Texas 2025 - 89th Regular

Texas Senate Bill SB1498 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Nichols, Miles S.B. No. 1498
2		-	Parker
	1	+	By: Nichols S.B. No. 1498
	2	+	(In the Senate - Filed February 20, 2025; March 6, 2025,
	3	+	read first time and referred to Committee on Criminal Justice;
	4	+	March 13, 2025, reported favorably by the following vote: Yeas 7,
	5	+	Nays 0; March 13, 2025, sent to printer.)
	6	+	Click here to see the committee vote
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7	11		A BILL TO BE ENTITLED
8	12		AN ACT
9	13		relating to civil asset forfeiture of digital currency or other
10	14		similar property.
11	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	16		SECTION 1. Article 59.01, Code of Criminal Procedure, is
13	17		amended by amending Subdivisions (2), (7), and (9) and adding
14	18		Subdivision (3-a) to read as follows:
15	19		(2) "Contraband" means property of any nature,
16	20		including real, personal, tangible, or intangible, including a
17	21		digital currency, non-fungible token, or stablecoin, that is:
18	22		(A) used in the commission of:
19	23		(i) any first or second degree felony under
20	24		the Penal Code;
21	25		(ii) any felony under Section 15.031(b),
22	26		21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal
23	27		Code;
24	28		(iii) any felony under Chapter 43, Penal
25	29		Code, except as provided by Paragraph (B);
26	30		(iv) any felony under The Securities Act
27	31		(Title 12, Government Code); or
28	32		(v) any offense under Chapter 49, Penal
29	33		Code, that is punishable as a felony of the third degree or state
30	34		jail felony, if the defendant has been previously convicted three
31	35		times of an offense under that chapter;
32	36		(B) used or intended to be used in the commission
33	37		of:
34	38		(i) any felony under Chapter 481, Health
35	39		and Safety Code (Texas Controlled Substances Act);
36	40		(ii) any felony under Chapter 483, Health
37	41		and Safety Code;
38	42		(iii) a felony under Chapter 152, Finance
39	43		Code;
40	44		(iv) any felony under Chapter 20A or 34,
41	45		Penal Code;
42	46		(v) a Class A misdemeanor under Subchapter
43	47		B, Chapter 365, Health and Safety Code, if the defendant has been
44	48		previously convicted twice of an offense under that subchapter;
45	49		(vi) any felony under Chapter 32, Human
46	50		Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that
47	51		involves a health care program, as defined by Section 35A.01, Penal
48	52		Code;
49	53		(vii) a Class B misdemeanor under Chapter
50	54		522, Business & Commerce Code;
51	55		(viii) a Class A misdemeanor under Section
52	56		306.051, Business & Commerce Code;
53	57		(ix) any offense under Section 42.10, Penal
54	58		Code;
55	59		(x) any offense under Section 46.06(a)(1)
56	60		or 46.14, Penal Code;
57	61		(xi) any offense under Chapter 71, Penal
58	62		Code;
59	63		(xii) any offense under Section 20.05,
60	64		20.06, 20.07, 43.04, or 43.05, Penal Code;
61	65		(xiii) an offense under Section 326.002,
62	66		Business & Commerce Code;
63	67		(xiv) any offense under Section 545.420,
64	68		Transportation Code; or
65	69		(xv) any offense punishable under Section
66	70		42.03(d) or (e), Penal Code;
67	71		(C) the proceeds gained from the commission of a
68	72		felony listed in Paragraph (A) or (B) of this subdivision, a
69	73		misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), (xii),
70	74		(xiv), or (xv) of this subdivision, or a crime of violence;
71	75		(D) acquired with proceeds gained from the
72	76		commission of a felony listed in Paragraph (A) or (B) of this
73	77		subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),
74	78		(xi), (xii), (xiv), or (xv) of this subdivision, or a crime of
75	79		violence;
76	80		(E) used to facilitate or intended to be used to
77	81		facilitate the commission of a felony under Section 15.031 or
78	82		Chapter 43, Penal Code; or
79	83		(F) used to facilitate or intended to be used to
80	84		facilitate the commission of an offense under Section 20.05, 20.06,
81	85		or 20.07 or Chapter 20A, Penal Code.
82	86		(3-a) "Digital currency" means a digital
83	87		representation of value recorded on a cryptographically secured
84	88		distributed ledger, including blockchain, or similar technology.
85	89		(7) "Proceeds" includes:
86	90		(A) income a person accused or convicted of a
87	91		crime or the person's representative or assignee receives from:
88	92		(i) [(A)] a movie, book, magazine article,
89	93		tape recording, phonographic record, radio or television
90	94		presentation, telephone service, electronic media format,
91	95		including an Internet website, or live entertainment in which the
92	96		crime was reenacted; or
93	97		(ii) [(B)] the sale of tangible property
94	98		the value of which is increased by the notoriety gained from the
95	99		conviction of an offense by the person accused or convicted of the
96	100		crime; or
97	101		(B) with respect to digital currency gained from
98	102		the commission of an offense, any increase in value of the digital
99	103		currency between the date of acquisition and the forfeiture of the
100	104		digital currency.
101	105		(9) "Depository account" means the obligation of a
102	106		regulated financial institution to pay the account owner under a
103	107		written agreement, including a checking account, savings account,
104	108		money market account, time deposit, NOW account, [or] certificate
105	109		of deposit, or digital currency wallet, regardless of whether the
106	110		wallet is connected to an exchange or network.
