or a
77	77	copy of any paper, contract, agreement, book, booklet, brochure,
78	78	pamphlet, catalog, magazine, notice, announcement, circular,
79	79	bulletin, instruction, minutes, agenda, study, analysis, report,
80	80	graph, map, chart, table, schedule, note, letter, telegram,
81	81	telephone recordings, or data compilations stored in or accessible
82	82	through computer or other information retrieval systems, together
83	83	with instructions and all other materials necessary to use or
84	84	interpret the data compilations, and any product of discovery.
85	85	(3) "Product of discovery" means:
86	86	(A) the original or a copy of a deposition,
87	87	interrogatory, document, thing, result of inspection of land or
88	88	other property, examination, or admission that is obtained by any
89	89	method of discovery in a judicial or administrative proceeding of
90	90	an adversarial nature;
91	91	(B) a digest, analysis, selection, compilation,
92	92	or derivation of any item listed in Paragraph (A); and
93	93	(C) an index, instruction, or other aid or means
94	94	of access to any item listed in Paragraph (A).
95	95	(4) "Racketeering investigation" means any inquiry
96	96	conducted by the attorney general or a local prosecutor for the
97	97	purpose of ascertaining whether any person is or has been engaged in
98	98	or is actively preparing to engage in activities that may
99	99	constitute a racketeering violation.
100	100	(5) "Racketeering violation" means conduct
101	101	constituting an offense under Section 72.02, 72.03, or 72.04, Penal
102	102	Code.
103	103	Sec. 140B.052. CIVIL INVESTIGATIVE DEMAND. If the attorney
104	104	general or a local prosecutor has reason to believe that a person
105	105	may be in possession, custody, or control of any documentary
106	106	material or other evidence or may have any information relevant to a
107	107	civil racketeering investigation, the attorney general or local
108	108	prosecutor may, before beginning a civil proceeding under this
109	109	chapter, issue in writing and serve on the person a civil
110	110	investigative demand requiring the person to:
111	111	(1) produce any of the documentary material for
112	112	inspection and copying;
113	113	(2) answer in writing any written interrogatories;
114	114	(3) give oral testimony; or
115	115	(4) provide any combination of civil investigative
116	116	demands under Subdivisions (1)-(3).
117	117	Sec. 140B.053. CONTENTS OF DEMAND. (a) A civil
118	118	investigative demand issued under Section 140B.052 must:
119	119	(1) describe the nature of the activities that are the
120	120	subject of the investigation;
121	121	(2) state each statute the activity violates; and
122	122	(3) advise the person on whom the demand is served that
123	123	the person has the right to object to the demand as provided for in
124	124	this subchapter.
125	125	(b) A demand for production of documentary material must:
126	126	(1) describe the class of material to be produced with
127	127	reasonable specificity so that the material demanded is fairly
128	128	identified;
129	129	(2) prescribe a return date that provides a reasonable
130	130	period of time within which the material is to be produced; and
131	131	(3) identify the individual to whom the material is to
132	132	be made available for inspection and copying.
133	133	(c) A demand for answers to written interrogatories must:
134	134	(1) propound the interrogatories with definiteness
135	135	and certainty;
136	136	(2) prescribe a date by which answers to the
137	137	interrogatories must be submitted; and
138	138	(3) identify the individual to whom the answers should
139	139	be submitted.
140	140	(d) Each demand for the giving of oral testimony must:
141	141	(1) prescribe a reasonable date, time, and place at
142	142	which the testimony will begin; and
143	143	(2) identify the individual who will conduct the
144	144	examination.
145	145	Sec. 140B.054. SERVICE; PROOF OF SERVICE. (a) Service of
146	146	any civil investigative demand or petition filed under Section
147	147	140B.055 or 140B.060 may be made on any natural person by delivering
148	148	a duly executed copy of the demand or petition to the person to be
149	149	served or by mailing a copy by registered or certified mail, return
150	150	receipt requested, to the person at the person's residence or
151	151	principal office or place of business.
152	152	(b) Service of any demand or petition filed under Section
153	153	140B.055 or 140B.060 may be made on any person other than a natural
154	154	person by delivering a duly executed copy of the demand or petition
155	155	to a person to whom delivery would be appropriate under state law if
156	156	the demand or petition were process in a civil suit.
157	157	(c) A verified return by the individual serving any demand
158	158	or petition filed under Section 140B.055 or 140B.060 setting forth
159	159	the manner of service is proof of service. In the case of service by
160	160	registered or certified mail, the return must be accompanied by the
161	161	return post office receipt of delivery of the demand or petition.
162	162	Sec. 140B.055. PETITION FOR ORDER MODIFYING OR SETTING
163	163	ASIDE DEMAND. (a) At any time before the return date specified in a
164	164	civil investigative demand or not later than the 30th day after the
165	165	date the demand was served, whichever period is shorter, the person
166	166	who has been served, and in the case of a demand for a product of
167	167	discovery the person from whom the discovery was obtained, may file
168	168	a petition for an order modifying or setting aside the demand in the
169	169	district court in the county of the person's residence or principal
170	170	office or place of business or a district court of Travis County.
171	171	The petition must specify each ground upon which the petitioner
172	172	relies in seeking the relief sought. The petition may be based on
173	173	any failure of a demand to comply with the provisions of this
174	174	subchapter or on any constitutional or other legal right or
175	175	privilege of the petitioner.
176	176	(b) The petitioner shall serve a copy of the petition on the
177	177	attorney general or local prosecutor, as applicable, in accordance
178	178	with Section 140B.054. The attorney general or local prosecutor
179	179	may submit an answer to the petition.
180	180	(c) In ruling on the petition under this section, the court
181	181	shall presume absent evidence to the contrary that the attorney
182	182	general or local prosecutor issued the demand in good faith and
183	183	within the scope of the attorney general's or local prosecutor's
184	184	authority.
185	185	Sec. 140B.056. COMPLIANCE WITH DEMAND. (a) A person on
186	186	whom a civil investigative demand is served under this subchapter
187	187	shall comply with the terms of the demand unless otherwise provided
188	188	by court order.
189	189	(b) The time for compliance with the demand wholly or partly
190	190	does not run during the pendency of any petition filed under Section
191	191	140B.055, provided that the petitioner shall comply with any
192	192	portions of the demand not sought to be modified or set aside.
193	193	Sec. 140B.057. DOCUMENTARY MATERIAL. (a) Any person on
194	194	whom any civil investigative demand for the production of
195	195	documentary material has been duly served under this subchapter
196	196	shall make the material available to the attorney general or local
197	197	prosecutor, as applicable, for inspection and copying during normal
198	198	business hours on the return date specified in the demand at the
199	199	person's principal office or place of business or as otherwise may
200	200	be agreed on by the person and the attorney general or local
201	201	prosecutor. The attorney general or local prosecutor shall bear
202	202	the expense of any copying. The person may substitute copies for
203	203	originals of all or part of the requested documents if the originals
204	204	are made available for inspection. The attorney general or local
205	205	prosecutor may elect to obtain or review information in an
206	206	electronic format. The person shall indicate in writing which, if
207	207	any, of the documents produced contain trade secrets or
208	208	confidential information.
209	209	(b) The production of documentary material in response to
210	210	any demand must be made under a sworn certificate in the form the
211	211	demand designates by a natural person having knowledge of the facts
212	212	and circumstances relating to the production to the effect that all
213	213	of the requested material in the possession, custody, or control of
214	214	the person to whom the demand is directed has been produced.
215	215	Sec. 140B.058. INTERROGATORIES. (a) Each interrogatory in
216	216	any civil investigative demand duly served must be answered
217	217	separately and fully in writing, unless it is objected to, in which
218	218	case the basis for the objection shall be set forth in lieu of an
219	219	answer. The person shall indicate in writing which, if any, of the
220	220	answers contain trade secrets or confidential information.
221	221	(b) Answers to interrogatories must be submitted under a
222	222	sworn certificate in the form the related demand designates by a
223	223	natural person having knowledge of the facts and circumstances
224	224	relating to the preparation of the answers to the effect that all of
225	225	the requested information in the possession, custody, control, or
226	226	knowledge of the person to whom the demand is directed has been set
227	227	forth fully and accurately.
228	228	Sec. 140B.059. ORAL EXAMINATION. (a) The examination of
229	229	any person pursuant to a civil investigative demand for oral
230	230	testimony duly served must be taken before any person authorized to
231	231	administer oaths and affirmations under the laws of this state or
232	232	the United States. The person before whom the testimony is to be
233	233	taken shall put the witness on oath or affirmation and shall
234	234	personally or by someone acting under the person's direction and in
235	235	the person's presence record the witness's testimony. At the
236	236	expense of the attorney general or local prosecutor, and except as
237	237	provided by this subsection, the testimony must be taken
238	238	stenographically and may be transcribed. The attorney general or
239	239	local prosecutor may take audio and video recordings of the
240	240	testimony by providing notice to the person to be examined not later
241	241	than the seventh day before the day the person is to be examined.
