Bill Text: IA HF2560 | 2023-2024 | 90th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: A bill for an act relating to the forfeiture of property for criminal offenses and repealing civil forfeiture. (Formerly HSB 634.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2024-03-11 - Subcommittee: Schultz, Evans, and Quirmbach. S.J. 509. [HF2560 Detail]

Download: Iowa-2023-HF2560-Introduced.html

---

House File 2560 - Introduced
HOUSE FILE 2560
BY COMMITTEE ON PUBLIC SAFETY
(SUCCESSOR TO HSB 634)
A BILL FOR
An Act relating to the forfeiture of property for criminal
offenses and repealing civil forfeiture.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 5069HV (1) 90
cm/jh

H.F. 2560
Section 1. NEW SECTION . 809B.1 Short title.
This chapter shall be known and may be cited as the “Iowa
Criminal Forfeiture Process Act” .
Sec. 2. NEW SECTION . 809B.2 Applicability.
This chapter applies only to the seizure and forfeiture
of property used in and derived directly from a violation of
chapter 124, subchapter IV.
Sec. 3. NEW SECTION . 809B.3 Definitions.
The terms defined in this section have the following
meanings in this chapter:
1. “Abandoned property” means personal property to which
a possessor relinquishes all rights to ownership or control.
“Abandoned property” does not include real property.
2. “Actual knowledge” means direct and clear awareness of
information, a fact, or a condition.
3. “Contraband” means goods that, in themselves, are
unlawful to possess, including scheduled drugs without a lawful
prescription and a firearm that is illegal to possess.
4. “Conveyance” means a device used for transportation.
“Conveyance” includes a motor vehicle, trailer, snowmobile,
airplane, vessel, or any equipment attached to one of these
devices. “ Conveyance” does not include property that is stolen
in violation of the law.
5. “Convicted” or “conviction” includes a finding of guilt,
a plea of guilty, deferred judgment, deferred or suspended
sentence, adjudication of delinquency, or circumstances where
a person is not charged with a criminal offense that is a
serious or aggravated misdemeanor or felony related to the
action for forfeiture based in whole or in part on the person’s
cooperation in providing information regarding the criminal
activity of another person.
6. “Innocent owner” means an owner, co-owner, defendant’s
heir, or a person who regularly uses property subject to
forfeiture who does not have actual knowledge of the use of
the property in a crime that authorizes the forfeiture of the
-1-
LSB 5069HV (1) 90
cm/jh 1/ 30

H.F. 2560
property. “Innocent owner” does not include the defendant or a
secured interest holder.
7. “Instrumentality” means property otherwise lawful to
possess that is used in a crime that authorizes the forfeiture
of property. “Instrumentality” includes land, buildings,
containers, conveyances, equipment, materials, products, tools,
computers, computer software, telecommunications devices,
firearms, ammunition, and ammunition-and-firearm accessories.
8. “Law enforcement agency” means any nonfederal police
force, or other local, county, or state agency that has the
authority under state law to engage in seizure and forfeiture.
9. “Proceeds” means United States currency, currency of
another nation, digital currency, cryptocurrency, securities,
negotiable instruments, or other means of exchange obtained
from the sale of property or contraband.
10. “Prosecuting authority” means a municipal attorney,
solicitor, district attorney, county attorney, attorney
general, or other government official legally authorized to
prosecute crime.
11. “Public defender” means any office of the state public
defender.
12. “Real property” means land and anything growing on,
attached to, or erected on the land including a building. “Real
property” includes immovable property, real estate, and realty.
13. “Secured interest holder” means a person who is a
secured creditor, mortgagee, lienholder, or other person
who has a valid claim, security interest, mortgage, lien,
leasehold, or other interest in the property subject to
forfeiture. “Secured interest holder” does not include the
defendant or an innocent owner.
Sec. 4. NEW SECTION . 809B.4 Forfeiture disfavored ——
purpose of chapter.
Forfeiture is disfavored in this state. This chapter’s
purpose is to deter criminal activity by reducing criminal
activity economic incentives, confiscate property used in the
-2-
LSB 5069HV (1) 90
cm/jh 2/ 30

H.F. 2560
violation of the law, and protect the due process rights of
property owners.
Sec. 5. NEW SECTION . 809B.5 Jurisdiction.
1. There shall be no civil forfeiture under this chapter.
2. The court that has jurisdiction in the related criminal
matter shall have jurisdiction over the forfeiture proceeding.
3. The forfeiture proceeding shall be part of the trial
of the related crime. The proceeding shall follow a finding
of the defendant’s guilt or be conducted at the court’s
discretion. The forfeiture proceeding shall be conducted by
the court without a jury.
4. If an initial court bounds over or transfers the
prosecution of the criminal case to another court, the initial
court shall transfer the forfeiture action along with the
criminal case to the other court.
5. At the initial court’s discretion, the initial court
may postpone hearing and bound over a motion to another court
in the interests of justice and efficient use of judicial
resources.
Sec. 6. NEW SECTION . 809B.6 Seizure of personal property
with process.
At the request of the state, a court may issue an ex parte
order to attach, seize, or secure personal property for which
forfeiture is sought and to provide for the custody of the
personal property.
Sec. 7. NEW SECTION . 809B.7 Seizure of personal property
without process.
Personal property may be seized, as part of a lawful search,
without a court order if the personal property subject to
forfeiture is seized incident to a lawful arrest, the state has
probable cause to believe the delay caused by the necessity of
obtaining process would result in the removal or destruction of
the personal property that is forfeitable under this chapter,
or the personal property is the subject of a prior and valid
judgment of forfeiture in favor of the state.
-3-
LSB 5069HV (1) 90
cm/jh 3/ 30

