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  H.B. No. 4635
 
 
 
 
AN ACT
  relating to organized crime, racketeering activities, and
  collection of unlawful debts; providing a civil penalty; creating
  criminal offenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This Act shall be known as the Texas Racketeering
  Act.
         SECTION 2.  Title 6, Civil Practice and Remedies Code, is
  amended by adding Chapter 140B to read as follows:
  CHAPTER 140B.  CIVIL REMEDIES AND ENFORCEMENT RELATED TO
  RACKETEERING AND UNLAWFUL DEBT COLLECTION
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 140B.001.  DEFINITIONS. In this chapter:
               (1)  "Beneficial interest":
                     (A)  means the interest of a person:
                           (i)  as a beneficiary under a trust
  established under the Texas Trust Code (Subtitle B, Title 9,
  Property Code) in which the trustee for the trust holds legal or
  record title to real property;
                           (ii)  as a beneficiary under any other trust
  arrangement under which a trustee holds legal or record title to
  real property for the benefit of the person; or
                           (iii)  under any other form of express
  fiduciary arrangement under which any other person holds legal or
  record title to real property for the benefit of the person; and
                     (B)  does not include the interest of a
  shareholder in a corporation or the interest of a partner in either
  a general partnership or a limited partnership.
               (2)  "Cash or cash proceeds" includes:
                     (A)  damages, penalties, or any other monetary
  payment;
                     (B)  monetary proceeds from property forfeited to
  the state under Subchapter C; or
                     (C)  any payment made by a defendant by reason of a
  decree or settlement in an action filed under Subchapter C.
               (3)  "Enterprise" means a legal entity, group of
  individuals associated in fact, or a combination of those entities
  and individuals.
               (4)  "Investigative agency" means the Department of
  Public Safety, the attorney general, or a local prosecutor.
               (5)  "Local prosecutor" means a district attorney,
  criminal district attorney, or county attorney with felony criminal
  jurisdiction.
               (6)  "Money" means funds as defined by Section 34.01,
  Penal Code.
               (7)  "Real property" means any real property or any
  interest in real property, including any lease of or mortgage on
  real property.
         Sec. 140B.002.  SPECIAL DOCKETING PROCEDURES.  The attorney
  general or local prosecutor may file with the clerk of the district
  court in which an action is brought under this chapter a certificate
  stating that the case is of special public importance.  The clerk
  must immediately furnish a copy of the certificate to the
  administrative judge of the district court of the county in which
  the action is pending.  On receiving the copy of the certificate,
  the administrative judge shall immediately designate a judge to
  hear and determine the action.  The designated judge shall promptly
  assign the action for hearing, participate in hearings, make
  determinations, and cause the action to be expedited.
         Sec. 140B.003.  PREVIOUSLY SEIZED ASSETS.  Notwithstanding
  any other provision of this chapter, a remedy provided by this
  chapter may not be assessed against, and the attorney general may
  not claim or pursue in an action brought under this chapter, any
  proceeds, contraband, or other property of any kind over which a law
  enforcement authority has previously asserted jurisdiction under
  Chapter 59, Code of Criminal Procedure, at the time an action under
  this chapter was filed.
  SUBCHAPTER B. CIVIL INVESTIGATIVE AUTHORITY
         Sec. 140B.051.  DEFINITIONS. In this subchapter:
               (1)  "Civil investigative demand" means any demand
  issued by the attorney general or a local prosecutor under this
  subchapter.
               (2)  "Documentary material" means the original or a
  copy of any paper, contract, agreement, book, booklet, brochure,
  pamphlet, catalog, magazine, notice, announcement, circular,
  bulletin, instruction, minutes, agenda, study, analysis, report,
  graph, map, chart, table, schedule, note, letter, telegram,
  telephone recordings, or data compilations stored in or accessible
  through computer or other information retrieval systems, together
  with instructions and all other materials necessary to use or
  interpret the data compilations, and any product of discovery.
               (3)  "Product of discovery" means:
                     (A)  the original or a copy of a deposition,
  interrogatory, document, thing, result of inspection of land or
  other property, examination, or admission that is obtained by any
  method of discovery in a judicial or administrative proceeding of
  an adversarial nature;
                     (B)  a digest, analysis, selection, compilation,
  or derivation of any item listed in Paragraph (A); and
                     (C)  an index, instruction, or other aid or means
  of access to any item listed in Paragraph (A).
               (4)  "Racketeering investigation" means any inquiry
  conducted by the attorney general or a local prosecutor for the
  purpose of ascertaining whether any person is or has been engaged in
  or is actively preparing to engage in activities that may
  constitute a racketeering violation.
               (5)  "Racketeering violation" means conduct
  constituting an offense under Section 72.02, 72.03, or 72.04, Penal
  Code.
         Sec. 140B.052.  CIVIL INVESTIGATIVE DEMAND. If the attorney
  general or a local prosecutor has reason to believe that a person
  may be in possession, custody, or control of any documentary
  material or other evidence or may have any information relevant to a
  civil racketeering investigation, the attorney general or local
  prosecutor may, before beginning a civil proceeding under this
  chapter, issue in writing and serve on the person a civil
  investigative demand requiring the person to:
               (1)  produce any of the documentary material for
  inspection and copying;
               (2)  answer in writing any written interrogatories;
               (3)  give oral testimony; or
               (4)  provide any combination of civil investigative
  demands under Subdivisions (1)-(3).
         Sec. 140B.053.  CONTENTS OF DEMAND. (a) A civil
  investigative demand issued under Section 140B.052 must:
               (1)  describe the nature of the activities that are the
  subject of the investigation;
               (2)  state each statute the activity violates; and
               (3)  advise the person on whom the demand is served that
  the person has the right to object to the demand as provided for in
  this subchapter.
         (b)  A demand for production of documentary material must:
               (1)  describe the class of material to be produced with
  reasonable specificity so that the material demanded is fairly
  identified;
               (2)  prescribe a return date that provides a reasonable
  period of time within which the material is to be produced; and
               (3)  identify the individual to whom the material is to
  be made available for inspection and copying.
         (c)  A demand for answers to written interrogatories must:
               (1)  propound the interrogatories with definiteness
  and certainty;
               (2)  prescribe a date by which answers to the
  interrogatories must be submitted; and
               (3)  identify the individual to whom the answers should
  be submitted.
         (d)  Each demand for the giving of oral testimony must:
               (1)  prescribe a reasonable date, time, and place at
  which the testimony will begin; and
               (2)  identify the individual who will conduct the
  examination.
         Sec. 140B.054.  SERVICE; PROOF OF SERVICE. (a) Service of
  any civil investigative demand or petition filed under Section
  140B.055 or 140B.060 may be made on any natural person by delivering
  a duly executed copy of the demand or petition to the person to be
  served or by mailing a copy by registered or certified mail, return
  receipt requested, to the person at the person's residence or
  principal office or place of business.
         (b)  Service of any demand or petition filed under Section
  140B.055 or 140B.060 may be made on any person other than a natural
  person by delivering a duly executed copy of the demand or petition
  to a person to whom delivery would be appropriate under state law if
  the demand or petition were process in a civil suit.
         (c)  A verified return by the individual serving any demand
  or petition filed under Section 140B.055 or 140B.060 setting forth
  the manner of service is proof of service. In the case of service by
  registered or certified mail, the return must be accompanied by the
  return post office receipt of delivery of the demand or petition.
         Sec. 140B.055.  PETITION FOR ORDER MODIFYING OR SETTING
  ASIDE DEMAND. (a) At any time before the return date specified in a
  civil investigative demand or not later than the 30th day after the
  date the demand was served, whichever period is shorter, the person
  who has been served, and in the case of a demand for a product of
  discovery the person from whom the discovery was obtained, may file
  a petition for an order modifying or setting aside the demand in the
  district court in the county of the person's residence or principal
  office or place of business or a district court of Travis County.