242	242	(b) The oral testimony of any person taken pursuant to a
243	243	demand served must be taken within 100 miles of the county where the
244	244	person resides, is found, or transacts business or in any other
245	245	place agreed on by the person and the attorney general or local
246	246	prosecutor.
247	247	(c) Any person compelled to appear under a demand for oral
248	248	testimony may be accompanied, represented, and advised by counsel.
249	249	Counsel may advise the person in confidence, either on the request
250	250	of the person or on the counsel's own initiative, with respect to
251	251	any question arising in connection with the examination.
252	252	(d) The individual conducting the examination on behalf of
253	253	the attorney general or local prosecutor shall exclude from the
254	254	place of examination all other persons except the person being
255	255	examined, the person's counsel, the counsel of the person to whom
256	256	the demand has been issued, the person before whom the testimony is
257	257	to be taken, any stenographer taking the testimony, audiographer,
258	258	videographer, and any person assisting the individual conducting
259	259	the examination.
260	260	(e) During the examination, the person being examined or the
261	261	person's counsel may object on the record to any question in
262	262	accordance with Rule 199.5(e), Texas Rules of Civil Procedure. An
263	263	objection may properly be made, received, and entered on the record
264	264	when it is claimed that the person is entitled to refuse to answer
265	265	the question on grounds of any constitutional or other privilege,
266	266	including the privilege against self-incrimination. Neither that
267	267	person nor the person's counsel may otherwise object to or refuse to
268	268	answer any question or interrupt the oral examination. If the
269	269	person refuses to answer any question, the attorney general or
270	270	local prosecutor may petition the district court in the county
271	271	where the examination is being conducted for an order compelling
272	272	the person to answer the question.
273	273	(f) After the testimony has been fully transcribed, the
274	274	person before whom the testimony was taken shall promptly transmit
275	275	the transcript of the testimony to the witness and a copy of the
276	276	transcript to the attorney general or local prosecutor. The
277	277	witness must have a reasonable opportunity to examine the
278	278	transcript and make any changes in form or substance accompanied by
279	279	a statement of the reasons for the changes. The witness shall then
280	280	sign and return the transcript. If the witness does not return the
281	281	transcript to the person before whom the testimony was taken not
282	282	later than the 20th day after the date the transcript was provided
283	283	to the witness, the witness may be deemed to have waived the right
284	284	to make changes. The officer shall then certify on the transcript
285	285	that the witness was duly sworn and that the transcript is a true
286	286	record of the testimony given by the witness and promptly transmit a
287	287	copy of the certified transcript to the attorney general or local
288	288	prosecutor.
289	289	(g) On request, the attorney general or local prosecutor
290	290	shall furnish a copy of the certified transcript to the witness.
291	291	(h) The attorney general or local prosecutor may provide the
292	292	witness the same fees and mileage reimbursement that are paid to
293	293	witnesses in the district courts of this state.
294	294	Sec. 140B.060. FAILURE TO COMPLY WITH DEMAND PETITION FOR
295	295	ENFORCEMENT. If a person fails to comply with a civil investigative
296	296	demand duly served on the person, the attorney general or local
297	297	prosecutor may file in the district court in the county in which the
298	298	person resides, is found, or transacts business or in a district
299	299	court of Travis County and may serve on the person a petition for an
300	300	order of the court for enforcement. If the person transacts
301	301	business in more than one county and the attorney general or local
302	302	prosecutor elects not to file the petition in Travis County, the
303	303	petition must be filed in the county of the person's principal
304	304	office or place of business in the state or in any other county as
305	305	may be agreed on by the person and the attorney general or local
306	306	prosecutor.
307	307	Sec. 140B.061. CRIMINAL OFFENSE: DELIBERATE NONCOMPLIANCE.
308	308	(a) A person commits an offense if the person, with intent to
309	309	avoid, evade, or prevent compliance with a civil investigative
310	310	demand issued under this subchapter, knowingly removes from any
311	311	place, conceals, withholds, destroys, mutilates, alters, or by any
312	312	other means falsifies any documentary material or otherwise
313	313	provides inaccurate information.
314	314	(b) An offense under this section is a Class A misdemeanor.
315	315	Sec. 140B.062. DISCLOSURE AND USE OF MATERIAL AND
316	316	INFORMATION. (a) The civil investigative demand issued by the
317	317	attorney general or local prosecutor, any information obtained,
318	318	maintained, or created in response to the demand, or any
319	319	documentary material, product of discovery, or other record derived
320	320	or created during an investigation from the information, is not
321	321	subject to disclosure under Chapter 552, Government Code, and is
322	322	not subject to disclosure, discovery, subpoena, or other means of
323	323	legal compulsion for the release, except as described in
324	324	Subsections (b) and (c).
325	325	(b) The attorney general or local prosecutor may not release
326	326	or disclose information that is obtained in response to a demand or
327	327	any documentary material, product of discovery, or other record
328	328	derived from the information except:
329	329	(1) by court order for good cause shown;
330	330	(2) with the consent of the person who provided the
331	331	information to the attorney general or local prosecutor;
332	332	(3) to an employee or other person under the direction
333	333	of the attorney general or local prosecutor;
334	334	(4) to an agency of this state, the United States, or
335	335	another state or foreign country;
336	336	(5) to a political subdivision of this state; or
337	337	(6) to a person authorized by the attorney general or
338	338	local prosecutor to receive the information.
339	339	(c) The attorney general or local prosecutor may use
340	340	information obtained in response to a demand, or any documentary
341	341	material, product of discovery, or other record derived or created
342	342	from the information as the attorney general or local prosecutor
343	343	determines necessary in the enforcement of this chapter, including
344	344	presentation before court.
345	345	Sec. 140B.063. JURISDICTION. If a petition is filed in the
346	346	district court in any county, the court has jurisdiction to hear and
347	347	determine the matter presented and to enter any order required to
348	348	implement this chapter. Any final order is subject to appeal.
349	349	Failure to comply with any final order entered by a court under this
350	350	chapter is punishable by the court as contempt of the order.
351	351	Sec. 140B.064. NONEXCLUSIVE PROCEDURES. Nothing in this
352	352	chapter precludes the attorney general or local prosecutor from
353	353	using any procedure not specified in this chapter in conducting a
354	354	racketeering investigation.
355	355	SUBCHAPTER C. CIVIL REMEDIES
356	356	Sec. 140B.101. CIVIL REMEDIES. A district court may, after
357	357	making due provision for the rights of innocent persons, enjoin
358	358	conduct constituting an offense under Section 72.02, 72.03, or
359	359	72.04, Penal Code, by issuing appropriate orders and judgments,
360	360	including:
361	361	(1) ordering a defendant to divest of any interest in
362	362	any enterprise, including real property;
363	363	(2) imposing reasonable restrictions on the future
364	364	activities or investments of a defendant, including prohibiting a
365	365	defendant from engaging in the same type of endeavor as the
366	366	enterprise in which the defendant was engaged in conduct
367	367	constituting an offense under Section 72.02, 72.03, or 72.04, Penal
368	368	Code;
369	369	(3) ordering the dissolution or reorganization of an
370	370	enterprise;
371	371	(4) ordering the suspension or revocation of a
372	372	license, permit, or approval previously granted to an enterprise by
373	373	any state agency; or
374	374	(5) ordering the forfeiture of the charter of a
375	375	corporation organized under the laws of this state, or the
376	376	revocation of a certificate allowing a foreign corporation to
377	377	conduct business within this state, on finding that:
378	378	(A) the board of directors or a managerial agent
379	379	acting on behalf of the corporation, in conducting the affairs of
380	380	the corporation, has authorized or engaged in conduct constituting
381	381	an offense under Section 72.02, 72.03, or 72.04, Penal Code; and
382	382	(B) for the prevention of future criminal
383	383	activity, the public interest requires the charter of the
384	384	corporation forfeited and the corporation dissolved or the
385	385	certificate revoked.
386	386	Sec. 140B.102. CIVIL FORFEITURE OF PROPERTY. (a) All
387	387	property, real or personal, including money, used in the course of,
388	388	intended for use in the course of, derived from, or realized through
389	389	conduct constituting an offense under Section 72.02, 72.03, or
390	390	72.04, Penal Code, is subject to civil forfeiture to the state under
391	391	this chapter.
