Bill Text: TX HB3435 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to civil and criminal actions related to racketeer influenced and corrupt organizations; creating a criminal offense.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2015-03-24 - Referred to Judiciary & Civil Jurisprudence [HB3435 Detail]

Download: Texas-2015-HB3435-Introduced.html

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84R10827 SCL-F
By: Raymond H.B. No. 3435

A BILL TO BE ENTITLED
AN ACT
relating to civil and criminal actions related to racketeer
influenced and corrupt organizations; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The legislature finds that a severe problem
is posed in this state by the increasing sophistication of various
criminal elements and the increasing extent to which this state and
its citizens are harmed as a result of the activities of these
elements.
(b) The legislature declares that the intent of this Act is
to impose sanctions against those who violate this Act and to
provide compensation to persons injured or aggrieved by those
violations. It is not the intent of the legislature that isolated
incidents of misdemeanor conduct or acts of civil disobedience be
prosecuted under this Act. It is the intent of the legislature,
however, that this Act apply to an interrelated pattern of criminal
activity motivated by or the effect of which is pecuniary gain or
economic or physical threat or injury. This Act shall be liberally
construed in providing remedies.
SECTION 2. Title 6, Civil Practice and Remedies Code, is
amended by adding Chapter 140B to read as follows:
CHAPTER 140B. CIVIL ACTIONS RELATED TO RACKETEER INFLUENCED AND
CORRUPT ORGANIZATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 140B.001. DEFINITIONS. In this chapter:
(1) "Enterprise" means:
(A) a sole proprietorship, corporation,
partnership, association, labor union, business trust, or other
legal entity; or
(B) any group of individuals associated in fact
although not a legal entity.
(2) "Local prosecutor" means a district attorney,
criminal district attorney, or county attorney with felony criminal
jurisdiction.
(3) "Racketeering" means an act described by Section
140B.002.
Sec. 140B.002. RACKETEERING. (a) A person or enterprise
commits racketeering if the person or enterprise commits an
offense, including any preparatory offense, or solicits, coerces,
or intimidates another person to commit an offense under the
following laws:
(1) criminal homicide as described by Chapter 19,
Penal Code;
(2) kidnapping or unlawful restraint as described by
Chapter 20, Penal Code;
(3) an assaultive offense as described by Chapter 22,
Penal Code;
(4) arson, criminal mischief, or other property damage
or destruction as described by Chapter 28, Penal Code;
(5) robbery as described by Chapter 29, Penal Code;
(6) burglary as described by Chapter 30, Penal Code;
(7) theft as described by Chapter 31, Penal Code;
(8) fraud as described by Chapter 32, Penal Code;
(9) a computer crime as described by Chapter 33, Penal
Code;
(10) money laundering as described by Chapter 34,
Penal Code;
(11) bribery or another offense involving corrupt
influence as described by Chapter 36, Penal Code;
(12) perjury or another offense involving
falsification as described by Chapter 37, Penal Code;
(13) obstruction of a governmental operation as
described by Chapter 38, Penal Code;
(14) prostitution or obscenity as described by Chapter
43, Penal Code;
(15) trafficking of explosive weapons, firearms, or
components of explosives as described by Chapter 46, Penal Code;
(16) gambling as described by Chapter 47, Penal Code;
(17) engaging in organized criminal activity as
described by Section 71.02, Penal Code;
(18) distillation, manufacture, or transportation of
alcoholic beverages in violation of the Alcoholic Beverage Code;
(19) manufacture or delivery of a controlled substance
or dangerous drug as described by Chapter 481 or 483, Health and
Safety Code; and
(20) intentional or reckless fraud in the purchase or
sale of securities as described by Section 29, The Securities Act
(Article 581-29, Vernon's Texas Civil Statutes).
