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H.B. 4

             1     

ORGANIZED RETAIL THEFT

             2     
2007 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Paul Ray

             5     
Senate Sponsor: Gregory S. Bell

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Criminal Code regarding conduct that constitutes a pattern of
             10      unlawful activity.
             11      Highlighted Provisions:
             12          This bill:
             13          .    includes the criminal offense of retail theft in the definition of a pattern of unlawful
             14      activity; and
             15          .    provides that persons found guilty of a pattern of unlawful activity may be ordered
             16      to pay restitution for property obtained through a pattern of unlawful activity.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          76-10-1602, as last amended by Chapters 104, 140 and 319, Laws of Utah 2004
             24          76-10-1603.5, as last amended by Chapter 185, Laws of Utah 2002
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 76-10-1602 is amended to read:



             28           76-10-1602. Definitions.
             29          As used in this part:
             30          (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,
             31      business trust, association, or other legal entity, and any union or group of individuals
             32      associated in fact although not a legal entity, and includes illicit as well as licit entities.
             33          (2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
             34      commission of at least three episodes of unlawful activity, which episodes are not isolated, but
             35      have the same or similar purposes, results, participants, victims, or methods of commission, or
             36      otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
             37      demonstrate continuing unlawful conduct and be related either to each other or to the
             38      enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have
             39      occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
             40      activity as defined by this part shall have occurred within five years of the commission of the
             41      next preceding act alleged as part of the pattern.
             42          (3) "Person" includes any individual or entity capable of holding a legal or beneficial
             43      interest in property, including state, county, and local governmental entities.
             44          (4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
             45      command, encourage, or intentionally aid another person to engage in conduct which would
             46      constitute any offense described by the following crimes or categories of crimes, or to attempt
             47      or conspire to engage in an act which would constitute any of those offenses, regardless of
             48      whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
             49      or a felony:
             50          (a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
             51      Recording Practices Act;
             52          (b) any act prohibited by the criminal provisions of Title 19, Environmental Quality
             53      Code, Sections 19-1-101 through 19-7-109 ;
             54          (c) taking, destroying, or possessing wildlife or parts of wildlife for the primary
             55      purpose of sale, trade, or other pecuniary gain, in violation of Title 23, Chapter 13, Wildlife
             56      Resources Code of Utah, or Section 23-20-4 ;
             57          (d) false claims for medical benefits, kickbacks, and any other act prohibited by False
             58      Claims Act, Sections 26-20-1 through 26-20-12 ;


             59          (e) any act prohibited by the criminal provisions of Title 32A, Chapter 12, Criminal
             60      Offenses;
             61          (f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform
             62      Land Sales Practices Act;
             63          (g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah
             64      Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act,
             65      Title 58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
             66      Clandestine Drug Lab Act;
             67          (h) any act prohibited by the criminal provisions of Title 61, Chapter 1, Utah Uniform
             68      Securities Act;
             69          (i) any act prohibited by the criminal provisions of Title 63, Chapter 56, Utah
             70      Procurement Code;
             71          (j) assault or aggravated assault, Sections 76-5-102 and 76-5-103 ;
             72          (k) a terroristic threat, Section 76-5-107 ;
             73          (l) criminal homicide, Sections 76-5-201 , 76-5-202 , and 76-5-203 ;
             74          (m) kidnapping or aggravated kidnapping, Sections 76-5-301 and 76-5-302 ;
             75          (n) sexual exploitation of a minor, Section 76-5a-3 ;
             76          (o) arson or aggravated arson, Sections 76-6-102 and 76-6-103 ;
             77          (p) causing a catastrophe, Section 76-6-105 ;
             78          (q) burglary or aggravated burglary, Sections 76-6-202 and 76-6-203 ;
             79          (r) burglary of a vehicle, Section 76-6-204 ;
             80          (s) manufacture or possession of an instrument for burglary or theft, Section 76-6-205 ;
             81          (t) robbery or aggravated robbery, Sections 76-6-301 and 76-6-302 ;
             82          (u) theft, Section 76-6-404 ;
             83          (v) theft by deception, Section 76-6-405 ;
             84          (w) theft by extortion, Section 76-6-406 ;
             85          (x) receiving stolen property, Section 76-6-408 ;
             86          (y) theft of services, Section 76-6-409 ;
             87          (z) forgery, Section 76-6-501 ;
             88          (aa) fraudulent use of a credit card, Sections 76-6-506.1 , 76-6-506.2 , and 76-6-506.4 ;
             89          (bb) deceptive business practices, Section 76-6-507 ;