392	392	(b) An investigative agency, on behalf of this state, may
393	393	bring a civil action for forfeiture:
394	394	(1) in the district court for the judicial district in
395	395	which real or personal tangible property described by Subsection
396	396	(a) is located;
397	397	(2) in a district court in this state regarding
398	398	intangible property described by Subsection (a); and
399	399	(3) in the county in which real or personal tangible
400	400	property described by Subsection (a) was seized.
401	401	(c) On entry of a final judgment of forfeiture in favor of
402	402	the state, the title of the state to the forfeited property shall
403	403	relate back:
404	404	(1) in the case of real property or a beneficial
405	405	interest:
406	406	(A) to the date of filing of a lien notice under
407	407	Chapter 68, Property Code, in the official records of the county
408	408	where the real property or beneficial trust is located;
409	409	(B) if no lien notice is filed, to the date of the
410	410	filing of any notice of lis pendens under Section 68.056(a),
411	411	Property Code, in the official records of the county where the real
412	412	property or beneficial interest is located; or
413	413	(C) if no lien notice or notice of lis pendens is
414	414	filed, to the date of recording of the final judgment of forfeiture
415	415	in the official records of the county where the real property or
416	416	beneficial interest is located; or
417	417	(2) in the case of personal property, to the date the
418	418	personal property was seized by the investigative agency.
419	419	(d) For purposes of this section, a beneficial interest is
420	420	considered to be located where real property owned by the trustee is
421	421	located.
422	422	Sec. 140B.103. CONVEYANCE OF PROPERTY SUBJECT TO
423	423	FORFEITURE. (a) If property subject to forfeiture is conveyed,
424	424	alienated, disposed of, diminished in value, or otherwise rendered
425	425	unavailable for forfeiture, the investigative agency may, on behalf
426	426	of the state, bring an action in any district court against the
427	427	person named in the lien notice under Chapter 68, Property Code, or
428	428	the defendant in the relevant civil action or criminal proceeding.
429	429	If a civil action is pending, the action shall be filed only in the
430	430	court where the civil action is pending.
431	431	(b) The court in an action brought under Subsection (a)
432	432	shall:
433	433	(1) enter final judgment against the person named in
434	434	the lien notice or the defendant in the relevant civil action or
435	435	criminal proceeding in an amount equal to:
436	436	(A) the fair market value of the property; and
437	437	(B) the investigative costs and attorney fees
438	438	incurred by the investigative agency in the action; or
439	439	(2) order the forfeiture of any other property of the
440	440	defendant up to the value of the property subject to forfeiture.
441	441	Sec. 140B.104. DISPOSITION OF FORFEITED PROPERTY. (a) The
442	442	state shall dispose of all forfeited property as soon as
443	443	commercially feasible. If property is not exercisable or
444	444	transferable for value by the state, the state may destroy or
445	445	otherwise dispose of the property.
446	446	(b) All forfeitures or dispositions under this subchapter
447	447	shall be made with due provision for the rights of innocent persons.
448	448	(c) The state shall promptly distribute the proceeds
449	449	realized from the forfeiture and disposition of property under this
450	450	section in accordance with Subchapter D.
451	451	Sec. 140B.105. SEIZURE OF PROPERTY. (a) Property subject
452	452	to forfeiture under this subchapter may be seized by a law
453	453	enforcement officer on court process. Seizure without process may
454	454	be made if:
455	455	(1) the seizure is incident to a lawful arrest or
456	456	search conducted under a warrant issued under Chapter 18, Code of
457	457	Criminal Procedure; or
458	458	(2) the property subject to seizure has been the
459	459	subject of a previous judgment in favor of the state in a forfeiture
460	460	action brought under this subchapter.
461	461	(b) For a seizure conducted under this section, an
462	462	investigative agency shall promptly commence a forfeiture action
463	463	under Section 140B.102.
464	464	Sec. 140B.106. STORAGE OF SEIZED PROPERTY PENDING
465	465	FORFEITURE ACTION. Property taken or detained under this
466	466	subchapter is not subject to replevin but is considered to be in the
467	467	custody of the law enforcement officer making the seizure, subject
468	468	only to the order of the court. When property is seized under this
469	469	subchapter, pending forfeiture and final disposition, the law
470	470	enforcement officer may:
471	471	(1) place the property under seal;
472	472	(2) remove the property to a place designated by a
473	473	court; or
474	474	(3) require another agency authorized by law to take
475	475	custody of the property and remove it to an appropriate location.
476	476	Sec. 140B.107. CIVIL ACTION BROUGHT BY ATTORNEY GENERAL,
477	477	LOCAL PROSECUTOR, OR STATE AGENCY. (a) The office of the attorney
478	478	general, a local prosecutor, or a state agency having jurisdiction
479	479	over conduct constituting an offense under Section 72.02, 72.03, or
480	480	72.04, Penal Code, may institute civil actions under this
481	481	subchapter. The attorney general or a state agency may institute an
482	482	action under Section 140B.101 or 140B.102 only if the attorney
483	483	general or agency receives the consent of the applicable local
484	484	prosecutor to bring the action.
485	485	(b) In an action brought under this subchapter, the district
486	486	court shall proceed as soon as practicable to the hearing and
487	487	determination. Pending final determination, the district court may
488	488	at any time enter injunctions, prohibitions, or restraining orders,
489	489	or take actions, including the acceptance of satisfactory
490	490	performance bonds, the court considers proper.
491	491	Sec. 140B.108. EFFECT OF FINAL JUDGMENT OR DECREE. A final
492	492	judgment or decree rendered in favor of this state in a criminal
493	493	proceeding under state law prevents the defendant from asserting in
494	494	any subsequent civil action brought under this chapter any matter
495	495	as to which that judgment or decree would be an estoppel as between
496	496	the parties.
497	497	Sec. 140B.109. OTHER RELIEF AVAILABLE TO ATTORNEY GENERAL.
498	498	(a) The attorney general may bring an action against a person who
499	499	engages in conduct constituting an offense under Section 72.02,
500	500	72.03, or 72.04, Penal Code, to obtain:
501	501	(1) injunctive relief;
502	502	(2) a civil penalty as provided by this section; and
503	503	(3) reasonable attorney's fees and reasonably incurred
504	504	costs of investigation or litigation.
505	505	(b) A defendant in an action brought under this section is
506	506	subject to a civil penalty not to exceed:
507	507	(1) $100,000 if the defendant is an individual; or
508	508	(2) $1 million if the defendant is not an individual.
509	509	(c) The attorney general shall deposit a civil penalty
510	510	collected under this section to the credit of the general revenue
511	511	fund. The attorney general shall deposit attorney's fees and costs
512	512	collected under this section into the attorney general law
513	513	enforcement account, which may be used to investigate and enforce
514	514	this chapter.
515	515	(d) Any party to an action brought under this section may
516	516	petition the court for entry of a consent decree or for approval of
517	517	a settlement agreement. The proposed decree or settlement must
518	518	specify the alleged violations, the future obligations of the
519	519	parties, the relief agreed on, and the reasons for entering into the
520	520	consent decree or settlement agreement.
521	521	Sec. 140B.110. NOTICE TO LOCAL PROSECUTOR. (a) In a
522	522	reasonable time before bringing an action or on initiating an
523	523	investigation on racketeering, the attorney general shall provide
524	524	notice to the local prosecutor who appears to have primary
525	525	jurisdiction over the criminal prosecution of any target of an
526	526	investigation under this chapter at the time of the notice
527	527	concerning the attorney general's intent to bring an action under
528	528	this chapter or investigate racketeering, as applicable.
529	529	(b) The notices described by Subsection (a) must describe or
530	530	otherwise identify the defendant to the action or the suspect, as
531	531	applicable.
532	532	Sec. 140B.111. COOPERATION WITH LOCAL PROSECUTOR. (a) A
533	533	local prosecutor who receives notice under Section 140B.110 may
534	534	notify the attorney general of a related pending criminal
535	535	investigation or prosecution.
536	536	(b) Notification to the attorney general under Subsection
537	537	(a) must be in writing and describe or otherwise identify the
538	538	defendant or suspect in the criminal investigation or proceeding.
539	539	(c) On receipt of notice described by Subsection (a), the
540	540	attorney general shall coordinate and cooperate with the local
541	541	prosecutor to ensure that the filing of an action under this chapter
542	542	does not interfere with an ongoing criminal investigation or
543	543	prosecution. The attorney general shall update the local
544	544	prosecutor on matters affecting the action or the investigation.
545	545	Sec. 140B.112. ABATEMENT OF ACTION. If the local
546	546	prosecutor determines that an action brought under this chapter
547	547	would interfere with an ongoing criminal investigation or
548	548	prosecution after notifying the attorney general of the
549	549	investigation or prosecution under Section 140B.111, the local
550	550	prosecutor may request, in writing, that the attorney general abate
551	551	the action. On receipt of this request, the attorney general shall
552	552	abate the action.