107	111		SECTION 2. Article 59.023(a), Code of Criminal Procedure,
108	112		is amended to read as follows:
109	113		(a) A peace officer who identifies proceeds that are gained
110	114		from the commission of an offense listed in Article 59.01(2)(A) or
111	115		(B) shall provide the attorney representing the state with an
112	116		affidavit that identifies the amount of the proceeds and that
113	117		states probable cause that the proceeds are contraband subject to
114	118		forfeiture. On receiving the affidavit, the attorney representing
115	119		the state may file for a judgment in the amount of the proceeds in a
116	120		district court in:
117	121		(1) the county in which the proceeds were gained;
118	122		(2) the county in which any owner or possessor of the
119	123		property was prosecuted for an underlying offense for which the
120	124		property is subject to forfeiture;
121	125		(3) the county in which venue existed for prosecution
122	126		of an underlying offense for which the property is subject to
123	127		forfeiture;
124	128		(4) the county in which the proceeds were seized; [or]
125	129		(5) if the property is a digital currency,
126	130		non-fungible token, stablecoin, or wallet not connected to an
127	131		exchange or network, the county in which the law enforcement agency
128	132		that initiated the seizure of the property is located; or
129	133		(6) Travis County.
130	134		SECTION 3. Article 59.03(c), Code of Criminal Procedure, is
131	135		amended to read as follows:
132	136		(c) A peace officer who seizes property under this chapter
133	137		has custody of the property, subject only to replevy under Article
134	138		59.02 [of this code] or an order of a court. A peace officer who has
135	139		custody of property shall provide the attorney representing the
136	140		state with a sworn statement that contains a schedule of the
137	141		property seized, an acknowledgment that the officer has seized the
138	142		property, and a list of the officer's reasons for the seizure. Not
139	143		later than 72 hours after the seizure:
140	144		(1) [,] the peace officer shall:
141	145		(A) [(1)] place the property under seal;
142	146		(B) [(2)] remove the property to a place ordered
143	147		by the court; or
144	148		(C) [(3)] require a law enforcement agency of the
145	149		state or a political subdivision to take custody of the property and
146	150		move it to a proper location; or
147	151		(2) if the property seized is a digital currency,
148	152		non-fungible token, or stablecoin, the law enforcement agency
149	153		employing the peace officer shall transfer the property to a wallet
150	154		that is:
151	155		(A) not connected to an exchange or network; and
152	156		(B) only accessible by the law enforcement agency
153	157		or the attorney representing the state.
154	158		SECTION 4. Article 59.04(b), Code of Criminal Procedure, is
155	159		amended to read as follows:
156	160		(b) A forfeiture proceeding commences under this chapter
157	161		when the attorney representing the state files a notice of the
158	162		seizure and intended forfeiture in the name of the state with the
159	163		clerk of the district court in the county in which the seizure is
160	164		made or, if the property is a digital currency, non-fungible token,
161	165		stablecoin, or wallet not connected to an exchange or network, in
162	166		the county in which the law enforcement agency that initiated the
163	167		seizure of the property is located. The attorney representing the
164	168		state must attach to the notice the peace officer's sworn statement
165	169		under Article 59.03 [of this code] or, if the property has been
166	170		seized under Article 59.12(b), the statement of the terms and
167	171		amount of the depository account or inventory of assets provided by
168	172		the regulated financial institution to the peace officer executing
169	173		the warrant in the manner described by Article 59.12(b). Except as
170	174		provided by Subsection (c) of this article, the attorney
171	175		representing the state shall cause certified copies of the notice
172	176		to be served on the following persons in the same manner as provided
173	177		for the service of process by citation in civil cases:
174	178		(1) the owner of the property; and
175	179		(2) any interest holder in the property.
176	180		SECTION 5. Article 59.12(b), Code of Criminal Procedure, is
177	181		amended to read as follows:
178	182		(b) A regulated financial institution, at the time a seizure
179	183		warrant issued under Chapter 18 is served on the institution, may
180	184		either:
181	185		(1) pay an account or tender assets held as security
182	186		for an obligation owed to the institution at the time of the service
183	187		of the seizure warrant; [or]
184	188		(2) transfer the depository account or assets to a
185	189		segregated interest-bearing account in the name of the attorney
186	190		representing the state as trustee, to remain in the account until
187	191		the time has expired for an appeal from a decision of the court
188	192		relating to the forfeiture of accounts or assets under Article
189	193		59.05; or
190	194		(3) transfer any digital currency, non-fungible
191	195		token, or stablecoin held by the institution to a secure wallet that
192	196		is:
193	197		(A) not connected to an exchange or network; and
194	198		(B) in the possession of a law enforcement agency
195	199		or an attorney representing the state.
196	200		SECTION 6. The changes in law made by this Act apply only to
197	201		property or proceeds seized on or after the effective date of this
198	202		Act. Property or proceeds seized before the effective date of this
199	203		Act are governed by the law in effect on the date the property or
200	204		proceeds were seized, and the former law is continued in effect for
201	205		that purpose. For purposes of this section, property or proceeds
202	206		were seized before the effective date of this Act if any portion of
203	207		the property or proceeds was seized before that date.
204	208		SECTION 7. This Act takes effect September 1, 2025.
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