Bill Text: HI SB355 | 2019 | Regular Session | Introduced


Bill Title: Related To Civil Forfeiture.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2019-01-22 - Referred to JDC, WAM. [SB355 Detail]

Download: Hawaii-2019-SB355-Introduced.html

THE SENATE

S.B. NO.

355

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATED TO CIVIL FORFEITURE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 712A-16, Hawaii Revised Statutes, is amended to read as follows:

     "§712A-16  Disposition of property forfeited.  (1)  All property forfeited to the State under this chapter shall be transferred to the attorney general who[:], after holding the property for a minimum of nine months from the date of forfeiture:

     (a)  May transfer property, other than currency, which shall be distributed in accordance with subsection (2) to any local or state government entity, municipality, or law enforcement agency within the State;

     (b)  May sell forfeited property to the public by public sale; provided that for leasehold real property:

          (i)  The attorney general shall first offer the holder of the immediate reversionary interest the right to acquire the leasehold interest and any improvements built or paid for by the lessee for the then fair market value of the leasehold interest and improvements.  The holder of the immediate reversionary interest shall have thirty days after receiving written notice within which to accept or reject the offer in writing; provided that the offer shall be deemed to be rejected if the holder of the immediate reversionary interest has not communicated acceptance to the attorney general within the thirty-day period.  The holder of the immediate reversionary interest shall have thirty days after acceptance to tender to the attorney general the purchase price for the leasehold interest and any improvements, upon which tender the leasehold interest and improvements shall be conveyed to the holder of the immediate reversionary interest[.];

         (ii)  If the holder of the immediate reversionary interest fails to exercise the right of first refusal provided in subparagraph (i), the attorney general may proceed to sell the leasehold interest and any improvements by public sale[.]; and

        (iii)  Any dispute between the attorney general and the holder of the immediate reversionary interest as to the fair market value of the leasehold interest and improvements shall be settled by arbitration pursuant to chapter 658A;

     (c)  May sell or destroy all raw materials, products, and equipment of any kind used or intended for use in manufacturing, compounding, or processing a controlled substance or any untaxed cigarettes in violation of chapter 245;

     (d)  May compromise and pay valid claims against property forfeited pursuant to this chapter; or

     (e)  May make any other disposition of forfeited property authorized by law.

     (2)  All forfeited property and the sale proceeds thereof, up to a maximum of three million dollars per year, not previously transferred pursuant to [[]subsection[]] (1)(a) of this section, shall, after payment of expenses of administration and sale, be distributed as follows:

     (a)  One quarter shall be distributed to the unit or units of state or local government [[]whose[]] officers or employees conducted the investigation and caused the arrest of the person whose property was forfeited or seizure of the property for forfeiture;

     (b)  One quarter shall be distributed to the office of the prosecuting attorney who instituted the action producing the forfeiture; and

     (c)  One half shall be deposited into the criminal forfeiture fund established by this chapter.

     (3)  Property and money distributed to units of state and local government shall be used for law enforcement purposes, and shall complement but not supplant the funds regularly appropriated for such purposes.

     (4)  There is established in the department of the attorney general a revolving fund to be known as the criminal forfeiture fund, hereinafter referred to as the "fund" in which shall be deposited one-half of the proceeds of a forfeiture and any penalties paid pursuant to section 712A-10(6).  All moneys in the fund shall be expended by the attorney general and are appropriated for the following purposes:

     (a)  The payment of any expenses necessary to seize, detain, appraise, inventory, safeguard, maintain, advertise, or sell property seized, detained, or forfeited pursuant to this chapter or of any other necessary expenses incident to the seizure, detention, or forfeiture of such property and such contract services and payments to reimburse any federal, state, or county agency for any expenditures made to perform the foregoing functions;

     (b)  The payment of awards for information or assistance leading to a civil or criminal proceeding;

     (c)  The payment of supplemental sums to state and county agencies for law enforcement purposes;

     (d)  The payment of expenses arising in connection with programs for training and education of law enforcement officers;

     (e)  The payment of expenses arising in connection with enforcement pursuant to the drug nuisance abatement unit in the department of the attorney general; and

     (f)  The payment of expenses arising in connection with the law enforcement officer independent review board in the department of the attorney general.

     (5)  The attorney general may, without regard to the requirements of chapter 91, promulgate rules and regulations concerning the disposition of property, the use of the fund, and compromising and paying valid claims against property forfeited pursuant to this chapter.

     (6)  Not less than twenty days prior to the convening of each regular session, the attorney general shall provide to the legislature a report on the use of the Hawaii omnibus criminal forfeiture act during the fiscal year preceding the legislative session.  The report shall include:

     (a)  The total amount and type of property seized by law enforcement agencies;

     (b)  The total number of administrative and judicial actions filed by prosecuting attorneys and the disposition thereof;

     (c)  The total number of claims or petitions for remission or mitigation filed in administrative actions and the dispositions thereof;

     (d)  The total amount and type of property forfeited and the sale proceeds thereof;

     (e)  The total amount and type of property distributed to units of state and local government;

     (f)  The amount of money deposited into the criminal forfeiture fund; and

     (g)  The amount of money expended by the attorney general from the criminal forfeiture fund under subsection (5) and the reason for the expenditures.

     (7)  The legal owner of the forfeited property may submit a claim to the attorney general to pick up the forfeited property, provided that the legal owner shall submit a claim to pick up the forfeited property within sixty days following the mandatory nine-month holding period required by subsection (1); provided further that if a claim for pick up is not submitted within sixty days, a thirty-day grace period may be granted on a case-by-case basis by the attorney general.  If the forfeited property is not picked up within sixty days, the attorney general may initiate the transfer or sale of forfeited property pursuant to subsection (1)(a) and (b).

     (8)  The attorney general shall notify the legal owner of the legal owner's right to collect the forfeited property three times:

     (a)  On the last day of the nine-month holding period;

     (b)  On the thirtieth day following the last day of the nine-month holding period; and

     (c)  On the fifty-third day following last day of the nine-month holding period.

     (9)  The legal owner of the forfeited property may initiate a claim pursuant to subsection (7) and pick up the property only if:

     (a)  The property was legally the claimant's property before forfeiture;

     (b)  The mandatory nine-month holding period required by subsection (1) has been fulfilled; and

     (c)  The claimant did not receive a conviction before or during the mandatory nine-month holding period."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.


     SECTION 3.  This Act shall take effect on July 1, 2019.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Civil Forfeiture; Disposition of Forfeited Property; Attorney General

 

Description:

Requires a nine-month holding period before disposition of forfeited property by the attorney general.  Establishes a claims process for a legal owner to pick up forfeited property within sixty days following the mandatory nine-month holding period, including notification requirements, if certain conditions are met.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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