Chapter 878 Oregon Laws 1999

Session Law

AN ACT

HB 2319

Relating to unlawful financial transactions; creating new provisions; amending ORS 166.715; and appropriating money.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) A person commits the crime of laundering a monetary instrument if the person:

(a) Knowing that the property involved in a financial transaction represents the proceeds of some form, though not necessarily which form, of unlawful activity, conducts or attempts to conduct a financial transaction that involves the proceeds of unlawful activity:

(A) With the intent to promote the carrying on of unlawful activity; or

(B) Knowing that the transaction is designed in whole or in part to:

(i) Conceal or disguise the nature, location, source, ownership or control of the proceeds of unlawful activity; or

(ii) Avoid a transaction reporting requirement under federal law;

(b) Transports, transmits or transfers or attempts to transport, transmit or transfer a monetary instrument or funds:

(A) With the intent to promote the carrying on of unlawful activity; or

(B) Knowing that the monetary instrument or funds involved in the transportation, transmission or transfer represent the proceeds of some form, though not necessarily which form, of unlawful activity and knowing that the transportation, transmission or transfer is designed, in whole or in part, to:

(i) Conceal or disguise the nature, location, source, ownership or control of the proceeds of unlawful activity; or

(ii) Avoid a transaction reporting requirement under federal law; or

(c) Intentionally conducts or attempts to conduct a financial transaction involving property represented to be the proceeds of unlawful activity or property used to conduct or facilitate unlawful activity to:

(A) Promote the carrying on of unlawful activity;

(B) Conceal or disguise the nature, location, source, ownership or control of property believed to be the proceeds of unlawful activity; or

(C) Avoid a transaction reporting requirement under federal law.

(2)(a) Laundering a monetary instrument is a Class B felony.

(b) In addition to any other sentence of imprisonment or fine that a court may impose and notwithstanding ORS 161.625, a court may include in the sentence of a person convicted under this section a fine in an amount equal to the value of the property, funds or monetary instruments involved in the unlawful transaction.

(3) For purposes of subsection (1)(b)(B) of this section, the state may establish the defendant's knowledge through evidence that a peace officer, federal officer or another person acting at the direction of or with the approval of a peace officer or federal officer represented the matter specified in subsection (1)(b)(B) of this section as true and the defendant's subsequent statements or actions indicate that the defendant believed the representations to be true.

(4) For purposes of subsection (1)(c) of this section, "represented" includes, but is not limited to, any representation made by a peace officer, federal officer or another person acting at the direction of or with the approval of a peace officer or federal officer.

(5) As used in this section:

(a) "Conducts" includes initiating, concluding or participating in the initiation or conclusion of a transaction.

(b) "Federal officer" has the meaning given that term in ORS 133.005.

(c) "Financial institution" has the meaning given that term in ORS 706.008.

(d) "Financial transaction" means a transaction involving:

(A) The movement of funds by wire or other means;

(B) One or more monetary instruments;

(C) The transfer of title to any real property, vehicle, vessel or aircraft; or

(D) The use of a financial institution.

(e) "Monetary instrument" means:

(A) Coin or currency of the United States or of any other country, traveler's checks, personal checks, bank checks, cashier's checks, money orders, foreign bank drafts of any foreign country or gold, silver or platinum bullion or coins; or

(B) Investment securities or negotiable instruments, in bearer form or otherwise in such form that title passes upon delivery.

(f) "Peace officer" has the meaning given that term in ORS 133.005.

(g) "Transaction" includes a purchase, sale, loan, pledge, gift, transfer, delivery or other disposition and, with respect to a financial institution, includes a deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock, bond, certificate of deposit or other monetary instrument, use of a safe deposit box or any other payment, transfer or delivery by, through or to a financial institution by whatever means.

(h) "Unlawful activity" means any act constituting a felony under state, federal or foreign law.

SECTION 2. (1) A person commits the crime of engaging in a financial transaction in property derived from unlawful activity if the person knowingly engages in or attempts to engage in a financial transaction in property that:

(a) Constitutes, or is derived from, the proceeds of unlawful activity;

(b) Is of a value greater than $10,000; and

(c) The person knows is derived from or represents the proceeds of some form, though not necessarily which form, of unlawful activity.

(2)(a) Engaging in a financial transaction in property derived from unlawful activity is a Class C felony.

