By Cuellar of Webb H.B. No. 354
Substitute the following for H.B. No. 354:
By Nieto C.S.H.B. No. 354
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the reporting of certain financial transactions and to
1-3 the creation of offenses relating to certain financial
1-4 transactions.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The legislature finds that the banking industry
1-7 and other financial institutions may be strong allies in the fight
1-8 against money laundering and that filing certain financial
1-9 transaction reports required by law does not in itself imply
1-10 knowledge of an illegal money laundering activity.
1-11 SECTION 2. Title 7, Penal Code, is amended by adding Chapter
1-12 34 to read as follows:
1-13 CHAPTER 34. MONEY LAUNDERING
1-14 Sec. 34.01. DEFINITIONS. In this chapter:
1-15 (1) "Criminal activity" means any offense, including
1-16 any preparatory offense, that is:
1-17 (A) classified as a felony under the laws of
1-18 this state or the United States; or
1-19 (B) punishable by confinement for more than one
1-20 year under the laws of another state.
1-21 (2) "Funds" includes:
1-22 (A) coin or paper money of the United States or
1-23 any other country that is designated as legal tender and that
1-24 circulates and is customarily used and accepted as a medium of
2-1 exchange in the country of issue;
2-2 (B) United States silver certificates, United
2-3 States Treasury notes, and Federal Reserve System notes; and
2-4 (C) official foreign bank notes that are
2-5 customarily used and accepted as a medium of exchange in a foreign
2-6 country and foreign bank drafts.
2-7 (3) "Peace officer" means a person who is elected,
2-8 appointed, or employed by a governmental entity and who is a peace
2-9 officer under Article 2.12, Code of Criminal Procedure, or other
2-10 law.
2-11 (4) "Proceeds" means funds acquired or derived
2-12 directly or indirectly from, produced through, or realized through
2-13 an act.
2-14 Sec. 34.02. MONEY LAUNDERING. (a) A person commits an
2-15 offense if the person knowingly:
2-16 (1) acquires or maintains an interest in, receives,
2-17 conceals, possesses, transfers, or transports the proceeds of
2-18 criminal activity;
2-19 (2) conducts, supervises, or facilitates a transaction
2-20 involving the proceeds of criminal activity; or
2-21 (3) invests, expends, or receives, or offers to
2-22 invest, expend, or receive, the proceeds of criminal activity or
2-23 funds that the person believes are the proceeds of criminal
2-24 activity.
2-25 (b) For purposes of Subsection (a)(3) of this section, a
2-26 person is presumed to believe that funds are the proceeds of
2-27 criminal activity if a peace officer or a person acting at the
3-1 direction of a peace officer represents to the person that the
3-2 funds are proceeds of criminal activity, regardless of whether the
3-3 peace officer or person acting at the peace officer's direction
3-4 discloses the person's status as a peace officer or that the person
3-5 is acting at the direction of a peace officer.
3-6 (c) It is a defense to prosecution under this section that
3-7 the person acted with intent to facilitate the lawful seizure,
3-8 forfeiture, or disposition of funds or other legitimate law
3-9 enforcement purpose pursuant to the laws of this state or the
3-10 United States.
3-11 (d) An offense under this section is:
3-12 (1) a felony of the third degree if the value of the
3-13 funds is $750 or more but less than $20,000;
3-14 (2) a felony of the second degree if the value of the
3-15 funds is $20,000 or more but less than $100,000; or
3-16 (3) a felony of the first degree if the value of the
3-17 funds is $100,000 or more.
3-18 Sec. 34.03. ASSISTANCE BY ATTORNEY GENERAL. The attorney
3-19 general, if requested to do so by a prosecuting attorney, may
3-20 assist in the prosecution of an offense under this chapter.