(b) A person or enterprise commits racketeering if the
person or enterprise commits or threatens to commit an offense
described by this subsection, including any preparatory offense,
under the laws of this state or another state or under federal law
that is punishable by imprisonment for a term of more than one year
under the jurisdiction in which the violation occurred, and that is
from the following list:
(1) criminal homicide;
(2) kidnapping or unlawful restraint;
(3) arson;
(4) robbery;
(5) theft, receipt of stolen property, or extortion;
(6) bribery or another offense involving corrupt
influence;
(7) obstruction of justice;
(8) gambling;
(9) manufacture or delivery of a controlled substance
or dangerous drug; and
(10) intentional or reckless fraud in the purchase or
sale of securities.
Sec. 140B.003. RECIPROCITY WITH OTHER JURISDICTIONS. (a)
Notwithstanding any other law, a valid judgment rendered by a court
of a jurisdiction having a law substantially similar to this
chapter will be recognized and enforced by a court of this state to
the extent that a judgment rendered by a court of this state under
this chapter would be enforced in the other jurisdiction.
(b) The attorney general may enter into a reciprocal
agreement to further the purposes of this chapter with the attorney
general or chief prosecuting attorney of another jurisdiction
having a law substantially similar to this chapter.
SUBCHAPTER B. CIVIL ACTIONS AND REMEDIES
Sec. 140B.051. SUIT TO ABATE RACKETEERING; SUIT FOR
DAMAGES. (a) A person aggrieved by racketeering or the attorney
general or a local prosecutor in the name of the state may bring
suit against a person or enterprise for racketeering and may seek
any remedy or relief provided by Section 140B.052.
(b) A person who sustains damages caused by racketeering may
also recover three times the amount of the actual damages sustained
by the person and, in accordance with Chapter 41, exemplary
damages.
(c) A suit under this chapter must be brought in a district
court in a county in which all or part of the alleged racketeering
offense giving rise to the suit occurred.
Sec. 140B.052. INJUNCTIVE RELIEF AND OTHER REMEDIES. (a) A
court in which a proceeding is brought under this chapter may
prevent, restrain, and remedy racketeering by issuing any
appropriate order, including a temporary restraining order, a
temporary or permanent injunction, the creation of a receivership,
and the enforcement of a constructive trust in connection with any
property or other interest, prejudgment writs of attachment under
Chapter 61 for the purposes of freezing, preserving, and disgorging
assets, or another order for a remedy or restraint the court
considers proper.
(b) Following a final determination of liability under this
chapter, the court may issue an appropriate order, including an
order that:
(1) requires a person to divest any direct or indirect
interest in an enterprise or real or personal property;
(2) imposes reasonable restrictions on the future
activities or investments of a person that affect the laws of this
state, including prohibiting a person from engaging in the type of
endeavor or enterprise that gave rise to the racketeering offense,
to the extent permitted by the constitutions of this state and the
United States;
(3) requires the dissolution or reorganization of an
enterprise involved in the suit;
(4) orders the suspension or revocation of a license,
permit, or other authorization granted to an enterprise by a state
agency;
(5) orders the revocation of a certificate of
formation or registration issued by the secretary of state for an
enterprise whose agent authorized or engaged in racketeering if the
public interest requires the revocation;
(6) orders the recovery of reasonable fees, expenses,
and costs incurred in obtaining injunctive relief or civil remedies
or in conducting investigations under this chapter, including court
costs, attorney's fees, witness fees, and deposition fees; or
(7) orders that property attached under Chapter 61 be
used to satisfy an award in the proceeding, including damages,
penalties, costs, and fees.
(c) If property attached under Chapter 61 is not necessary
to satisfy an award of the court after a finding of liability for
racketeering of the person or enterprise having an interest in the
property, the court may order that the property be disgorged to the
state to the extent of the person's or enterprise's interest. To be
disgorged, the property must be acquired or maintained by the
person or enterprise through racketeering.
(d) Except as otherwise provided by this chapter, remedies
and awards ordered by a court under this chapter, including costs
and reasonable attorney's fees, may be assessed against and paid
from money or property awarded under this chapter.
(e) This chapter is not intended to provide the exclusive
remedy for the activity addressed by this chapter. A proceeding
under this chapter may be brought in addition to or in the
alternative of any other civil or criminal action available under
the laws of this state.