             90          (cc) bribery or receiving bribe by person in the business of selection, appraisal, or
             91      criticism of goods, Section 76-6-508 ;
             92          (dd) bribery of a labor official, Section 76-6-509 ;
             93          (ee) defrauding creditors, Section 76-6-511 ;
             94          (ff) acceptance of deposit by insolvent financial institution, Section 76-6-512 ;
             95          (gg) unlawful dealing with property by fiduciary, Section 76-6-513 ;
             96          (hh) bribery or threat to influence contest, Section 76-6-514 ;
             97          (ii) making a false credit report, Section 76-6-517 ;
             98          (jj) criminal simulation, Section 76-6-518 ;
             99          (kk) criminal usury, Section 76-6-520 ;
             100          (ll) fraudulent insurance act, Section 76-6-521 ;
             101          (mm) retail theft, Section 76-6-602 ;
             102          [(mm)] (nn) computer crimes, Section 76-6-703 ;
             103          [(nn)] (oo) identity fraud, Section 76-6-1102 ;
             104          [(oo)] (pp) sale of a child, Section 76-7-203 ;
             105          [(pp)] (qq) bribery to influence official or political actions, Section 76-8-103 ;
             106          [(qq)] (rr) threats to influence official or political action, Section 76-8-104 ;
             107          [(rr)] (ss) receiving bribe or bribery by public servant, Section 76-8-105 ;
             108          [(ss)] (tt) receiving bribe or bribery for endorsement of person as public servant,
             109      Section 76-8-106 ;
             110          [(tt)] (uu) official misconduct, Sections 76-8-201 and 76-8-202 ;
             111          [(uu)] (vv) obstruction of justice, Section 76-8-306 ;
             112          [(vv)] (ww) acceptance of bribe or bribery to prevent criminal prosecution, Section
             113      76-8-308 ;
             114          [(ww)] (xx) false or inconsistent material statements, Section 76-8-502 ;
             115          [(xx)] (yy) false or inconsistent statements, Section 76-8-503 ;
             116          [(yy)] (zz) written false statements, Section 76-8-504 ;
             117          [(zz)] (aaa) tampering with a witness or soliciting or receiving a bribe, Section
             118      76-8-508 ;
             119          [(aaa)] (bbb) retaliation against a witness, victim, or informant, Section 76-8-508.3 ;
             120          [(bbb)] (ccc) extortion or bribery to dismiss criminal proceeding, Section 76-8-509 ;


             121          [(ccc)] (ddd) public assistance fraud in violation of Section 76-8-1203 , 76-8-1204 , or
             122      76-8-1205 ;
             123          [(ddd)] (eee) unemployment insurance fraud, Section 76-8-1301 ;
             124          [(eee)] (fff) intentionally or knowingly causing one animal to fight with another,
             125      Subsection 76-9-301 (1)(f);
             126          [(fff)] (ggg) possession, use, or removal of explosives, chemical, or incendiary devices
             127      or parts, Section 76-10-306 ;
             128          [(ggg)] (hhh) delivery to common carrier, mailing, or placement on premises of an
             129      incendiary device, Section 76-10-307 ;
             130          [(hhh)] (iii) possession of a deadly weapon with intent to assault, Section 76-10-507 ;
             131          [(iii)] (jjj) unlawful marking of pistol or revolver, Section 76-10-521 ;
             132          [(jjj)] (kkk) alteration of number or mark on pistol or revolver, Section 76-10-522 ;
             133          [(kkk)] (lll) forging or counterfeiting trademarks, trade name, or trade device, Section
             134      76-10-1002 ;
             135          [(lll)] (mmm) selling goods under counterfeited trademark, trade name, or trade
             136      devices, Section 76-10-1003 ;
             137          [(mmm)] (nnn) sales in containers bearing registered trademark of substituted articles,
             138      Section 76-10-1004 ;
             139          [(nnn)] (ooo) selling or dealing with article bearing registered trademark or service
             140      mark with intent to defraud, Section 76-10-1006 ;
             141          [(ooo)] (ppp) gambling, Section 76-10-1102 ;
             142          [(ppp)] (qqq) gambling fraud, Section 76-10-1103 ;
             143          [(qqq)] (rrr) gambling promotion, Section 76-10-1104 ;
             144          [(rrr)] (sss) possessing a gambling device or record, Section 76-10-1105 ;
             145          [(sss)] (ttt) confidence game, Section 76-10-1109 ;
             146          [(ttt)] (uuu) distributing pornographic material, Section 76-10-1204 ;
             147          [(uuu)] (vvv) inducing acceptance of pornographic material, Section 76-10-1205 ;
             148          [(vvv)] (www) dealing in harmful material to a minor, Section 76-10-1206 ;
             149          [(www)] (xxx) distribution of pornographic films, Section 76-10-1222 ;
             150          [(xxx)] (yyy) indecent public displays, Section 76-10-1228 ;
             151          [(yyy)] (zzz) prostitution, Section 76-10-1302 ;


