AEZ C.S.H.B. 2435 75(R)BILL ANALYSIS


CRIMINAL JURISPRUDENCE
C.S.H.B. 2435
By: Keel
4-9-97
Committee Report (Substituted)



BACKGROUND 

Currently, the Penal Code does not allow for aggregation of laundered
funds.  A criminal can launder criminal proceeds in several small
increments and never commit an offense more serious than a third degree
felony. 

PURPOSE

CSHB 2435, as proposed, would allow for the aggregation of illegal
proceeds.  A prosecutor would be able to aggregate the total amount
laundered  in determining the seriousness of the offense. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Section 34.01, Penal Code, Definitions, by adding to the
definition of "proceeds", and adds a definition of "fraudulently
structured". 

SECTION 2.Amends Section 34.02, Penal Code, Money Laundering, by adding
subsection (f) which allows the aggregation of proceeds if they are from
the same or similar source or are obtained as a result of one scheme or a
continuing course of conduct. 

SECTION 3.  Severability Clause.

SECTION 4.  Effective Date:  September 1, 1997.

SECTION 5.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute bill adds a definition of "fraudulently structure" to Sec.
34.01, Penal Code.  The original bill did not.  The original bill defined
"proceeds" to include funds whose aggregate nature have been altered or
concealed by criminal activity.  The substitute changed that definition of
"proceeds" to include funds that have been fraudulently structured.