(f) Notwithstanding any other provision in this chapter,
Articles 59.13 and 59.14, Code of Criminal Procedure, apply to a
remedy under this section.
(g) A remedy under this section may not impair a security
interest in property subject to a bona fide lien.
Sec. 140B.053. RECOVERY FROM FORFEITED PROPERTY. (a) A
person who sustains damages caused by racketeering has a right or
claim to property forfeited under Chapter 59, Code of Criminal
Procedure, in connection with that racketeering activity, or any
proceeds of the forfeited property, that is superior to any right or
claim of the state or county other than for costs.
(b) A person may enforce a right or claim described by this
section only by intervening in the forfeiture proceeding before its
final disposition.
Sec. 140B.054. EVIDENCE RELATED TO CRIMINAL PROCEEDING. A
person convicted in a criminal proceeding is precluded, in a
proceeding under this chapter, from subsequently denying the
essential allegations of the criminal offense of which the person
was convicted. For purposes of this subsection, a verdict or a
plea, including a plea of nolo contendere, is considered a
conviction.
Sec. 140B.055. LIMITATIONS PERIOD. (a) A proceeding may be
commenced under this chapter only if the proceeding is filed on or
before the fifth anniversary of the date on which the racketeering
offense was actually discovered. This section supersedes any
conflicting provision establishing a shorter period of limitations
for the same conduct.
(b) If the attorney general or a local prosecutor brings an
action in the name of the state under this chapter during the
limitations period described by Subsection (a), the limitations
period for another action arising from the same series of events
that gave rise to the attorney general's or local prosecutor's
action 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.
Sec. 140B.056. SPECIAL DOCKETING PROCEDURES. The attorney
general or local prosecutor may file with the clerk of the district
court in which a proceeding 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 proceeding is pending. On receiving the
copy of the certificate, the administrative judge shall immediately
designate a judge to hear and determine the proceeding. The
designated judge shall promptly assign the proceeding for hearing,
participate in hearings, make determinations, and cause the action
to be expedited.
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 during the investigation
of the offense biological matter is collected and 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;
(D) continuous sexual abuse of young child or
children 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; or
(H) continuous trafficking of persons under
Section 20A.03, 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 he exercises control in his 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);
(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) securing execution of document by deception;
(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) Medicaid fraud under Section 35A.02, Penal
Code; or
(I) 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;
(C) compelling prostitution under Section
43.05(a)(2), Penal Code; or
(D) 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; or
(7) 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. PATTERN OF RACKETEERING. (a) Except as
provided by Subsection (b), a felony indictment for illegal control
or conduct of an enterprise under Section 72.02, 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. Title 11, Penal Code, is amended by adding
Chapter 72 to read as follows:
CHAPTER 72. RACKETEERING
Sec. 72.001. DEFINITIONS. In this chapter:
(1) "Enterprise" and "racketeering" have the
meanings assigned by Section 140B.001, Civil Practice and Remedies
Code.
(2) "Pattern of racketeering activity" means:
(A) the commission of at least two acts of
racketeering within a four-year period, excluding any period of
imprisonment, in furtherance of one or more incidents, schemes, or
transactions that have the same or similar intents, results,
accomplices, victims, or methods of commission or otherwise are
interrelated by distinguishing characteristics and are not
isolated incidents, provided at least one of those acts occurred on
or after September 1, 2015; or
(B) engaging in one or more acts of domestic
terrorism or any criminal attempt, criminal solicitation, or
criminal conspiracy related to domestic terrorism.
(3) "Pecuniary value" means:
(A) anything of value in the form of cash, a
negotiable instrument, a commercial interest, or another form of
economic advantage; or
(B) any other property or service that has a
value greater than $100.