  The petition must specify each ground upon which the petitioner
  relies in seeking the relief sought. The petition may be based on
  any failure of a demand to comply with the provisions of this
  subchapter or on any constitutional or other legal right or
  privilege of the petitioner.
         (b)  The petitioner shall serve a copy of the petition on the
  attorney general or local prosecutor, as applicable, in accordance
  with Section 140B.054. The attorney general or local prosecutor
  may submit an answer to the petition.
         (c)  In ruling on the petition under this section, the court
  shall presume absent evidence to the contrary that the attorney
  general or local prosecutor issued the demand in good faith and
  within the scope of the attorney general's or local prosecutor's
  authority.
         Sec. 140B.056.  COMPLIANCE WITH DEMAND. (a) A person on
  whom a civil investigative demand is served under this subchapter
  shall comply with the terms of the demand unless otherwise provided
  by court order.
         (b)  The time for compliance with the demand wholly or partly
  does not run during the pendency of any petition filed under Section
  140B.055, provided that the petitioner shall comply with any
  portions of the demand not sought to be modified or set aside.
         Sec. 140B.057.  DOCUMENTARY MATERIAL. (a) Any person on
  whom any civil investigative demand for the production of
  documentary material has been duly served under this subchapter
  shall make the material available to the attorney general or local
  prosecutor, as applicable, for inspection and copying during normal
  business hours on the return date specified in the demand at the
  person's principal office or place of business or as otherwise may
  be agreed on by the person and the attorney general or local
  prosecutor. The attorney general or local prosecutor shall bear
  the expense of any copying. The person may substitute copies for
  originals of all or part of the requested documents if the originals
  are made available for inspection. The attorney general or local
  prosecutor may elect to obtain or review information in an
  electronic format. The person shall indicate in writing which, if
  any, of the documents produced contain trade secrets or
  confidential information.
         (b)  The production of documentary material in response to
  any demand must be made under a sworn certificate in the form the
  demand designates by a natural person having knowledge of the facts
  and circumstances relating to the production to the effect that all
  of the requested material in the possession, custody, or control of
  the person to whom the demand is directed has been produced.
         Sec. 140B.058.  INTERROGATORIES. (a) Each interrogatory in
  any civil investigative demand duly served must be answered
  separately and fully in writing, unless it is objected to, in which
  case the basis for the objection shall be set forth in lieu of an
  answer. The person shall indicate in writing which, if any, of the
  answers contain trade secrets or confidential information.
         (b)  Answers to interrogatories must be submitted under a
  sworn certificate in the form the related demand designates by a
  natural person having knowledge of the facts and circumstances
  relating to the preparation of the answers to the effect that all of
  the requested information in the possession, custody, control, or
  knowledge of the person to whom the demand is directed has been set
  forth fully and accurately.
         Sec. 140B.059.  ORAL EXAMINATION. (a) The examination of
  any person pursuant to a civil investigative demand for oral
  testimony duly served must be taken before any person authorized to
  administer oaths and affirmations under the laws of this state or
  the United States. The person before whom the testimony is to be
  taken shall put the witness on oath or affirmation and shall
  personally or by someone acting under the person's direction and in
  the person's presence record the witness's testimony. At the
  expense of the attorney general or local prosecutor, and except as
  provided by this subsection, the testimony must be taken
  stenographically and may be transcribed. The attorney general or
  local prosecutor may take audio and video recordings of the
  testimony by providing notice to the person to be examined not later
  than the seventh day before the day the person is to be examined.
         (b)  The oral testimony of any person taken pursuant to a
  demand served must be taken within 100 miles of the county where the
  person resides, is found, or transacts business or in any other
  place agreed on by the person and the attorney general or local
  prosecutor.
         (c)  Any person compelled to appear under a demand for oral
  testimony may be accompanied, represented, and advised by counsel.
  Counsel may advise the person in confidence, either on the request
  of the person or on the counsel's own initiative, with respect to
  any question arising in connection with the examination.
         (d)  The individual conducting the examination on behalf of
  the attorney general or local prosecutor shall exclude from the
  place of examination all other persons except the person being
  examined, the person's counsel, the counsel of the person to whom
  the demand has been issued, the person before whom the testimony is
  to be taken, any stenographer taking the testimony, audiographer,
  videographer, and any person assisting the individual conducting
  the examination.
         (e)  During the examination, the person being examined or the
  person's counsel may object on the record to any question in
  accordance with Rule 199.5(e), Texas Rules of Civil Procedure. An
  objection may properly be made, received, and entered on the record
  when it is claimed that the person is entitled to refuse to answer
  the question on grounds of any constitutional or other privilege,
  including the privilege against self-incrimination. Neither that
  person nor the person's counsel may otherwise object to or refuse to
  answer any question or interrupt the oral examination. If the
  person refuses to answer any question, the attorney general or
  local prosecutor may petition the district court in the county
  where the examination is being conducted for an order compelling
  the person to answer the question.
         (f)  After the testimony has been fully transcribed, the
  person before whom the testimony was taken shall promptly transmit
  the transcript of the testimony to the witness and a copy of the
  transcript to the attorney general or local prosecutor. The
  witness must have a reasonable opportunity to examine the
  transcript and make any changes in form or substance accompanied by
  a statement of the reasons for the changes. The witness shall then
  sign and return the transcript. If the witness does not return the
  transcript to the person before whom the testimony was taken not
  later than the 20th day after the date the transcript was provided
  to the witness, the witness may be deemed to have waived the right
  to make changes. The officer shall then certify on the transcript
  that the witness was duly sworn and that the transcript is a true
  record of the testimony given by the witness and promptly transmit a
  copy of the certified transcript to the attorney general or local
  prosecutor.
         (g)  On request, the attorney general or local prosecutor
  shall furnish a copy of the certified transcript to the witness.
         (h)  The attorney general or local prosecutor may provide the
  witness the same fees and mileage reimbursement that are paid to
  witnesses in the district courts of this state.
         Sec. 140B.060.  FAILURE TO COMPLY WITH DEMAND PETITION FOR
  ENFORCEMENT. If a person fails to comply with a civil investigative
  demand duly served on the person, the attorney general or local
  prosecutor may file in the district court in the county in which the
  person resides, is found, or transacts business or in a district
  court of Travis County and may serve on the person a petition for an
  order of the court for enforcement. If the person transacts
  business in more than one county and the attorney general or local
  prosecutor elects not to file the petition in Travis County, the
  petition must be filed in the county of the person's principal
  office or place of business in the state or in any other county as
  may be agreed on by the person and the attorney general or local
  prosecutor.
         Sec. 140B.061.  CRIMINAL OFFENSE: DELIBERATE NONCOMPLIANCE.
  (a) A person commits an offense if the person, with intent to
  avoid, evade, or prevent compliance with a civil investigative
  demand issued under this subchapter, knowingly removes from any
  place, conceals, withholds, destroys, mutilates, alters, or by any
  other means falsifies any documentary material or otherwise
  provides inaccurate information.
         (b)  An offense under this section is a Class A misdemeanor.
         Sec. 140B.062.  DISCLOSURE AND USE OF MATERIAL AND
  INFORMATION. (a) The civil investigative demand issued by the
  attorney general or local prosecutor, any information obtained,
  maintained, or created in response to the demand, or any
  documentary material, product of discovery, or other record derived
  or created during an investigation from the information, is not
  subject to disclosure under Chapter 552, Government Code, and is
  not subject to disclosure, discovery, subpoena, or other means of
  legal compulsion for the release, except as described in
  Subsections (b) and (c).
