HB442 Alabama 2016 Session

Summary

Primary Sponsor

Jim HillRepresentative

Republican

Session

Regular Session 2016

Title

Crimes and offenses, criminal penalties and sanctions for racketeering and corrupt organizations, forfeiture of property used in racketeering activity, liens, Alabama RICO (Racketeering Influenced and Corrupt Organizations) Act

Summary

HB442 creates the Alabama RICO Act to punish racketeering, allow asset forfeiture, and enable cross-state enforcement.

What This Bill Does

It makes it illegal to acquire or maintain any interest in an enterprise or property through a pattern of racketeering activity or its proceeds, and it targets those who conduct or participate in such enterprises. Courts can enjoin violations and impose measures like divestment, activity restrictions, dissolution of enterprises, or license suspensions, and all property tied to racketeering can be forfeited. The act provides for enforcement across state lines, establishes a state RICO fund to support investigations and restitution, and clarifies that there is no private right of action.

Who It Affects

• Individuals or businesses that engage in racketeering would face felony charges, possible fines, and asset forfeiture.
• Investigative agencies, courts, victims, and property owners or lienholders would enforce or benefit from injunctions, forfeitures, and restitution under the act.

Key Provisions

• Prohibits acquiring or maintaining any interest in or control of an enterprise or property through a pattern of racketeering activity or proceeds, and prohibits employees of an enterprise from conducting the enterprise via racketeering.
• Allows courts to enjoin violations and order divestment, restrictions on future activities, dissolution or reorganization of enterprises, and suspension or revocation of licenses; may forfeit corporate charters or similar approvals.
• Provides for the forfeiture of property used or derived from racketeering, outlines procedures, and protects innocent owners; permits retention of rights for victims and lienholders where applicable.
• Penalties include a Class A felony; fines up to the greater of $60,000 or three times the pecuniary value gained, with funds going to the Criminal Organized Activity/RICO Fund (offset by forfeitures if applicable).
• Establishes the Criminal Organized Activity/RICO Fund to support investigations, training, and restitution; funds may come from fines, judgments, and other sources, with 25% to the State General Fund.
• Not a private civil action; enforcement is through investigative agencies; judgments can be recognized and enforced in other states, with potential reciprocal agreements.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Crimes and Offenses