S.B. No. 1451

	AN ACT
	relating to the prosecution of the offense of money laundering and
	to the forfeiture of certain contraband.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subdivisions (1) and (2), Article 59.01, Code of
	Criminal Procedure, are amended to read as follows:
	(1)  "Attorney representing the state" means the
	prosecutor with felony jurisdiction in the county in which a
	forfeiture proceeding is held under this chapter or, in a
	proceeding for forfeiture of contraband as defined under
	Subdivision (2)(B)(v) of this article, the city attorney of a
	municipality if the property is seized in that municipality by a
	peace officer employed by that municipality and the governing body
	of the municipality has approved procedures for the city attorney
	acting in a forfeiture proceeding.  In a proceeding for forfeiture
	of contraband as defined under Subdivision (2)(B)(vi)
	[(2)(B)(vii)] of this article, the term includes the attorney
	general.
	(2)  "Contraband" means property of any nature,
	including real, personal, tangible, or intangible, 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),
	20.05, 21.11, 38.04, or Chapter 43, 20A, 29, 30, 31, 32, 33, 33A, or
	35, Penal Code;
	(iii)  any felony under The Securities Act
	(Article 581-1 et seq., Vernon's Texas Civil Statutes); or
	(iv)  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 151 [153],
	Finance Code;
	(iv)  any felony under Chapter 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 152, Finance
	Code;
	[(vii)]  any felony under Chapter 32, Human
	Resources Code, or Chapter 31, 32, 35A, or 37, Penal Code, that
	involves the state Medicaid program;
	(vii) [(viii)]  a Class B misdemeanor under
	Chapter 522, Business & Commerce Code;
	(viii) [(ix)]  a Class A misdemeanor under
	Section 306.051, Business & Commerce Code;
	(ix) [(x)]  any offense under Section 42.10,
	Penal Code;
	(x) [(xi)]  any offense under Section
	46.06(a)(1) or 46.14, Penal Code;
	(xi) [(xii)]  any offense under Chapter 71,
	Penal Code; or
	(xii) [(xiii)]  any offense under Section
	20.05, 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) [(B)(viii)], (x), or
	(xi)[, or (xii)] 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)
	[(B)(viii)], (x), or (xi)[, or (xii)] 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
	43.25, Penal Code; or
	(F)  used to facilitate or intended to be used to
	facilitate the commission of a felony under Section 20A.02 or
	Chapter 43, Penal Code.
	SECTION 2.  Article 59.011, Code of Criminal Procedure, is
	amended to read as follows:
	Art. 59.011.  ELECTION OF FORFEITURE PROCEEDING. If
	property described by Article 59.01(2)(B)(ix), (x), or
	[59.01(2)(B)(x),] (xi)[, or (xii)] is subject to forfeiture under
	this chapter and Article 18.18, the attorney representing the state
	may proceed under either this chapter or that article.
	SECTION 3.  Chapter 59, Code of Criminal Procedure, is
	amended by adding Articles 59.021, 59.022, 59.023, and 59.024 to
	read as follows:
	Art. 59.021.  FORFEITURE OF SUBSTITUTE PROPERTY. (a)  In
	this article, "substitute property" means property:
	(1)  that is not contraband; and
	(2)  that is owned by a person who is or was the owner
	of, or has or had an interest in, contraband with an aggregate value
	of $200,000 or more.
	(b)  Substitute property may be seized under authority of a
	search warrant issued under Subsection (c) if property that is
	contraband:
	(1)  can no longer be located after the exercise of
	reasonable diligence;
	(2)  has been transferred, conveyed, sold to, or
	deposited with a person other than the owner or interest holder;
	(3)  is not within the jurisdiction of the court;
	(4)  has substantially diminished in value;
	(5)  has been commingled with other property and cannot
	be readily distinguished or separated; or
	(6)  is proceeds described by Article 59.01(2)(C) and
	was used to acquire other property that is not within the
	jurisdiction of the court.