         (b)  The attorney general or local prosecutor may not release
  or disclose information that is obtained in response to a demand or
  any documentary material, product of discovery, or other record
  derived from the information except:
               (1)  by court order for good cause shown;
               (2)  with the consent of the person who provided the
  information to the attorney general or local prosecutor;
               (3)  to an employee or other person under the direction
  of the attorney general or local prosecutor;
               (4)  to an agency of this state, the United States, or
  another state or foreign country;
               (5)  to a political subdivision of this state; or
               (6)  to a person authorized by the attorney general or
  local prosecutor to receive the information.
         (c)  The attorney general or local prosecutor may use
  information obtained in response to a demand, or any documentary
  material, product of discovery, or other record derived or created
  from the information as the attorney general or local prosecutor
  determines necessary in the enforcement of this chapter, including
  presentation before court.
         Sec. 140B.063.  JURISDICTION. If a petition is filed in the
  district court in any county, the court has jurisdiction to hear and
  determine the matter presented and to enter any order required to
  implement this chapter. Any final order is subject to appeal.
  Failure to comply with any final order entered by a court under this
  chapter is punishable by the court as contempt of the order.
         Sec. 140B.064.  NONEXCLUSIVE PROCEDURES. Nothing in this
  chapter precludes the attorney general or local prosecutor from
  using any procedure not specified in this chapter in conducting a
  racketeering investigation.
  SUBCHAPTER C.  CIVIL REMEDIES
         Sec. 140B.101.  CIVIL REMEDIES.  A district court may, after
  making due provision for the rights of innocent persons, enjoin
  conduct constituting an offense under Section 72.02, 72.03, or
  72.04, Penal Code, by issuing appropriate orders and judgments,
  including:
               (1)  ordering a defendant to divest of any interest in
  any enterprise, including real property;
               (2)  imposing reasonable restrictions on the future
  activities or investments of a defendant, including prohibiting a
  defendant from engaging in the same type of endeavor as the
  enterprise in which the defendant was engaged in conduct
  constituting an offense under Section 72.02, 72.03, or 72.04, Penal
  Code;
               (3)  ordering the dissolution or reorganization of an
  enterprise;
               (4)  ordering the suspension or revocation of a
  license, permit, or approval previously granted to an enterprise by
  any state agency; or
               (5)  ordering the forfeiture of the charter of a
  corporation organized under the laws of this state, or the
  revocation of a certificate allowing a foreign corporation to
  conduct business within this state, on finding that:
                     (A)  the board of directors or a managerial agent
  acting on behalf of the corporation, in conducting the affairs of
  the corporation, has authorized or engaged in conduct constituting
  an offense under Section 72.02, 72.03, or 72.04, Penal Code; and
                     (B)  for the prevention of future criminal
  activity, the public interest requires the charter of the
  corporation forfeited and the corporation dissolved or the
  certificate revoked.
         Sec. 140B.102.  CIVIL FORFEITURE OF PROPERTY. (a)  All
  property, real or personal, including money, used in the course of,
  intended for use in the course of, derived from, or realized through
  conduct constituting an offense under Section 72.02, 72.03, or
  72.04, Penal Code, is subject to civil forfeiture to the state under
  this chapter.
         (b)  An investigative agency, on behalf of this state, may
  bring a civil action for forfeiture:
               (1)  in the district court for the judicial district in
  which real or personal tangible property described by Subsection
  (a) is located;
               (2)  in a district court in this state regarding
  intangible property described by Subsection (a); and
               (3)  in the county in which real or personal tangible
  property described by Subsection (a) was seized.
         (c)  On entry of a final judgment of forfeiture in favor of
  the state, the title of the state to the forfeited property shall
  relate back:
               (1)  in the case of real property or a beneficial
  interest:
                     (A)  to the date of filing of a lien notice under
  Chapter 68, Property Code, in the official records of the county
  where the real property or beneficial trust is located;
                     (B)  if no lien notice is filed, to the date of the
  filing of any notice of lis pendens under Section 68.056(a),
  Property Code, in the official records of the county where the real
  property or beneficial interest is located; or
                     (C)  if no lien notice or notice of lis pendens is
  filed, to the date of recording of the final judgment of forfeiture
  in the official records of the county where the real property or
  beneficial interest is located; or
               (2)  in the case of personal property, to the date the
  personal property was seized by the investigative agency.
         (d)  For purposes of this section, a beneficial interest is
  considered to be located where real property owned by the trustee is
  located.
         Sec. 140B.103.  CONVEYANCE OF PROPERTY SUBJECT TO
  FORFEITURE. (a)  If property subject to forfeiture is conveyed,
  alienated, disposed of, diminished in value, or otherwise rendered
  unavailable for forfeiture, the investigative agency may, on behalf
  of the state, bring an action in any district court against the
  person named in the lien notice under Chapter 68, Property Code, or
  the defendant in the relevant civil action or criminal proceeding.  
  If a civil action is pending, the action shall be filed only in the
  court where the civil action is pending.
         (b)  The court in an action brought under Subsection (a)
  shall:
               (1)  enter final judgment against the person named in
  the lien notice or the defendant in the relevant civil action or
  criminal proceeding in an amount equal to:
                     (A)  the fair market value of the property; and
                     (B)  the investigative costs and attorney fees
  incurred by the investigative agency in the action; or
               (2)  order the forfeiture of any other property of the
  defendant up to the value of the property subject to forfeiture.
         Sec. 140B.104.  DISPOSITION OF FORFEITED PROPERTY.  (a)  The
  state shall dispose of all forfeited property as soon as
  commercially feasible. If property is not exercisable or
  transferable for value by the state, the state may destroy or
  otherwise dispose of the property.
         (b)  All forfeitures or dispositions under this subchapter
  shall be made with due provision for the rights of innocent persons.
         (c)  The state shall promptly distribute the proceeds
  realized from the forfeiture and disposition of property under this
  section in accordance with Subchapter D.
         Sec. 140B.105.  SEIZURE OF PROPERTY. (a)  Property subject
  to forfeiture under this subchapter may be seized by a law
  enforcement officer on court process.  Seizure without process may
  be made if:
               (1)  the seizure is incident to a lawful arrest or
  search conducted under a warrant issued under Chapter 18, Code of
  Criminal Procedure; or
               (2)  the property subject to seizure has been the
  subject of a previous judgment in favor of the state in a forfeiture
  action brought under this subchapter.
         (b)  For a seizure conducted under this section, an
  investigative agency shall promptly commence a forfeiture action
  under Section 140B.102.
         Sec. 140B.106.  STORAGE OF SEIZED PROPERTY PENDING
  FORFEITURE ACTION. Property taken or detained under this
  subchapter is not subject to replevin but is considered to be in the
  custody of the law enforcement officer making the seizure, subject
  only to the order of the court.  When property is seized under this
  subchapter, pending forfeiture and final disposition, the law
  enforcement officer may:
               (1)  place the property under seal;
               (2)  remove the property to a place designated by a
  court; or
               (3)  require another agency authorized by law to take
  custody of the property and remove it to an appropriate location.
         Sec. 140B.107.  CIVIL ACTION BROUGHT BY ATTORNEY GENERAL,
  LOCAL PROSECUTOR, OR STATE AGENCY. (a)  The office of the attorney
  general, a local prosecutor, or a state agency having jurisdiction
  over conduct constituting an offense under Section 72.02, 72.03, or
  72.04, Penal Code, may institute civil actions under this
  subchapter.  The attorney general or a state agency may institute an
  action under Section 140B.101 or 140B.102 only if the attorney
  general or agency receives the consent of the applicable local
  prosecutor to bring the action.
         (b)  In an action brought under this subchapter, the district
  court shall proceed as soon as practicable to the hearing and
  determination. Pending final determination, the district court may
  at any time enter injunctions, prohibitions, or restraining orders,
  or take actions, including the acceptance of satisfactory
  performance bonds, the court considers proper.