553	553	Sec. 140B.113. LIMITATIONS; TOLLING. (a) Notwithstanding
554	554	any other law, the attorney general or a local prosecutor must bring
555	555	an action under this chapter not later than the fifth anniversary of
556	556	the later of:
557	557	(1) the date the conduct that is the basis for the
558	558	action terminates; or
559	559	(2) the date the cause of action accrues.
560	560	(b) If an indictment for an offense under Section 72.02,
561	561	72.03, or 72.04, Penal Code, is presented or a civil action is
562	562	brought, or intervened in, to punish, prevent, or restrain conduct
563	563	constituting an offense under Section 72.02, 72.03, or 72.04, Penal
564	564	Code, the running of the period of limitations prescribed by this
565	565	section with respect to any cause of action arising under Section
566	566	140B.109 that is wholly or partly based on a matter complained of in
567	567	the indictment or the pleadings in the action, as applicable, is
568	568	suspended during the pendency of the prosecution or litigation of
569	569	the action, as applicable, and extended for two years following its
570	570	termination.
571	571	Sec. 140B.114. MULTIPLE REMEDIES ALLOWED. The application
572	572	of one civil remedy under a provision of this chapter does not
573	573	preclude the application of any other remedy, civil or criminal,
574	574	under this chapter or any other law. Civil remedies under this
575	575	chapter are supplemental and not mutually exclusive.
576	576	SUBCHAPTER D. DISPOSITION OF FUNDS OBTAINED THROUGH FORFEITURE
577	577	ACTIONS
578	578	Sec. 140B.151. INITIAL DISTRIBUTION. (a) A court entering
579	579	a judgment of forfeiture in an action brought under Subchapter C
580	580	retains jurisdiction to direct the distribution of any cash or cash
581	581	proceeds realized from the forfeiture and disposition of the
582	582	property. The court shall direct the distribution of the funds in
583	583	the following order of priority:
584	584	(1) statutory fees to which the clerk of the court may
585	585	be entitled;
586	586	(2) claims against the property by persons who have
587	587	previously been judicially determined to be innocent persons and
588	588	whose interests are preserved from forfeiture by the court and not
589	589	otherwise satisfied; and
590	590	(3) subject to Subsection (c), claims for restitution
591	591	by victims of the racketeering activity.
592	592	(b) A claim under Subsection (a)(2) may include a claim by a
593	593	person appointed by the court as receiver pending litigation.
594	594	(c) If the attorney general brought the forfeiture action,
595	595	restitution shall be distributed though the compensation to victims
596	596	of crime fund. If the attorney general did not bring the forfeiture
597	597	action, restitution shall be distributed by the clerk of the court.
598	598	Sec. 140B.152. DISTRIBUTION OF REMAINING MONEY. (a)
599	599	Following satisfaction of all valid claims under Section 140B.151,
600	600	the remaining money obtained in the forfeiture proceeding shall be
601	601	deposited as follows:
602	602	(1) 25 percent into the appropriate trust fund of the
603	603	attorney general or local prosecutor's office that filed the civil
604	604	forfeiture action as provided by Subsection (c);
605	605	(2) 25 percent into the applicable law enforcement
606	606	trust fund of the investigative agency that conducted the
607	607	investigation that resulted in or significantly contributed to the
608	608	forfeiture of the property as provided by Subsection (d); and
609	609	(3) 50 percent into the general revenue fund.
610	610	(b) If a forfeiture action is filed by the attorney general
611	611	or a local prosecutor, the court entering the judgment of
612	612	forfeiture shall, taking into account the overall effort and
613	613	contribution to the investigation and forfeiture action by the
614	614	agencies that filed the action, make a pro rata apportionment among
615	615	those agencies of the money available for distribution to those
616	616	agencies as provided by this subchapter. If multiple investigative
617	617	agencies have contributed to the forfeiture of the property, the
618	618	court that entered the judgment of forfeiture shall, taking into
619	619	account the overall effort and contribution of the agencies to the
620	620	investigation and forfeiture action, make a pro rata apportionment
621	621	among those investigative agencies of the money available for
622	622	distribution to the investigative agencies as provided by this
623	623	subchapter.
624	624	(c) If a forfeiture action is filed by the attorney general,
625	625	any money obtained by the attorney general under this section shall
626	626	be deposited in the same manner described by Article 59.06(k)(3),
627	627	Code of Criminal Procedure, and may be expended for the purposes and
628	628	in the manner authorized by that section.
629	629	(d) If a forfeiture action is filed by a district or county
630	630	attorney, any money obtained by the district or county attorney's
631	631	office under this section may be used to pay the costs of
632	632	investigations under Subchapter B and the resulting criminal
633	633	prosecutions and civil actions. Such costs may include:
634	634	(1) all taxable costs;
635	635	(2) costs of protecting, maintaining, and forfeiting
636	636	the property;
637	637	(3) employees' base salaries and compensation for
638	638	overtime; and
639	639	(4) other costs that are directly attributable to the
640	640	investigation, prosecution, or civil action.
641	641	(e) Any money distributed to an investigative agency under
642	642	Subsection (a) shall be deposited in the applicable law enforcement
643	643	fund or account established for that agency and expended for the
644	644	purposes and in the manner authorized for that fund or account. In
645	645	addition, any money distributed to an investigative agency under
646	646	this section may be used to pay the costs of investigations under
647	647	Subchapter B and the resulting criminal prosecutions and civil
648	648	actions. Such costs may include:
649	649	(1) all taxable costs;
650	650	(2) costs of protecting, maintaining, and forfeiting
651	651	the property;
652	652	(3) employees' base salaries and compensation for
653	653	overtime; and
654	654	(4) other costs directly attributable to the
655	655	investigation, prosecution, or civil action.
656	656	Sec. 140B.153. EFFECT ON SETTLEMENTS. (a) This subchapter
657	657	may not be construed to limit the authority of an entity that files
658	658	a forfeiture action under Subchapter C to settle a claim for
659	659	forfeiture.
660	660	(b) Any proceeds arising from a settlement or from the sale
661	661	of property obtained in a settlement shall be distributed in the
662	662	manner described by Sections 140B.151 and 140B.152.
663	663	Sec. 140B.154. TEMPORARY DEPOSIT IN COURT REGISTRY.
664	664	Pending the final distribution of the cash or cash proceeds under
665	665	this subchapter, the court may authorize the cash or cash proceeds
666	666	to be deposited in the court registry or in a qualified public
667	667	depository.