Sec. 72.002. ILLEGAL CONTROL OR CONDUCT OF ENTERPRISE. (a)
A person commits an offense if the person knowingly:
(1) through a pattern of racketeering activity or the
proceeds of a pattern of racketeering activity, acquires or
maintains, directly or indirectly, an interest in or control of an
enterprise or property, including money;
(2) is employed by or associated with an enterprise
and conducts or participates in, directly or indirectly, any of the
affairs of the enterprise through a pattern of racketeering
activity; or
(3) directly or indirectly participates in the conduct
of an enterprise that the person knows is being wholly or partly
conducted through a pattern of racketeering activity.
(b) An offense under this section is a felony of the second
degree punishable by:
(1) a fine not to exceed the greater of:
(A) $25,000; or
(B) three times the amount of pecuniary value
gained from the offense;
(2) imprisonment for not less than five years or more
than 20 years; or
(3) both the fine and imprisonment.
(c) Notwithstanding any other law, a court may assess the
fine described by Subsection (b) instead of another fine authorized
by law.
(d) An offense under this section is considered to have been
committed in any county in which racketeering occurred or in which
an interest or control of an enterprise or property is acquired or
maintained by racketeering.
SECTION 6. Subtitle B, Title 5, Property Code, is amended by
adding Chapter 66 to read as follows:
CHAPTER 66. RICO LIENS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 66.001. DEFINITIONS. In this chapter:
(1) "Beneficial interest":
(A) means:
(i) an interest of a person as a beneficiary
under a trust arrangement under which a trustee holds title to real
property for the person's benefit; or
(ii) an interest of a person under any other
form of express fiduciary arrangement under which another person
holds title to real property for the person's benefit; and
(B) does not include an interest of a stockholder
in a corporation or an interest of a partner in either a general
partnership or limited partnership.
(2) "Local prosecutor" means a district attorney,
criminal district attorney, or county attorney with felony criminal
jurisdiction.
(3) "RICO lien notice" means a lien notice filed under
Section 66.051.
(4) "Trustee":
(A) means a person who holds title to real
property in which any other person has a beneficial interest; and
(B) does not include:
(i) a person appointed or acting as a
guardian or conservator of a ward or a personal representative of an
estate; or
(ii) a person appointed or acting as a
trustee of a testamentary trust or as trustee of any indenture of
trust under which bonds are issued or are to be issued.
SUBCHAPTER B. FILING OF NOTICE
Sec. 66.051. FILING OF LIEN NOTICE. (a) On commencing a
civil proceeding under Chapter 140B, Civil Practice and Remedies
Code, or at any time while the proceeding is pending, the attorney
general or local prosecutor may file for recording in the public
records of any one or more counties, a RICO lien notice that
complies with this chapter.
(b) The county clerk may not charge a fee for filing a RICO
lien notice.
(c) The county clerk shall immediately record a RICO lien
notice filed under this section.
Sec. 66.052. FORM AND CONTENT OF NOTICE. (a) A RICO lien
notice must be signed by the attorney general or local prosecutor or
the attorney general's or local prosecutor's designee and be in a
form prescribed by the attorney general.
(b) The notice must include:
(1) the name of the person against whom the civil
proceeding has been brought, including, at the attorney general's
or local prosecutor's discretion, any other alias, name, or
fictitious name under which the person may be known and any legal
entity controlled by or entirely owned by the person;
(2) if known to the attorney general or local
prosecutor, the present residence and business addresses of the
person;
(3) a reference to the civil proceeding stating that a
proceeding has been brought under Chapter 140B, Civil Practice and
Remedies Code, against the person named in the notice, the name of
the county or counties in which a proceeding under that chapter has
been brought, and, if known to the attorney general or local
prosecutor at the time the notice is filed, the case number of the
proceeding; and
(4) a statement that the notice is filed pursuant to
this chapter.
(c) The attorney general or local prosecutor must file a
separate lien notice for each person the attorney general or local
prosecutor intends to be affected by the filing of notice.
Sec. 66.053. NOTICE TO PERSON NAMED. (a) The attorney
general or local prosecutor shall, as soon as practicable after the
filing of a RICO lien notice, provide the person named in the
notice a copy of the recorded notice or a copy of the notice with an
indication of each county in which the notice has been recorded.
