By Wise                                                H.B. No. 295
         76R2270 JMC-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of a portion  of the proceeds of criminal asset
 1-3     forfeiture for programs designed to prevent juvenile drug abuse.
 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 (k) [(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 any local agreement entered
1-12     into between the attorney representing the state and law
1-13     enforcement agencies.   If a local agreement has not been executed,
1-14     the property shall be sold on the 75th day after the date of the
1-15     final judgment of forfeiture at public auction under the direction
1-16     of the county sheriff, after notice of public auction as provided
1-17     by law for other sheriff's sales.  The proceeds of the sale shall
1-18     be distributed as follows:
1-19                 (1)  to any interest holder to the extent of the
1-20     interest holder's nonforfeitable interest;  and
1-21                 (2)  the balance, if any, after deductions of all
1-22     storage and disposal costs, to be deposited not later than the 30th
1-23     day after the date of the sale in the state treasury to the credit
1-24     of the general revenue fund.
 2-1           (b)  If a local agreement exists between the attorney
 2-2     representing the state and law enforcement agencies, the attorney
 2-3     representing the state may transfer the property to law enforcement
 2-4     agencies to maintain, repair, use, and operate the property for
 2-5     official purposes if the property is free of any interest of an
 2-6     interest holder.  The agency receiving the forfeited property may
 2-7     purchase the interest of an interest holder so that the property
 2-8     can be released for use by the agency.  The agency receiving the
 2-9     forfeited property may maintain, repair, use, and operate the
2-10     property with money appropriated for current operations.  If the
2-11     property is a motor vehicle subject to registration under the motor
2-12     vehicle registration laws of this state, the agency receiving the
2-13     forfeited vehicle is considered to be the purchaser and the
2-14     certificate of title shall issue to the agency.  The agency at any
2-15     time may transfer the property to a municipal or county law
2-16     enforcement agency for the use of that agency.
2-17           (c)  If a local agreement exists between the attorney
2-18     representing the state and law enforcement agencies, all money,
2-19     securities, negotiable instruments, stocks or bonds, or things of
2-20     value, or proceeds from the sale of those items, shall be deposited
2-21     according to the terms of the agreement into one or more of the
2-22     following funds:
2-23                 (1)  a special fund in the county treasury for the
2-24     benefit of the office of the attorney representing the state, to be
2-25     used by the attorney solely for the official purposes of the
2-26     attorney's [his] office;
2-27                 (2)  a special fund in the municipal treasury if
 3-1     distributed to a municipal law enforcement agency, to be used
 3-2     solely for law enforcement purposes, such as salaries and overtime
 3-3     pay for officers, officer training, specialized investigative
 3-4     equipment and supplies, and items used by officers in direct law
 3-5     enforcement duties;
 3-6                 (3)  a special fund in the county treasury if
 3-7     distributed to a county law enforcement agency, to be used solely
 3-8     for law enforcement purposes;  or
 3-9                 (4)  a special fund in the state law enforcement agency
3-10     if distributed to a state law enforcement agency, to be used solely
3-11     for law enforcement purposes.
3-12           (d)  Proceeds awarded under this chapter to a law enforcement
3-13     agency or to the attorney representing the state may be spent by
3-14     the agency or the attorney after a budget for the expenditure of
3-15     the proceeds has been submitted to the commissioners court or
3-16     governing body of the municipality.  The budget must be detailed
3-17     and clearly list and define the categories of expenditures, but may
3-18     not list details that would endanger the security of an
3-19     investigation or prosecution.  Expenditures are subject to audit
3-20     provisions established under this article.  A commissioners court
3-21     or governing body of a municipality may not use the existence of an
3-22     award to offset or decrease total salaries, expenses, and
3-23     allowances that the agency or the attorney receives from the
3-24     commissioners court or governing body at or after the time the
3-25     proceeds are awarded.  The head of the agency or attorney
3-26     representing the state may not use the existence of an award to
3-27     increase a salary, expense, or allowance for an employee of the
 4-1     attorney or agency who is budgeted by the commissioners court or
 4-2     governing body unless the commissioners court or governing body
 4-3     first approves the expenditure.
 4-4           (e)  On the sale of contraband under this article, the
 4-5     appropriate state agency shall issue a certificate of title to the
 4-6     recipient if a certificate of title is required for the property by
 4-7     other law.
 4-8           (f)  A final judgment of forfeiture under this chapter
 4-9     perfects the title of the state to the property as of the date that
4-10     the contraband was seized or the date the forfeiture action was
4-11     filed, whichever occurred first, except that if the property
4-12     forfeited is real property, the title is perfected as of the date a
4-13     notice of lis pendens is filed on the property.
