The bill would amend the Penal Code as it relates to the offense of money laundering. Under the provisions of the bill, digital currency would be added to the definition of funds. Money laundering is punishable as a felony with the specific punishment level depending on the value of the funds derived from the commission of a criminal activity.
 
A first degree felony is punishable by confinement in prison for life or a term from 5 to 99 years; a second degree felony is punishable by confinement in prison for a term from 2 to 20 years; a third degree felony is punishable by confinement in prison for a term from 2 to 10 years; and a state jail felony is punishable by confinement in a state jail for a term from 180 days to 2 years or Class A misdemeanor punishment. In addition to confinement, most felonies may be subject to an optional fine not to exceed $10,000. A Class A misdemeanor is punishable by confinement in county jail for a term not to exceed one year and, in addition to confinement, an optional fine not to exceed $4,000.

Expanding the definition for which a criminal penalty is applied is expected to result in additional demands upon the correctional resources of counties or of the State due to a potential increase in the number of individuals placed under supervision in the community or sentenced to a term of confinement within state correctional institutions. In fiscal year 2018, 613 people were arrested, 44 were placed under felony community supervision, and 18 were incarcerated for money laundering under existing statute. This analysis assumes the provisions of the bill addressing felony sanctions would not result in a significant impact on state correctional populations or the demand for state correctional resources.