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IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2000

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7-15-1. Definitions -- (a) "Enterprise" includes any sole proprietorship, partnership, corporation, association, or other legal entity, and any union or group of individuals associated for a particular purpose although not a legal entity.

(b) "Person" includes any individual or entity capable of holding a legal or beneficial interest in property.

(c) "Racketeering activity" means any act or threat involving any of the following crimes when punishable under state law by imprisonment for more than one (1) year: murder, kidnapping, gambling, arson in the first, second, or third degree, robbery, bribery, extortion, larceny or prostitution, or any dealing in narcotic or dangerous drugs which is chargeable as a crime under state law and punishable by imprisonment for more than one year, or child exploitations for commercial or immoral purposes in violation of section 11-9-1(b) or (c) or section 11-9-1.1.

(d) "Unlawful debt" means a debt incurred or contracted in an illegal gambling activity or business or in a business of lending money or a thing of value at a rate which is unenforceable under state law in whole or in part as to principal or interest because of the law relating to usury where the usurious rate is at least twice the enforceable rate.

(e) "Pattern of racketeering activity" requires at least three (3) acts of racketeering activity, one (1) of which occurred after the effective date of this chapter and the last of which occurred within five (5) years (excluding any period of imprisonment) after the commission of a prior act of racketeering activity.

7-15-2. Prohibited activities -- (a) It is unlawful for any person who has knowingly received any income derived directly or indirectly from a pattern of racketeering activity or through collection of an unlawful debt, to directly or indirectly use or invest any part of that income, or the proceeds of that income in the acquisition of an interest in, or the establishment or operation of any enterprise.

(b) It is unlawful for any person through a pattern of racketeering activity or through collection of an unlawful debt to directly or indirectly acquire or maintain any interest in or control of any enterprise.

(c) It is unlawful for any person employed by or associated with any enterprise organized for predominantly economic or criminal purposes to conduct or participate in the conduct of the affairs of the enterprise through a pattern of racketeering activity or collection of an unlawful debt.

(d) Provided, that a purchase of securities on the open market for purposes of investment and without the intention of controlling or participating in the control of the issuer, or of assisting another to do so, is not unlawful under this section if the securities of the issuer held by the purchaser, the members of his immediate family, and his or her or their accomplices in a racketeering activity or the collection of an unlawful debt after the purchase do not amount in the aggregate to one percent (1%) of the outstanding securities of any one class, and do not, either in law or in fact, confer the power to elect one or more directors of the issuer.

SECTION 2. This act shall take effect upon passage.

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LC01119
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF

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This act would provide that where there is at least three (3) acts of racketeering, it would constitute a pattern of racketeering activity.

This act would take effect upon passage.