(b) The failure to provide notice required by this section
does not affect the validity of the notice.
Sec. 66.054. LIS PENDENS. In addition to filing a RICO lien
notice, the attorney general or local prosecutor may file a lis
pendens with respect to any real property owned by a person against
whom the attorney general or local prosecutor brings a proceeding
under Chapter 140B, Civil Practice and Remedies Code.
SUBCHAPTER C. EFFECT OF LIEN NOTICE
Sec. 66.101. EFFECT OF LIEN NOTICE. (a) The filing of a
RICO lien notice creates a lien from the time of filing in favor of
the state on the following property of the person named in the
notice:
(1) any real property situated in the county where the
notice is filed owned by the named person at the time the notice is
filed or acquired after that time; and
(2) any beneficial interest in real property situated
in that county held by the named person at the time the notice is
filed or acquired after that time.
(b) The filing of the lien notice creates a lien in favor of
the state that:
(1) attaches at the time the notice is filed; and
(2) is superior and prior to the interest of any other
person in the real property or beneficial interest if the interest
is acquired after the notice is filed.
Sec. 66.102. SUBSEQUENT OWNERS. (a) If a RICO lien notice
has been filed, the attorney general or local prosecutor may name as
a defendant in the related proceeding under Chapter 140B, Civil
Practice and Remedies Code, any person who acquires an interest in
the real property or beneficial interest after the notice is filed.
(b) If a judgment of forfeiture is entered under Chapter 59,
Code of Criminal Procedure, against property owned by the person
named in the RICO lien notice or in which that person has a
beneficial interest, the interest of any person in the property
that is acquired after the lien notice was filed is subject to the
judgment.
Sec. 66.103. EFFECT OF LIEN NOTICE ON USE OF PROPERTY. The
filing of a RICO lien notice does not affect the use to which real
property owned by a person named in the lien notice or in which the
person has a beneficial interest may be put or the right of the
person to receive any rents or other proceeds arising from the use
and ownership of the property other than proceeds of sale until a
judgment of forfeiture is entered.
SUBCHAPTER D. TRUST PROPERTY AND BENEFICIAL INTERESTS IN PROPERTY
Sec. 66.151. DUTIES OF TRUSTEE; OFFENSE. (a) A trustee who
has actual knowledge of a RICO lien notice or a civil or criminal
proceeding relating to racketeering brought against a person having
a beneficial interest in real property to which the trustee holds
title shall provide to the attorney general or local prosecutor, as
applicable:
(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
property; and
(3) if requested by the attorney general or local
prosecutor, a copy of the trust agreement or other instrument under
which the trustee holds title to the property.
(b) A person who violates this section commits an offense.
(c) An offense under this section is a Class B misdemeanor.
Sec. 66.152. TRUSTEE LIABILITY. (a) Subject to Subsection
(b), a trustee who conveys title to real property held in trust by
the trustee that is subject to a RICO lien notice at the time of the
conveyance that names a person who, to the trustee's actual
knowledge, has a beneficial interest in the real property is liable
to the state for the greater of:
(1) the amount of the proceeds received directly by
the person named in the lien notice as a result of the conveyance;
(2) the amount of the proceeds received by the trustee
as a result of the conveyance and distributed to the person named in
the lien notice; or
(3) the fair market value of the interest of the person
named in the lien notice in the property conveyed.
(b) If the 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 under this section
does not exceed the amount of those proceeds as long as the proceeds
continue to be held by the trustee.
(c) The attorney general or local prosecutor may bring a
civil proceeding against the trustee to recover from the trustee
any amount for which the trustee is liable under this section.
Sec. 66.153. EFFECT OF LIEN NOTICE ON TRUST PROPERTY. The
filing of a RICO lien notice does not constitute a lien on real
property held in trust by a trustee to which the trustee holds title
except to the extent the trustee is named in the lien notice.
Sec. 66.154. CERTAIN CONVEYANCES OF TRUST PROPERTY. (a)
This chapter does not apply to a conveyance by a trustee pursuant to
a court order unless the court order is entered in an action between
the trustee and a beneficiary.
