By Longoria H.B. No. 75
75R949 GWK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the disposition of forfeited contraband and the
1-3 proceeds from the sale of forfeited contraband.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 59.06, Code of Criminal Procedure, is
1-6 amended to read as follows:
1-7 Art. 59.06. DISPOSITION OF FORFEITED PROPERTY. (a) Except
1-8 as provided by Subsection (f) [(i)], all forfeited property shall
1-9 be administered by the attorney representing the state, acting as
1-10 the agent of the state, in accordance with accepted accounting
1-11 practices and with the provisions of an [any local] agreement
1-12 entered into between the [attorney representing the] state and
1-13 local law enforcement agencies. An agreement must provide for an
1-14 equitable division of the proceeds between the state, the county,
1-15 or the municipality based on the participation of the state,
1-16 county, or municipal law enforcement agency in the seizure of
1-17 forfeited property. If an [a local] agreement has not been
1-18 executed, the property shall be sold on the 75th day after the date
1-19 of the final judgment of forfeiture at public auction under the
1-20 direction of the county sheriff, after notice of public auction as
1-21 provided by law for other sheriff's sales. The proceeds of the
1-22 sale shall be distributed as follows:
1-23 (1) to any interest holder to the extent of the
1-24 interest holder's nonforfeitable interest; and
2-1 (2) the balance, if any, after deductions of all
2-2 storage and disposal costs, to be deposited not later than the 30th
2-3 day after the date of the sale in the state treasury to the credit
2-4 of the general revenue fund.
2-5 (b) If an [a local] agreement exists between the [attorney
2-6 representing the] state and local law enforcement agencies, the
2-7 attorney representing the state shall [may] transfer the property
2-8 to the county sheriff. The property shall be sold on the 75th day
2-9 after the date of the final judgment of forfeiture at public
2-10 auction under the direction of the county sheriff, after notice of
2-11 public auction as provided by law for other sheriff's sales. The
2-12 proceeds of the sale shall be distributed as follows:
2-13 (1) to any interest holder to the extent of the
2-14 interest holder's nonforfeitable interest; and
2-15 (2) the balance, if any, after deductions of all
2-16 storage and disposal costs, to be deposited not later than the 30th
2-17 day after the date of the sale in accordance with the terms of the
2-18 agreement in one or more of the following:
2-19 (A) the county treasury;
2-20 (B) the municipal treasury; or
2-21 (C) the state treasury to the credit of the
2-22 general revenue fund [law enforcement agencies to maintain, repair,
2-23 use, and operate the property for official purposes if the property
2-24 is free of any interest of an interest holder. The agency
2-25 receiving the forfeited property may purchase the interest of an
2-26 interest holder so that the property can be released for use by the
2-27 agency. The agency receiving the forfeited property may maintain,
3-1 repair, use, and operate the property with money appropriated for
3-2 current operations. If the property is a motor vehicle subject to
3-3 registration under the motor vehicle registration laws of this
3-4 state, the agency receiving the forfeited vehicle is considered to
3-5 be the purchaser and the certificate of title shall issue to the
3-6 agency. The agency at any time may transfer the property to a
3-7 municipal or county law enforcement agency for the use of that
3-8 agency].
3-9 (c) If an [a local] agreement exists between the [attorney
3-10 representing the] state and local law enforcement agencies, all
3-11 money, securities, negotiable instruments, stocks or bonds, or
3-12 things of value, or proceeds from the sale of those items, shall be
3-13 deposited according to the terms of the agreement into one or more
3-14 of the following funds:
3-15 (1) [a special fund in] the county treasury [for the
3-16 benefit of the office of the attorney representing the state, to be
3-17 used by the attorney solely for the official purposes of his
3-18 office];
3-19 (2) [a special fund in] the municipal treasury [if
3-20 distributed to a municipal law enforcement agency, to be used
3-21 solely for law enforcement purposes, such as salaries and overtime
3-22 pay for officers, officer training, specialized investigative
3-23 equipment and supplies, and items used by officers in direct law
3-24 enforcement duties]; or
3-25 (3) the state treasury to the credit of the general
3-26 revenue fund [a special fund in the county treasury if distributed
3-27 to a county law enforcement agency, to be used solely for law
4-1 enforcement purposes; or]
4-2 [(4) a special fund in the state law enforcement
4-3 agency if distributed to a state law enforcement agency, to be used
4-4 solely for law enforcement purposes].
4-5 (d) [Proceeds awarded under this chapter to a law
4-6 enforcement agency or to the attorney representing the state may be
4-7 spent by the agency or the attorney after a budget for the
4-8 expenditure of the proceeds has been submitted to the commissioners
4-9 court or governing body of the municipality. The budget must be
4-10 detailed and clearly list and define the categories of
4-11 expenditures, but may not list details that would endanger the
4-12 security of an investigation or prosecution. Expenditures are
4-13 subject to audit provisions established under this article. A
4-14 commissioners court or governing body of a municipality may not use
4-15 the existence of an award to offset or decrease total salaries,
4-16 expenses, and allowances that the agency or the attorney receives
4-17 from the commissioners court or governing body at or after the time
4-18 the proceeds are awarded. The head of the agency or attorney
4-19 representing the state may not use the existence of an award to
4-20 increase a salary, expense, or allowance for an employee of the
4-21 attorney or agency who is budgeted by the commissioners court or
4-22 governing body unless the commissioners court or governing body
4-23 first approves the expenditure.]
