Amended in Senate August 1, 2016

Amended in Senate June 21, 2016

Amended in Assembly January 4, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1395


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:

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SECTION 1.  

Section 186.9 of the Penal Code is amended to
2read:

3

186.9.  

As used in this chapter:

4(a) “Conducts” includes, but is not limited to, initiating,
5concluding, or participating in conducting, initiating, or concluding
6a transaction.

7(b) “Financial institution” means, when located or doing
8business in this state, any national bank or banking association,
9state bank or banking association, commercial bank or trust
10company organized under the laws of the United States or any
11state, any private bank, industrial savings bank, savings bank or
12thrift institution, savings and loan association, or building and loan
13association organized under the laws of the United States or any
14state, any insured institution as defined in Section 401 of the
15National Housing Act (former 12 U.S.C. Sec. 1724(a)), any credit
16union organized under the laws of the United States or any state,
17any national banking association or corporation acting under
18Chapter 6 (commencing with Section 601) of Title 12 of the United
19States Code, any agency, agent or branch of a foreign bank, any
20currency dealer or exchange, any person or business engaged
21primarily in the cashing of checks, any person or business who
22regularly engages in the issuing, selling, or redeeming of traveler’s
23checks, money orders, or similar instruments, any broker or dealer
24in securities registered or required to be registered with the
25Securities and Exchange Commission under the Securities
26Exchange Act of 1934 or with the Commissioner of Corporations
27under Part 3 (commencing with Section 25200) of Division 1 of
28Title 4 of the Corporations Code, any licensed transmitter of funds
29or other person or business regularly engaged in transmitting funds
30to a foreign nation for others, any investment banker or investment
31company, any insurer, any dealer in gold, silver, or platinum bullion
32or coins, diamonds, emeralds, rubies, or sapphires, any pawnbroker,
33any telegraph company, any person or business regularly engaged
P3    1in the delivery, transmittal, or holding of mail or packages, any
2person or business that conducts a transaction involving the transfer
3of title to any real property, vehicle, vessel, or aircraft, any personal
4property broker, any person or business acting as a real property
5securities dealer within the meaning of Section 10237 of the
6Business and Professions Code, whether licensed to do so or not,
7any person or business acting within the meaning and scope of
8subdivisions (d) and (e) of Section 10131 and Section 10131.1 of
9the Business and Professions Code, whether licensed to do so or
10not, any person or business regularly engaged in gaming within
11the meaning and scope of Section 330, any person or business
12regularly engaged in pool selling or bookmaking within the
13meaning and scope of Section 337a, any person or business
14regularly engaged in horse racing whether licensed to do so or not
15under the Business and Professions Code, any person or business
16engaged in the operation of a gambling ship within the meaning
17and scope of Section 11317, any person or business engaged in
18controlled gambling within the meaning and scope of subdivision
19(f) of Section 19805 of the Business and Professions Code, whether
20registered to do so or not, and any person or business defined as
21a “bank,” “financial agency,” or “financial institution” by Section
225312 of Title 31 of the United States Code or Section 1010.100 of
23Title 31 of the Code of Federal Regulations and any successor
24provisions thereto.

25(c) “Transaction” includes the deposit, withdrawal, transfer,
26bailment, loan, pledge, payment, or exchange of currency, or a
27monetary instrument, as defined by subdivision (d), or the
28electronic, wire, magnetic, or manual transfer of funds between
29accounts by, through, or to, a financial institution as defined by
30subdivision (b).

31(d) “Monetary instrument” means United States currency and
32coin; the currency, coin, and foreign bank drafts of any foreign
33country; payment warrants issued by the United States, this state,
34or any city, county, or city and county of this state or any other
35political subdivision thereof; any bank check, cashier’s check,
36traveler’s check, or money order; any personal check, stock,
37investment security, or negotiable instrument in bearer form or
38otherwise in a form in which title thereto passes upon delivery;
39gold, silver, or platinum bullion or coins; and diamonds, emeralds,
40rubies, or sapphires. Except for foreign bank drafts and federal,
P4    1state, county, or city warrants, “monetary instrument” does not
2include personal checks made payable to the order of a named
3party which have not been endorsed or which bear restrictive
4endorsements, and also does not include personal checks which
5have been endorsed by the named party and deposited by the named
6party into the named party’s account with a financial institution.

7(e) “Criminal activity” means a criminal offense punishable
8under the laws of this state by death, imprisonment in the state
9prison, or imprisonment pursuant to subdivision (h) of Section
101170 or a criminal offense committed in another jurisdiction
11punishable under the laws of that jurisdiction by death or
12imprisonment for a term exceeding one year. “Criminal activity”
13also means a criminal offense specified in Sectionbegin insert 320,end insert 321, 322,
14323, 326, 330a, 330b, 330c,begin delete or 330.1.end deletebegin insert 330.1, or 330.4. This
15subdivision does not apply to any controlled game within the scope
16of Section 19943.5 of the Business and Professions Code that is
17approved by the Department of Justice.end insert

18(f) “Foreign bank draft” means a bank draft or check issued or
19made out by a foreign bank, savings and loan, casa de cambio,
20credit union, currency dealer or exchanger, check cashing business,
21money transmitter, insurance company, investment or private bank,
22or any other foreign financial institution that provides similar
23financial services, on an account in the name of the foreign bank
24or foreign financial institution held at a bank or other financial
25institution located in the United States or a territory of the United
26States.

27

SEC. 2.  

No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California
35Constitution.



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