H.F. 2560
Sec. 8. NEW SECTION . 809B.8 Seizure or restraint of real
property with process.
1. Real property shall not be seized or restrained without
a court order.
2. A court shall not issue an order unless the defendant and
any other person with a known interest in the property receive
proper notice and are given an opportunity for a contested
hearing to determine the existence of probable cause for the
seizure.
3. Notice may be made by publication if personal service has
not been realized after reasonable attempts.
4. This section does not prohibit the state from seeking
a lis pendens or restraining order to hinder the sale or
destruction of real property. However, if the state obtains a
lis pendens or restraining order, the state shall notify the
defendant and any other person with a known interest in the
property within thirty days.
5. Application, filing, issuance, execution, and return of
any order are subject to state law and court rules.
Sec. 9. NEW SECTION . 809B.9 Stolen property and contraband.
1. No property right exists in stolen property or
contraband. Stolen property and contraband are subject to
seizure.
2. Stolen property shall be returned to the innocent owner,
and contraband shall be disposed of according to state law.
3. Notwithstanding subsection 2, the court may impose
reasonable conditions on the release of stolen property and
the disposal of contraband, including the use of photographic
evidence, to preserve the property for later use as evidence in
proceedings under this chapter.
Sec. 10. NEW SECTION . 809B.10 Storing seized property and
depositing seized currency.
1. The seizing law enforcement agency is responsible for
providing adequate storage, security, and maintenance for all
assets in law enforcement agency custody unless another law
-4-
LSB 5069HV (1) 90
cm/jh 4/ 30

H.F. 2560
enforcement agency agrees to accept the responsibility. The
commander of a multijurisdictional task force may assign the
responsibility to one agency.
2. The seizing law enforcement agency shall deposit seized
currency in an interest-bearing account pending the exhaustion
of appeals or receiving an order from the court to return or
disburse the seized currency.
3. Notwithstanding subsection 2, the seizing law
enforcement agency may take reasonable actions, including the
use of photography, to preserve currency for later use as
evidence in proceedings under this chapter.
Sec. 11. NEW SECTION . 809B.11 Receipt.
1. When property is seized, the law enforcement officer
shall give an itemized receipt to the person possessing the
property at the time of the seizure.
2. The receipt shall be numbered for future reference and
constitutes notice of seizure.
3. If the person possessing the property is not present, the
seizing officer shall leave a receipt in the place where the
property was found, if possible.
Sec. 12. NEW SECTION . 809B.12 Property exempt from seizure
and forfeiture.
1. United States currency totaling two hundred dollars or
less is exempt from seizure and forfeiture, excluding marked
currency used in the controlled buy of a controlled substance.
2. A motor vehicle worth two thousand dollars or less in
market value is exempt from seizure and forfeiture.
3. The prosecuting authority shall advise the publications
that law enforcement agencies may use to establish the value of
a motor vehicle in the prosecuting authority’s jurisdiction.
The valuation publications may include nationally known and
relied on pricing guides.
4. The prosecuting authority may establish on a
case-by-case basis higher values in the interests of justice
and efficient use of governmental resources. The higher
-5-
LSB 5069HV (1) 90
cm/jh 5/ 30

H.F. 2560
values shall be based on the prosecuting authority’s exclusive
determination of:
a. The type and number of occurrences of offenses that
include the seizure of property.
b. The average value of seized property less the costs to
seize and forfeit such property.
Sec. 13. NEW SECTION . 809B.13 Waivers permitted and
prohibited.
1. A person from whom property is seized may relinquish the
person’s rights, interests, and title in the seized property by
knowingly and voluntarily executing a waiver that is agreed to
by the prosecuting authority.
2. The waiver is subject to a claim by a secured interest
holder, innocent owner, or other person entitled to notice
under section 809B.17. A claimant may consent to some issues
and have the court determine remaining issues.
3. A law enforcement officer, other than the prosecuting
authority, shall not request, induce, or require a person to
relinquish, for purpose of forfeiture, the person’s rights,
interests, or title in the seized property.
4. A document resulting from efforts by a law enforcement
officer, other than the prosecuting authority, which purports
to relinquish a person’s rights, interests, and title in seized
property is void and is inadmissible in court.
Sec. 14. NEW SECTION . 809B.14 Initial reporting.
1. A law enforcement agency making a seizure shall within
ten days submit a report to the appropriate prosecuting agency.
2. For purpose of reporting, if the seizure of property is
accomplished because of coordinated efforts by more than one
law enforcement agency, the law enforcement agency initiating
the investigation is considered to be the law enforcement
agency making the seizure.
3. The report shall provide the following information with
respect to the property seized:
a. Name of the seizing law enforcement agency.
-6-
LSB 5069HV (1) 90
cm/jh 6/ 30

H.F. 2560
b. Description of the seized property.
c. Location where the seizure occurred.
d. Date and circumstances of the seizure.
e. Location where the property is being stored and present
custodian.
f. Name and contact information of owner.
g. Name and contact information of possible innocent owner
claimant.
h. Name and contact information of any lienholder.
i. The type and quantity of the controlled substance
involved.
j. Other relevant information.
k. If the property is a conveyance, the report shall include
all of the following:
(1) Make, model, serial number, and year of the conveyance.
(2) Name and contact information of person in whose name the
conveyance is registered.
Sec. 15. NEW SECTION . 809B.15 Title to property.
1. Title to the property subject to forfeiture vests with
the state when the court issues a forfeiture judgment and
relates back to the date when the state seized or restrained
the property.
2. Title to substitute assets vests when the court issues an
order forfeiting substitute assets.
Sec. 16. NEW SECTION . 809B.16 Counsel.
1. If a defendant in a criminal matter is represented by a
public defender or appointed counsel if indigent, that attorney
shall represent the defendant in the forfeiture proceeding.
2. If the defendant or an innocent owner claimant engages
in pro se representation in the forfeiture proceeding, the
court may exercise discretion applying the rules of pleading,
practice, evidence, and procedure.
Sec. 17. NEW SECTION . 809B.17 Notice to other known owners.
1. The prosecuting authority shall perform a reasonable
search of relevant records, including vehicle registrations,
-7-
LSB 5069HV (1) 90
cm/jh 7/ 30