         Sec. 140B.108.  EFFECT OF FINAL JUDGMENT OR DECREE. A final
  judgment or decree rendered in favor of this state in a criminal
  proceeding under state law prevents the defendant from asserting in
  any subsequent civil action brought under this chapter any matter
  as to which that judgment or decree would be an estoppel as between
  the parties.
         Sec. 140B.109.  OTHER RELIEF AVAILABLE TO ATTORNEY GENERAL.
  (a)  The attorney general may bring an action against a person who
  engages in conduct constituting an offense under Section 72.02,
  72.03, or 72.04, Penal Code, to obtain:
               (1)  injunctive relief;
               (2)  a civil penalty as provided by this section; and
               (3)  reasonable attorney's fees and reasonably incurred
  costs of investigation or litigation.
         (b)  A defendant in an action brought under this section is
  subject to a civil penalty not to exceed:
               (1)  $100,000 if the defendant is an individual; or
               (2)  $1 million if the defendant is not an individual.
         (c)  The attorney general shall deposit a civil penalty
  collected under this section to the credit of the general revenue
  fund. The attorney general shall deposit attorney's fees and costs
  collected under this section into the attorney general law
  enforcement account, which may be used to investigate and enforce
  this chapter.
         (d)  Any party to an action brought under this section may
  petition the court for entry of a consent decree or for approval of
  a settlement agreement.  The proposed decree or settlement must
  specify the alleged violations, the future obligations of the
  parties, the relief agreed on, and the reasons for entering into the
  consent decree or settlement agreement.
         Sec. 140B.110.  NOTICE TO LOCAL PROSECUTOR.  (a)  In a
  reasonable time before bringing an action or on initiating an
  investigation on racketeering, the attorney general shall provide
  notice to the local prosecutor who appears to have primary
  jurisdiction over the criminal prosecution of any target of an
  investigation under this chapter at the time of the notice
  concerning the attorney general's intent to bring an action under
  this chapter or investigate racketeering, as applicable.
         (b)  The notices described by Subsection (a) must describe or
  otherwise identify the defendant to the action or the suspect, as
  applicable.
         Sec. 140B.111.  COOPERATION WITH LOCAL PROSECUTOR.  (a)  A
  local prosecutor who receives notice under Section 140B.110 may
  notify the attorney general of a related pending criminal
  investigation or prosecution.
         (b)  Notification to the attorney general under Subsection
  (a) must be in writing and describe or otherwise identify the
  defendant or suspect in the criminal investigation or proceeding.
         (c)  On receipt of notice described by Subsection (a), the
  attorney general shall coordinate and cooperate with the local
  prosecutor to ensure that the filing of an action under this chapter
  does not interfere with an ongoing criminal investigation or
  prosecution.  The attorney general shall update the local
  prosecutor on matters affecting the action or the investigation.
         Sec. 140B.112.  ABATEMENT OF ACTION.  If the local
  prosecutor determines that an action brought under this chapter
  would interfere with an ongoing criminal investigation or
  prosecution after notifying the attorney general of the
  investigation or prosecution under Section 140B.111, the local
  prosecutor may request, in writing, that the attorney general abate
  the action.  On receipt of this request, the attorney general shall
  abate the action.
         Sec. 140B.113.  LIMITATIONS; TOLLING. (a)  Notwithstanding
  any other law, the attorney general or a local prosecutor must bring
  an action under this chapter not later than the fifth anniversary of
  the later of:
               (1)  the date the conduct that is the basis for the
  action terminates; or
               (2)  the date the cause of action accrues. 
         (b)  If an indictment for an offense under Section 72.02,
  72.03, or 72.04, Penal Code, is presented or a civil action is
  brought, or intervened in, to punish, prevent, or restrain conduct
  constituting an offense under Section 72.02, 72.03, or 72.04, Penal
  Code, the running of the period of limitations prescribed by this
  section with respect to any cause of action arising under Section
  140B.109 that is wholly or partly based on a matter complained of in
  the indictment or the pleadings in the action, as applicable, is
  suspended during the pendency of the prosecution or litigation of
  the action, as applicable, and extended for two years following its
  termination.
         Sec. 140B.114.  MULTIPLE REMEDIES ALLOWED. The application
  of one civil remedy under a provision of this chapter does not
  preclude the application of any other remedy, civil or criminal,
  under this chapter or any other law.  Civil remedies under this
  chapter are supplemental and not mutually exclusive.
  SUBCHAPTER D.  DISPOSITION OF FUNDS OBTAINED THROUGH FORFEITURE
  ACTIONS
         Sec. 140B.151.  INITIAL DISTRIBUTION. (a)  A court entering
  a judgment of forfeiture in an action brought under Subchapter C
  retains jurisdiction to direct the distribution of any cash or cash
  proceeds realized from the forfeiture and disposition of the
  property.  The court shall direct the distribution of the funds in
  the following order of priority:
               (1)  statutory fees to which the clerk of the court may
  be entitled;
               (2)  claims against the property by persons who have
  previously been judicially determined to be innocent persons and
  whose interests are preserved from forfeiture by the court and not
  otherwise satisfied; and
               (3)  subject to Subsection (c), claims for restitution
  by victims of the racketeering activity.
         (b)  A claim under Subsection (a)(2) may include a claim by a
  person appointed by the court as receiver pending litigation.
         (c)  If the attorney general brought the forfeiture action,
  restitution shall be distributed though the compensation to victims
  of crime fund. If the attorney general did not bring the forfeiture
  action, restitution shall be distributed by the clerk of the court.
         Sec. 140B.152.  DISTRIBUTION OF REMAINING MONEY. (a)  
  Following satisfaction of all valid claims under Section 140B.151,
  the remaining money obtained in the forfeiture proceeding shall be
  deposited as follows:
               (1)  25 percent into the appropriate trust fund of the
  attorney general or local prosecutor's office that filed the civil
  forfeiture action as provided by Subsection (c);
               (2)  25 percent into the applicable law enforcement
  trust fund of the investigative agency that conducted the
  investigation that resulted in or significantly contributed to the
  forfeiture of the property as provided by Subsection (d); and
               (3)  50 percent into the general revenue fund.
         (b)  If a forfeiture action is filed by the attorney general
  or a local prosecutor, the court entering the judgment of
  forfeiture shall, taking into account the overall effort and
  contribution to the investigation and forfeiture action by the
  agencies that filed the action, make a pro rata apportionment among
  those agencies of the money available for distribution to those
  agencies as provided by this subchapter.  If multiple investigative
  agencies have contributed to the forfeiture of the property, the
  court that entered the judgment of forfeiture shall, taking into
  account the overall effort and contribution of the agencies to the
  investigation and forfeiture action, make a pro rata apportionment
  among those investigative agencies of the money available for
  distribution to the investigative agencies as provided by this
  subchapter.
         (c)  If a forfeiture action is filed by the attorney general,
  any money obtained by the attorney general under this section shall
  be deposited in the same manner described by Article 59.06(k)(3),
  Code of Criminal Procedure, and may be expended for the purposes and
  in the manner authorized by that section.
         (d)  If a forfeiture action is filed by a district or county
  attorney, any money obtained by the district or county attorney's
  office under this section may be used to pay the costs of
  investigations under Subchapter B and the resulting criminal
  prosecutions and civil actions. Such costs may include:
               (1)  all taxable costs;
               (2)  costs of protecting, maintaining, and forfeiting
  the property;
               (3)  employees' base salaries and compensation for
  overtime; and
               (4)  other costs that are directly attributable to the
  investigation, prosecution, or civil action.