(b) Unless the trustee has actual knowledge that a person
having a beneficial interest in the trust is named in a RICO lien
notice or is otherwise a defendant in a civil proceeding brought
under Chapter 140B, Civil Practice and Remedies Code, or that an in
rem forfeiture proceeding against property owned by the person has
been commenced under Chapter 59, Code of Criminal Procedure, in
connection with a pattern of racketeering activity under Chapter
72, Penal Code, this chapter does not apply to:
(1) a conveyance by a trustee required under the terms
of a trust agreement that is a matter of public record before the
lien notice was filed; or
(2) a conveyance by a trustee to all persons having a
beneficial interest in the trust.
SUBCHAPTER E. TERM OF LIEN
Sec. 66.201. EXPIRATION OF LIEN. (a) A lien created by the
filing of a RICO lien notice expires on the sixth anniversary of the
date of filing unless a notice of lien renewal has been filed before
that time.
(b) A RICO lien notice may be renewed only once. The renewal
of the notice extends the lien created by the notice for an
additional six years from the date the renewal notice is filed.
Sec. 66.202. RELEASE OF LIEN. (a) The attorney general or
local prosecutor may release a RICO lien wholly or partly on terms
and conditions the attorney general or local prosecutor considers
appropriate.
(b) A release of lien under this section may be filed in the
public records of any county. The county clerk may not impose a fee
for the filing of the release.
Sec. 66.203. TERMINATION OF LIEN. (a) If no civil
proceeding under Chapter 140B, Civil Practice and Remedies Code, or
in rem proceeding under Chapter 59, Code of Criminal Procedure, has
been commenced, the acquittal of the person in a criminal
proceeding in connection with a pattern of racketeering activity
under Chapter 72, Penal Code, or the dismissal of the criminal
proceeding terminates the RICO lien notice and the notice has no
effect.
(b) If a criminal proceeding in connection with a pattern of
racketeering activity under Chapter 72, Penal Code, is dismissed or
the person named in the lien notice is acquitted in the criminal
proceeding, the lien continues in effect for the duration of any
civil proceeding commenced under Chapter 140B, Civil Practice and
Remedies Code, or in rem proceeding commenced under Chapter 59,
Code of Criminal Procedure.
Sec. 66.204. ACTION TO RELEASE. (a) If a proceeding is not
pending against a person named in a RICO lien notice under Chapter
140B, Civil Practice and Remedies Code, or against property owned
by the person under Chapter 59, Code of Criminal Procedure, the
person may commence an action against the attorney general or local
prosecutor who filed the lien notice in the county in which the lien
notice is filed seeking a release of the lien notice or
extinguishment of the lien.
(b) If a person bringing an action under this section proves
by a preponderance of the evidence that the RICO lien notice does
not apply to the person or that any real property owned by the
person or in which the person has a beneficial interest is not
subject to forfeiture in connection with a pattern of racketeering
activity under Chapter 72, Penal Code, the court shall enter a
judgment extinguishing the lien notice or releasing the real
property or beneficial interest from the lien.
(c) The court shall immediately enter an order releasing
from the RICO lien notice any specific real property or beneficial
interest if a sale of the property or beneficial interest is pending
and the filing of the notice prevents the sale. Proceeds from the
sale must be deposited into the registry of the court subject to
further court order.
(d) The court may release from a RICO lien notice any real
property or beneficial interest on the posting of security equal to
the value of the real property interest or beneficial interest.
(e) If a civil proceeding is pending under Chapter 140B,
Civil Practice and Remedies Code, against a person named in a RICO
lien notice, or an in rem proceeding under Chapter 59, Code of
Criminal Procedure, in connection with a pattern of racketeering
activity under Chapter 72, Penal Code, is pending against real
property owned by the person or in which the person has a beneficial
interest, the court in the proceeding may, on motion of the person,
grant relief authorized by this section.
SECTION 7. This Act takes effect September 1, 2015.