Bill > H2206

This bill establishes a new chapter in Massachusetts law, Chapter 258E, to allow the Division of Victim Compensation and Assistance (the "Division") to monitor and potentially seize profits derived from criminal activities by incarcerated individuals. The bill defines key terms such as "contracting party" (anyone who pays a defendant for something they know or should know is from crime proceeds), "crime" (any violation of Massachusetts law punishable by state prison or federal offenses punishable by more than a year in prison), "defendant" (someone charged with, convicted of, or admitting to a crime), "proceeds of the crime" (assets or money obtained through unique knowledge or notoriety from a crime), and "victim" (anyone harmed by a crime). Under this legislation, any contracting party who pays a defendant for something that might be proceeds of a crime must notify the Division within 30 days and may be required to post a bond equal to the potential proceeds, payable to the Commonwealth for the benefit of victims. The Division will investigate these agreements to determine if the proceeds are "substantially related" to a crime, meaning they primarily stem from knowledge or notoriety gained from the criminal act, not just tangentially related. The Division can issue civil investigative demands to gather information and may petition the court to enforce compliance, with penalties including civil penalties up to three times the contract value for knowing or willful violations. Victims will be notified of such agreements and will have a right to bring civil actions against defendants within three years of public notice. The bill also amends Chapter 260 to toll the statute of limitations for victims' tort claims against a defendant during periods of the defendant's incarceration, parole, or probation. Ultimately, funds collected through bonds or penalties can be used to satisfy civil judgments for victims, with any remaining funds after claims are settled or after a specified period being returned to the contracting party (half) and the rest going to the victim compensation fund.