668	668	SECTION 3. Article 12.01, Code of Criminal Procedure, is
669	669	amended to read as follows:
670	670	Art. 12.01. FELONIES. Except as provided in Articles
671	671	12.015 and [Article] 12.03, felony indictments may be presented
672	672	within these limits, and not afterward:
673	673	(1) no limitation:
674	674	(A) murder and manslaughter;
675	675	(B) sexual assault under Section 22.011(a)(2),
676	676	Penal Code, or aggravated sexual assault under Section
677	677	22.021(a)(1)(B), Penal Code;
678	678	(C) sexual assault, if:
679	679	(i) during the investigation of the offense
680	680	biological matter is collected and the matter:
681	681	(a) has not yet been subjected to
682	682	forensic DNA testing; or
683	683	(b) has been subjected to forensic DNA
684	684	testing and the testing results show that the matter does not match
685	685	the victim or any other person whose identity is readily
686	686	ascertained; or
687	687	(ii) probable cause exists to believe that
688	688	the defendant has committed the same or a similar sex offense
689	689	against five or more victims;
690	690	(D) continuous sexual abuse of young child or
691	691	disabled individual under Section 21.02, Penal Code;
692	692	(E) indecency with a child under Section 21.11,
693	693	Penal Code;
694	694	(F) an offense involving leaving the scene of an
695	695	accident under Section 550.021, Transportation Code, if the
696	696	accident resulted in the death of a person;
697	697	(G) trafficking of persons under Section
698	698	20A.02(a)(7) or (8), Penal Code;
699	699	(H) continuous trafficking of persons under
700	700	Section 20A.03, Penal Code; or
701	701	(I) compelling prostitution under Section
702	702	43.05(a)(2), Penal Code;
703	703	(2) ten years from the date of the commission of the
704	704	offense:
705	705	(A) theft of any estate, real, personal or mixed,
706	706	by an executor, administrator, guardian or trustee, with intent to
707	707	defraud any creditor, heir, legatee, ward, distributee,
708	708	beneficiary or settlor of a trust interested in such estate;
709	709	(B) theft by a public servant of government
710	710	property over which the public servant exercises control in the
711	711	public servant's official capacity;
712	712	(C) forgery or the uttering, using, or passing of
713	713	forged instruments;
714	714	(D) injury to an elderly or disabled individual
715	715	punishable as a felony of the first degree under Section 22.04,
716	716	Penal Code;
717	717	(E) sexual assault, except as provided by
718	718	Subdivision (1) or (7);
719	719	(F) arson;
720	720	(G) trafficking of persons under Section
721	721	20A.02(a)(1), (2), (3), or (4), Penal Code; or
722	722	(H) compelling prostitution under Section
723	723	43.05(a)(1), Penal Code;
724	724	(3) seven years from the date of the commission of the
725	725	offense:
726	726	(A) misapplication of fiduciary property or
727	727	property of a financial institution;
728	728	(B) fraudulent securing of document execution;
729	729	(C) a felony violation under Chapter 162, Tax
730	730	Code;
731	731	(D) false statement to obtain property or credit
732	732	under Section 32.32, Penal Code;
733	733	(E) money laundering;
734	734	(F) credit card or debit card abuse under Section
735	735	32.31, Penal Code;
736	736	(G) fraudulent use or possession of identifying
737	737	information under Section 32.51, Penal Code;
738	738	(H) exploitation of a child, elderly individual,
739	739	or disabled individual under Section 32.53, Penal Code;
740	740	(I) health care fraud under Section 35A.02, Penal
741	741	Code; or
742	742	(J) bigamy under Section 25.01, Penal Code,
743	743	except as provided by Subdivision (6);
744	744	(4) five years from the date of the commission of the
745	745	offense:
746	746	(A) theft or robbery;
747	747	(B) except as provided by Subdivision (5),
748	748	kidnapping or burglary;
749	749	(C) injury to an elderly or disabled individual
750	750	that is not punishable as a felony of the first degree under Section
751	751	22.04, Penal Code;
752	752	(D) abandoning or endangering a child; or
753	753	(E) insurance fraud;
754	754	(5) if the investigation of the offense shows that the
755	755	victim is younger than 17 years of age at the time the offense is
756	756	committed, 20 years from the 18th birthday of the victim of one of
757	757	the following offenses:
758	758	(A) sexual performance by a child under Section
759	759	43.25, Penal Code;
760	760	(B) aggravated kidnapping under Section
761	761	20.04(a)(4), Penal Code, if the defendant committed the offense
762	762	with the intent to violate or abuse the victim sexually; or
763	763	(C) burglary under Section 30.02, Penal Code, if
764	764	the offense is punishable under Subsection (d) of that section and
765	765	the defendant committed the offense with the intent to commit an
766	766	offense described by Subdivision (1)(B) or (D) of this article or
767	767	Paragraph (B) of this subdivision;
768	768	(6) ten years from the 18th birthday of the victim of
769	769	the offense:
770	770	(A) trafficking of persons under Section
771	771	20A.02(a)(5) or (6), Penal Code;
772	772	(B) injury to a child under Section 22.04, Penal
773	773	Code; or
774	774	(C) bigamy under Section 25.01, Penal Code, if
775	775	the investigation of the offense shows that the person, other than
776	776	the legal spouse of the defendant, whom the defendant marries or
777	777	purports to marry or with whom the defendant lives under the
778	778	appearance of being married is younger than 18 years of age at the
779	779	time the offense is committed;
780	780	(7) two years from the date the offense was
781	781	discovered: sexual assault punishable as a state jail felony under
782	782	Section 22.011(f)(2), Penal Code; or
783	783	(8) three years from the date of the commission of the
784	784	offense: all other felonies.
785	785	SECTION 4. Chapter 12, Code of Criminal Procedure, is
786	786	amended by adding Article 12.015 to read as follows:
787	787	Art. 12.015. RACKETEERING AND UNLAWFUL DEBT COLLECTION.
788	788	(a) Except as provided by Subsection (b), a felony indictment for
789	789	an offense under Section 72.02, 72.03, or 72.04, Penal Code, must be
790	790	presented not later than five years from the date of the commission
791	791	of the offense.
792	792	(b) If the attorney general or a local prosecutor, as
793	793	defined by Section 140B.001, Civil Practice and Remedies Code,
794	794	brings an action in the name of the state under Chapter 140B, Civil
795	795	Practice and Remedies Code, during the limitations period described
796	796	by Subsection (a), that limitations period is suspended while the
797	797	attorney general's or local prosecutor's action is pending. If a
798	798	limitations period is suspended under this subsection, the
799	799	limitations period is extended for two years.
800	800	SECTION 5. Section 71.02(a), Penal Code, is amended to read
801	801	as follows:
802	802	(a) A person commits an offense if, with the intent to
803	803	establish, maintain, or participate in a combination or in the
804	804	profits of a combination or as a member of a criminal street gang,
805	805	the person commits or conspires to commit one or more of the
806	806	following:
807	807	(1) murder, capital murder, arson, aggravated
808	808	robbery, robbery, burglary, theft, aggravated kidnapping,
809	809	kidnapping, aggravated assault, aggravated sexual assault, sexual
810	810	assault, continuous sexual abuse of young child or disabled
811	811	individual, solicitation of a minor, forgery, deadly conduct,
812	812	assault punishable as a Class A misdemeanor, burglary of a motor
813	813	vehicle, or unauthorized use of a motor vehicle;
814	814	(2) any gambling offense punishable as a Class A
815	815	misdemeanor;
816	816	(3) promotion of prostitution, aggravated promotion
817	817	of prostitution, or compelling prostitution;
818	818	(4) unlawful manufacture, transportation, repair, or
819	819	sale of firearms or prohibited weapons;
820	820	(5) unlawful manufacture, delivery, dispensation, or
821	821	distribution of a controlled substance or dangerous drug, or
822	822	unlawful possession of a controlled substance or dangerous drug
823	823	through forgery, fraud, misrepresentation, or deception;
824	824	(5-a) causing the unlawful delivery, dispensation, or
825	825	distribution of a controlled substance or dangerous drug in
826	826	violation of Subtitle B, Title 3, Occupations Code;
827	827	(5-b) any unlawful possession with intent to deliver a
828	828	controlled substance or dangerous drug;
829	829	(6) any unlawful wholesale promotion or possession of
830	830	any obscene material or obscene device with the intent to wholesale
831	831	promote the same;
832	832	(7) any offense under Subchapter B, Chapter 43,
833	833	depicting or involving conduct by or directed toward a child
834	834	younger than 18 years of age;
835	835	(8) any felony offense under Chapter 32;
836	836	(9) any offense under Chapter 36;
837	837	(10) any offense under Chapter 34, 35, or 35A;
838	838	(11) any offense under Section 37.11(a);
839	839	(12) any offense under Chapter 20A;
840	840	(13) any offense under Section 37.10;
841	841	(14) any offense under Section 38.06, 38.07, 38.09, or
842	842	38.11;
843	843	(15) any offense under Section 42.10;
844	844	(16) any offense under Section 46.06(a)(1) or 46.14;
845	845	(17) any offense under Section 20.05 or 20.06;
846	846	(18) any offense under Section 16.02; or
847	847	(19) any offense classified as a felony under the Tax
848	848	Code.
849	849	SECTION 6. Title 11, Penal Code, is amended by adding
850	850	Chapter 72 to read as follows:
851	851	CHAPTER 72. RACKETEERING AND UNLAWFUL DEBT COLLECTION
852	852	Sec. 72.01. DEFINITIONS. In this chapter:
853	853	(1) "Enterprise" has the meaning assigned by Section
854	854	140B.001, Civil Practice and Remedies Code.
855	855	(2) "Money" means funds as defined by Section 34.01.
856	856	(3) "Pattern of racketeering" means engaging in at
857	857	least two incidents of racketeering conduct that have the same or
858	858	similar intents, results, accomplices, victims, or methods of
859	859	commission or that otherwise are interrelated by distinguishing
860	860	characteristics and are not isolated incidents, the last of which
861	861	occurred not later than the fifth anniversary of the date of a
862	862	previous incident of racketeering conduct.
863	863	(4) "Pecuniary value" means:
864	864	(A) anything of value in the form of money, a
865	865	negotiable instrument, or a commercial interest or anything else
866	866	the primary significance of which is economic advantage; or
867	867	(B) any other property or service that has a
868	868	value in excess of $100.