(3) As used in this section:

(a) "Financial transaction" has the meaning given that term in section 1 of this 1999 Act. "Financial transaction" does not include any transaction necessary to preserve a person's right to representation as guaranteed by section 11, Article I of the Oregon Constitution, and the Sixth Amendment to the United States Constitution.

(b) "Unlawful activity" has the meaning given that term in section 1 of this 1999 Act.

SECTION 3. Nothing in section 1 or 2 of this 1999 Act or the amendments to ORS 166.715 by section 4 of this 1999 Act is intended to allow the prosecution of a corporation, business, partnership, limited liability company, limited liability partnership or any similar entity, or an employee or agent of such an entity, that makes a good faith effort to comply with federal and state laws governing the entity.

SECTION 4. ORS 166.715 is amended to read:

166.715. As used in ORS 166.715 to 166.735, unless the context requires otherwise:

(1) "Documentary material" means any book, paper, document, writing, drawing, graph, chart, photograph, phonograph record, magnetic tape, computer printout, other data compilation from which information can be obtained or from which information can be translated into usable form, or other tangible item.

(2) "Enterprise" includes any individual, sole proprietorship, partnership, corporation, business trust or other profit or nonprofit legal entity, and includes any union, association or group of individuals associated in fact although not a legal entity, and both illicit and licit enterprises and governmental and nongovernmental entities.

(3) "Investigative agency" means the Department of Justice or any district attorney.

(4) "Pattern of racketeering activity" means engaging in at least two incidents of racketeering activity that have the same or similar intents, results, accomplices, victims or methods of commission or otherwise are interrelated by distinguishing characteristics, including a nexus to the same enterprise, and are not isolated incidents, provided at least one of such incidents occurred after November 1, 1981, and that the last of such incidents occurred within five years after a prior incident of racketeering activity. Notwithstanding ORS 131.505 to 131.525 or 419A.190 or any other provision of law providing that a previous prosecution is a bar to a subsequent prosecution, conduct that constitutes an incident of racketeering activity may be used to establish a pattern of racketeering activity without regard to whether the conduct previously has been the subject of a criminal prosecution or conviction or a juvenile court adjudication, unless the prosecution resulted in an acquittal or the adjudication resulted in entry of an order finding the youth not to be within the jurisdiction of the juvenile court.

(5) "Person" means any individual or entity capable of holding a legal or beneficial interest in real or personal property.

(6) "Racketeering activity" includes conduct of a person committed both before and after the person attains the age of 18 years, and means to commit, to attempt to commit, to conspire to commit, or to solicit, coerce or intimidate another person to commit:

(a) Any conduct that constitutes a crime, as defined in ORS 161.515, under any of the following provisions of the Oregon Revised Statutes:

(A) ORS 59.005 to 59.451, 59.660 to 59.830, 59.991 and 59.995, relating to securities;

(B) ORS 162.015, 162.025 and 162.065 to 162.085, relating to bribery and perjury;

(C) ORS 162.235, 162.265 to 162.305, 162.325, 162.335, 162.355 and 162.365, relating to obstructing governmental administration;

(D) ORS 162.405 to 162.425, relating to abuse of public office;

(E) ORS 162.465, relating to interference with legislative operation;

(F) ORS 163.095 to 163.115, 163.118, 163.125 and 163.145, relating to criminal homicide;

(G) ORS 163.160 to 163.205, relating to assault and related offenses;

(H) ORS 163.225 and 163.235, relating to kidnapping;

(I) ORS 163.275, relating to coercion;

(J) ORS 163.670 to 163.695, relating to sexual conduct of children;

(K) ORS 164.015, 164.043, 164.045, 164.055, 164.057, 164.075 to 164.095, 164.125, 164.135, 164.140, 164.215, 164.225 and 164.245 to 164.270, relating to theft, burglary, criminal trespass and related offenses;

(L) ORS 164.315 to 164.335, relating to arson and related offenses;

(M) ORS 164.345 to 164.365, relating to criminal mischief;

(N) ORS 164.395 to 164.415, relating to robbery;

(O) ORS 164.865, 164.875 and 164.868 to 164.872, relating to unlawful recording or labeling of a recording;

(P) ORS 165.007 to 165.022, 165.032 to 165.042 and 165.055 to 165.070, relating to forgery and related offenses;