	(c)  A district court may issue a search warrant authorizing
	a peace officer to seize substitute property if the officer submits
	an affidavit that states:
	(1)  probable cause for the commission of an offense
	giving rise to forfeiture of contraband;
	(2)  a description of the contraband involved and the
	estimated current fair market value of the substitute property to
	be seized;
	(3)  the reasons the contraband is unavailable for
	forfeiture;
	(4)  probable cause to believe that the owner of the
	substitute property owned or had an interest in contraband with an
	aggregate value of $200,000 or more in connection with the
	commission of an underlying offense giving rise to the forfeiture;
	and
	(5)  that due diligence has been exercised in
	identifying the minimum amount of substitute property necessary to
	approximate the estimated highest fair market value of the
	contraband during the period in which the owner of the substitute
	property owned, or had an interest in, the contraband.
	(d)  After seizure of the substitute property, the
	disposition shall proceed as other cases in this chapter except
	that the attorney representing the state must prove by a
	preponderance of the evidence:
	(1)  that the contraband described by Subsection (b)
	was subject to seizure and forfeiture under this chapter;
	(2)  the highest fair market value of that contraband
	during the period in which the owner of the substitute property
	owned, or had an interest in, the contraband;
	(3)  the fair market value of the substitute property
	at the time it was seized; and
	(4)  that the owner of the substitute property owned or
	had an interest in contraband with an aggregate value of $200,000 or
	more in connection with the commission of an underlying offense
	giving rise to the forfeiture.
	(e)  For purposes of determining the aggregate value of
	contraband under Subsection (c) or (d), the owner or interest
	holder is not required to have simultaneously owned or had an
	interest in all of the property constituting contraband.
	(f)  If the fair market value of the substitute property
	seized exceeds the highest fair market value of the contraband
	described by Subsection (b) during the period in which the owner of
	the substitute property owned, or had an interest in, the
	contraband, the court shall make appropriate orders to ensure that
	property equal in value to the excess is returned to the person or
	persons from whom the substitute property was seized.
	Art. 59.022.  PROPERTY REMOVED FROM THIS STATE. (a)  This
	article applies to contraband, other than real property, that is
	determined to be located outside of this state.
	(b)  A peace officer who identifies contraband described by
	Subsection (a) shall provide the attorney representing the state a
	sworn statement that identifies the contraband and the reasons the
	contraband is subject to seizure.  On receiving the sworn
	statement, the attorney representing the state may file, in the
	name of the state, a notice of intended forfeiture in a district
	court in:
	(1)  the county in which the contraband, or proceeds
	used to acquire the contraband, was known to be situated before its
	removal out of this state;
	(2)  the county in which any owner or possessor of the
	contraband 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; or
	(4)  Travis County.
	(c)  The attorney representing the state shall request that
	citation be served on any person who owns or is in possession or
	control of the contraband to which this article applies and, on
	service in accordance with the Texas Rules of Civil Procedure, may
	move to have the court order that the contraband be:
	(1)  returned or brought to the jurisdiction of the
	court; or
	(2)  delivered to an agent of this state for
	transportation to the jurisdiction of the court.
	(d)  The attorney representing the state is entitled to all
	reasonable discovery in accordance with the Texas Rules of Civil
	Procedure to assist in identifying and locating contraband
	described by Subsection (a).
	(e)  If the court orders the return of contraband under this
	article, the contraband, after return, is subject to seizure and
	forfeiture as otherwise provided by this chapter.
	(f)  If it is found that any person after being served with a
	citation under Subsection (c) has transported, concealed, disposed
	of, or otherwise acted to prevent the seizure and forfeiture of
	contraband described by Subsection (a), the court may:
	(1)  order the payment to the attorney representing the
	state of costs incurred in investigating and identifying the
	location of the contraband, including discovery costs, reasonable
	attorney's fees, expert fees, other professional fees incurred by
	the attorney, and travel expenses;
	(2)  enter a judgment for civil contempt and impose:
	(A)  a fine of not more than $10,000 or less than
	$1,000;
	(B)  confinement in jail for a term of not more
	than 30 days or less than 10 days; or
	(C)  both fine and confinement;
	(3)  enter a judgment of forfeiture of the person's
	interest in the contraband;
	(4)  enter a judgment in the amount of the fair market
	value of the contraband;
	(5)  impose a civil penalty of not more than $25,000 or
	less than $1,000 for each item of contraband, or each separate fund,
	of which the person transported, concealed, disposed, or otherwise
	acted to prevent the seizure and forfeiture; or
	(6)  order any combination of Subdivisions (1) through
	(5).
