Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection: Texas Penal Code §72.02

Texas Criminal Law

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The Texas Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection law gives police the right to arrest you if they believe you used proceeds from a racketeering operation to acquire real property or establish any kind of enterprise.

The Texas legislature enacted this law in 2023 as part of the “Texas Racketeering Act.” The offense is codified in Texas Penal Code Section 72.02, and it went into effect September 1, 2023.

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The Texas Racketeering Act contained three new criminal laws, including Acquisition Of Interest In Property Or Control Of Enterprise Through Racketeering Or Unlawful Debt Collection and Participation In Enterprise Through Racketeering Or Unlawful Debt Collection, along with this one.

The Penal Code classifies the Texas Use Of Proceeds Derived From Racketeering law under Title 11 “Organized Crime,” Chapter 72 “Racketeering and Unlawful Debt Collection.” Learn more about the Texas offense of Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection below.

What is the current Texas law about Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection?

The current Texas law defines the offense of Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection in Penal Code Section §72.02 as follows:[1]

(a) A person commits an offense if the person intentionally uses or invests, whether directly or indirectly, any part of any proceeds knowingly derived, directly or indirectly, from a pattern of racketeering or through the collection of an unlawful debt, or the proceeds derived from the investment or use of those proceeds, in acquiring title to, or any right, interest, or equity in, real property or in the establishment or operation of any enterprise.

The 88th Texas Legislature created this law in 2023,[2] effective September 1, 2023.[3]

How can I be charged with a Use Of Proceeds Derived From Racketeering offense in Texas?

The state can charge you with Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection if the state’s attorneys believe that each of the elements of Penal Code §72.02 as described in the section above have been met.

What is the statute of limitation for Use Of Proceeds Derived From Racketeering in Texas?

The limitation period for Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection is five years, except that the limitations period is tolled during the pendency of a civil case, in the event that the state prosecutes a RICO claim under Chapter 140B, Civil Practice and Remedies Code.[4]

What is the penalty for a Texas Use Of Proceeds Derived From Racketeering offense?

The statute classifies the Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection offense as a second degree felony.[5]

Can you get probation for Use Of Proceeds Derived From Racketeering in Texas?

The Texas Code of Criminal Procedure allows both judges and juries to grant probation for Use Of Proceeds Derived From Racketeering, and judges are also allowed to accept deferred adjudication plea deals.[6]

Note, however, that no matter the offense, neither judges nor juries may recommend community supervision for any suspended sentence of over 10 years.[7] Also, judges may not grant community supervision after a conviction if (1) the defendant used or exhibited a deadly weapon during the commission of the felony or immediate flight thereafter and (2) the defendant used or exhibited the deadly weapon himself or was a party to the offense and knew that a deadly weapon would be used or exhibited.[8]

What level of crime is Use Of Proceeds Derived From Racketeering in Texas?

The Penal Code classifies Use Of Proceeds Derived From Racketeering Or Unlawful Debt Collection as a second degree felony.

Learn more about the penalty range for this offense in the section above.


^1. Texas Penal Code §72.02. This law is current as of the 88th Legislature Regular Session.^2. HB 4635, 88th Texas Legislature (RS), Section 6^3. HB 4635, 88th Texas Legislature (RS), Section 10^4. Code of Criminal Procedure 12.015(b)^5. Texas Penal Code §72.02(b)^6. See Chapter 42, Texas Code of Criminal Procedure, Art. 42A.054, Art. 42A.056, Art. 42A.102 .^7. Art. 42A.053(c), Texas Code of Criminal Procedure^8. Art. 42A.054(b), Texas Code of Criminal Procedure

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