3-21 SECTION 3. Section 71.02, Penal Code, is amended to read as
3-22 follows:
3-23 Sec. 71.02. ENGAGING IN ORGANIZED CRIMINAL ACTIVITY. (a) A
3-24 person commits an offense if, with the intent to establish,
3-25 maintain, or participate in a combination or in the profits of a
3-26 combination or as a member of a criminal street gang, he commits or
3-27 conspires to commit one or more of the following:
4-1 (1) murder, capital murder, arson, aggravated robbery,
4-2 robbery, burglary, theft, aggravated kidnapping, kidnapping,
4-3 aggravated assault, aggravated sexual assault, sexual assault, or
4-4 forgery;
4-5 (2) any felony gambling offense;
4-6 (3) promotion of prostitution, aggravated promotion of
4-7 prostitution, or compelling prostitution;
4-8 (4) unlawful manufacture, transportation, repair, or
4-9 sale of firearms or prohibited weapons;
4-10 (5) unlawful manufacture, delivery, dispensation, or
4-11 distribution of a controlled substance or dangerous drug, or
4-12 unlawful possession of a controlled substance or dangerous drug
4-13 through forgery, fraud, misrepresentation, or deception;
4-14 (6) any unlawful wholesale promotion or possession of
4-15 any obscene material or obscene device with the intent to wholesale
4-16 promote the same;
4-17 (7) any unlawful employment, authorization, or
4-18 inducing of a child younger than 17 years of age in an obscene
4-19 sexual performance;
4-20 (8) any felony offense under Chapter 32, Penal Code;
4-21 <or>
4-22 (9) any offense under Chapter 36, Penal Code; or
4-23 (10) any offense under Chapter 34, Penal Code.
4-24 (b) Except as provided in Subsection (c) of this section, an
4-25 offense under this section is one category higher than the most
4-26 serious offense listed in Subdivisions (1) through (10) <(9)> of
4-27 Subsection (a) of this section that was committed, and if the most
5-1 serious offense is a Class A misdemeanor, the offense is a felony
5-2 of the third degree, except that if the most serious offense is a
5-3 felony of the first degree, the offense is a felony of the first
5-4 degree.
5-5 (c) Conspiring to commit an offense under this section is of
5-6 the same degree as the most serious offense listed in Subdivisions
5-7 (1) through (10) <(9)> of Subsection (a) of this section that the
5-8 person conspired to commit.
5-9 SECTION 4. Sections 71.05(a) and (c), Penal Code, are
5-10 amended to read as follows:
5-11 (a) It is an affirmative defense to prosecution under
5-12 Section 71.02 of this code that under circumstances manifesting a
5-13 voluntary and complete renunciation of his criminal objective the
5-14 actor withdrew from the combination before commission of an offense
5-15 listed in Subdivisions (1) through (7) or Subdivision (10) of
5-16 Subsection (a) of Section 71.02 of this code and took further
5-17 affirmative action that prevented the commission of the offense.
5-18 (c) Evidence that the defendant withdrew from the
5-19 combination before commission of an offense listed in Subdivisions
5-20 (1) through (7) or Subdivision (10) of Subsection (a) of Section
5-21 71.02 of this code and made substantial effort to prevent the
5-22 commission of an offense listed in Subdivisions (1) through (7) or
5-23 Subdivision (10) of Subsection (a) of Section 71.02 of this code
5-24 shall be admissible as mitigation at the hearing on punishment if
5-25 he has been found guilty under Section 71.02 of this code, and in
5-26 the event of a finding of renunciation under this subsection, the
5-27 punishment shall be one grade lower than that provided under
6-1 Section 71.02 of this code.
6-2 SECTION 5. Subdivision (2), Article 59.01, Code of Criminal
6-3 Procedure, is amended to read as follows:
6-4 (2) "Contraband" means property of any nature,
6-5 including real, personal, tangible, or intangible, that is:
6-6 (A) used in the commission of:
6-7 (i) any first or second degree felony
6-8 under the Penal Code;
6-9 (ii) any felony under Chapters 29, 30, 31,
6-10 or 32, Penal Code; or
6-11 (iii) any felony under The Securities Act
6-12 (Article 581-1 et seq., Vernon's Texas Civil Statutes);
6-13 (B) used or intended to be used in the
6-14 commission of:
6-15 (i) any felony under Chapter 481, Health
6-16 and Safety Code (Texas Controlled Substances Act);
6-17 (ii) any felony under Chapter 483, Health
6-18 and Safety Code; <or>
6-19 (iii) a felony under Article 350, Revised
6-20 Statutes;
6-21 (iv) any felony under Chapter 34, Penal
6-22 Code; or
6-23 (v) any felony under The Sale of Checks
6-24 Act (Article 489d, Vernon's Texas Civil Statutes);
6-25 (C) the proceeds gained from the commission of a
6-26 felony listed in Paragraph (A) or (B) of this subdivision; or
6-27 (D) acquired with proceeds gained from the
7-1 commission of a felony listed in Paragraph (A) or (B) of this
7-2 subdivision.
