AN ACT Relating to drug racketeering activities; adding new sections to chapter 69.50 RCW; creating a new section; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. This act may be cited as the drug racketeering activity prohibitions act.

NEW SECTION. Sec. 2. As used in sections 2 through 6 of this act:

(1) "Drug racketeering activity" means committing, attempting to commit, conspiring to commit, or soliciting, coercing, or intimidating another person to commit any crime which is punishable under RCW 69.50.401, 69.50.402, 69.50.403, 69.50.410, or 69.50.412.

(2) "Enterprise" means any individual, sole proprietorship, partnership, corporation, or other legal entity, or any unchartered association, or group of individuals associated in fact and includes unlawful as well as lawful enterprises and governmental as well as other entities.

(3) "Pattern of drug racketeering activity" means engaging in at least two incidents of drug racketeering activity that have the same or similar intents, results, principals, victims, or methods of commission or otherwise are interrelated by distinguishing characteristics and are not isolated incidents, provided at least one of such incidents occurs after the effective date of this act and that the last of such incidents occurs within five years after a prior incident of drug racketeering activity.

NEW SECTION. Sec. 3. (1) It is unlawful for any person who has knowingly received any proceeds derived, directly or indirectly, from a pattern of drug racketeering activity to use or invest, whether directly or indirectly, any part of such proceeds, or the proceeds derived from the investment or use thereof, in the acquisition of any title to, or any right, interest, or equity in immovable property or in the establishment or operation of any enterprise.

(2) It is unlawful for any person, through a pattern of drug racketeering activity, knowingly to acquire or maintain, directly or indirectly, any interest in or control of any enterprise or immovable property.

(3) It is unlawful for any person employed by, or associated with, any enterprise knowingly to conduct or participate in, directly or indirectly, such enterprise through a pattern of drug racketeering activity.

(4) It is unlawful for any person to conspire or attempt to violate any of the provisions of subsections (1), (2), or (3) of this section.

NEW SECTION. Sec. 4. (1) Any person who violates any provision of section 3 of this act shall be fined not more than one million dollars, or imprisoned at hard labor for not more than fifty years, or both.

(2) In lieu of a fine otherwise authorized by law, any person convicted of engaging in conduct in violation of section 3 of this act through which such person derived pecuniary value, or by which such person caused personal injury or property damage or other loss, may be sentenced to pay a fine that does not exceed three times the gross value gained or three times the gross loss caused, whichever is greater, plus court costs and the costs of investigation and prosecution reasonably incurred. The funds received for the costs of investigation shall be remitted to the law enforcement agency conducting such investigation. The funds received for the costs of prosecution shall be remitted to the prosecuting attorney.

(3) The court shall hold a hearing to determine the amount of fine authorized by subsection (2) of this section.

(4) For the purposes of subsection (2) of this section, "pecuniary value" means anything of value, including any conceivable thing of the slightest value, movable or immovable, corporeal or incorporeal, public or private, and including transportation, telephone, telegraph, film, video, tape or other communication services, or any other service available for hire.

NEW SECTION. Sec. 5. No person may be arrested under section 2 of this act without a warrant, except in emergency circumstances.

NEW SECTION. Sec. 6. (1) All property, immovable or movable, including money, used in the course of, intended for use in the course of, derived from, or realized through, conduct in violation of a provision of section 3 of this act is subject to civil forfeiture to the state. Any injured person shall have a right or claim to forfeited property or to the proceeds derived therefrom superior to any right or claim the state has in the same property or proceeds. The state shall dispose of all forfeited property as soon as commercially feasible.

(2) All forfeitures or dispositions under this section shall be made with due provisions for the rights of factually innocent persons. No mortgage, lien, privilege, or other security interest recognized under the laws of the state and no ownership interest in indivision is affected by a forfeiture under this section if the owner of such mortgage, lien, privilege, or other security interest, or owner in indivision establishes that he or she is a factually innocent person. No forfeiture or disposition under this section affects the rights of factually innocent persons.

(3) The proceeds realized from such forfeiture and disposition shall be allocated and paid as follows: Fifty percent thereof to be paid to the general fund, twenty-five percent thereof to the law enforcement agency or agencies making the seizure, such proceeds to be used in drug enforcement, and twenty-five percent thereof to the district attorney. Prior to such allocation:

(a) The costs of investigation shall be paid from such proceeds to the law enforcement agency conducting the investigation leading to the seizure.

(b) The costs of prosecution shall be paid from such proceeds to the prosecuting attorney.

(4) Property subject to forfeiture under this section may be seized by a law enforcement officer upon court process. Seizure without court process may be made if:

(a) The seizure is incident to a lawful arrest or search; or

(b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a forfeiture proceeding based upon this section.

(5) In the event of a seizure under this section, a forfeiture proceeding shall be instituted promptly. Property taken or detained under this section shall not be subject to sequestration or attachment but is deemed to be in the custody of the law enforcement officer making the seizure, subject only to the order of the court. When property is seized under this section, pending forfeiture and final disposition, the law enforcement officer making the seizure may:

(a) Place the property under seal;

(b) Remove the property to a place designated by the court; or

(6) The prosecuting attorney may institute civil proceedings under this section. In any action brought under this section, the district court shall proceed as soon as practicable to the hearing and determination. Pending final determination, the court may at any time enter such injunctions and restraining orders or take such actions, including the acceptance of satisfactory performance bonds, as the court may deem proper.

(7) Any person who is injured by reason of any violation of section 3 of this act shall have a cause of action against any person engaged in a drug racketeering activity who violates a provision of section 3 of this act. Such injured person shall be entitled to recover three times the actual damages sustained or ten thousand dollars, whichever is greater. Such person shall also recover attorneys' fees in the trial and appellate courts and costs of investigation and litigation reasonably incurred.

(8) A final judgment or decree rendered in favor of the state in any criminal proceeding shall preclude the defendant from denying the essential facts established in that proceeding in any subsequent civil action.

(9) The prosecuting attorney may upon timely application intervene in any civil action or proceeding brought under subsection (7) of this section if he or she certifies that in his or her opinion the action or proceeding is of general public importance. In such action or proceeding, the state shall be entitled to the same relief as if the prosecuting attorney had instituted the action or proceeding.

NEW SECTION. Sec. 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 8. Sections 2 through 6 of this act are each added to chapter 69.50 RCW.