HomeMy WebLinkAboutMINUTES - 05151990 - 1.46 -046
TO: BOARD OF SUPERVISORS
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FROM: y� Costa
Phil Batchelor, County Administrator g; s
County
DATE: May 7 , 1990 couK `P
SUBJECT: LEGISLATION: SB 2735 (McCorquodale)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECONMENDATION-
Adopt a position in SUPPORT of SB 2735 by Senator McCorquodale
which would expand the definition of types of transactions
involving "money laundering" which are illegal, removes the
sunset date for these provisions and deletes the repeal date for
other provisions requiring financial institutions to maintain
records of transactions involving currency in excess of $10 ,000 .
BACKGROUND:
Existing law makes it a criminal offense known as "money
laundering" for any person to conduct or attempt to conduct a
transaction through a financial institution involving defined
monetary instruments of a value exceeding $5, 000 for specified
criminal purposes or knowing that the monetary instrument
represents the proceeds of or is derived directly or indirectly
from the proceeds of criminal activity. These provisions are
repealed effective January 1 , 1992.
Under existing law, "monetary instrument" is defined as United
States currency and coin, the currency and coin of any foreign
country, any bank check, cashier' s check, traveler' s check, money
order, stock, investment security or negotiable instrument in
bearer form or otherwise in such form that title thereto passes
upon delivery, gold, silver or platinum bullion or coins,
diamonds, emeralds, rubies or sapphires.
CONTINUED ON ATTACHMENT:Yom_YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON May 5 19`10 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: ATTESTED MAY 15 1990
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
Please see Page 2.
M382 (10/88) BY DEPUTY
Senator McCorquodale has introduced SB 2735. Among other things,
SB 2735 as introduced does the following:
* Repeals the above definition of "monetary instrument" .
* In place of "monetary instrument" , SB 2735 substitutes "any
currency, negotiable instrument, fund or property interest
of any kind" . This is a considerably broader definition
than "monetary instrument" and therefore applies the
prohibition to a broader class of items.
* Repeals the January 1, 1992 sunset date, thereby leaving
these provisions in effect permanently.
Existing law requires specified financial institutions to make
and keep a record of, and to report, each transaction made by,
through, or to the financial institution which involves currency
of more than $10,000 or which results in the exchange of a
monetary instrument or instruments of value in excess of $10 ,000
for another monetary_ instrument or instruments. This provisions
is repealed effective January 1, 1992.
SB 2735 repeals this January 1, 1992 sunset date, thereby leaving
these record keeping and reporting requirements in effect
permanently.
Since SB 2735 expands , the types of transactions which are defined
as criminal activity for 'purposes of money laundering, it appears
to be consistent with the Board of Supervisors ' war on drugs.
Therefore, it is recommended that the Board of Supervisors
indicate its support for SB 2735 .
cc: Senator McCorquodale
County Administrator
District Attorney
Sheriff-Coroner
Public Defender
County Probation Officer
Health Services' Director
Drug Program Administrator
Chair, Drug Abuse Advisory Board
Les Spahnn, SRJ. Jackson, Barish & Associates
4 ,