7-3 SECTION 6. Title 16, Revised Statutes, is amended by adding
7-4 Article 351 to read as follows:
7-5 Art. 351. FINANCIAL TRANSACTION REPORTING REQUIREMENTS
7-6 Sec. 1. CURRENCY AND FOREIGN TRANSACTIONS--CRIMINAL REFERRAL
7-7 FORM REPORTING REQUIREMENTS. (a) Except as provided by Subsection
7-8 (b) of this section, a financial institution in this state that is
7-9 required to file a report under the Currency and Foreign
7-10 Transactions Reporting Act (31 U.S.C. Section 5311 et seq.), 31
7-11 C.F.R. Part 103, or 12 C.F.R. Section 21.11, and their subsequent
7-12 amendments, shall file a duplicate copy of the report with the
7-13 attorney general.
7-14 (b) A financial institution that timely files a report
7-15 required by this section with the appropriate federal agency as
7-16 required by federal law is considered to be in compliance with this
7-17 section unless the attorney general:
7-18 (1) notifies the financial institution that the
7-19 required report is not one that is regularly and comprehensively
7-20 transmitted by the federal agency to the attorney general; and
7-21 (2) requests that the financial institution provide
7-22 the attorney general with a duplicate copy of the report.
7-23 (c) In this section, "financial institution" has the meaning
7-24 assigned by 31 U.S.C. Section 5312 and its subsequent amendments.
7-25 Sec. 2. CASH RECEIPTS OF MORE THAN $10,000 REPORTING
7-26 REQUIREMENT. (a) Except as provided by Subsection (b) of this
7-27 section, a person engaged in a trade or business who, in the course
8-1 of the trade or business, receives more than $10,000 in one
8-2 transaction or in two or more related transactions and who is
8-3 required to file a return under Section 6050I, Internal Revenue
8-4 Code of 1986 (26 U.S.C. Section 6050I), or 26 C.F.R. Section
8-5 1.6050I, and their subsequent amendments, shall file a duplicate
8-6 copy of the return with the attorney general.
8-7 (b) A person who timely files a return required by this
8-8 section with the appropriate federal agency as required by federal
8-9 law is considered to be in compliance with this section unless the
8-10 attorney general:
8-11 (1) notifies the person that the required return is
8-12 not one that is regularly and comprehensively transmitted by the
8-13 federal agency to the attorney general; and
8-14 (2) requests that the person provide the attorney
8-15 general with a duplicate copy of the return.
8-16 Sec. 3. USE OF REPORTED INFORMATION. The attorney general
8-17 may report any possible violation indicated by analysis of a report
8-18 or return required by this article or information obtained under
8-19 this article to an appropriate law enforcement agency for use in
8-20 the proper discharge of the agency's official duties.
8-21 Sec. 4. FAILURE TO COMPLY WITH REPORTING REQUIREMENTS;
8-22 CRIMINAL OFFENSE; PENALTY. (a) A person commits an offense if the
8-23 person:
8-24 (1) is requested by the attorney general to submit
8-25 information required by Section 1 or 2 of this article to the
8-26 attorney general; and
8-27 (2) knowingly fails to provide the requested
9-1 information to the attorney general before the 30th day after the
9-2 date of the request.
9-3 (b) An offense under this section is a Class A misdemeanor.
9-4 Sec. 5. SUPPRESSION OF PHYSICAL EVIDENCE; CRIMINAL OFFENSE;
9-5 PENALTY. (a) A person commits an offense if the person knowingly
9-6 suppresses physical evidence connected with information contained
9-7 in a report or return required by this article through concealment,
9-8 alternation, or destruction.
9-9 (b) An offense under this section is a Class A misdemeanor.
9-10 Sec. 6. NOTIFICATION TO TARGET OF CRIMINAL INVESTIGATION;
9-11 CRIMINAL OFFENSE; PENALTY. (a) A person commits an offense if the
9-12 person:
9-13 (1) is required to submit a report or return under
9-14 this article; and
9-15 (2) knowingly notifies an individual who is the target
9-16 of criminal investigation involving an offense under Chapter 34,
9-17 Penal Code, that:
9-18 (A) the attorney general has requested the
9-19 person to provide information required by this article related to
9-20 the targeted individual; or
9-21 (B) the individual may be subject to impending
9-22 criminal prosecution.
9-23 (b) An offense under this section is a Class A misdemeanor.
9-24 SECTION 7. This Act takes effect September 1, 1993.
9-25 SECTION 8. The importance of this legislation and the
9-26 crowded condition of the calendars in both houses create an
9-27 emergency and an imperative public necessity that the
10-1 constitutional rule requiring bills to be read on three several
10-2 days in each house be suspended, and this rule is hereby suspended.