             152          [(zzz)] (aaaa) aiding prostitution, Section 76-10-1304 ;
             153          [(aaaa)] (bbbb) exploiting prostitution, Section 76-10-1305 ;
             154          [(bbbb)] (cccc) aggravated exploitation of prostitution, Section 76-10-1306 ;
             155          [(cccc)] (dddd) communications fraud, Section 76-10-1801 ;
             156          [(dddd)] (eeee) any act prohibited by the criminal provisions of Title 76, Chapter 10,
             157      Part 19, Money Laundering and Currency Transaction Reporting Act;
             158          [(eeee)] (ffff) any act prohibited by the criminal provisions of the laws governing
             159      taxation in this state; and
             160          [(ffff)] (gggg) any act illegal under the laws of the United States and enumerated in
             161      Title 18, Section 1961 (1)(B), (C), and (D) of the United States Code.
             162          Section 2. Section 76-10-1603.5 is amended to read:
             163           76-10-1603.5. Violation a felony -- Costs -- Forfeiture -- Fines -- Divestiture --
             164      Restrictions -- Dissolution or reorganization -- Prior restraint.
             165          (1) A person who violates any provision of Section 76-10-1603 is guilty of a second
             166      degree felony. In addition to penalties prescribed by law, the court may order the person found
             167      guilty of the felony to pay to the state, if the attorney general brought the action, or to the
             168      county, if the county attorney or district attorney brought the action, the costs of investigating
             169      and prosecuting the offense and the costs of securing the forfeitures provided for in this
             170      section. The person shall forfeit to the Uniform School Fund, as provided in Section
             171      53A-16-101 :
             172          (a) any interest acquired or maintained in violation of any provision of Section
             173      76-10-1603 ;
             174          (b) any interest in, security of, claim against, or property or contractual right of any
             175      kind affording a source of influence over any enterprise which the person has established,
             176      operated, controlled, conducted, or participated in the conduct of in violation of Section
             177      76-10-1603 ; and
             178          (c) any property constituting or derived from the net proceeds which the person
             179      obtained, directly or indirectly, from the conduct constituting the pattern of unlawful activity or
             180      from any act or conduct constituting the pattern of unlawful activity proven as part of the
             181      violation of any provision of Section 76-10-1603 .
             182          (2) If a violation of Section 76-10-1603 is based on a pattern of unlawful activity


             183      consisting of acts or conduct in violation of Section 76-10-1204 , 76-10-1205 , 76-10-1206 , or
             184      76-10-1222 , the property subject to forfeiture under this section is limited to property, the
             185      seizure or forfeiture of which would not constitute a prior restraint on the exercise of an
             186      affected party's rights under the First Amendment to the Constitution of the United States or
             187      Article I, Sec. 15 of the Utah Constitution, or would not otherwise unlawfully interfere with the
             188      exercise of those rights.
             189          (3) In lieu of a fine otherwise authorized by law for a violation of Section 76-10-1603 ,
             190      a defendant who derives net proceeds from a conduct prohibited by Section 76-10-1603 may be
             191      fined not more than twice the amount of the net proceeds.
             192          (4) Property subject to criminal forfeiture in accord with the procedures and
             193      substantive protections of Title 24, Chapter 1, Utah Uniform Forfeiture Procedures Act:
             194          (a) includes:
             195          (i) real property, including things growing on, affixed to, and found in land; and
             196          (ii) tangible and intangible personal property including money, rights, privileges,
             197      interests, claims, and securities of any kind; but
             198          (b) does not include property exchanged or to be exchanged for services rendered in
             199      connection with the defense of the charges or any related criminal case.
             200          (5) Upon conviction for violating any provision of Section 76-10-1603 , and in addition
             201      to any penalty prescribed by law and in addition to any forfeitures provided for in this section,
             202      the court may do any or all of the following:
             203          (a) order restitution to any victim or rightful owner of property obtained, directly or
             204      indirectly, from:
             205          (i) the conduct constituting the pattern of unlawful activity; or
             206          (ii) any act or conduct constituting the pattern of unlawful activity that is proven as part
             207      of the violation of any provision of Section 76-10-1603 ;
             208          [(a)] (b) order the person to divest himself of any interest in or any control, direct or
             209      indirect, of any enterprise;
             210          [(b)] (c) impose reasonable restrictions on the future activities or investments of any
             211      person, including prohibiting the person from engaging in the same type of endeavor as the
             212      enterprise engaged in, to the extent the Utah Constitution and the Constitution of the United
             213      States permit; or


             214          [(c)] (d) order the dissolution or reorganization of any enterprise.
             215          (6) If a violation of Section 76-10-1603 is based on a pattern of unlawful activity
             216      consisting of acts or conduct in violation of Section 76-10-1204 , 76-10-1205 , 76-10-1206 , or
             217      76-10-1222 , the court may not enter any order that would amount to a prior restraint on the
             218      exercise of an affected party's rights under the First Amendment to the Constitution of the
             219      United States or Article I, Section 15, Utah Constitution.
             220          (7) All rights, title, and interest in forfeitable property described in Subsections (1) and
             221      (2) vest in the state treasurer, on behalf of the Uniform School Fund, upon the commission of
             222      the act or conduct giving rise to the forfeiture under this section.
             223          (8) For purposes of this section, the "net proceeds" of an offense means property
             224      acquired as a result of the violation minus the direct costs of acquiring the property.




Legislative Review Note
    as of 11-15-06 1:53 PM


Office of Legislative Research and General Counsel


Interim Committee Note
    as of 12-12-06 9:54 AM


The Law Enforcement and Criminal Justice Interim Committee recommended this bill.


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