869	869	(5) "Racketeering" means to commit, to attempt to
870	870	commit, to conspire to commit, or to solicit, coerce, or intimidate
871	871	another person to commit:
872	872	(A) a felony offense under The Securities Act
873	873	(Title 12, Government Code);
874	874	(B) an offense under Section 20.03 (kidnapping);
875	875	(C) an offense under Section 20.04 (aggravated
876	876	kidnapping);
877	877	(D) an offense under Section 20.07 (operation of
878	878	stash house);
879	879	(E) a felony offense under Chapter 37 (perjury
880	880	and other falsification);
881	881	(F) a felony offense under Section 38.03
882	882	(resisting arrest, search, or transportation);
883	883	(G) a felony offense under Section 38.05
884	884	(hindering apprehension or prosecution);
885	885	(H) a felony offense under Chapter 43 (public
886	886	indecency); or
887	887	(I) an offense under Section 71.02 (engaging in
888	888	organized criminal activity).
889	889	(6) "Real property" has the meaning assigned by
890	890	Section 140B.001, Civil Practice and Remedies Code.
891	891	(7) "Unlawful debt" means any money or other thing of
892	892	value constituting principal or interest of a debt that is wholly or
893	893	partly legally unenforceable in this state because the debt was
894	894	incurred or contracted:
895	895	(A) in violation of:
896	896	(i) the Texas Racing Act (Subtitle A-1,
897	897	Title 13, Occupations Code, and Article 179e, Revised Civil
898	898	Statutes);
899	899	(ii) Subtitle A, Title 4, Finance Code, or
900	900	Section 11, Article XVI, Texas Constitution, relating to interest
901	901	and usury, if the usurious rate is at least twice the enforceable
902	902	rate; or
903	903	(iii) Chapter 47, relating to gambling; or
904	904	(B) in gambling activity in violation of federal
905	905	law or in the business of lending money at a rate usurious under
906	906	state law if the usurious rate is at least twice the enforceable
907	907	rate.
908	908	Sec. 72.02. USE OF PROCEEDS DERIVED FROM RACKETEERING OR
909	909	UNLAWFUL DEBT COLLECTION. (a) A person commits an offense if the
910	910	person intentionally uses or invests, whether directly or
911	911	indirectly, any part of any proceeds knowingly derived, directly or
912	912	indirectly, from a pattern of racketeering or through the
913	913	collection of an unlawful debt, or the proceeds derived from the
914	914	investment or use of those proceeds, in acquiring title to, or any
915	915	right, interest, or equity in, real property or in the
916	916	establishment or operation of any enterprise.
917	917	(b) An offense under this section is a felony of the second
918	918	degree.
919	919	(c) If conduct that constitutes an offense under this
920	920	section also constitutes an offense under any other law, the actor
921	921	may be prosecuted under this section, the other law, or both.
922	922	Sec. 72.03. ACQUISITION OF INTEREST IN PROPERTY OR CONTROL
923	923	OF ENTERPRISE THROUGH RACKETEERING OR UNLAWFUL DEBT COLLECTION.
924	924	(a) A person commits an offense if the person, knowingly through a
925	925	pattern of racketeering or through the collection of an unlawful
926	926	debt, acquires or maintains, directly or indirectly, any interest
927	927	in or control of any enterprise or real property.
928	928	(b) An offense under this section is a felony of the second
929	929	degree.
930	930	(c) If conduct that constitutes an offense under this
931	931	section also constitutes an offense under any other law, the actor
932	932	may be prosecuted under this section, the other law, or both.
933	933	Sec. 72.04. PARTICIPATION IN ENTERPRISE THROUGH
934	934	RACKETEERING OR UNLAWFUL DEBT COLLECTION. (a) A person commits an
935	935	offense if the person is employed by or associated with an
936	936	enterprise and knowingly conducts or participates, directly or
937	937	indirectly, in that enterprise through a pattern of racketeering or
938	938	the collection of an unlawful debt.
939	939	(b) An offense under this section is a felony of the second
940	940	degree.
941	941	(c) If conduct that constitutes an offense under this
942	942	section also constitutes an offense under any other law, the actor
943	943	may be prosecuted under this section, the other law, or both.
944	944	Sec. 72.05. ALTERNATIVE FINE. Notwithstanding any other
945	945	law, a court, after a hearing, may impose a fine, instead of an
946	946	otherwise applicable fine, on a person convicted of an offense
947	947	under Section 72.02, 72.03, or 72.04, through which the person
948	948	derived pecuniary value or by which the person caused personal
949	949	injury, property damage, or other loss, that does not exceed:
950	950	(1) the greater of:
951	951	(A) three times the gross value gained as a
952	952	result of the offense; or
953	953	(B) three times the gross loss caused as a result
954	954	of the offense; and
955	955	(2) the amount of the court costs and the reasonably
956	956	incurred costs of investigation and prosecution.
957	957	SECTION 7. Subtitle B, Title 5, Property Code, is amended by
958	958	adding Chapter 68 to read as follows:
959	959	CHAPTER 68. RICO LIENS
960	960	SUBCHAPTER A. GENERAL PROVISIONS
961	961	Sec. 68.001. DEFINITIONS. In this chapter:
962	962	(1) "Beneficial interest," "investigative agency,"
963	963	"local prosecutor," and "real property" have the meanings assigned
964	964	by Section 140B.001, Civil Practice and Remedies Code.
965	965	(2) "RICO lien notice" means a lien notice filed under
966	966	Section 68.051 or 68.052.
967	967	(3) "Trustee":
968	968	(A) means:
969	969	(i) a person acting as trustee under a trust
970	970	established under the Texas Trust Code (Subtitle B, Title 9,
971	971	Property Code) in which the trustee holds legal or record title to
972	972	real property;
973	973	(ii) a person who holds legal or record
974	974	title to real property in which another person has a beneficial
975	975	interest; or
976	976	(iii) a successor trustee to a person
977	977	described by Subparagraph (i) or (ii); and
978	978	(B) does not include a person appointed or acting
979	979	as a personal representative as defined by Section 22.031, Estates
980	980	Code, or appointed or acting as a trustee of a testamentary trust or
981	981	as a trustee of an indenture of trust under which any bonds have
982	982	been or are to be issued.
983	983	SUBCHAPTER B. RICO LIEN NOTICE
984	984	Sec. 68.051. GENERAL RICO LIEN NOTICE. (a) On the
985	985	institution by an investigative agency of a civil action brought
986	986	under Chapter 140B, Civil Practice and Remedies Code, the
987	987	investigative agency, then or at any time during the pendency of the
988	988	action, may file a RICO lien notice in the official records of any
989	989	one or more counties. The attorney general must receive the consent
990	990	of the applicable local prosecutor before filing a RICO lien.
991	991	(b) A filing fee or other charge may not be required as a
992	992	condition for filing the RICO lien notice, and the clerk of the
993	993	district court, on the presentation of a RICO lien notice, shall
994	994	immediately record it in the official records.
995	995	Sec. 68.052. ATTORNEY GENERAL OR LOCAL PROSECUTOR RICO LIEN
996	996	NOTICE. (a) In addition to the authority to file a RICO lien notice
997	997	under Section 68.051, the attorney general or a local prosecutor
998	998	may apply ex parte to a district court and, on petition supported by
999	999	sworn affidavit, obtain an order authorizing the filing of a RICO
1000	1000	lien notice against real property on a showing of probable cause to
1001	1001	believe that the property was used in the course of, intended for
1002	1002	use in the course of, derived from, or realized through conduct
1003	1003	constituting an offense under Section 72.02, 72.03, or 72.04, Penal
1004	1004	Code.
1005	1005	(b) If the RICO lien notice authorization is granted, the
1006	1006	attorney general or local prosecutor shall, after filing the
1007	1007	notice, immediately provide notice to the owner of the property by:
1008	1008	(1) serving the notice in the manner provided by law
1009	1009	for the service of process;
1010	1010	(2) mailing the notice, postage prepaid, by certified
1011	1011	mail to the owner at the owner's last known address and obtaining
1012	1012	evidence of the delivery; or
1013	1013	(3) if service by a method described by Subdivision
1014	1014	(1) or (2) cannot be accomplished, posting the notice on the
1015	1015	premises.
1016	1016	(c) The owner of the property may move the court to
1017	1017	discharge the lien, and that motion shall be set for hearing at the
1018	1018	earliest possible time.
1019	1019	(d) The court shall discharge the lien if the court finds
1020	1020	that:
1021	1021	(1) there is no probable cause to believe that the
1022	1022	property was used in the course of, intended for use in the course
1023	1023	of, derived from, or realized through conduct constituting an
1024	1024	offense under Section 72.02, 72.03, or 72.04, Penal Code; or
1025	1025	(2) the owner of the property neither knew nor
1026	1026	reasonably should have known that the property was used in the
1027	1027	course of, intended for use in the course of, derived from, or
1028	1028	realized through conduct constituting an offense under Section
1029	1029	72.02, 72.03, or 72.04, Penal Code.
