C.S.H.B. 2892 78(R)    BILL ANALYSIS


C.S.H.B. 2892
By: Allen
Corrections
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Section 481.126, Health and Safety Code, provides an offense of illegal
expenditure or investment regarding controlled substances.  Offenses under
this section are aimed at high-level, drug-related financial transactions,
including money laundering and financing drug purchases, for
controlledsubstance offenses punishable by imprisonment for life (i.e.,
very large quantities of drugs:  more than 2,000 lbs. of marijuana; 400
grams or more of cocaine or heroin; 8,000 or more hits of LSD, etc.)  The
current law addresses the expenditure, financing, or investing of funds
for these purposes, but it does not address the practice of offering real
property (cars, jewelry, other valuables)  instead of currency.  CSHB 2892
includes bartered property in the description of illegal expenditures or
investments related to controlled substances. 

Further, this statute only allows for an offense of illegal expenditure or
investment regarding 2,000 lbs. or more of marijuana.  The street price of
large quantities of marijuana is comparable to the quantities of cocaine
specified in the bill.  (The street price of 50 lbs. of marijuana in a
large metropolitan area is between $30,000 to $50,000).  CSHB 2892 would
allow an offense if a person launders money or finances, invests funds or
barters property with the intent to further the commission of an offense
of possession of between 50 lbs. and 2,000 lbs. of marijuana. 


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. 


ANALYSIS

The bill amends Section 481.126, Health and Safety Code, by adding
"barters property" to the current statute regarding illegal expenditure or
investment.   

The bill also creates an offense if a person expends funds or barters
property the person knows are derived from the commission of an offense
under Section 481.121(b)(5) (possession of 2,000 pounds or less but more
than 50 pounds of marijuana) or finances, invests funds, or barters
property the person knows or believes are intended to further the
commission of an offense under Section 481.121(b)(5) .  These new offenses
are second degree felonies. 


EFFECTIVE DATE

September 1, 2003


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original by being a legislative council draft.
There are no substantive differences between the original bill and the
substitute bill.