Bill Text: CA AB1395 | 2015-2016 | Regular Session | Amended
Bill Title: Money laundering: criminal activity: lotteries and gaming.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1395 Detail]
Download: California-2015-AB1395-Amended.html
BILL NUMBER: AB 1395 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 1, 2016
AMENDED IN SENATE JUNE 21, 2016
AMENDED IN ASSEMBLY JANUARY 4, 2016
INTRODUCED BY Assembly Member Salas
FEBRUARY 27, 2015
An act to amend Section 186.9 of the Penal Code, relating to money
laundering.
LEGISLATIVE COUNSEL'S DIGEST
AB 1395, as amended, Salas. Money laundering: criminal activity:
lotteries and gaming.
Existing law makes it a felony or a misdemeanor to engage in money
laundering, defined as conducting a transaction involving a monetary
instrument of specified value through a financial institution with
the specific intent to promote or facilitate criminal activity.
Existing law defines criminal activity for these purposes as any
criminal offense punishable as a felony.
This bill would expand the definition of criminal activity for
purposes of money laundering to include various offenses punishable
as misdemeanors that are related to illegal lotteries and gaming. By
expanding the definition of a crime, the bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 186.9 of the Penal Code is amended to read:
186.9. As used in this chapter:
(a) "Conducts" includes, but is not limited to, initiating,
concluding, or participating in conducting, initiating, or concluding
a transaction.
(b) "Financial institution" means, when located or doing business
in this state, any national bank or banking association, state bank
or banking association, commercial bank or trust company organized
under the laws of the United States or any state, any private bank,
industrial savings bank, savings bank or thrift institution, savings
and loan association, or building and loan association organized
under the laws of the United States or any state, any insured
institution as defined in Section 401 of the National Housing Act
(former 12 U.S.C. Sec. 1724(a)), any credit union organized under the
laws of the United States or any state, any national banking
association or corporation acting under Chapter 6 (commencing with
Section 601) of Title 12 of the United States Code, any agency, agent
or branch of a foreign bank, any currency dealer or exchange, any
person or business engaged primarily in the cashing of checks, any
person or business who regularly engages in the issuing, selling, or
redeeming of traveler's checks, money orders, or similar instruments,
any broker or dealer in securities registered or required to be
registered with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 or with the Commissioner of
Corporations under Part 3 (commencing with Section 25200) of Division
1 of Title 4 of the Corporations Code, any licensed transmitter of
funds or other person or business regularly engaged in transmitting
funds to a foreign nation for others, any investment banker or
investment company, any insurer, any dealer in gold, silver, or
platinum bullion or coins, diamonds, emeralds, rubies, or sapphires,
any pawnbroker, any telegraph company, any person or business
regularly engaged in the delivery, transmittal, or holding of mail or
packages, any person or business that conducts a transaction
involving the transfer of title to any real property, vehicle,
vessel, or aircraft, any personal property broker, any person or
business acting as a real property securities dealer within the
meaning of Section 10237 of the Business and Professions Code,
whether licensed to do so or not, any person or business acting
within the meaning and scope of subdivisions (d) and (e) of Section
10131 and Section 10131.1 of the Business and Professions Code,
whether licensed to do so or not, any person or business regularly
engaged in gaming within the meaning and scope of Section 330, any
person or business regularly engaged in pool selling or bookmaking
within the meaning and scope of Section 337a, any person or business
regularly engaged in horse racing whether licensed to do so or not
under the Business and Professions Code, any person or business
engaged in the operation of a gambling ship within the meaning and
scope of Section 11317, any person or business engaged in controlled
gambling within the meaning and scope of subdivision (f) of Section
19805 of the Business and Professions Code, whether registered to do
so or not, and any person or business defined as a "bank," "financial
agency," or "financial institution" by Section 5312 of Title 31 of
the United States Code or Section 1010.100 of Title 31 of the Code of
Federal Regulations and any successor provisions thereto.
(c) "Transaction" includes the deposit, withdrawal, transfer,
bailment, loan, pledge, payment, or exchange of currency, or a
monetary instrument, as defined by subdivision (d), or the
electronic, wire, magnetic, or manual transfer of funds between
accounts by, through, or to, a financial institution as defined by
subdivision (b).
(d) "Monetary instrument" means United States currency and coin;
the currency, coin, and foreign bank drafts of any foreign country;
payment warrants issued by the United States, this state, or any
city, county, or city and county of this state or any other political
subdivision thereof; any bank check, cashier's check, traveler's
check, or money order; any personal check, stock, investment
security, or negotiable instrument in bearer form or otherwise in a
form in which title thereto passes upon delivery; gold, silver, or
platinum bullion or coins; and diamonds, emeralds, rubies, or
sapphires. Except for foreign bank drafts and federal, state, county,
or city warrants, "monetary instrument" does not include personal
checks made payable to the order of a named party which have not been
endorsed or which bear restrictive endorsements, and also does not
include personal checks which have been endorsed by the named party
and deposited by the named party into the named party's account with
a financial institution.
(e) "Criminal activity" means a criminal offense punishable under
the laws of this state by death, imprisonment in the state prison, or
imprisonment pursuant to subdivision (h) of Section 1170 or a
criminal offense committed in another jurisdiction punishable under
the laws of that jurisdiction by death or imprisonment for a term
exceeding one year. "Criminal activity" also means a criminal offense
specified in Section 320, 321, 322, 323, 326, 330a, 330b,
330c, or 330.1. 330.1, or 330.4. This
subdivision does not apply to any controlled game within the scope of
Section 19943.5 of the Business and Professions Code that is
approved by the Department of Justice.
(f) "Foreign bank draft" means a bank draft or check issued or
made out by a foreign bank, savings and loan, casa de cambio, credit
union, currency dealer or exchanger, check cashing business, money
transmitter, insurance company, investment or private bank, or any
other foreign financial institution that provides similar financial
services, on an account in the name of the foreign bank or foreign
financial institution held at a bank or other financial institution
located in the United States or a territory of the United States.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
