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.