	Art. 59.023.  SUIT FOR PROCEEDS.  (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)  Travis County.
	(b)  If the court determines that, based on an examination of
	the affidavit described by Subsection (a), probable cause exists
	for the suit to proceed, the court shall order that citation be
	served on all defendants named in the suit in accordance with the
	Texas Rules of Civil Procedure.
	(c)  Each person who is shown to have been a party to an
	underlying offense for which the proceeds are subject to forfeiture
	is jointly and severally liable in a suit under this article,
	regardless of whether the person has been charged for the offense.
	Art. 59.024.  MULTIPLE RECOVERY PROHIBITED. The attorney
	representing the state may proceed under Article 59.02, 59.021,
	59.022, or 59.023, or any combination of those articles. If
	property or proceeds are awarded or forfeited to the state under
	this chapter for an underlying offense, a court may not award or
	forfeit additional property or proceeds that would exceed the
	highest fair market value of the contraband subject to forfeiture
	for that offense.  For purposes of this article, the highest fair
	market value may be calculated at any time during the period in
	which the applicable person owned, possessed, or had an interest in
	the contraband.
	SECTION 4.  Subsection (p), Article 59.06, Code of Criminal
	Procedure, is amended to read as follows:
	(p)  Notwithstanding Subsection (a), and to the extent
	necessary to protect the commission's ability to recover amounts
	wrongfully obtained by the owner of the property and associated
	damages and penalties to which the commission may otherwise be
	entitled by law, the attorney representing the state shall transfer
	to the Health and Human Services Commission all forfeited property
	defined as contraband under Article 59.01(2)(B)(vi)
	[59.01(2)(B)(vii)]. If the forfeited property consists of property
	other than money or negotiable instruments, the attorney
	representing the state may, if approved by the commission, sell the
	property and deliver to the commission the proceeds from the sale,
	minus costs attributable to the sale. The sale must be conducted in
	a manner that is reasonably expected to result in receiving the fair
	market value for the property.
	SECTION 5.  Subdivisions (2) and (4), Section 34.01, Penal
	Code, are amended to read as follows:
	(2)  "Funds" includes:
	(A)  coin or paper money of the United States or
	any other country that is designated as legal tender and that
	circulates and is customarily used and accepted as a medium of
	exchange in the country of issue;
	(B)  United States silver certificates, United
	States Treasury notes, and Federal Reserve System notes;
	(C)  an official foreign bank note that is
	customarily used and accepted as a medium of exchange in a foreign
	country and a foreign bank draft; and
	(D)  currency or its equivalent, including an
	electronic fund, a personal check, a bank check, a traveler's
	check, a money order, a bearer negotiable instrument, a bearer
	investment security, a bearer security, a [or] certificate of stock
	in a form that allows title to pass on delivery, or a stored value
	card as defined by Section 604.001, Business & Commerce Code.
	(4)  "Proceeds" means funds acquired or derived
	directly or indirectly from, produced through, [or] realized
	through, or used in the commission of:
	(A)  an act; or
	(B)  conduct that constitutes an offense under
	Section 151.7032, Tax Code.
	SECTION 6.  (a)  The change in law made by this Act to
	Chapter 59, Code of Criminal Procedure, applies only to the
	forfeiture of property in relation to an offense committed on or
	after the effective date of this Act. Forfeiture of property in
	relation to an offense committed before the effective date of this
	Act is governed by the law in effect when the offense was committed,
	and the former law is continued in effect for that purpose.
	(b)  The change in law made by this Act to Section 34.01,
	Penal Code, applies only to an offense committed on or after the
	effective date of this Act. An offense committed before the
	effective date of this Act is governed by the law in effect on the
	date the offense was committed, and the former law is continued in
	effect for that purpose.
	(c)  For purposes of this section, an offense was committed
	before the effective date of this Act if any element of the offense
	occurred before that date.
	SECTION 7.  This Act takes effect September 1, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1451 passed the Senate on
	May 1, 2013, by the following vote: Yeas 31, Nays 0; and that the
	Senate concurred in House amendment on May 22, 2013, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1451 passed the House, with
	amendment, on May 17, 2013, by the following vote: Yeas 135,
	Nays 6, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor