Section 24-4.1-201 - Distribution of profits from crime - escrow account - civil suit by victim - definitions(1) The general assembly hereby finds that the state has a compelling interest in preventing any person who is convicted of a crime from profiting from the crime and in recompensing victims of the crime. It is therefore the intent of the general assembly to provide a mechanism whereby any profits from a crime that are received by the person convicted of the crime are available as restitution to the victims of the crime. (1.3) For purposes of this part 2, "victim" means any natural person against whom any crime has been perpetrated or attempted, unless the person is accountable for the crime or a crime arising from the same conduct, criminal episode or plan or if such person is deceased or incapacitated, the person's spouse, parent, child, sibling, grandparent, significant other, or other lawful representative. For purposes of this part 2, any person under the age of eighteen years is considered incapacitated, unless that person is emancipated.(1.5)(a) For purposes of this part 2, "profits from the crime" means: (I) Any property obtained through or income generated from the commission of the crime of which the defendant was convicted;(II) Any property obtained by or income generated from the sale, conversion, or exchange of proceeds of the crime of which the defendant was convicted, including any gain realized by such sale, conversion, or exchange; and(III) Any property that the defendant obtained or income generated as a result of having committed the crime of which the defendant was convicted, including any assets obtained through the use of unique knowledge obtained during the commission of, or in preparation for the commission of, the crime, as well as any property obtained by or income generated from the sale, conversion, or exchange of such property and any gain realized by such sale, conversion, or exchange.(b)(I) Any person who contracts with a person convicted of a crime in this state, or such person's representative or assignee, for payment of any profits from the crime of which such person is convicted shall pay to the crime victim services advisory board created in section 24-4.1-117.3(1), referred to in this part 2 as the "board", any money that would otherwise by terms of the contract be paid to the convicted person or such person's representatives or assignees. The board shall distribute the money as described in paragraph (b.5) of this subsection (1.5).(II) Any person or any person's agent or other legal representative who contracts with a convicted person, or the convicted person's representative or assignee, in the manner described in subparagraph (I) of this paragraph (b), shall: (A) Submit a copy of the contract or a summary of the terms of an oral agreement to the board;(B) Pay over to the board any moneys or consideration not subject to an order of restitution and that by the terms of the contract would be otherwise owing to the convicted person or owing to a representative or assignee of the convicted person.(b.5) If there is a court order of restitution in the criminal case resulting from the crime that remains unpaid, any money received under paragraph (b) of this subsection (1.5) must first be applied to that order of restitution. If there is no outstanding balance from an order of restitution or there remains additional money, and all victims are identified and can be located, the money received or the remaining portion must be apportioned pro rata to the identified victims. For purposes of this section, "victim" has the same meaning as in section 24-4.1-302(5). If all victims are not known or cannot be located, the board shall deposit the remaining money in an escrow account for the benefit of the victims.(c) Upon the establishment of an escrow account, any person who is a victim of the crime from which a convicted person receives profits under paragraph (b) of this subsection (1.5) may, within three years of establishment of the escrow account, enforce any judgment entered against the convicted person against the money on deposit in the escrow account. If no judgment has been entered, the victim may bring a civil action in a court of competent jurisdiction to recover a judgment against the convicted person or such person's representatives or designees. After all filed claims are established, the board shall distribute the money in the escrow account to satisfy the claims, or such fraction of each claim as can be fulfilled by the available money.(d)(I) Upon establishing an escrow account pursuant to paragraph (b) of this subsection (1.5), the board shall notify any victims of the crime of which the person was convicted at such victims' last known addresses of the establishment of the escrow account.(II) Unless all victims have been identified and can be located, the board shall publish at least once annually from the date of the establishment of the escrow account, a notice of the escrow account's establishment in a newspaper having general circulation throughout the county in which the crime was committed. The expenses of notification shall be paid from the amount received in the escrow account. The board, in its discretion, may provide for such additional notice as it deems necessary.