H.F. 2560
property records, and other public records, to identify any
person, other than the defendant, known to have an interest in
the property subject to forfeiture.
2. The prosecuting authority shall give notice to any person
identified to have an interest in the property subject to
forfeiture who is not charged or indicted. The notice shall
include the seizure receipt number given pursuant to section
809B.11. Notice may be made by publication if personal service
has not been realized after reasonable attempts.
3. The following language substantially and conspicuously
shall appear in the notice:
WARNING: You may lose the right to be heard in court if
you do not file promptly a simple statement of interest or
ownership. You do not have to pay a filing fee to file your
notice.
4. If the prosecuting authority does not serve notice by
personal service or publication on any persons appearing to
have an interest in the property and the extension period has
expired, the prosecuting authority or court shall order the
return of the property to a person with a valid interest in
the property who makes a request. Contraband shall not be
returned.
Sec. 18. NEW SECTION . 809B.18 Prompt post-seizure hearing.
1. Following seizure, a defendant or any other person
with an interest in the property has a right to a prompt
post-seizure hearing.
2. A person with an interest in the property may motion the
court for a hearing.
3. Upon motion, the court may hold a prompt post-seizure
hearing at any of the following:
a. As a separate hearing.
b. At the same time as a probable cause determination, an
arraignment hearing, a suppression hearing, an omnibus hearing,
or other pretrial hearing.
c. At any other time at the court’s discretion.
-8-
LSB 5069HV (1) 90
cm/jh 8/ 30

H.F. 2560
4. A party, by agreement or for good cause, may move for one
extension of the hearing date. The motion may be supported by
affidavits or other submissions.
5. The court shall order the return of property if the court
finds by a preponderance of the evidence any of the following:
a. The seizure was invalid.
b. A criminal charge has not been filed and no extension of
the filing period is available.
c. The final judgment will likely be in favor of the
defendant or any other person with an interest in the property.
6. At the court’s discretion, the court may order the return
of sufficient funds to the defendant, not needed as evidence,
for the defendant to obtain counsel of choice but less than the
total amount seized.
7. Notwithstanding subsections 5 and 6, the court may impose
reasonable conditions on the return of the property, including
the use of photographic evidence, to preserve the property for
later use as evidence in proceedings under this chapter.
8. This section does not apply to contraband.
Sec. 19. NEW SECTION . 809B.19 Notice of proposed
forfeiture.
1. In a case in which the state seeks forfeiture of
property, the prosecuting authority shall file with the court
a notice of proposed forfeiture. The notice of proposed
forfeiture shall be a separate document. The notice of
proposed forfeiture must include the following information:
a. A description of the property seized.
b. The time, date, and place of the seizure.
c. The seizure receipt number given pursuant to section
809B.11.
d. A description of how the property was used in or derived
from the alleged crime.
2. The prosecuting authority may allege, in the notice of
proposed forfeiture, the forfeiture of property as a process
after the conviction of the crime for which the defendant is
-9-
LSB 5069HV (1) 90
cm/jh 9/ 30

H.F. 2560
charged or as part of sentencing consideration.
3. The notice shall not be read to the jury.
4. The prosecuting authority shall serve the notice at one
of the following times:
a. With the initial charging instrument.
b. Separately but not later than ninety days after the
presentment of the charging instrument for a misdemeanor.
c. The earlier of ninety days after presentment to a grand
jury or one hundred days after an arrest for a felony.
d. Another time in the court’s discretion.
5. At the court’s discretion, the court may allow the
prosecuting authority to amend the notice as required in the
interest of justice.
6. The court shall order the return of the property to the
owner if the prosecuting authority does not file a charging
instrument, the period of an extension expires, or the court
does not grant an extension.
Sec. 20. NEW SECTION . 809B.20 Discovery.
Discovery related to the forfeiture proceeding is subject to
the rules of criminal procedure.
Sec. 21. NEW SECTION . 809B.21 Trial —— conviction required
and standard of proof.
1. Property may be forfeited if all of the following are
true:
a. The defendant has been convicted of a violation of
section 124.401.
b. The state establishes by a preponderance of the evidence
the property is an instrumentality of or proceeds derived
directly from a violation of a crime listed in section 809B.2.
2. After the defendant’s conviction, the court has the
discretion to hold the forfeiture proceeding as soon as
practicable, including concurrent with sentencing.
3. Except as required by section 809B.12, this chapter does
not prevent property from being forfeited by consent order
approved by the court, provided that secured interest holders,
-10-
LSB 5069HV (1) 90
cm/jh 10/ 30

H.F. 2560
innocent owners, or others entitled to notice under section
809B.17, consent to the forfeiture. A claimant may consent to
some issues and have the court determine remaining issues.
4. The consent order may reflect any of the following:
a. A plea agreement.
b. A diversion agreement.
c. A grant of immunity or reduced punishment, with or
without the filing of a criminal charge, in exchange for
testifying or assisting a law enforcement investigation or
prosecution.
5. The court may use the consent agreement to transfer
title to the property to the state and dispose of the property
according to section 809B.33.
Sec. 22. NEW SECTION . 809B.22 Exceptions to the conviction
requirement.
1. The court may waive the conviction requirement in section
809B.21 and grant title to the property to the state if the
prosecuting authority files a motion no fewer than ninety days
after seizure and shows by a preponderance of the evidence that
the defendant, before conviction, did any of the following:
a. Abandoned the property.
b. Fled the jurisdiction.
c. Was deported by the United States.
d. Died.
2. The defendant’s death does not preclude the defendant’s
heir or legatee from filing a claim for the seized property as
an innocent owner under section 809B.25.
Sec. 23. NEW SECTION . 809B.23 Proportionality.
1. The defendant may motion the court to determine whether
the forfeiture is unconstitutionally excessive under the
Constitution of the State of Iowa or the Constitution of the
United States.
2. At the court’s discretion, the court may hold a
proportionality hearing at any of the following times:
a. As a separate hearing.
-11-
LSB 5069HV (1) 90
cm/jh 11/ 30

