89R8216 CJD-F
By: Nichols S.B. No. 1498
A BILL TO BE ENTITLED
AN ACT
relating to civil asset forfeiture of digital currency or other
similar property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 59.01, Code of Criminal Procedure, is
amended by amending Subdivisions (2), (7), and (9) and adding
Subdivision (3-a) to read as follows:
(2) "Contraband" means property of any nature,
including real, personal, tangible, or intangible, including a
digital currency, non-fungible token, or stablecoin, that is:
(A) used in the commission of:
(i) any first or second degree felony under
the Penal Code;
(ii) any felony under Section 15.031(b),
21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal
Code;
(iii) any felony under Chapter 43, Penal
Code, except as provided by Paragraph (B);
(iv) any felony under The Securities Act
(Title 12, Government Code); or
(v) any offense under Chapter 49, Penal
Code, that is punishable as a felony of the third degree or state
jail felony, if the defendant has been previously convicted three
times of an offense under that chapter;
(B) used or intended to be used in the commission
of:
(i) any felony under Chapter 481, Health
and Safety Code (Texas Controlled Substances Act);
(ii) any felony under Chapter 483, Health
and Safety Code;
(iii) a felony under Chapter 152, Finance
Code;
(iv) any felony under Chapter 20A or 34,
Penal Code;
(v) a Class A misdemeanor under Subchapter
B, Chapter 365, Health and Safety Code, if the defendant has been
previously convicted twice of an offense under that subchapter;
(vi) any felony under Chapter 32, Human
Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that
involves a health care program, as defined by Section 35A.01, Penal
Code;
(vii) a Class B misdemeanor under Chapter
522, Business & Commerce Code;
(viii) a Class A misdemeanor under Section
306.051, Business & Commerce Code;
(ix) any offense under Section 42.10, Penal
Code;
(x) any offense under Section 46.06(a)(1)
or 46.14, Penal Code;
(xi) any offense under Chapter 71, Penal
Code;
(xii) any offense under Section 20.05,
20.06, 20.07, 43.04, or 43.05, Penal Code;
(xiii) an offense under Section 326.002,
Business & Commerce Code;
(xiv) any offense under Section 545.420,
Transportation Code; or
(xv) any offense punishable under Section
42.03(d) or (e), Penal Code;
(C) the proceeds gained from the commission of a
felony listed in Paragraph (A) or (B) of this subdivision, a
misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), (xii),
(xiv), or (xv) of this subdivision, or a crime of violence;
(D) acquired with proceeds gained from the
commission of a felony listed in Paragraph (A) or (B) of this
subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),
(xi), (xii), (xiv), or (xv) of this subdivision, or a crime of
violence;
(E) used to facilitate or intended to be used to
facilitate the commission of a felony under Section 15.031 or
Chapter 43, Penal Code; or
(F) used to facilitate or intended to be used to
facilitate the commission of an offense under Section 20.05, 20.06,
or 20.07 or Chapter 20A, Penal Code.
(3-a) "Digital currency" means a digital
representation of value recorded on a cryptographically secured
distributed ledger, including blockchain, or similar technology.
(7) "Proceeds" includes:
(A) income a person accused or convicted of a
crime or the person's representative or assignee receives from:
(i) [(A)] a movie, book, magazine article,
tape recording, phonographic record, radio or television
presentation, telephone service, electronic media format,
including an Internet website, or live entertainment in which the
crime was reenacted; or
(ii) [(B)] the sale of tangible property
the value of which is increased by the notoriety gained from the
conviction of an offense by the person accused or convicted of the
crime; or
(B) with respect to digital currency gained from
the commission of an offense, any increase in value of the digital
currency between the date of acquisition and the forfeiture of the
digital currency.
(9) "Depository account" means the obligation of a
regulated financial institution to pay the account owner under a
written agreement, including a checking account, savings account,
money market account, time deposit, NOW account, [or] certificate
of deposit, or digital currency wallet, regardless of whether the
wallet is connected to an exchange or network.