4-24 [(e)] On the sale of contraband under this article, the
4-25 appropriate state agency shall issue a certificate of title to the
4-26 recipient if a certificate of title is required for the property by
4-27 other law.
5-1 (e) [(f)] A final judgment of forfeiture under this chapter
5-2 perfects the title of the state to the property as of the date that
5-3 the contraband was seized or the date the forfeiture action was
5-4 filed, whichever occurred first, except that if the property
5-5 forfeited is real property, the title is perfected as of the date a
5-6 notice of lis pendens is filed on the property.
5-7 [(g) All law enforcement agencies and attorneys representing
5-8 the state who receive proceeds or property under this chapter shall
5-9 account for the seizure, receipt, and disbursement of all such
5-10 proceeds and property in an audit, which is to be performed
5-11 annually by the commissioners court or governing body of a
5-12 municipality, as appropriate. The audit shall be completed on a
5-13 form provided by the Criminal Justice Division of the Governor's
5-14 Office. Certified copies of the audit shall be delivered by the
5-15 law enforcement agency or attorney representing the state to the
5-16 Criminal Justice Division of the Governor's Office no later than 30
5-17 days after the audit is completed.]
5-18 [(h) As a specific exception to the requirement of
5-19 Subdivisions (1)-(3) of Subsection (c) of this article that the
5-20 funds described by those subdivisions be used only for the official
5-21 purposes of the attorney representing the state or for law
5-22 enforcement purposes, on agreement between the attorney
5-23 representing the state or the head of a law enforcement agency and
5-24 the governing body of a political subdivision, the attorney
5-25 representing the state or the head of the law enforcement agency
5-26 shall comply with the request of the governing body to deposit not
5-27 more than a total of 10 percent of the gross amount credited to the
6-1 attorney's or agency's fund into the treasury of the political
6-2 subdivision. The governing body of the political subdivision
6-3 shall, by ordinance, order, or resolution, use funds received under
6-4 this subsection for:]
6-5 [(1) nonprofit programs for the prevention of drug
6-6 abuse;]
6-7 [(2) nonprofit chemical dependency treatment
6-8 facilities licensed under Chapter 464, Health and Safety Code; or]
6-9 [(3) nonprofit drug and alcohol rehabilitation or
6-10 prevention programs administered or staffed by professionals
6-11 designated as qualified and credentialed by the Texas Commission on
6-12 Alcohol and Drug Abuse. The governing body of a political
6-13 subdivision may not use funds received under this subchapter for
6-14 programs or facilities listed under Subdivisions (1)-(3) of this
6-15 subsection if an officer of or member of the Board of Directors of
6-16 the entity providing the program or facility is related to a member
6-17 of the governing body, the attorney representing the state, or the
6-18 head of the law enforcement agency within the third degree by
6-19 consanguinity or the second degree by affinity. As a specific
6-20 exception to Subdivision (4) of Subsection (c) of this article, the
6-21 director of a state law enforcement agency may use not more than 10
6-22 percent of the amount credited to the special fund of the agency
6-23 under that subdivision for the prevention of drug abuse and the
6-24 treatment of persons with drug-related problems.]
6-25 (f) [(i)] The attorney representing [for] the state shall
6-26 transfer all forfeited property that is income from, or acquired
6-27 with the income from, a movie, book, magazine article, tape
7-1 recording, phonographic record, radio or television presentation,
7-2 or live entertainment in which a crime is reenacted to the attorney
7-3 general. The attorney general shall deposit the money or proceeds
7-4 from the sale of the property into an escrow account. The money in
7-5 the account is available to satisfy a judgment against the person
7-6 who committed the crime in favor of a victim of the crime if the
7-7 judgment is for damages incurred by the victim caused by the
7-8 commission of the crime. The attorney general shall transfer the
7-9 money in the account that has not been ordered paid to a victim in
7-10 satisfaction of a judgment to the compensation to victims of crime
7-11 fund on the fifth anniversary of the date the account was
7-12 established. In this subsection, "victim" has the meaning assigned
7-13 by Article 56.32.
7-14 SECTION 2. The change in law made by this Act applies only
7-15 to the disposition of property forfeited on or after the effective
7-16 date of this Act and proceeds from the sale of property forfeited
7-17 on or after that date. Property forfeited before the effective
7-18 date of this Act and proceeds from the sale of that property are
7-19 covered by the law in effect when the property was forfeited, and
7-20 the former law is continued in effect for that purpose.
7-21 SECTION 3. This Act takes effect September 1, 1997.
7-22 SECTION 4. The importance of this legislation and the
7-23 crowded condition of the calendars in both houses create an
7-24 emergency and an imperative public necessity that the
7-25 constitutional rule requiring bills to be read on three several
7-26 days in each house be suspended, and this rule is hereby suspended.