1030	1030	(e) Testimony presented by the property owner at the
1031	1031	hearing:
1032	1032	(1) is not admissible against the property owner in
1033	1033	any criminal proceeding except in a criminal prosecution for
1034	1034	perjury or false statement; and
1035	1035	(2) does not constitute a waiver of the property
1036	1036	owner's constitutional right against self-incrimination.
1037	1037	(f) Except as provided by Subsection (g), a RICO lien notice
1038	1038	secured under this section is valid for a period of 90 days from the
1039	1039	date the court granted authorization and may be extended for an
1040	1040	additional 90 days by the court for good cause shown.
1041	1041	(g) If a civil action is instituted under Chapter 140B,
1042	1042	Civil Practice and Remedies Code, and a RICO lien notice is filed
1043	1043	under this subchapter, the term of the lien notice is governed by
1044	1044	this subchapter.
1045	1045	(h) The filing of a RICO lien notice, regardless of whether
1046	1046	subsequently discharged or otherwise lifted, constitutes notice to
1047	1047	the owner and knowledge by the owner that the property was used in
1048	1048	the course of, intended for use in the course of, derived from, or
1049	1049	realized through conduct constituting an offense under Section
1050	1050	72.02, 72.03, or 72.04, Penal Code, such that lack of such notice
1051	1051	and knowledge is not a defense in any subsequent civil action under
1052	1052	Chapter 140B, Civil Practice and Remedies Code, or a subsequent
1053	1053	criminal proceeding under Chapter 72, Penal Code.
1054	1054	Sec. 68.053. FORMAT OF NOTICE. (a) A RICO lien notice must
1055	1055	be signed by the attorney general or the attorney general's
1056	1056	designee or by a local prosecutor or the local prosecutor's
1057	1057	designee.
1058	1058	(b) A RICO lien notice must be in the form prescribed by the
1059	1059	attorney general and must include:
1060	1060	(1) the name of the person against whom a civil action
1061	1061	has been brought under Chapter 140B, Civil Practice and Remedies
1062	1062	Code, and at the discretion of the investigative agency may also
1063	1063	include any other aliases, names, or fictitious names under which
1064	1064	the person may be known and any corporation, partnership, or other
1065	1065	entity that is either controlled or entirely owned by the person;
1066	1066	(2) if known to the investigative agency, the current
1067	1067	residence and business addresses of the person named in the notice
1068	1068	and of the other names included in the notice;
1069	1069	(3) a reference to an applicable civil action,
1070	1070	stating:
1071	1071	(A) that an action under Chapter 140B, Civil
1072	1072	Practice and Remedies Code, has been brought against the person
1073	1073	named in the notice;
1074	1074	(B) the name of each county in which the action
1075	1075	has been brought; and
1076	1076	(C) if known to the investigative agency at the
1077	1077	time of filing the notice, the cause number of the action;
1078	1078	(4) a statement that the notice is being filed under
1079	1079	this chapter; and
1080	1080	(5) the name and address of the investigative agency
1081	1081	filing the notice and the name of the individual signing the notice.
1082	1082	(c) A RICO lien notice must apply only to one person and, to
1083	1083	the extent applicable, any other aliases, names, or fictitious
1084	1084	names of that person, including the names of corporations,
1085	1085	partnerships, or other entities, to the extent permitted by
1086	1086	Subsection (b)(1). A separate notice must be filed for each person
1087	1087	against whom the investigative agency desires to file a RICO lien
1088	1088	notice under this subchapter.
1089	1089	Sec. 68.054. SERVICE OF NOTICE. (a) An investigative
1090	1090	agency shall, as soon as practicable after the filing of each RICO
1091	1091	lien notice, provide to the person named in the notice:
1092	1092	(1) a copy of the recorded notice; or
1093	1093	(2) a copy of the notice that states each county in
1094	1094	which the notice has been recorded.
1095	1095	(b) The failure of the investigative agency to provide a
1096	1096	copy of a RICO lien notice under this section does not invalidate or
1097	1097	otherwise affect the notice.
1098	1098	Sec. 68.055. CREATION AND PRIORITY OF RICO LIEN. (a)
1099	1099	Filing a RICO lien notice creates, from the time of its filing, a
1100	1100	lien in favor of the state on the following property of the person
1101	1101	named in the notice and against any other names set forth in the
1102	1102	notice:
1103	1103	(1) any real property situated in the county where the
1104	1104	notice is filed then or thereafter owned by the person or under any
1105	1105	of the names; and
1106	1106	(2) any beneficial interest situated in the county
1107	1107	where the notice is filed then or thereafter owned by the person or
1108	1108	under any of the names.
1109	1109	(b) The lien shall commence and attach as of the time of
1110	1110	filing of a RICO lien notice and shall continue thereafter until
1111	1111	expiration, termination, or release of the notice under this
1112	1112	subchapter. The lien created in favor of the state is superior to
1113	1113	the interest of any other person in the real property or beneficial
1114	1114	interest if the interest is acquired subsequent to the filing of the
1115	1115	notice.
1116	1116	(c) For purposes of this section, a beneficial interest is
1117	1117	considered to be located where real property owned by the trustee is
1118	1118	located.
1119	1119	Sec. 68.056. LIS PENDENS; INTERESTS OF PERSONS ACQUIRING
1120	1120	INTEREST IN PROPERTY. (a) In conjunction with a civil action
1121	1121	brought under Chapter 140B, Civil Practice and Remedies Code, an
1122	1122	investigative agency may file without prior court order in any
1123	1123	county a notice of lis pendens under Section 12.007. In such case,
1124	1124	a person acquiring an interest in the subject real property or
1125	1125	beneficial interest, if the real property or beneficial interest is
1126	1126	acquired subsequent to the filing of the notice of lis pendens,
1127	1127	shall take the interest subject to the civil action and any
1128	1128	subsequent judgment of forfeiture.
1129	1129	(b) In conjunction with a civil action brought under Chapter
1130	1130	140B, Civil Practice and Remedies Code, if a RICO lien notice has
1131	1131	been filed, an investigative agency may name as a defendant, in
1132	1132	addition to the person named in the notice, any person acquiring an
1133	1133	interest in the real property or beneficial interest subsequent to
1134	1134	the filing of the notice. If a judgment of forfeiture is entered in
1135	1135	the action in favor of the state, the interest of any person in the
1136	1136	property that was acquired subsequent to the filing of the notice
1137	1137	shall be subject to the notice and judgment of forfeiture.
1138	1138	Sec. 68.057. DUTIES OF TRUSTEE; CRIMINAL OFFENSE. (a) A
1139	1139	trustee who acquires actual knowledge that a RICO lien notice or a
1140	1140	civil action brought under Chapter 140B, Civil Practice and
1141	1141	Remedies Code, or criminal proceeding brought under Chapter 72,
1142	1142	Penal Code, has been filed against a person for whom the trustee
1143	1143	holds legal or record title to real property shall immediately
1144	1144	furnish to the appropriate investigative agency:
1145	1145	(1) the name and address of the person, as known to the
1146	1146	trustee;
1147	1147	(2) the name and address, as known to the trustee, of
1148	1148	each other person for whose benefit the trustee holds title to the
1149	1149	real property; and
1150	1150	(3) if requested by the investigative agency, a copy
1151	1151	of the trust agreement or other instrument under which the trustee
1152	1152	holds legal or record title to the real property.
1153	1153	(b) A trustee who violates this section commits an offense.
1154	1154	An offense under this subsection is a Class B misdemeanor.
1155	1155	Sec. 68.058. LIABILITY OF TRUSTEE FOR CONVEYANCE OF TITLE.
1156	1156	(a) A trustee who conveys title to real property for which, at the
1157	1157	time of the conveyance, a RICO lien notice naming a person who, to
1158	1158	the actual knowledge of the trustee, holds a beneficial interest in
1159	1159	the trust has been filed in the county where the real property is
1160	1160	situated is liable to the state for the greatest of:
1161	1161	(1) the amount of proceeds received directly by the
1162	1162	person named in the notice as a result of the conveyance;
1163	1163	(2) the amount of proceeds received by the trustee as a
1164	1164	result of the conveyance and distributed to the person named in the
1165	1165	notice; or
1166	1166	(3) the fair market value of the interest of the person
1167	1167	named in the notice in the real property conveyed.
1168	1168	(b) Notwithstanding Subsection (a)(3), if a trustee conveys
1169	1169	the real property and holds the proceeds that would otherwise be
1170	1170	paid or distributed to the beneficiary or at the direction of the
1171	1171	beneficiary or the beneficiary's designee, the trustee's liability
1172	1172	does not exceed the amount of the proceeds held for so long as the
1173	1173	proceeds are held by the trustee.