         (e)  Any money distributed to an investigative agency under
  Subsection (a) shall be deposited in the applicable law enforcement
  fund or account established for that agency and expended for the
  purposes and in the manner authorized for that fund or account.  In
  addition, any money distributed to an investigative agency under
  this section may be used to pay the costs of investigations under
  Subchapter B and the resulting criminal prosecutions and civil
  actions. Such costs may include:
               (1)  all taxable costs;
               (2)  costs of protecting, maintaining, and forfeiting
  the property;
               (3)  employees' base salaries and compensation for
  overtime; and
               (4)  other costs directly attributable to the
  investigation, prosecution, or civil action.
         Sec. 140B.153.  EFFECT ON SETTLEMENTS. (a)  This subchapter
  may not be construed to limit the authority of an entity that files
  a forfeiture action under Subchapter C to settle a claim for
  forfeiture.
         (b)  Any proceeds arising from a settlement or from the sale
  of property obtained in a settlement shall be distributed in the
  manner described by Sections 140B.151 and 140B.152.
         Sec. 140B.154.  TEMPORARY DEPOSIT IN COURT REGISTRY.
  Pending the final distribution of the cash or cash proceeds under
  this subchapter, the court may authorize the cash or cash proceeds
  to be deposited in the court registry or in a qualified public
  depository.
         SECTION 3.  Article 12.01, Code of Criminal Procedure, is
  amended to read as follows:
         Art. 12.01.  FELONIES.  Except as provided in Articles
  12.015 and [Article] 12.03, felony indictments may be presented
  within these limits, and not afterward:
               (1)  no limitation:
                     (A)  murder and manslaughter;
                     (B)  sexual assault under Section 22.011(a)(2),
  Penal Code, or aggravated sexual assault under Section
  22.021(a)(1)(B), Penal Code;
                     (C)  sexual assault, if:
                           (i)  during the investigation of the offense
  biological matter is collected and the matter:
                                 (a)  has not yet been subjected to
  forensic DNA testing; or
                                 (b)  has been subjected to forensic DNA
  testing and the testing results show that the matter does not match
  the victim or any other person whose identity is readily
  ascertained; or
                           (ii)  probable cause exists to believe that
  the defendant has committed the same or a similar sex offense
  against five or more victims;
                     (D)  continuous sexual abuse of young child or
  disabled individual under Section 21.02, Penal Code;
                     (E)  indecency with a child under Section 21.11,
  Penal Code;
                     (F)  an offense involving leaving the scene of an
  accident under Section 550.021, Transportation Code, if the
  accident resulted in the death of a person;
                     (G)  trafficking of persons under Section
  20A.02(a)(7) or (8), Penal Code;
                     (H)  continuous trafficking of persons under
  Section 20A.03, Penal Code; or
                     (I)  compelling prostitution under Section
  43.05(a)(2), Penal Code;
               (2)  ten years from the date of the commission of the
  offense:
                     (A)  theft of any estate, real, personal or mixed,
  by an executor, administrator, guardian or trustee, with intent to
  defraud any creditor, heir, legatee, ward, distributee,
  beneficiary or settlor of a trust interested in such estate;
                     (B)  theft by a public servant of government
  property over which the public servant exercises control in the
  public servant's official capacity;
                     (C)  forgery or the uttering, using, or passing of
  forged instruments;
                     (D)  injury to an elderly or disabled individual
  punishable as a felony of the first degree under Section 22.04,
  Penal Code;
                     (E)  sexual assault, except as provided by
  Subdivision (1) or (7);
                     (F)  arson;
                     (G)  trafficking of persons under Section
  20A.02(a)(1), (2), (3), or (4), Penal Code; or
                     (H)  compelling prostitution under Section
  43.05(a)(1), Penal Code;
               (3)  seven years from the date of the commission of the
  offense:
                     (A)  misapplication of fiduciary property or
  property of a financial institution;
                     (B)  fraudulent securing of document execution;
                     (C)  a felony violation under Chapter 162, Tax
  Code;
                     (D)  false statement to obtain property or credit
  under Section 32.32, Penal Code;
                     (E)  money laundering;
                     (F)  credit card or debit card abuse under Section
  32.31, Penal Code;
                     (G)  fraudulent use or possession of identifying
  information under Section 32.51, Penal Code;
                     (H)  exploitation of a child, elderly individual,
  or disabled individual under Section 32.53, Penal Code;
                     (I)  health care fraud under Section 35A.02, Penal
  Code; or
                     (J)  bigamy under Section 25.01, Penal Code,
  except as provided by Subdivision (6);
               (4)  five years from the date of the commission of the
  offense:
                     (A)  theft or robbery;
                     (B)  except as provided by Subdivision (5),
  kidnapping or burglary;
                     (C)  injury to an elderly or disabled individual
  that is not punishable as a felony of the first degree under Section
  22.04, Penal Code;
                     (D)  abandoning or endangering a child; or
                     (E)  insurance fraud;
               (5)  if the investigation of the offense shows that the
  victim is younger than 17 years of age at the time the offense is
  committed, 20 years from the 18th birthday of the victim of one of
  the following offenses:
                     (A)  sexual performance by a child under Section
  43.25, Penal Code;
                     (B)  aggravated kidnapping under Section
  20.04(a)(4), Penal Code, if the defendant committed the offense
  with the intent to violate or abuse the victim sexually; or
                     (C)  burglary under Section 30.02, Penal Code, if
  the offense is punishable under Subsection (d) of that section and
  the defendant committed the offense with the intent to commit an
  offense described by Subdivision (1)(B) or (D) of this article or
  Paragraph (B) of this subdivision;
               (6)  ten years from the 18th birthday of the victim of
  the offense:
                     (A)  trafficking of persons under Section
  20A.02(a)(5) or (6), Penal Code;
                     (B)  injury to a child under Section 22.04, Penal
  Code; or
                     (C)  bigamy under Section 25.01, Penal Code, if
  the investigation of the offense shows that the person, other than
  the legal spouse of the defendant, whom the defendant marries or
  purports to marry or with whom the defendant lives under the
  appearance of being married is younger than 18 years of age at the
  time the offense is committed;
               (7)  two years from the date the offense was
  discovered:  sexual assault punishable as a state jail felony under
  Section 22.011(f)(2), Penal Code; or
               (8)  three years from the date of the commission of the
  offense:  all other felonies.
         SECTION 4.  Chapter 12, Code of Criminal Procedure, is
  amended by adding Article 12.015 to read as follows:
         Art. 12.015.  RACKETEERING AND UNLAWFUL DEBT COLLECTION.  
  (a)  Except as provided by Subsection (b), a felony indictment for
  an offense under Section 72.02, 72.03, or 72.04, Penal Code, must be
  presented not later than five years from the date of the commission
  of the offense.
         (b)  If the attorney general or a local prosecutor, as
  defined by Section 140B.001, Civil Practice and Remedies Code,
  brings an action in the name of the state under Chapter 140B, Civil
  Practice and Remedies Code, during the limitations period described
  by Subsection (a), that limitations period is suspended while the
  attorney general's or local prosecutor's action is pending.  If a
  limitations period is suspended under this subsection, the
  limitations period is extended for two years.