4-14           (g)  All law enforcement agencies and attorneys representing
4-15     the state who receive proceeds or property under this chapter shall
4-16     account for the seizure, forfeiture, receipt, and specific
4-17     expenditure of all such proceeds and property in an audit, which is
4-18     to be performed annually by the commissioners court or governing
4-19     body of a municipality, as appropriate.  The annual period of the
4-20     audit for a law enforcement agency is the fiscal year of the
4-21     appropriate county or municipality and the annual period for an
4-22     attorney representing the state is the state fiscal year.  The
4-23     audit shall be completed on a form provided by the Criminal Justice
4-24     Division of the Governor's Office.  Certified copies of the audit
4-25     shall be delivered by the law enforcement agency or attorney
4-26     representing the state to the Criminal Justice Division of the
4-27     Governor's Office not later than the 30th day after the date on
 5-1     which the annual period that is the subject of the audit ends.
 5-2           (h)  As a specific exception to the requirement of
 5-3     Subdivisions (1)-(3) of Subsection (c) of this article that the
 5-4     funds described by those subdivisions be used only for the official
 5-5     purposes of the attorney representing the state or for law
 5-6     enforcement purposes, on agreement between the attorney
 5-7     representing the state or the head of a law enforcement agency and
 5-8     the governing body of a political subdivision, the attorney
 5-9     representing the state or the head of the law enforcement agency
5-10     shall comply with the request of the governing body to deposit not
5-11     more than a total of 10 percent of the gross amount credited to the
5-12     attorney's or agency's fund into the treasury of the political
5-13     subdivision.  The governing body of the political subdivision
5-14     shall, by ordinance, order, or resolution, use not less than 25
5-15     percent of the funds received under this subsection for drug-abuse
5-16     prevention programs provided by nonprofit organizations that
5-17     primarily serve children and the remainder of the funds received
5-18     under this subsection for:
5-19                 (1)  other nonprofit programs for the prevention of
5-20     drug abuse;
5-21                 (2)  nonprofit chemical dependency treatment facilities
5-22     licensed under Chapter 464, Health and Safety Code;  or
5-23                 (3)  nonprofit drug and alcohol rehabilitation or
5-24     prevention programs administered or staffed by professionals
5-25     designated as qualified and credentialed by the Texas Commission on
5-26     Alcohol and Drug Abuse.
5-27           (i)  The governing body of a political subdivision may not
 6-1     use funds received under this subchapter for programs or facilities
 6-2     listed under Subsection (h) [Subdivisions (1)-(3) of this
 6-3     subsection] if an officer of or member of the Board of Directors of
 6-4     the entity providing the program or facility is related to a member
 6-5     of the governing body, the attorney representing the state, or the
 6-6     head of the law enforcement agency within the third degree by
 6-7     consanguinity or the second degree by affinity.
 6-8           (j)  As a specific exception to Subdivision (4) of Subsection
 6-9     (c) of this article, the director of a state law enforcement agency
6-10     may use not more than 10 percent of the amount credited to the
6-11     special fund of the agency under that subdivision for the
6-12     prevention of drug abuse and the treatment of persons with
6-13     drug-related problems.
6-14           (k) [(i)]  The attorney for the state shall transfer all
6-15     forfeited property that is income from, or acquired with the income
6-16     from, a movie, book, magazine article, tape recording, phonographic
6-17     record, radio or television presentation, or live entertainment in
6-18     which a crime is reenacted to the attorney general.  The attorney
6-19     general shall deposit the money or proceeds from the sale of the
6-20     property into an escrow account.  The money in the account is
6-21     available to satisfy a judgment against the person who committed
6-22     the crime in favor of a victim of the crime if the judgment is for
6-23     damages incurred by the victim caused by the commission of the
6-24     crime.  The attorney general shall transfer the money in the
6-25     account that has not been ordered paid to a victim in satisfaction
6-26     of a judgment to the compensation to victims of crime fund on the
6-27     fifth anniversary of the date the account was established.  In this
 7-1     subsection, "victim" has the meaning assigned by Article 56.32.
 7-2           (l) [(j)]  A law enforcement agency that, or an attorney
 7-3     representing the state who, does not receive proceeds or property
 7-4     under this chapter during an annual period as described by
 7-5     Subsection (g) shall, not later than the 30th day after the date on
 7-6     which the annual period ends, report to the Criminal Justice
 7-7     Division of the Governor's Office that the agency or attorney, as
 7-8     appropriate, did not receive proceeds or property under this
 7-9     chapter during the annual period.
7-10           (m) [(k)]  As a specific exception to Subdivisions (1)-(3) of
7-11     Subsection (c), a law enforcement agency or attorney representing
7-12     the state may use proceeds received under this chapter to contract
7-13     with a person or entity to prepare an audit as required by
7-14     Subsection (g).
7-15           SECTION 2.  The change in law made by this Act applies only
7-16     to the disposition of funds deposited into the treasury of a
7-17     political subdivision on or after the effective date of this Act.
7-18     The disposition of funds deposited into the treasury of a political
7-19     subdivision before the effective date of this Act is covered by the
7-20     law in effect when those funds were deposited, and the former law
7-21     is continued in effect for this purpose.
7-22           SECTION 3.  This Act takes effect September 1, 1999.
7-23           SECTION 4.  The importance of this legislation and the
7-24     crowded condition of the calendars in both houses create an
7-25     emergency and an imperative public necessity that the
7-26     constitutional rule requiring bills to be read on three several
7-27     days in each house be suspended, and this rule is hereby suspended.