1174	1174	(c) An investigative agency may bring a civil action in any
1175	1175	district court against a trustee to recover from the trustee the
1176	1176	amount described by Subsection (a) and is entitled to recover
1177	1177	investigative costs and attorney's fees incurred by the
1178	1178	investigative agency.
1179	1179	Sec. 68.059. EFFECT ON TRUST OF RICO LIEN NOTICE. (a) The
1180	1180	filing of a RICO lien notice does not constitute a lien on the
1181	1181	record title to real property as owned by a trustee except to the
1182	1182	extent that the trustee is named in the notice.
1183	1183	(b) The filing of a RICO lien notice does not affect the use
1184	1184	to which real property or a beneficial interest owned by the person
1185	1185	named in the notice may be put or the right of the person to receive
1186	1186	any avails, rents, or other proceeds resulting from the use and
1187	1187	ownership, but not the sale, of the property until a judgment of
1188	1188	forfeiture is entered.
1189	1189	Sec. 68.060. TRUST EXCEPTIONS. (a) This chapter does not
1190	1190	apply to a conveyance by a trustee under a court order, unless that
1191	1191	court order is entered in an action between the trustee and the
1192	1192	beneficiary.
1193	1193	(b) Unless the trustee has actual knowledge that a person
1194	1194	owning a beneficial interest in the trust is named in a RICO lien
1195	1195	notice or is otherwise a defendant in a civil action brought under
1196	1196	Chapter 140B, Civil Practice and Remedies Code, this subchapter
1197	1197	does not apply to a conveyance by the trustee:
1198	1198	(1) required under the terms of the trust agreement
1199	1199	that is a matter of public record before the filing of the lien
1200	1200	notice; or
1201	1201	(2) to all of the persons who own beneficial interests
1202	1202	in the trust.
1203	1203	Sec. 68.061. RIGHTS OF INNOCENT PERSONS. All forfeitures
1204	1204	or dispositions under this chapter must be made with due provision
1205	1205	for the rights of innocent persons.
1206	1206	Sec. 68.062. EXPIRATION, RENEWAL, AND RELEASE OF RICO LIEN
1207	1207	NOTICE. (a) Unless renewed by the investigative agency, a RICO
1208	1208	lien notice expires on the sixth anniversary of the date it was
1209	1209	filed. If the investigative agency renews the notice, the notice
1210	1210	expires on the sixth anniversary of the date it was renewed. The
1211	1211	investigative agency may renew the notice only once.
1212	1212	(b) The investigative agency filing a RICO lien notice may
1213	1213	wholly or partly release the notice or may release any specific real
1214	1214	property or beneficial interest from the notice on the
1215	1215	investigative agency's own terms. A release of the notice may be
1216	1216	filed in the official records of any county. A charge or fee may not
1217	1217	be imposed for the filing of the release.
1218	1218	Sec. 68.063. EFFECT OF CRIMINAL CASE ON RICO LIEN NOTICE.
1219	1219	If a civil action has not been brought by an investigative agency
1220	1220	seeking a forfeiture of any property owned by the person named in
1221	1221	the RICO lien notice, the acquittal in a criminal proceeding
1222	1222	brought under Chapter 72, Penal Code, of the person named in the
1223	1223	notice or the dismissal of the criminal proceeding terminates the
1224	1224	notice and, in such case, the filing of the notice is void. If the
1225	1225	criminal proceeding has been dismissed or the person named in the
1226	1226	notice has been acquitted in the criminal proceeding, the notice
1227	1227	continues for the duration of a civil action brought under Chapter
1228	1228	140B, Civil Practice and Remedies Code.
1229	1229	Sec. 68.064. TERMINATION OR RELEASE OF RICO LIEN NOTICE BY
1230	1230	COURT. (a) If a civil action brought under Chapter 140B, Civil
1231	1231	Practice and Remedies Code, is not pending against a person named in
1232	1232	a RICO lien notice, the person may bring an action in the county
1233	1233	where the notice has been filed against the investigative agency
1234	1234	that filed the notice seeking a release or extinguishment of the
1235	1235	notice.
1236	1236	(b) In an action brought under this section, the court
1237	1237	shall, on the motion of the person named in the RICO lien notice,
1238	1238	immediately enter an order setting a date for hearing that is not
1239	1239	earlier than the fifth day and not later than the 10th day after the
1240	1240	date the action is filed, and the order and a copy of the complaint
1241	1241	shall be served on the investigative agency not later than the third
1242	1242	day after the date the action is filed.
1243	1243	(c) At the hearing set under Subsection (b), the court shall
1244	1244	take evidence on the issue of whether any real property or
1245	1245	beneficial interest owned by the person named in the RICO lien
1246	1246	notice is covered by the notice or is otherwise subject to
1247	1247	forfeiture under Chapter 140B, Civil Practice and Remedies Code.
1248	1248	(d) If, at the hearing under Subsection (b), the person
1249	1249	named in the RICO lien notice shows by a preponderance of the
1250	1250	evidence that the notice is not applicable to the person or that any
1251	1251	real property or beneficial interest owned by the person is not
1252	1252	subject to forfeiture under Chapter 140B, Civil Practice and
1253	1253	Remedies Code, the court shall enter a judgment terminating the
1254	1254	notice or releasing the real property or beneficial interest from
1255	1255	the notice.
1256	1256	(e) A court shall immediately enter its order releasing from
1257	1257	a RICO lien notice any specific real property or beneficial
1258	1258	interest if a sale of that real property or beneficial interest is
1259	1259	pending and the filing of the notice prevents the sale of the
1260	1260	property or interest. Proceeds resulting from the sale of that real
1261	1261	property or beneficial interest shall be deposited into the
1262	1262	registry of the court, subject to the further order of the court.
1263	1263	(f) At the hearing under Subsection (b), the court may
1264	1264	release any real property or beneficial interest from the RICO lien
1265	1265	notice, on the posting by the person named in the notice of security
1266	1266	that is equal to the value of the real property or beneficial
1267	1267	interest owned by the person.
1268	1268	(g) If a civil action brought under Chapter 140B, Civil
1269	1269	Practice and Remedies Code, is pending against a person named in a
1270	1270	RICO lien notice, the court on motion by the person may grant the
1271	1271	relief described by this section.
1272	1272	SECTION 8. (a) Chapter 140B, Civil Practice and Remedies
1273	1273	Code, as added by this Act, applies only to a cause of action that
1274	1274	accrues on or after the effective date of this Act.
1275	1275	(b) Section 71.02, Penal Code, as amended by this Act,
1276	1276	applies only to an offense committed on or after the effective date
1277	1277	of this Act. An offense committed before the effective date of this
1278	1278	Act is governed by the law in effect when the offense was committed,
1279	1279	and the former law is continued in effect for that purpose. For
1280	1280	purposes of this section, an offense was committed before the
1281	1281	effective date of this Act if any element of the offense occurred
1282	1282	before that date.
1283	1283	SECTION 9. To the extent of any conflict, this Act prevails
1284	1284	over another Act of the 88th Legislature, Regular Session, 2023,
1285	1285	relating to nonsubstantive additions to and corrections in enacted
1286	1286	codes.
1287	1287	SECTION 10. This Act takes effect September 1, 2023.
1288	1288	______________________________ ______________________________
1289	1289	President of the Senate Speaker of the House
1290	1290	I certify that H.B. No. 4635 was passed by the House on May 5,
1291	1291	2023, by the following vote: Yeas 112, Nays 24, 1 present, not
1292	1292	voting; that the House refused to concur in Senate amendments to
1293	1293	H.B. No. 4635 on May 25, 2023, and requested the appointment of a
1294	1294	conference committee to consider the differences between the two
1295	1295	houses; and that the House adopted the conference committee report
1296	1296	on H.B. No. 4635 on May 28, 2023, by the following vote: Yeas 105,
1297	1297	Nays 35, 2 present, not voting.
1298	1298	______________________________
1299	1299	Chief Clerk of the House
1300	1300	I certify that H.B. No. 4635 was passed by the Senate, with
1301	1301	amendments, on May 23, 2023, by the following vote: Yeas 30, Nays
1302	1302	1; at the request of the House, the Senate appointed a conference
1303	1303	committee to consider the differences between the two houses; and
1304	1304	that the Senate adopted the conference committee report on H.B. No.
1305	1305	4635 on May 28, 2023, by the following vote: Yeas 30, Nays 1.
1306	1306	______________________________
1307	1307	Secretary of the Senate
1308	1308	APPROVED: __________________
1309	1309	Date
1310	1310	__________________
1311	1311	Governor