         SECTION 5.  Section 71.02(a), Penal Code, is amended to read
  as follows:
         (a)  A person commits an offense if, with the intent to
  establish, maintain, or participate in a combination or in the
  profits of a combination or as a member of a criminal street gang,
  the person commits or conspires to commit one or more of the
  following:
               (1)  murder, capital murder, arson, aggravated
  robbery, robbery, burglary, theft, aggravated kidnapping,
  kidnapping, aggravated assault, aggravated sexual assault, sexual
  assault, continuous sexual abuse of young child or disabled
  individual, solicitation of a minor, forgery, deadly conduct,
  assault punishable as a Class A misdemeanor, burglary of a motor
  vehicle, or unauthorized use of a motor vehicle;
               (2)  any gambling offense punishable as a Class A
  misdemeanor;
               (3)  promotion of prostitution, aggravated promotion
  of prostitution, or compelling prostitution;
               (4)  unlawful manufacture, transportation, repair, or
  sale of firearms or prohibited weapons;
               (5)  unlawful manufacture, delivery, dispensation, or
  distribution of a controlled substance or dangerous drug, or
  unlawful possession of a controlled substance or dangerous drug
  through forgery, fraud, misrepresentation, or deception;
               (5-a) causing the unlawful delivery, dispensation, or
  distribution of a controlled substance or dangerous drug in
  violation of Subtitle B, Title 3, Occupations Code;
               (5-b) any unlawful possession with intent to deliver a
  controlled substance or dangerous drug;
               (6)  any unlawful wholesale promotion or possession of
  any obscene material or obscene device with the intent to wholesale
  promote the same;
               (7)  any offense under Subchapter B, Chapter 43,
  depicting or involving conduct by or directed toward a child
  younger than 18 years of age;
               (8)  any felony offense under Chapter 32;
               (9)  any offense under Chapter 36;
               (10)  any offense under Chapter 34, 35, or 35A;
               (11)  any offense under Section 37.11(a);
               (12)  any offense under Chapter 20A;
               (13)  any offense under Section 37.10;
               (14)  any offense under Section 38.06, 38.07, 38.09, or
  38.11;
               (15)  any offense under Section 42.10;
               (16)  any offense under Section 46.06(a)(1) or 46.14;
               (17)  any offense under Section 20.05 or 20.06;
               (18)  any offense under Section 16.02; or
               (19)  any offense classified as a felony under the Tax
  Code.
         SECTION 6.  Title 11, Penal Code, is amended by adding
  Chapter 72 to read as follows:
  CHAPTER 72.  RACKETEERING AND UNLAWFUL DEBT COLLECTION
         Sec. 72.01.  DEFINITIONS. In this chapter:
               (1)  "Enterprise" has the meaning assigned by Section
  140B.001, Civil Practice and Remedies Code.
               (2)  "Money" means funds as defined by Section 34.01.
               (3)  "Pattern of racketeering" means engaging in at
  least two incidents of racketeering conduct that have the same or
  similar intents, results, accomplices, victims, or methods of
  commission or that otherwise are interrelated by distinguishing
  characteristics and are not isolated incidents, the last of which
  occurred not later than the fifth anniversary of the date of a
  previous incident of racketeering conduct.
               (4)  "Pecuniary value" means:
                     (A)  anything of value in the form of money, a
  negotiable instrument, or a commercial interest or anything else
  the primary significance of which is economic advantage; or
                     (B)  any other property or service that has a
  value in excess of $100.
               (5)  "Racketeering" means to commit, to attempt to
  commit, to conspire to commit, or to solicit, coerce, or intimidate
  another person to commit:
                     (A)  a felony offense under The Securities Act
  (Title 12, Government Code);
                     (B)  an offense under Section 20.03 (kidnapping);
                     (C)  an offense under Section 20.04 (aggravated
  kidnapping);
                     (D)  an offense under Section 20.07 (operation of
  stash house);
                     (E)  a felony offense under Chapter 37 (perjury
  and other falsification);
                     (F)  a felony offense under Section 38.03
  (resisting arrest, search, or transportation);
                     (G)  a felony offense under Section 38.05
  (hindering apprehension or prosecution);
                     (H)  a felony offense under Chapter 43 (public
  indecency); or
                     (I)  an offense under Section 71.02 (engaging in
  organized criminal activity).
               (6)  "Real property" has the meaning assigned by
  Section 140B.001, Civil Practice and Remedies Code.
               (7)  "Unlawful debt" means any money or other thing of
  value constituting principal or interest of a debt that is wholly or
  partly legally unenforceable in this state because the debt was
  incurred or contracted:
                     (A)  in violation of:
                           (i)  the Texas Racing Act (Subtitle A-1,
  Title 13, Occupations Code, and Article 179e, Revised Civil
  Statutes);
                           (ii)  Subtitle A, Title 4, Finance Code, or
  Section 11, Article XVI, Texas Constitution, relating to interest
  and usury, if the usurious rate is at least twice the enforceable
  rate; or
                           (iii)  Chapter 47, relating to gambling; or
                     (B)  in gambling activity in violation of federal
  law or in the business of lending money at a rate usurious under
  state law if the usurious rate is at least twice the enforceable
  rate.
         Sec. 72.02.  USE OF PROCEEDS DERIVED FROM RACKETEERING OR
  UNLAWFUL DEBT COLLECTION. (a)  A person commits an offense if the
  person intentionally uses or invests, whether directly or
  indirectly, any part of any proceeds knowingly derived, directly or
  indirectly, from a pattern of racketeering or through the
  collection of an unlawful debt, or the proceeds derived from the
  investment or use of those proceeds, in acquiring title to, or any
  right, interest, or equity in, real property or in the
  establishment or operation of any enterprise.
         (b)  An offense under this section is a felony of the second
  degree.
         (c)  If conduct that constitutes an offense under this
  section also constitutes an offense under any other law, the actor
  may be prosecuted under this section, the other law, or both.
         Sec. 72.03.  ACQUISITION OF INTEREST IN PROPERTY OR CONTROL
  OF ENTERPRISE THROUGH RACKETEERING OR UNLAWFUL DEBT COLLECTION.  
  (a)  A person commits an offense if the person, knowingly through a
  pattern of racketeering or through the collection of an unlawful
  debt, acquires or maintains, directly or indirectly, any interest
  in or control of any enterprise or real property.
         (b)  An offense under this section is a felony of the second
  degree.
         (c)  If conduct that constitutes an offense under this
  section also constitutes an offense under any other law, the actor
  may be prosecuted under this section, the other law, or both.
         Sec. 72.04.  PARTICIPATION IN ENTERPRISE THROUGH
  RACKETEERING OR UNLAWFUL DEBT COLLECTION. (a)  A person commits an
  offense if the person is employed by or associated with an
  enterprise and knowingly conducts or participates, directly or
  indirectly, in that enterprise through a pattern of racketeering or
  the collection of an unlawful debt.
         (b)  An offense under this section is a felony of the second
  degree.
         (c)  If conduct that constitutes an offense under this
  section also constitutes an offense under any other law, the actor
  may be prosecuted under this section, the other law, or both.
         Sec. 72.05.  ALTERNATIVE FINE. Notwithstanding any other
  law, a court, after a hearing, may impose a fine, instead of an
  otherwise applicable fine, on a person convicted of an offense
  under Section 72.02, 72.03, or 72.04, through which the person
  derived pecuniary value or by which the person caused personal
  injury, property damage, or other loss, that does not exceed:
               (1)  the greater of:
                     (A)  three times the gross value gained as a
  result of the offense; or
                     (B)  three times the gross loss caused as a result
  of the offense; and
               (2)  the amount of the court costs and the reasonably
  incurred costs of investigation and prosecution.
         SECTION 7.  Subtitle B, Title 5, Property Code, is amended by
  adding Chapter 68 to read as follows:
  CHAPTER 68.  RICO LIENS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 68.001.  DEFINITIONS. In this chapter:
               (1)  "Beneficial interest," "investigative agency,"
  "local prosecutor," and "real property" have the meanings assigned
  by Section 140B.001, Civil Practice and Remedies Code.
               (2)  "RICO lien notice" means a lien notice filed under
  Section 68.051 or 68.052.
               (3)  "Trustee":
                     (A)  means:
                           (i)  a person acting as trustee under a trust
  established under the Texas Trust Code (Subtitle B, Title 9,
  Property Code) in which the trustee holds legal or record title to
  real property;
                           (ii)  a person who holds legal or record
  title to real property in which another person has a beneficial
  interest; or
                           (iii)  a successor trustee to a person
  described by Subparagraph (i) or (ii); and
                     (B)  does not include a person appointed or acting
  as a personal representative as defined by Section 22.031, Estates
  Code, or appointed or acting as a trustee of a testamentary trust or
  as a trustee of an indenture of trust under which any bonds have
  been or are to be issued.
