Amends TCA Title 39, Chapter 12, Part 2.

DEFINITIONS<br /> <br /> Under present law, RICO defines the following terms: <br /> <br /> (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation, business trust, union chartered under the laws of this state, or other legal entity, or any unchartered union, association, or group of individuals associated in fact, although not a legal entity, and it includes illicit as well as licit enterprises and governmental, as well as other entities, including criminal gangs, as defined in the Tennessee Criminal Sentencing Reform Act of 1989;<br /> <br /> (2) "Pattern of racketeering activity" 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 otherwise are interrelated by distinguishing characteristics and are not isolated incidents; provided, that at least one of such incidents occurred after July 1, 1986, and that the last of the incidents occurred within two years after a prior incident of racketeering conduct; and<br /> <br /> (3) "Racketeering activity" means to commit, to attempt to commit, to conspire to commit, or to solicit, coerce, or intimidate another person to commit an act for financial gain that is a criminal offense involving certain amounts of controlled substances, or involving aggravated sexual exploitation of a minor, especially aggravated sexual exploitation of a minor, or to commit, attempt to commit, conspire to commit, or to solicit, coerce, or intimidate another person to commit a criminal gang offense.<br /> <br /> This bill redefines those terms as follows:<br /> <br /> (1) "Enterprise" means a formal or informal ongoing organization, association, or group that has as one of its primary activities the commission of one or more offenses qualifying as racketeering activity, and that consists of three or more persons who:<br /> <br /> (A) Share a common name, identifying signs, colors, or symbols, including, but not limited to, terrorist organizations, hate groups, and criminal gangs; or<br /> <br /> (B) Share the primary purpose of promoting or facilitating commercial sex acts, as defined under provisions for kidnapping and false imprisonment;<br /> <br /> (2) "Pattern of racketeering activity" means engaging in at least two incidents of racketeering activity that have the same or similar intents, purposes, results, accomplices, victims, or methods of commission or are otherwise interrelated by distinguishing characteristics and are not isolated incidents, as long as at least one of the incidents occurred after July 1, 2023, and the last of the incidents occurred within eight years after a prior incident. This bill prohibits racketeering activity that was the subject of a prior prosecution that resulted in an acquittal from being used; and<br /> <br /> (3) "Racketeering activity" means to commit, attempt to commit, conspire to commit, or to aid, attempt to aid, solicit, coerce, facilitate, or intimidate another person to commit: an offense relating to criminal homicide; an offense relating to kidnapping and false imprisonment; an offense relating to robbery; an offense relating to burglary; an offense relating to criminal instruments; an offense relating to money laundering; an offense relating to weapons; assault; aggravated assault; reckless endangerment; domestic assault; violation of an order of protection or restraining order; aggravated rape; rape; aggravated sexual battery; promoting prostitution; continuous sexual abuse of a child; rape of a child; aggravated rape of a child; promoting travel for prostitution; theft of property; unauthorized use of automobiles and other vehicles; extortion; forgery; criminal simulation; illegal possession or fraudulent use of credit or debit card; identity theft; arson; aggravated arson; setting fire to personal property or land; aggravated criminal trespass; trespass by motor vehicle; vandalism; bribery of a public servant; bribery of a witness; bribery of a juror; contraband in penal institutions; criminal impersonation; using a false identification; false reports; tampering with or fabricating evidence; coercion or persuasion of a witness; coercion of a juror; improper influence of a juror; retaliation for past action; threats of mass violence on school property or at school-related activity; obstruction of law enforcement; evading arrest; escape; introduction of implements for escape; perjury; aggravated perjury; subornation of perjury; stalking, aggravated stalking, or especially aggravated stalking; a drug offense; simple possession or casual exchange; counterfeit controlled substances; unlawful drug paraphernalia; immediate methamphetamine precursor; promotion of methamphetamine manufacture; manufacture, delivery, sale, or possession of methamphetamines; initiation of methamphetamine manufacture process; controlled substance analogue; gambling; gambling promotion; aggravated gambling promotion; sexual exploitation of a minor; aggravated sexual exploitation of a minor; or especially aggravated sexual exploitation of a minor.<br /> <br /> UNLAWFUL ACTIVITIES<br /> <br /> Present law provides that it is unlawful for a person:<br /> <br /> (1) Who has, with criminal intent, received any proceeds derived, directly or indirectly, from a pattern of racketeering activity or through the collection of an unlawful debt to use or invest, whether directly or indirectly, any part of the proceeds or the proceeds derived from the use or investment thereof, in the acquisition of any title to or any right, interest, or equity in, real or personal property or in the establishment or operation of any enterprise;<br /> <br /> (2) Through a pattern of racketeering activity or through the collection of an unlawful debt, to acquire or maintain, directly or indirectly, an interest in or control of any enterprise of real or personal property;<br /> <br /> (3) Employed by, or associated with, any enterprise to knowingly conduct or participate, directly or indirectly, in the enterprise through a pattern of racketeering activity or the collection of any unlawful debt; or<br /> <br /> (4) To conspire or endeavor to violate (1)-(3).<br /> <br /> Present law also provides the following:<br /> <br /> (A) That multiple and alternative violations of the above are required to be alleged in multiple separate counts, with the factual basis for the alleged predicate acts set forth in each count. A person can only be convicted either of one such criminal violation, including a conviction for conspiring to violate the above, or for one or more of the predicate acts, but not both. The state is not required to elect submission to the jury of the several counts; and<br /> <br /> (B) That, in order to convict a person or persons under RICO, based upon a conspiracy to violate the above, the state is required to prove that there was a meeting of the minds between all co-conspirators to violate RICO and that an overt act in furtherance of the intention was committed.<br /> <br /> This bill revises the above provision as follows:<br /> <br /> (1) Rewrites (1) to make it an offense for a person who has received proceeds derived from a pattern of racketeering activity to use or invest any part of those proceeds in the acquisition of any interest in real or personal property or in the establishment or operation of an enterprise;<br /> <br /> (2) Rewrites (2) to no longer make it an offense to acquire or maintain, directly or indirectly, an interest in or control of any enterprise of real or personal property through the collection of an unlawful debt;<br /> <br /> (3) Rewrites (3) to remove the language "directly or indirectly", and to no longer make it an offense for a person employed by, or associated with, an enterprise to knowingly conduct or participate in the enterprise through the collection of an unlawful debt;<br /> <br /> (4) Rewrites (4) to replace "endeavor" with "attempt"; and<br /> <br /> (5) Removes (A) and (B), and provides, instead, that a person may be convicted for a violation of (1)-(4), a conspiracy to violate (1)-(4), and any predicate acts of racketeering activity.<br /> <br /> PENALTIES<br /> <br /> Present law provides that a person convicted of engaging in activity in violation of RICO commits a Class B felony and, upon conviction, is required to be fined not more than $250,000 or sentenced to imprisonment from within Range II, unless the person qualifies for a higher range, or both. This bill rewrites this provision to provide, instead, the following:<br /> <br /> (1) That a conviction under RICO is required to be punished as a Class B felony, unless the conviction is based upon a pattern of racketeering activity that involved a homicide, in which case the conviction must be punished as a Class A felony; and<br /> <br /> (2) That a person convicted under RICO must be fined $250,000 and, despite the Tennessee Criminal Sentencing Reform Act of 1989, must be punished as a Range II offender; however, the sentence imposed upon the person may, if appropriate, be within Range III but it is prohibited from being lower than Range II.<br /> <br /> APPLICABILITY<br /> <br /> This bill applies to offenses committed on or after July 1, 2023.<br />