(III) The notice required under subparagraphs (I) and (II) of this paragraph (d) shall specify the existence of the escrow account, the amount on deposit, and the victim's right to execute an order of restitution or bring a civil action to recover against the moneys in the escrow account within three years after the date the escrow account is established.(e)(I) Any person who knowingly fails to comply with any requirement of subparagraph (II) of paragraph (b) of this subsection (1.5) shall be liable for a civil penalty of not less than ten thousand dollars nor more than three times the contract amount.(II) If two or more persons are adjudged liable for the civil penalty imposed, such persons shall be jointly and severally liable.(III) After notice and opportunity to be heard is provided, the court, by order of judgment, may assess the penalty described in this paragraph (e). All moneys received from the payment of these penalties shall be paid over to the board.(IV) In any action or proceeding brought to enforce the contract provisions of this subsection (1.5), the court shall have jurisdiction to grant the attorney general, without bond or other undertaking, any injunctive relief necessary to prevent any payment under a contract that is prohibited under this subsection (1.5).(1.7) For purposes of this section, "person" means any natural person, firm, corporation, partnership, association, or other legal entity.(2) If funds remain in the escrow account after payment of a money judgment pursuant to subsection (1) of this section and if no civil actions are pending under this section after three years from the establishment of an escrow account, the board shall notify the department of corrections of the existence of such escrow account. The department of corrections shall certify to the board a statement of the costs of maintenance of the person in the state correctional institution or institutions at which the person was incarcerated. A statement of the cost of maintenance shall be submitted annually for payment to the department of corrections by the board until such time as the person is released from custody of the state. No such payment shall be made upon the dismissal of the charges against any individual whose proceeds are placed in the escrow account.(3) Upon the dismissal of the charges against any individual whose proceeds are placed in the escrow account or upon a showing by the defendant that three years have elapsed from the establishment of an escrow account and that no civil actions are pending against him or her under this section, the board shall immediately pay any money in the escrow account to the defendant except for funds paid to the department of corrections and anticipated as necessary for future payment to the department of corrections as set forth in subsection (2) of this section.(4) If an escrow account is established under this section, no otherwise applicable statute of limitations on the time within which civil action may be brought bars action by a victim of a crime committed by the person accused or convicted of the crime, as to a claim resulting from the crime, until three years have elapsed from the time the escrow account was established.(4.5) The escrow account shall be established for a period of three years. If an action is filed by a victim to recover the victim's interest in the escrow account within such three-year period, the escrow account shall continue until the conclusion of such action.(5) The board shall make payments from an escrow account to the accused upon an order of the court after a showing by the accused that:(a) The money will be used for the exclusive purpose of retaining legal representation at any stage of the civil or criminal proceedings against him, including the appeals process; and(b) He has insufficient assets, other than funds in the escrow account and assets which could be claimed as exempt from execution under state law, to provide for payment of the expenses of legal representation.(6) The attorney general, at the request of the board, shall bring an action to cause profits from the crime to be paid over and held in an escrow account established by the board.Amended by 2015 Ch. 43,§ 1, eff. 3/20/2015.L. 84: Entire part added, p. 652, § 2, effective May 14. L. 88: (1) amended, p. 890, § 1, effective July 1. L. 94: (1) amended and (1.5) added, p. 1050, § 7, effective July 1. L. 2000: (1.3), (1.5)(e), (1.7), (4.5), and (6) added and (1.5)(b), (1.5)(d), (2), and (3) amended, pp. 239, 238, §§ 2, 1, effective March 29. L. 2009: (1.5)(b)(I) and (1.5)(e)(III) amended, (SB 09-047), ch. 129, p. 556, §5, effective July 1. L. 2015: (1.5)(b)(I), (1.5)(c), (1.5)(d)(II), (1.5)(d)(III), (2), (3), (4), and (4.5) amended and (1.5)(b.5) added, (HB 15-1070), ch. 43, p. 106, § 1, effective March 20.