H.F. 2560
b. At the same time as a probable cause determination, an
arraignment hearing, a suppression hearing, an omnibus hearing,
or other pretrial hearing.
c. At trial.
d. Upon conviction.
3. The defendant has the burden of establishing that the
forfeiture is unconstitutionally excessive by a preponderance
of the evidence at a hearing conducted by the court without a
jury.
4. At a hearing prior to conviction, the court first
shall determine, by a preponderance of the evidence, if the
prosecuting attorney will secure a conviction. The court
then shall determine if the forfeiture is unconstitutionally
excessive.
5. At any hearing, the court may consider all relevant
factors to determine if the forfeiture is unconstitutionally
excessive including all of the following:
a. The seriousness of the crime and its impact on the
community, including the duration of the activity, use of a
firearm, and harm caused by the defendant.
b. The extent to which the defendant participated in the
crime.
c. The extent to which the property was integral to
facilitating the crime.
d. Whether the crime was completed or attempted.
e. The sentence or fine to be imposed for committing the
crime.
f. The hardship to the defendant if the forfeiture of a
motor vehicle would deprive the defendant of the defendant’s
livelihood.
g. An unjust hardship to the defendant’s family if the
property is forfeited.
6. In determining the value of the instrumentality subject
to forfeiture, the court may consider all relevant factors
related to the fair market value of the property, including
-12-
LSB 5069HV (1) 90
cm/jh 12/ 30

H.F. 2560
information in any publication advised by the prosecuting
authority pursuant to section 809B.12, subsection 3.
7. The court shall not consider the benefit or value of the
property to the state in determining whether the forfeiture is
unconstitutionally excessive.
Sec. 24. NEW SECTION . 809B.24 Secured interest holder.
1. Property encumbered by a security interest shall not be
forfeited.
2. The prosecuting authority summarily shall return
property to a secured interest holder up to the value of the
interest. Contraband shall not be returned.
3. If the property is not summarily returned, the secured
interest holder may motion the court at any time before the
court enters judgment in the criminal prosecution or grants the
motion in section 809B.22. The motion may include the seizure
receipt number given pursuant to section 809B.11, if available.
4. The court shall hear the motion within thirty days after
filing or at the court’s discretion. The hearing shall be held
without a jury. The court may consolidate the hearing on the
motion with any other hearing before the court in the case.
5. The secured interest holder shall allege the validity of
the security interest, mortgage, lien, leasehold, lease, rental
agreement, or other agreement.
6. If the prosecuting authority seeks to proceed, the
prosecuting authority shall prove by a preponderance of the
evidence any of the following:
a. That the interest is invalid.
b. That the interest resulted from a fraudulent conveyance.
c. That the interest was created by a purchase made on
behalf of the defendant, held through a trust, or otherwise
acquired for the benefit of the defendant.
d. That the secured interest holder consented to the use of
the property in the crime for which the defendant is charged.
7. If the state fails to meet its burden in subsection
6, the court shall order the state to relinquish claims to
-13-
LSB 5069HV (1) 90
cm/jh 13/ 30

H.F. 2560
the property, up to the value of the interest, and return the
interest to the secured interest holder.
8. Notwithstanding subsection 7, the court may impose
reasonable conditions on the return of the property, including
the use of photographic evidence to preserve the property for
later use as evidence in proceedings under this chapter.
Sec. 25. NEW SECTION . 809B.25 Innocent owner.
1. Property of an innocent owner shall not be forfeited.
2. The prosecuting authority summarily shall return
property to an innocent owner. Contraband shall not be
returned.
3. If the property is not summarily returned, an innocent
owner claimant may motion the court at any time before the
court enters judgment in the criminal prosecution or grants the
motion in section 809B.22.
4. The court shall hear the innocent owner claimant’s motion
within thirty days after filing or at the court’s discretion.
The hearing shall be held without a jury. The court may
consolidate the hearing on the claimant’s motion with any other
hearing before the court in the case.
5. The innocent owner claimant may motion the court
by filing a statement that provides all of the following
information:
a. The claimant’s interest in or regular use of the
property.
b. Facts or evidence supporting the claim.
c. An affirmation of the validity of interest or regular use
of the property.
d. The relief sought by the claimant.
e. The seizure receipt number given pursuant to section
809B.11, if available.
6. The filing fee for the claimant’s motion under this
section is waived.
7. If the prosecuting authority seeks to proceed, the
prosecuting authority shall prove by a preponderance of the
-14-
LSB 5069HV (1) 90
cm/jh 14/ 30

H.F. 2560
evidence that the claimant is not an innocent owner because of
any of the following:
a. The claimant’s interest in the property is invalid.
b. The claimant was not a bona fide purchaser without notice
of any defect in title and for valuable consideration.
c. The claimant was willfully blind to the crime for which
the defendant is charged.
d. The claimant did not regularly use the property as the
claimant claimed.
e. The claimant had actual knowledge and the claimant did
not take reasonable steps to prevent the use of the property
in the crime for which the defendant is charged. The claimant
is not required to take steps the claimant reasonably believes
would subject the claimant to physical danger.
8. If the prosecuting authority fails to meet the burden in
subsection 7, the court shall order the state to relinquish all
claims and return the property to the innocent owner.
9. Notwithstanding subsection 8, the court may impose
reasonable conditions on the return of the property, including
the use of photographic evidence, to preserve the property for
later use as evidence in proceedings under this chapter.
10. Information in the claimant’s statement in subsection 5
shall not be used as evidence in the underlying criminal case.
11. This section shall not prohibit the claimant from
providing information to any party or testifying in any trial
as to facts the claimant knows.
12. The defendant or convicted offender may invoke the right
against self-incrimination or the marital privilege during the
forfeiture proceeding. The trier of fact may draw an adverse
inference from the invocation of the right or privilege.
Sec. 26. NEW SECTION . 809B.26 Judgment.
1. If the prosecuting authority fails to meet the burden in
the criminal or forfeiture proceeding, the court shall enter
judgment dismissing the forfeiture proceeding and ordering
the return of property to the rightful owner. If the owner’s
-15-
LSB 5069HV (1) 90
cm/jh 15/ 30