  SUBCHAPTER B.  RICO LIEN NOTICE
         Sec. 68.051.  GENERAL RICO LIEN NOTICE. (a)  On the
  institution by an investigative agency of a civil action brought
  under Chapter 140B, Civil Practice and Remedies Code, the
  investigative agency, then or at any time during the pendency of the
  action, may file a RICO lien notice in the official records of any
  one or more counties.  The attorney general must receive the consent
  of the applicable local prosecutor before filing a RICO lien.
         (b)  A filing fee or other charge may not be required as a
  condition for filing the RICO lien notice, and the clerk of the
  district court, on the presentation of a RICO lien notice, shall
  immediately record it in the official records.
         Sec. 68.052.  ATTORNEY GENERAL OR LOCAL PROSECUTOR RICO LIEN
  NOTICE. (a)  In addition to the authority to file a RICO lien notice
  under Section 68.051, the attorney general or a local prosecutor
  may apply ex parte to a district court and, on petition supported by
  sworn affidavit, obtain an order authorizing the filing of a RICO
  lien notice against real property on a showing of probable cause to
  believe that the property was used in the course of, intended for
  use in the course of, derived from, or realized through conduct
  constituting an offense under Section 72.02, 72.03, or 72.04, Penal
  Code.
         (b)  If the RICO lien notice authorization is granted, the
  attorney general or local prosecutor shall, after filing the
  notice, immediately provide notice to the owner of the property by:
               (1)  serving the notice in the manner provided by law
  for the service of process;
               (2)  mailing the notice, postage prepaid, by certified
  mail to the owner at the owner's last known address and obtaining
  evidence of the delivery; or
               (3)  if service by a method described by Subdivision
  (1) or (2) cannot be accomplished, posting the notice on the
  premises.
         (c)  The owner of the property may move the court to
  discharge the lien, and that motion shall be set for hearing at the
  earliest possible time.
         (d)  The court shall discharge the lien if the court finds
  that:
               (1)  there is no probable cause to believe that the
  property was used in the course of, intended for use in the course
  of, derived from, or realized through conduct constituting an
  offense under Section 72.02, 72.03, or 72.04, Penal Code; or
               (2)  the owner of the property neither knew nor
  reasonably should have known that the property was used in the
  course of, intended for use in the course of, derived from, or
  realized through conduct constituting an offense under Section
  72.02, 72.03, or 72.04, Penal Code.
         (e)  Testimony presented by the property owner at the
  hearing:
               (1)  is not admissible against the property owner in
  any criminal proceeding except in a criminal prosecution for
  perjury or false statement; and
               (2)  does not constitute a waiver of the property
  owner's constitutional right against self-incrimination.
         (f)  Except as provided by Subsection (g), a RICO lien notice
  secured under this section is valid for a period of 90 days from the
  date the court granted authorization and may be extended for an
  additional 90 days by the court for good cause shown.
         (g)  If a civil action is instituted under Chapter 140B,
  Civil Practice and Remedies Code, and a RICO lien notice is filed
  under this subchapter, the term of the lien notice is governed by
  this subchapter.
         (h)  The filing of a RICO lien notice, regardless of whether
  subsequently discharged or otherwise lifted, constitutes notice to
  the owner and knowledge by the owner that the property was used in
  the course of, intended for use in the course of, derived from, or
  realized through conduct constituting an offense under Section
  72.02, 72.03, or 72.04, Penal Code, such that lack of such notice
  and knowledge is not a defense in any subsequent civil action under
  Chapter 140B, Civil Practice and Remedies Code, or a subsequent
  criminal proceeding under Chapter 72, Penal Code.
         Sec. 68.053.  FORMAT OF NOTICE. (a)  A RICO lien notice must
  be signed by the attorney general or the attorney general's
  designee or by a local prosecutor or the local prosecutor's
  designee.
         (b)  A RICO lien notice must be in the form prescribed by the
  attorney general and must include:
               (1)  the name of the person against whom a civil action
  has been brought under Chapter 140B, Civil Practice and Remedies
  Code, and at the discretion of the investigative agency may also
  include any other aliases, names, or fictitious names under which
  the person may be known and any corporation, partnership, or other
  entity that is either controlled or entirely owned by the person;
               (2)  if known to the investigative agency, the current
  residence and business addresses of the person named in the notice
  and of the other names included in the notice;
               (3)  a reference to an applicable civil action,
  stating:
                     (A)  that an action under Chapter 140B, Civil
  Practice and Remedies Code, has been brought against the person
  named in the notice;
                     (B)  the name of each county in which the action
  has been brought; and
                     (C)  if known to the investigative agency at the
  time of filing the notice, the cause number of the action;
               (4)  a statement that the notice is being filed under
  this chapter; and
               (5)  the name and address of the investigative agency
  filing the notice and the name of the individual signing the notice.
         (c)  A RICO lien notice must apply only to one person and, to
  the extent applicable, any other aliases, names, or fictitious
  names of that person, including the names of corporations,
  partnerships, or other entities, to the extent permitted by
  Subsection (b)(1).  A separate notice must be filed for each person
  against whom the investigative agency desires to file a RICO lien
  notice under this subchapter.
         Sec. 68.054.  SERVICE OF NOTICE. (a)  An investigative
  agency shall, as soon as practicable after the filing of each RICO
  lien notice, provide to the person named in the notice:
               (1)  a copy of the recorded notice; or
               (2)  a copy of the notice that states each county in
  which the notice has been recorded.
         (b)  The failure of the investigative agency to provide a
  copy of a RICO lien notice under this section does not invalidate or
  otherwise affect the notice.
         Sec. 68.055.  CREATION AND PRIORITY OF RICO LIEN. (a)  
  Filing a RICO lien notice creates, from the time of its filing, a
  lien in favor of the state on the following property of the person
  named in the notice and against any other names set forth in the
  notice:
               (1)  any real property situated in the county where the
  notice is filed then or thereafter owned by the person or under any
  of the names; and
               (2)  any beneficial interest situated in the county
  where the notice is filed then or thereafter owned by the person or
  under any of the names.
         (b)  The lien shall commence and attach as of the time of
  filing of a RICO lien notice and shall continue thereafter until
  expiration, termination, or release of the notice under this
  subchapter.  The lien created in favor of the state is superior to
  the interest of any other person in the real property or beneficial
  interest if the interest is acquired subsequent to the filing of the
  notice.
         (c)  For purposes of this section, a beneficial interest is
  considered to be located where real property owned by the trustee is
  located.
         Sec. 68.056.  LIS PENDENS; INTERESTS OF PERSONS ACQUIRING
  INTEREST IN PROPERTY. (a)  In conjunction with a civil action
  brought under Chapter 140B, Civil Practice and Remedies Code, an
  investigative agency may file without prior court order in any
  county a notice of lis pendens under Section 12.007.  In such case,
  a person acquiring an interest in the subject real property or
  beneficial interest, if the real property or beneficial interest is
  acquired subsequent to the filing of the notice of lis pendens,
  shall take the interest subject to the civil action and any
  subsequent judgment of forfeiture.
         (b)  In conjunction with a civil action brought under Chapter
  140B, Civil Practice and Remedies Code, if a RICO lien notice has
  been filed, an investigative agency may name as a defendant, in
  addition to the person named in the notice, any person acquiring an
  interest in the real property or beneficial interest subsequent to
  the filing of the notice.  If a judgment of forfeiture is entered in
  the action in favor of the state, the interest of any person in the
  property that was acquired subsequent to the filing of the notice
  shall be subject to the notice and judgment of forfeiture.