SECTION 2. Article 59.023(a), Code of Criminal Procedure,
is amended to read as follows:
(a) A peace officer who identifies proceeds that are gained
from the commission of an offense listed in Article 59.01(2)(A) or
(B) shall provide the attorney representing the state with an
affidavit that identifies the amount of the proceeds and that
states probable cause that the proceeds are contraband subject to
forfeiture. On receiving the affidavit, the attorney representing
the state may file for a judgment in the amount of the proceeds in a
district court in:
(1) the county in which the proceeds were gained;
(2) the county in which any owner or possessor of the
property was prosecuted for an underlying offense for which the
property is subject to forfeiture;
(3) the county in which venue existed for prosecution
of an underlying offense for which the property is subject to
forfeiture;
(4) the county in which the proceeds were seized; [or]
(5) if the property is a digital currency,
non-fungible token, stablecoin, or wallet not connected to an
exchange or network, the county in which the law enforcement agency
that initiated the seizure of the property is located; or
(6) Travis County.
SECTION 3. Article 59.03(c), Code of Criminal Procedure, is
amended to read as follows:
(c) A peace officer who seizes property under this chapter
has custody of the property, subject only to replevy under Article
59.02 [of this code] or an order of a court. A peace officer who has
custody of property shall provide the attorney representing the
state with a sworn statement that contains a schedule of the
property seized, an acknowledgment that the officer has seized the
property, and a list of the officer's reasons for the seizure. Not
later than 72 hours after the seizure:
(1) [,] the peace officer shall:
(A) [(1)] place the property under seal;
(B) [(2)] remove the property to a place ordered
by the court; or
(C) [(3)] require a law enforcement agency of the
state or a political subdivision to take custody of the property and
move it to a proper location; or
(2) if the property seized is a digital currency,
non-fungible token, or stablecoin, the law enforcement agency
employing the peace officer shall transfer the property to a wallet
that is:
(A) not connected to an exchange or network; and
(B) only accessible by the law enforcement agency
or the attorney representing the state.
SECTION 4. Article 59.04(b), Code of Criminal Procedure, is
amended to read as follows:
(b) A forfeiture proceeding commences under this chapter
when the attorney representing the state files a notice of the
seizure and intended forfeiture in the name of the state with the
clerk of the district court in the county in which the seizure is
made or, if the property is a digital currency, non-fungible token,
stablecoin, or wallet not connected to an exchange or network, in
the county in which the law enforcement agency that initiated the
seizure of the property is located. The attorney representing the
state must attach to the notice the peace officer's sworn statement
under Article 59.03 [of this code] or, if the property has been
seized under Article 59.12(b), the statement of the terms and
amount of the depository account or inventory of assets provided by
the regulated financial institution to the peace officer executing
the warrant in the manner described by Article 59.12(b). Except as
provided by Subsection (c) of this article, the attorney
representing the state shall cause certified copies of the notice
to be served on the following persons in the same manner as provided
for the service of process by citation in civil cases:
(1) the owner of the property; and
(2) any interest holder in the property.
SECTION 5. Article 59.12(b), Code of Criminal Procedure, is
amended to read as follows:
(b) A regulated financial institution, at the time a seizure
warrant issued under Chapter 18 is served on the institution, may
either:
(1) pay an account or tender assets held as security
for an obligation owed to the institution at the time of the service
of the seizure warrant; [or]
(2) transfer the depository account or assets to a
segregated interest-bearing account in the name of the attorney
representing the state as trustee, to remain in the account until
the time has expired for an appeal from a decision of the court
relating to the forfeiture of accounts or assets under Article
59.05; or
(3) transfer any digital currency, non-fungible
token, or stablecoin held by the institution to a secure wallet that
is:
(A) not connected to an exchange or network; and
(B) in the possession of a law enforcement agency
or an attorney representing the state.
SECTION 6. The changes in law made by this Act apply only to
property or proceeds seized on or after the effective date of this
Act. Property or proceeds seized before the effective date of this
Act are governed by the law in effect on the date the property or
proceeds were seized, and the former law is continued in effect for
that purpose. For purposes of this section, property or proceeds
were seized before the effective date of this Act if any portion of
the property or proceeds was seized before that date.
SECTION 7. This Act takes effect September 1, 2025.