H.F. 2560
possession of the property is illegal, the court shall dispose
of the property pursuant to section 809B.33.
2. If the prosecuting authority meets the burden in the
criminal and forfeiture proceeding, the court shall enter
judgment forfeiting the property.
3. A court may enter judgment following a hearing,
pursuant to a stipulation or plea agreement, or at the court’s
discretion.
Sec. 27. NEW SECTION . 809B.27 Substitution of assets.
Upon the prosecuting authority’s motion following conviction
or at the court’s discretion, the court may order the
forfeiture of substitute property owned solely by the defendant
up to the value of property that is beyond the court’s
jurisdiction or cannot be located through due diligence, only
if the state proves by a preponderance of the evidence that any
of the following occurred:
1. The defendant intentionally dissipated the property.
2. The defendant transferred, sold, or deposited property
with a third party to avoid forfeiture.
3. The defendant substantially diminished the value of
property.
4. The defendant commingled property with other property
that cannot be divided without difficulty.
Sec. 28. NEW SECTION . 809B.28 No additional remedies.
The state shall not seek personal money judgments or other
remedies related to the forfeiture of property not provided for
in this chapter.
Sec. 29. NEW SECTION . 809B.29 No joint and several
liability.
A defendant is not jointly and severally liable for
forfeiture awards owed by other defendants. When ownership is
unclear, a court may order each defendant to forfeit property
on a pro rata basis or by another means the court finds
equitable.
Sec. 30. NEW SECTION . 809B.30 Appeals.
-16-
LSB 5069HV (1) 90
cm/jh 16/ 30

H.F. 2560
1. A party to forfeiture proceeding, other than the
defendant, may appeal the court’s order concerning the
disposition of the property upon the issuance of the order.
2. The defendant may appeal the court’s decision regarding
the seizure or forfeiture of property following final judgment
in the forfeiture proceeding.
Sec. 31. NEW SECTION . 809B.31 Attorney fees.
In any proceeding in which a property owner’s claim prevails
by recovering at least half, by value, of the property or
currency claimed, the court shall order the seizing law
enforcement agency or prosecuting authority at fault to pay all
of the following:
1. Reasonable attorney fees and other litigation costs
incurred by the claimant.
2. Post-judgment interest.
3. In cases involving currency, other negotiable
instruments, or the proceeds of an interlocutory sale, any
interest actually paid from the date of seizure.
Sec. 32. NEW SECTION . 809B.32 Return of property, damages,
and costs.
1. If the court orders the return of property, the law
enforcement agency that holds the property shall return the
property to the rightful owner within a reasonable period not
to exceed five days after the date of the order.
2. The rightful owner shall not be subject to any expenses
related to towing, storage, or preservation of the property.
3. The law enforcement agency that holds the property is
responsible for any damages, storage fees, and related costs
applicable to property returned under this section.
Sec. 33. NEW SECTION . 809B.33 Disposition of property and
proceeds.
1. At any time when contraband is no longer needed as
evidence, the court may order the contraband be sold or
destroyed according to state law.
2. Except as required by sections 809B.24 and 809B.25, the
-17-
LSB 5069HV (1) 90
cm/jh 17/ 30

H.F. 2560
court may order property be sold at any time when:
a. The property is no longer needed as evidence.
b. Abandoned property or property seized from a defendant
who died, was deported, or fled the jurisdiction is no longer
needed as evidence.
3. If the forfeiture is granted, the court shall order the
sale of forfeited property other than seized currency.
4. When all forfeited property is reduced to proceeds,
the court may order, upon exhaustion of all appeals or at its
discretion, the distribution of forfeited proceeds to do any
of the following:
a. Pay restitution to the victim of the crime.
b. Satisfy recorded liens, mortgages, or filed security
interests in the forfeited property.
c. Pay reasonable costs for the towing, storage,
maintenance, repairs, advertising, sale, and other operating
costs related to the forfeited property.
d. Reimburse the seizing law enforcement agency for
nonpersonnel operating costs, including controlled-drug buy
money, related to the investigation of the crime.
e. Reimburse the prosecuting authority, public defender,
or court-appointed attorney for nonpersonnel court costs,
including filing fees, subpoenas, court reporters, and
transcripts.
5. After disbursements under subsection 4, the court may
reimburse actual costs of up to one hundred thousand dollars by
ordering the disbursements of:
a. Up to fifty percent of remaining funds to reimburse the
seizing law enforcement agency for the salaries, benefits, and
overtime pay of uniformed personnel expended in the seizure of
the property and investigation of the crime.
b. Up to twenty-five percent of the remaining funds to
reimburse the prosecuting authority for the salaries, benefits,
and overtime pay expended in the prosecution of the crime and
forfeiture proceeding.
-18-
LSB 5069HV (1) 90
cm/jh 18/ 30

H.F. 2560
c. Up to twenty-five percent of the remaining funds to
reimburse the public defense or the fund to pay court-appointed
counsel for the salaries, benefits, and overtime pay expended
in the defense of the criminal defendant and forfeiture
proceeding.
6. After disbursements under subsections 4 and 5, the
court may order the remaining funds be disbursed to any of the
following:
a. The general fund of the state.
b. The department of public safety to supplement existing
statewide grants to law enforcement agencies for the purchases
of equipment.
c. The prosecuting agency for uses other than reimbursement
of salaries, benefits, and overtime pay of personnel associated
with the criminal prosecution of the case.
d. To the public defender for uses other than reimbursement
of salaries, benefits, and overtime pay of personnel associated
with the criminal defense of the case.
Sec. 34. NEW SECTION . 809B.34 Sale restrictions.
A law enforcement agency shall not sell forfeited property
directly or indirectly to any employee of the law enforcement
agency, to a person related to an employee of the law
enforcement agency within the third degree of consanguinity or
affinity, or to another law enforcement agency.
Sec. 35. NEW SECTION . 809B.35 Preemption.
This chapter preempts laws by township, municipal, county
and other governments in the state which regulate civil and
criminal forfeiture.
Sec. 36. NEW SECTION . 809B.36 Limitation on federal
adoption.
1. A law enforcement agency shall not transfer or offer for
adoption property, seized under state law, to a federal agency
for the purpose of forfeiture under 18 U.S.C. ch. 46, or other
federal law.
2. Subsection 1 shall only apply to a seizure by law
-19-
LSB 5069HV (1) 90
cm/jh 19/ 30

