HB3110 - Relating to civil asset forfeiture of digital currency or other similar property.

  89R8216 CJD-F     By: Perez of Harris H.B. No. 3110       A BILL TO BE ENTITLED   AN ACT   relating to civil asset forfeiture of digital currency or other   similar property.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article 59.01, Code of Criminal Procedure, is   amended by amending Subdivisions (2), (7), and (9) and adding   Subdivision (3-a) to read as follows:                (2)  "Contraband" means property of any nature,   including real, personal, tangible, or intangible, including a   digital currency, non-fungible token, or stablecoin, that is:                      (A)  used in the commission of:                            (i)  any first or second degree felony under   the Penal Code;                            (ii)  any felony under Section 15.031(b),   21.11, or 38.04 or Chapter 29, 30, 31, 32, 33, 33A, or 35, Penal   Code;                            (iii)  any felony under Chapter 43, Penal   Code, except as provided by Paragraph (B);                            (iv)  any felony under The Securities Act   (Title 12, Government Code); or                            (v)  any offense under Chapter 49, Penal   Code, that is punishable as a felony of the third degree or state   jail felony, if the defendant has been previously convicted three   times of an offense under that chapter;                      (B)  used or intended to be used in the commission   of:                            (i)  any felony under Chapter 481, Health   and Safety Code (Texas Controlled Substances Act);                            (ii)  any felony under Chapter 483, Health   and Safety Code;                            (iii)  a felony under Chapter 152, Finance   Code;                            (iv)  any felony under Chapter 20A or 34,   Penal Code;                            (v)  a Class A misdemeanor under Subchapter   B, Chapter 365, Health and Safety Code, if the defendant has been   previously convicted twice of an offense under that subchapter;                            (vi)  any felony under Chapter 32, Human   Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that   involves a health care program, as defined by Section 35A.01, Penal   Code;                            (vii)  a Class B misdemeanor under Chapter   522, Business & Commerce Code;                            (viii)  a Class A misdemeanor under Section   306.051, Business & Commerce Code;                            (ix)  any offense under Section 42.10, Penal   Code;                            (x)  any offense under Section 46.06(a)(1)   or 46.14, Penal Code;                            (xi)  any offense under Chapter 71, Penal   Code;                            (xii)  any offense under Section 20.05,   20.06, 20.07, 43.04, or 43.05, Penal Code;                            (xiii)  an offense under Section 326.002,   Business & Commerce Code;                            (xiv)  any offense under Section 545.420,   Transportation Code; or                            (xv)  any offense punishable under Section   42.03(d) or (e), Penal Code;                      (C)  the proceeds gained from the commission of a   felony listed in Paragraph (A) or (B) of this subdivision, a   misdemeanor listed in Paragraph (B)(vii), (ix), (x), (xi), (xii),   (xiv), or (xv) of this subdivision, or a crime of violence;                      (D)  acquired with proceeds gained from the   commission of a felony listed in Paragraph (A) or (B) of this   subdivision, a misdemeanor listed in Paragraph (B)(vii), (ix), (x),   (xi), (xii), (xiv), or (xv) of this subdivision, or a crime of   violence;                      (E)  used to facilitate or intended to be used to   facilitate the commission of a felony under Section 15.031 or   Chapter 43, Penal Code; or                      (F)  used to facilitate or intended to be used to   facilitate the commission of an offense under Section 20.05, 20.06,   or 20.07 or Chapter 20A, Penal Code.                 (3-a)     "Digital currency" means a digital   representation of value recorded on a cryptographically secured   distributed ledger, including blockchain, or similar technology.                (7)  "Proceeds" includes :                       (A)   income a person accused or convicted of a   crime or the person's representative or assignee receives from:                             (i)  [ (A) ]  a movie, book, magazine article,   tape recording, phonographic record, radio or television   presentation, telephone service, electronic media format,   including an Internet website, or live entertainment in which the   crime was reenacted; or                             (ii)  [ (B) ]  the sale of tangible property   the value of which is increased by the notoriety gained from the   conviction of an offense by the person accused or convicted of the   crime ; or                       (B)     with respect to digital currency gained from   the commission of an offense, any increase in value of the digital   currency between the date of acquisition and the forfeiture of the   digital currency .                (9)  "Depository account" means the obligation of a   regulated financial institution to pay the account owner under a   written agreement, including a checking account, savings account,   money market account, time deposit, NOW account, [ or ] certificate   of deposit , or digital currency wallet, regardless of whether the   wallet is connected to an exchange or network .          SECTION 2.  Article 59.023(a), Code of Criminal Procedure,   is amended to read as follows:          (a)  A peace officer who identifies proceeds that are gained   from the commission of an offense listed in Article 59.01(2)(A) or   (B) shall provide the attorney representing the state with an   affidavit that identifies the amount of the proceeds and that   states probable cause that the proceeds are contraband subject to   forfeiture.  On receiving the affidavit, the attorney representing   the state may file for a judgment in the amount of the proceeds in a   district court in:                (1)  the county in which the proceeds were gained;                (2)  the county in which any owner or possessor of the   property was prosecuted for an underlying offense for which the   property is subject to forfeiture;                (3)  the county in which venue existed for prosecution   of an underlying offense for which the property is subject to   forfeiture;                (4)  the county in which the proceeds were seized; [ or ]                (5)   if the property is a digital currency,   non-fungible token, stablecoin, or wallet not connected to an   exchange or network, the county in which the law enforcement agency   that initiated the seizure of the property is located; or                 (6)   Travis County.          SECTION 3.  Article 59.03(c), Code of Criminal Procedure, is   amended to read as follows:          (c)  A peace officer who seizes property under this chapter   has custody of the property, subject only to replevy under Article   59.02 [ of this code ] or an order of a court.  A peace officer who has   custody of property shall provide the attorney representing the   state with a sworn statement that contains a schedule of the   property seized, an acknowledgment that the officer has seized the   property, and a list of the officer's reasons for the seizure.  Not   later than 72 hours after the seizure :                 (1)   [ , ] the peace officer shall:                       (A)  [ (1) ]  place the property under seal;                       (B)  [ (2) ]  remove the property to a place ordered   by the court; or                       (C)  [ (3) ]  require a law enforcement agency of the   state or a political subdivision to take custody of the property and   move it to a proper location ; or                 (2)     if the property seized is a digital currency,   non-fungible token, or stablecoin, the law enforcement agency   employing the peace officer shall transfer the property to a wallet   that is:                       (A)  not connected to an exchange or network; and                       (B)     only accessible by the law enforcement agency   or the attorney representing the state .          SECTION 4.  Article 59.04(b), Code of Criminal Procedure, is   amended to read as follows:          (b)  A forfeiture proceeding commences under this chapter   when the attorney representing the state files a notice of the   seizure and intended forfeiture in the name of the state with the &# [Text truncated for display. 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