(Q) ORS 165.080 to 165.109, relating to business and commercial offenses;

(R) ORS 165.485 to 165.515, 165.540 and 165.555, relating to communication crimes;

(S) ORS 166.180, 166.190, 166.220, 166.250, 166.270, 166.275, 166.410, 166.450 and 166.470, relating to firearms and other weapons;

(T) ORS 164.377 (2) to (4), as punishable under ORS 164.377 (5)(b), 167.007 to 167.017, 167.062 to 167.080, 167.087, 167.090, 167.122 to 167.137, 167.147, 167.164, 167.167, 167.212, 167.355, 167.365 and 167.370, relating to prostitution, obscenity, gambling, computer crimes involving the Oregon State Lottery, animal fighting and related offenses;

(U) ORS 171.990, relating to legislative witnesses;

(V) ORS 260.575 and 260.665, relating to election offenses;

(W) ORS 314.075, relating to income tax;

(X) ORS chapter 323, relating to cigarette taxes;

(Y) ORS 411.630, 411.675, 411.690 and 411.840, relating to public assistance payments, and ORS 411.990 (2) and (3);

(Z) ORS 462.140, 462.415 and 462.420 to 462.520, relating to racing;

(AA) ORS 463.995, relating to boxing and wrestling, as defined in ORS 463.015;

(BB) ORS 471.205, 471.305, 471.335 to 471.345, 471.360, 471.392 to 471.400, 471.405, 471.425, 471.445, 471.485, 471.490 and 471.675, relating to alcoholic liquor, and any of the provisions of ORS chapter 471 relating to licenses issued under the Liquor Control Act;

(CC) ORS 475.005 to 475.285 and 475.940 to 475.995, relating to controlled substances;

(DD) ORS 480.070, 480.210, 480.215 and 480.235 to 480.265, relating to explosives;

(EE) ORS 819.010, 819.040, 822.100, 822.135 and 822.150, relating to motor vehicles;

(FF) ORS 658.452 or 658.991 (2) to (4), relating to farm labor contractors;

(GG) ORS chapter 706, relating to banking law administration;

(HH) ORS chapter 714, relating to branch banking;

(II) ORS chapter 716, relating to mutual savings banks;

(JJ) ORS chapter 723, relating to credit unions;

(KK) ORS chapter 726, relating to pawnbrokers;

(LL) ORS 166.382 and 166.384, relating to destructive devices;

(MM) ORS 165.074;

(NN) ORS 59.840 to 59.965, relating to mortgage bankers and mortgage brokers;

(OO) ORS chapter 496, 497 or 498, relating to wildlife;

(PP) ORS 163.355 to 163.427, relating to sexual offenses;

(QQ) ORS 166.015, relating to riot;

(RR) ORS 166.155 and 166.165, relating to intimidation;

(SS) ORS chapter 696, relating to real estate and escrow;

(TT) ORS chapter 704, relating to outfitters and guides;

(UU) ORS 165.692, relating to making a false claim for health care payment; [or]

(VV) ORS 162.117, relating to public investment fraud; or [.]

(WW) Section 1 or 2 of this 1999 Act.

(b) Any conduct defined as "racketeering activity" under 18 U.S.C. 1961 (1)(B), (C), (D) and (E).

(7) "Unlawful debt" means any money or other thing of value constituting principal or interest of a debt that is legally unenforceable in the state in whole or in part because the debt was incurred or contracted:

(a) In violation of any one of the following:

(A) ORS chapter 462, relating to racing;

(B) ORS 167.117 to 167.164, 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 federal or state law.

(8) Notwithstanding contrary provisions in ORS 174.060, when this section references a statute in the Oregon Revised Statutes that is substantially different in the nature of its essential provisions from what the statute was when this section was enacted, the reference shall extend to and include amendments to the statute.

SECTION 5. In addition to and not in lieu of any other appropriation, there is appropriated to the Emergency Board, out of the General Fund, for the biennium beginning July 1, 1999, the amount of $117,884 for allocation only to the Department of Corrections, after the April 2000 prison population forecast, for population management issues. Any moneys that remain unallocated and unobligated by the Emergency Board on November 1, 2000, become available for any purpose for which the Emergency Board may lawfully allocate funds.

Approved by the Governor July 28, 1999

Filed in the office of Secretary of State July 28, 1999

Effective date October 23, 1999

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