H.F. 2560
enforcement agency pursuant to a law enforcement agency
authority under state law and without involvement of the
federal government. Subsection 1 shall not be construed to
limit a law enforcement agency from participating in joint task
forces with the federal government.
3. A law enforcement agency shall not accept payment of any
kind or distribution of forfeiture proceeds from the federal
government. All such forfeiture proceeds shall be directed to
the general fund of the state.
Sec. 37. NEW SECTION . 809B.37 Limitation on state and
federal joint task forces.
1. Except as allowed for in subsection 2, a joint task force
of a law enforcement agency and a federal agency shall transfer
seized property to the prosecuting authority for forfeiture
under this chapter.
2. The joint task force may transfer seized property to
the United States department of justice for forfeiture under
federal law if the seized property includes United States
currency that exceeds twenty-five thousand dollars.
3. A law enforcement agency shall not accept payment
or distribution of any kind from the federal government if
the federal government requires seized property less than
twenty-five thousand dollars to be transferred to the federal
government for forfeiture under federal law.
4. Subsections 1 and 2 shall not be construed to prohibit
the federal government, acting alone, from seizing property and
seeking forfeiture under federal law.
Sec. 38. NEW SECTION . 809B.38 Guidance.
1. A prosecuting authority, after consulting with the
responsible United States attorney, shall establish guidelines
for joint task forces and multijurisdictional collaboration in
the prosecuting authority’s jurisdiction. The guidelines shall
be consistent with federal safeguards to ensure that activities
are conducted in compliance with the United States department
of justice policies.
-20-
LSB 5069HV (1) 90
cm/jh 20/ 30

H.F. 2560
2. The department of public safety may offer training on
seizure and forfeiture under this chapter.
Sec. 39. Section 80.39, subsection 1, Code 2024, is amended
to read as follows:
1. Personal property, except for motor vehicles subject to
sale pursuant to section 321.89 , and seizable property subject
to disposition pursuant to chapter 809 or 809A , which personal
property is found or seized by, turned in to, or otherwise
lawfully comes into the possession of the department or a local
law enforcement agency and which the department or agency does
not own, shall be disposed of pursuant to this section . If by
examining the property the owner or lawful custodian of the
property is known or can be readily ascertained, the department
or agency shall notify the owner or custodian by certified mail
directed to the owner’s or custodian’s last known address, as
to the location of the property. If the identity or address of
the owner cannot be determined, notice by one publication in a
newspaper of general circulation in the area where the property
was found is sufficient notice. A published notice may contain
multiple items.
Sec. 40. Section 123.9, subsection 7, Code 2024, is amended
by striking the subsection.
Sec. 41. Section 321.232, subsection 3, Code 2024, is
amended to read as follows:
3. A speed detection jamming device sold, operated, or
possessed in violation of subsection 1 may be seized by a peace
officer and is subject to forfeiture as provided by chapter 809
or 809A .
Sec. 42. Section 321J.4B, subsections 6, 9, and 10, Code
2024, are amended to read as follows:
6. Upon conviction of the defendant for a second
or subsequent violation of subsection 2 , paragraph “a” ,
subparagraph (2), the court shall order, if the convicted
person is the owner of the motor vehicle used in the commission
of the offense, that that motor vehicle be seized and forfeited
-21-
LSB 5069HV (1) 90
cm/jh 21/ 30

H.F. 2560
to the state pursuant to chapters 809 and 809A 809B .
9. Operating a motor vehicle on a street or highway in this
state in violation of an order of impoundment or immobilization
is a serious misdemeanor. A motor vehicle which is subject to
an order of impoundment or immobilization that is operated on a
street or highway in this state in violation of the order shall
be seized and forfeited to the state under chapters 809 and
809A 809B .
10. Once the period of impoundment or immobilization has
expired, the owner of the motor vehicle shall have thirty
days to claim the motor vehicle and pay all fees and charges
imposed under this section . If the owner or the owner’s
designee has not claimed the vehicle and paid all fees and
charges imposed under this section within seven days from the
date of expiration of the period, the clerk shall send written
notification to the motor vehicle owner, at the owner’s last
known address, notifying the owner of the date of expiration of
the period of impoundment or immobilization and of the period
in which the motor vehicle must be claimed. If the motor
vehicle owner fails to claim the motor vehicle and pay all fees
and charges imposed within the thirty-day period, the motor
vehicle shall be forfeited to the state under chapters 809 and
809A 809B .
Sec. 43. Section 321J.4B, subsection 12, paragraph a,
subparagraph (2), Code 2024, is amended to read as follows:
(2) The holder of a security interest in a vehicle which
is impounded or immobilized pursuant to this section or
forfeited in the manner provided in chapters 809 and 809A
809B shall be notified of the impoundment, immobilization,
or forfeiture within seventy-two hours of the seizure of the
vehicle and shall have the right to claim the motor vehicle
without payment of any fees or surcharges unless the value of
the vehicle exceeds the value of the security interest held by
the creditor.
Sec. 44. Section 321J.10, subsection 7, Code 2024, is
-22-
LSB 5069HV (1) 90
cm/jh 22/ 30