         Sec. 68.057.  DUTIES OF TRUSTEE; CRIMINAL OFFENSE. (a)  A
  trustee who acquires actual knowledge that a RICO lien notice or a
  civil action brought under Chapter 140B, Civil Practice and
  Remedies Code, or criminal proceeding brought under Chapter 72,
  Penal Code, has been filed against a person for whom the trustee
  holds legal or record title to real property shall immediately
  furnish to the appropriate investigative agency:
               (1)  the name and address of the person, as known to the
  trustee;
               (2)  the name and address, as known to the trustee, of
  each other person for whose benefit the trustee holds title to the
  real property; and
               (3)  if requested by the investigative agency, a copy
  of the trust agreement or other instrument under which the trustee
  holds legal or record title to the real property.
         (b)  A trustee who violates this section commits an offense.
  An offense under this subsection is a Class B misdemeanor. 
         Sec. 68.058.  LIABILITY OF TRUSTEE FOR CONVEYANCE OF TITLE.
  (a)  A trustee who conveys title to real property for which, at the
  time of the conveyance, a RICO lien notice naming a person who, to
  the actual knowledge of the trustee, holds a beneficial interest in
  the trust has been filed in the county where the real property is
  situated is liable to the state for the greatest of:
               (1)  the amount of proceeds received directly by the
  person named in the notice as a result of the conveyance;
               (2)  the amount of proceeds received by the trustee as a
  result of the conveyance and distributed to the person named in the
  notice; or
               (3)  the fair market value of the interest of the person
  named in the notice in the real property conveyed.
         (b)  Notwithstanding Subsection (a)(3), if a trustee conveys
  the real property and holds the proceeds that would otherwise be
  paid or distributed to the beneficiary or at the direction of the
  beneficiary or the beneficiary's designee, the trustee's liability
  does not exceed the amount of the proceeds held for so long as the
  proceeds are held by the trustee.
         (c)  An investigative agency may bring a civil action in any
  district court against a trustee to recover from the trustee the
  amount described by Subsection (a) and is entitled to recover
  investigative costs and attorney's fees incurred by the
  investigative agency.
         Sec. 68.059.  EFFECT ON TRUST OF RICO LIEN NOTICE. (a)  The
  filing of a RICO lien notice does not constitute a lien on the
  record title to real property as owned by a trustee except to the
  extent that the trustee is named in the notice. 
         (b)  The filing of a RICO lien notice does not affect the use
  to which real property or a beneficial interest owned by the person
  named in the notice may be put or the right of the person to receive
  any avails, rents, or other proceeds resulting from the use and
  ownership, but not the sale, of the property until a judgment of
  forfeiture is entered.
         Sec. 68.060.  TRUST EXCEPTIONS. (a)  This chapter does not
  apply to a conveyance by a trustee under a court order, unless that
  court order is entered in an action between the trustee and the
  beneficiary.
         (b)  Unless the trustee has actual knowledge that a person
  owning a beneficial interest in the trust is named in a RICO lien
  notice or is otherwise a defendant in a civil action brought under
  Chapter 140B, Civil Practice and Remedies Code, this subchapter
  does not apply to a conveyance by the trustee:
               (1)  required under the terms of the trust agreement
  that is a matter of public record before the filing of the lien
  notice; or
               (2)  to all of the persons who own beneficial interests
  in the trust.
         Sec. 68.061.  RIGHTS OF INNOCENT PERSONS. All forfeitures
  or dispositions under this chapter must be made with due provision
  for the rights of innocent persons.
         Sec. 68.062.  EXPIRATION, RENEWAL, AND RELEASE OF RICO LIEN
  NOTICE. (a)  Unless renewed by the investigative agency, a RICO
  lien notice expires on the sixth anniversary of the date it was
  filed. If the investigative agency renews the notice, the notice
  expires on the sixth anniversary of the date it was renewed. The
  investigative agency may renew the notice only once.
         (b)  The investigative agency filing a RICO lien notice may
  wholly or partly release the notice or may release any specific real
  property or beneficial interest from the notice on the
  investigative agency's own terms. A release of the notice may be
  filed in the official records of any county. A charge or fee may not
  be imposed for the filing of the release.
         Sec. 68.063.  EFFECT OF CRIMINAL CASE ON RICO LIEN NOTICE.
  If a civil action has not been brought by an investigative agency
  seeking a forfeiture of any property owned by the person named in
  the RICO lien notice, the acquittal in a criminal proceeding
  brought under Chapter 72, Penal Code, of the person named in the
  notice or the dismissal of the criminal proceeding terminates the
  notice and, in such case, the filing of the notice is void.  If the
  criminal proceeding has been dismissed or the person named in the
  notice has been acquitted in the criminal proceeding, the notice
  continues for the duration of a civil action brought under Chapter
  140B, Civil Practice and Remedies Code.
         Sec. 68.064.  TERMINATION OR RELEASE OF RICO LIEN NOTICE BY
  COURT. (a)  If a civil action brought under Chapter 140B, Civil
  Practice and Remedies Code, is not pending against a person named in
  a RICO lien notice, the person may bring an action in the county
  where the notice has been filed against the investigative agency
  that filed the notice seeking a release or extinguishment of the
  notice. 
         (b)  In an action brought under this section, the court
  shall, on the motion of the person named in the RICO lien notice,
  immediately enter an order setting a date for hearing that is not
  earlier than the fifth day and not later than the 10th day after the
  date the action is filed, and the order and a copy of the complaint
  shall be served on the investigative agency not later than the third
  day after the date the action is filed.
         (c)  At the hearing set under Subsection (b), the court shall
  take evidence on the issue of whether any real property or
  beneficial interest owned by the person named in the RICO lien
  notice is covered by the notice or is otherwise subject to
  forfeiture under Chapter 140B, Civil Practice and Remedies Code.
         (d)  If, at the hearing under Subsection (b), the person
  named in the RICO lien notice shows by a preponderance of the
  evidence that the notice is not applicable to the person or that any
  real property or beneficial interest owned by the person is not
  subject to forfeiture under Chapter 140B, Civil Practice and
  Remedies Code, the court shall enter a judgment terminating the
  notice or releasing the real property or beneficial interest from
  the notice.
         (e)  A court shall immediately enter its order releasing from
  a RICO lien notice any specific real property or beneficial
  interest if a sale of that real property or beneficial interest is
  pending and the filing of the notice prevents the sale of the
  property or interest. Proceeds resulting from the sale of that real
  property or beneficial interest shall be deposited into the
  registry of the court, subject to the further order of the court.
         (f)  At the hearing under Subsection (b), the court may
  release any real property or beneficial interest from the RICO lien
  notice, on the posting by the person named in the notice of security
  that is equal to the value of the real property or beneficial
  interest owned by the person.
         (g)  If a civil action brought under Chapter 140B, Civil
  Practice and Remedies Code, is pending against a person named in a
  RICO lien notice, the court on motion by the person may grant the
  relief described by this section.
         SECTION 8.  (a) Chapter 140B, Civil Practice and Remedies
  Code, as added by this Act, applies only to a cause of action that
  accrues on or after the effective date of this Act.
         (b)  Section 71.02, Penal Code, as amended by this Act,
  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 when the offense was committed,
  and the former law is continued in effect for that purpose.  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 9.  To the extent of any conflict, this Act prevails
  over another Act of the 88th Legislature, Regular Session, 2023,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 10.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4635 was passed by the House on May 5,
  2023, by the following vote:  Yeas 112, Nays 24, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 4635 on May 25, 2023, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 4635 on May 28, 2023, by the following vote:  Yeas 105,
  Nays 35, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4635 was passed by the Senate, with
  amendments, on May 23, 2023, by the following vote:  Yeas 30, Nays
  1; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  4635 on May 28, 2023, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor