HB 465

                SPONSOR:
                Rep. Romer & Sen. Townsend
                Reps. K. Johnson, Morrison, Carson, Harris, Gorman, Lambert; Sens. Sokola, Pinkney, Seigfried
        HOUSE OF REPRESENTATIVES
        153rd GENERAL ASSEMBLY
        HOUSE BILL NO. 465
        AN ACT TO AMEND TITLE 11 OF THE DELAWARE CODE RELATING TO VIRTUAL CURRENCY.
        BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
        Section 1. Amend § 222, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 222. General definitions.
        When used in this Criminal Code:
        (42) “Virtual currency” means a digital representation of value that is used as a medium of exchange, unit of account, or store of value; and is not money, whether or not denominated in money; and does not include any of the following:
        a. A transaction in which a merchant grants, as part of an affinity or rewards program, value that cannot be taken from or exchanged with the merchant for money, bank credit, or virtual currency.
        b. A digital representation of value issued by or on behalf of a publisher and used solely within an online game, game platform, or family of games sold by the same publisher or offered on the same game platform.
        Section 2. Amend § 857, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 857. Theft and related offenses; definitions.
        For purposes of §§ 841-856, 1450 and 1451 of this title:
        (6) “Property” means anything of value except land, and includes things growing on, affixed to or found in land such as topsoil, sand, minerals, gravel and the like, documents although the rights represented thereby have no physical location, contract rights, trade secrets, choses in action and other interests in or claims to admission or transportation tickets, captured or domestic animals, food, drink and electric or other
        power.
        power, and virtual currency.
        Section 3. Amend § 951, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 951. Money laundering; class D felony.
        (c) For purposes of this section, the following definitions shall apply:
        (2) “Funds”
        includes:
        includes any of the following:
        a. Coin or currency of the United States or any other
        country;
        country or any virtual currency.
        b. Bank checks or money
        orders; or
        orders.
        c. Investment or negotiable instruments, in bearer form or otherwise in such form that title thereto passes upon delivery.
        Section 4. Amend § 1502, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 1502. Definitions.
        The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
        (6) “Pecuniary value” shall mean:
        a. Anything of value in the form of money, a negotiable instrument, a commercial interest or anything
        else
        else, including virtual currency
        , which constitutes an economic advantage; or
        b. Any other property or service that has a value in excess of $100.
        (7) “Personal property” shall include any personal property or any interest in such personal property, or any right, including bank accounts,
        virtual currency,
         debts, corporate stocks, patents or copyrights. An item of personal property or a beneficial interest in personal property shall be deemed to be located where the trustee is, where the personal property is or where the instrument evidencing the right is.
        Section 5. Amend § 2309A, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 2309A. Objects subject to search and seizure.
        (a) When used in this subchapter, the terms “property” and “papers, articles or things” shall, in addition to their ordinary meanings, include any funds placed in a bank or other monetary
        account.
        account and virtual currency.
        Section 6. Amend § 2311, Title 11 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 2311. Disposition of property validly seized.
        (a) The following disposition shall be made of any
        of the following
         papers,
        articles
        articles,
         or things validly seized:
        (1) If the papers,
        articles
        articles,
         or things were obtained as the result of the commission of a crime, they shall be returned to their lawful
        owners;
        owners.
        (2) If the papers,
        articles
        articles,
         or things were property which represents or is traceable to the fruits of a crime or which represents or is traceable to the proceeds obtained, directly or indirectly, as a result of the commission of a crime and the person from whom they are seized is duly convicted of the alleged crime, the court may order that the property be disposed of or dispersed in a manner consistent with § 4106 of this title or otherwise disposed of as the court
        directs;
        directs.
        (3) If the papers,
        articles
        articles,
         or things were allegedly used in the commission of a crime, they shall be returned to the person from whom seized if such person is not thereafter duly convicted of the alleged crime; but if such person is duly convicted of the alleged crime, the papers, articles and things shall be disposed of as the court
        directs;
        directs.
        (4) If possession of the papers,
        articles
        articles,
         or things seized is unlawful, they shall, upon petition, be disposed of as any Judge of the Superior Court directs.
        (5) If the papers, articles, or things are property which represents or is traceable to the fruits of a crime or which represents or is traceable to the proceeds obtained, directly or indirectly, as a result of the commission of a crime and the person or persons responsible for the commission of the crime cannot be identified or located after reasonable diligence, or are located outside of the United States, the property must be disposed of or dispersed as any Judge of the Superior Court directs.
        SYNOPSIS
        This Act adds virtual currency to the money laundering definition in the criminal code and gives the State legal authority to attempt to return virtual currency for victims. It also provides that if money cannot be returned to the victims of the crime, or are outside of the United States, it should be disposed of per order of the Superior Court.