H.F. 2560
amended to read as follows:
7. Specimens obtained pursuant to warrants issued under
this section are not subject to disposition under section 808.9
or chapter 809 or 809A .
Sec. 45. Section 455B.103, subsection 4, paragraph d,
subparagraph (2), Code 2024, is amended to read as follows:
(2) In a reasonable manner, and any property seized shall be
treated in accordance with the provisions of chapters 808 , and
809 , and 809A .
Sec. 46. Section 462A.14D, subsection 7, Code 2024, is
amended to read as follows:
7. Specimens obtained pursuant to warrants issued under
this section are not subject to disposition under section 808.9
or chapter 809 or 809A 809B .
Sec. 47. Section 706A.3, subsection 3, paragraphs d and e,
Code 2024, are amended to read as follows:
d. Ordering the payment of all reasonable costs and expenses
of the investigation and prosecution of any violation, civil
or criminal, including reasonable attorney fees in the trial
and appellate courts. Such payments received by the state,
by judgment, settlement, or otherwise, shall be considered
forfeited property and disposed of pursuant to section 809A.17
chapter 809B .
e. Ordering the forfeiture of any property subject to
forfeiture under chapter 809A 809B , pursuant to the provisions
and procedures of that chapter.
Sec. 48. Section 706A.3, subsection 4, Code 2024, is amended
to read as follows:
4. Relief under subsection 3 , paragraphs “e” , “f” , and
“g” , shall not be granted in civil proceedings instituted
by an aggrieved person unless the prosecuting attorney has
instituted the proceedings or intervened. In any action under
this section brought by the state or in which the state has
intervened, the state may employ any of the powers of seizure
and restraint of property as are provided for forfeiture
-23-
LSB 5069HV (1) 90
cm/jh 23/ 30

H.F. 2560
actions under chapter 809A 809B , or as are provided for the
collection of taxes payable and past due, and whose collection
has been determined to be in jeopardy.
Sec. 49. Section 706B.2, subsection 4, Code 2024, is amended
to read as follows:
4. A person who is found guilty of a violation under this
section also may be charged with violations of chapter 706A ,
and property involved in a violation under this chapter is
subject to forfeiture under chapter 809A .
Sec. 50. Section 715A.8, subsection 6, Code 2024, is amended
by striking the subsection.
Sec. 51. Section 724.26, subsection 4, Code 2024, is amended
to read as follows:
4. Except as provided in section 809A.17, subsection 5 ,
paragraph “b” chapter 809B , a court that issues an order or
that enters a judgment of conviction described in subsection
2 and that finds the subject of the order or conviction to be
in possession of any firearm, offensive weapon, or ammunition
shall order that such firearm, offensive weapon, or ammunition
be sold or transferred by a date certain to the custody of a
qualified person in this state, as determined by the court.
The qualified person must be able to lawfully possess such
firearm, offensive weapon, or ammunition in this state. If
the court is unable to identify a qualified person to receive
such firearm, offensive weapon, or ammunition, the court
shall order that the firearm, offensive weapon, or ammunition
be transferred by a date certain to the county sheriff or
a local law enforcement agency designated by the court for
safekeeping until a qualified person is identified to receive
the firearm, offensive weapon, or ammunition, until such order
is no longer in effect, until such conviction is vacated, or
until the person’s rights have been restored in accordance
with section 724.27 . If the firearm, offensive weapon, or
ammunition is to be transferred to the sheriff’s office or a
local law enforcement agency, the court shall assess the person
-24-
LSB 5069HV (1) 90
cm/jh 24/ 30

H.F. 2560
the reasonable cost of storing the firearm, offensive weapon,
or ammunition, payable to the county sheriff or the local law
enforcement agency.
Sec. 52. Section 809.5, subsection 1, paragraph f,
subparagraph (1), Code 2024, is amended to read as follows:
(1) If the aggregate fair market value of the property is
greater than five hundred dollars, forfeiture proceedings shall
be initiated pursuant to the provisions of chapter 809A 809B .
If the court does not order the property forfeited to the state
in the forfeiture proceedings pursuant to chapter 809A 809B ,
the seizing agency shall become the owner of the property and
may dispose of it in any reasonable manner.
Sec. 53. Section 809.12A, Code 2024, is amended to read as
follows:
809.12A Appeals.
An appeal from a denial of an application for the return
of seized property or from an order for the return of seized
property shall be made within thirty days after the entry of
a judgment order. The appellant, other than the state, shall
post a bond of a reasonable amount as the court may fix and
approve, conditioned to pay all costs of the proceedings if the
appellant is unsuccessful on appeal. The appellant, other than
the state, may be required to post a supersedeas bond or other
security, as the court finds to be reasonable, in order to stay
the operation of a forfeiture order under section 809A.16
chapter 809B .
Sec. 54. Section 809.15, Code 2024, is amended to read as
follows:
809.15 Combining proceedings.
In cases involving seized property and property subject to
forfeiture pursuant to section 809A.4 chapter 809B , the court
may order that the proceedings be combined for purposes of this
chapter .
Sec. 55. REPEAL. Section 716A.7, Code 2024, is repealed.
Sec. 56. REPEAL. Chapter 809A, Code 2024, is repealed.
-25-
LSB 5069HV (1) 90
cm/jh 25/ 30

H.F. 2560
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to criminal asset forfeiture.
Asset forfeiture is a process by which contraband and
proceeds or instrumentalities related to criminal activity
may be seized by the state and sold. Under current law,
asset forfeiture is governed by Code chapter 809A. The bill
repeals Code chapter 809A and replaces it with new Code chapter
809B. Currently under Code chapter 809A, a conviction for a
criminal offense is not required for an asset to be subject
to forfeiture for property valued at $5,000 and less, and
forfeiture need not be expressly authorized as a penalty in the
criminal statute.
Under current law, forfeiture is provided as a remedy for
certain driving while intoxicated offenses and for violations
of Code chapters 706B (money laundering), 715A (forgery and
related fraudulent criminal acts), and 716A (electronic mail).
The bill prohibits civil forfeiture and provides that
criminal forfeiture is only available to the seizure and
forfeiture of property used in and derived from the violation
of Code chapter 124, subchapter IV (controlled substances ——
offenses and penalties).
Under the bill, forfeiture is disfavored. The bill’s stated
purposes are to deter criminal activity by reducing criminal
activity economic incentives, confiscate property used in
the violation of the law, and protect due process rights of
property owners.
The bill provides that the court that has jurisdiction in
the related criminal matter shall have jurisdiction over the
forfeiture proceeding and the forfeiture shall be part of the
trial of the related crime.
The bill states that at the request of the state, a court may
issue an ex parte order for the property for which forfeiture
is sought and to provide for the custody of the personal
-26-
LSB 5069HV (1) 90
cm/jh 26/ 30

H.F. 2560
property.
The bill provides for the seizure of personal property
without process if the property was seized during a lawful
arrest. The bill further provides that the seizure of real
property requires process and proper notice.
The bill provides that people do not have property rights in
stolen property or contraband. Stolen property may be returned
to the rightful owner and contraband shall be disposed of. The
agency that seized the property is responsible for providing
adequate storage, security, and maintenance for all assets in
the agency’s custody.
The bill requires that the law enforcement officer that
seizes the property shall provide an itemized numbered receipt
of all assets being taken.
The bill exempts United States currency totaling $200 or
less and a motor vehicle valued at $2,000 or less from seizure
and forfeiture.
The bill provides that a person may execute a waiver to
relinquish the person’s rights, interests, and title in the
seized property and that waiver is subject to a claim by a
secured interest holder, innocent owner, or other person
entitled to notice. The bill further provides that a law
enforcement officer, other than the prosecuting authority, may
not request, induce, or require a person to waive the person’s
rights in seized property.
The bill requires a law enforcement agency making a seizure
to submit a report to the appropriate prosecuting agency within
10 days of the seizure. The report shall include the following
information: (1) name of the seizing law enforcement agency,
(2)description of the seized property, (3) location where the
seizure occurred, (4) date and circumstances of seizure, (5)
where the property is being stored and its custodian, (6) name
and contact information of owner, possible innocent owner
claimant, and any lienholder, (7) the type and quantity of
the controlled substance involved, (8) if the property is a
-27-
LSB 5069HV (1) 90
cm/jh 27/ 30

H.F. 2560
conveyance, the report shall include the make, model, serial
number, and year of the conveyance and the name and contact
information of the person in whose name the conveyance is
registered, and (9) any other relevant information.
The bill provides that the title to the seized property vests
with the state when the court issues a forfeiture judgment and
relates back to the date when the state took control of the
property.
The bill provides for appointed counsel for a defendant in
a forfeiture proceeding if the person has a public defender,
or court-appointed counsel, to the person in the connected
criminal matter. In a pro se proceeding, the court may
exercise discretion applying the rules of pleading, practice,
evidence, and procedure.
The bill requires the prosecuting authority to perform
a reasonable search to identify any person, other than the
defendant, known to have an interest in the property subject
to forfeiture and give notice to the interested person. The
bill allows notice to be through publication if personal
service is not available. The bill provides language that
shall be included in the notice to other known owners. If the
prosecuting authority does not serve notice on any persons
appearing to have an interest in the property and the extension
period has expired, the prosecuting authority or court shall
order the return of the property to a person with a valid
interest in the property who makes a request.
The bill provides that following seizure, a defendant or any
other person with an interest in the property has a right to a
prompt post-seizure hearing and may file a motion to request a
hearing. The bill further provides that seized property shall
be returned if the court by a preponderance of the evidence
determines that: (1) the seizure was invalid, (2) a criminal
charge has not been filed and no filing extension is available,
(3) the final judgment will be in favor of the defendant or any
other person with an interest in the property, or (4) the court
-28-
LSB 5069HV (1) 90
cm/jh 28/ 30

H.F. 2560
has ordered the return of sufficient funds to the defendant,
not needed as evidence, for the defendant to obtain counsel of
choice but less than the total amount seized. The bill allows
the court to impose reasonable conditions on the return of the
property.
The bill requires the prosecuting authority to provide a
notice of proposed forfeiture with the court and the person
whose property will be seized. The notice shall include (1)
a description of the property seized, (2) the time, date, and
place of the seizure, (3) the seizure receipt number, and (4) a
description of how the property was used in or derived from the
alleged crime.
The bill provides that forfeiture proceedings are subject to
the rules of criminal procedure.
The bill allows property to be forfeited if the defendant
has been convicted of a violation of Code section 124.401 and
the state has established by a preponderance of the evidence
that the property is an instrumentality of or proceeds derived
directly from the violation. Upon conviction, the court has
the discretion to hold the forfeiture proceeding as soon as
practicable. A forfeiture proceeding shall be held without a
jury. The bill also provides that property may be forfeited
by consent order approved by the court provided that secured
interest holders, innocent owners, or others entitled to notice
to consent to the forfeiture.
The bill provides that the court may waive the requirement
that a defendant be convicted of a violation of Code section
124.401 and grant title of the property to the state if the
prosecuting authority files a motion no fewer than 90 days
after seizure and proves that the defendant abandoned the
property, fled the jurisdiction, was deported, or died.
The bill provides for a proportionality hearing, where
the defendant may petition the court that the forfeiture was
unconstitutionally excessive.
The bill provides remedies for secured interest holders and
-29-
LSB 5069HV (1) 90
cm/jh 29/ 30

H.F. 2560
innocent owners whose property has been seized by the state.
The bill allows the secured interest holder and an innocent
owner whose seized property is not returned to petition the
court for a hearing for the property to be returned.
The bill provides that a defendant is not jointly and
severally liable for forfeiture awards owed by other
defendants.
The bill provides that in a forfeiture proceeding in which a
claimant substantially prevails, the state shall be liable for
attorney fees and other litigation costs incurred. The bill
provides the procedure to return the property and any damages
sustained to the property during its seizure.
-30-
LSB 5069HV (1) 90
cm/jh 30/ 30