By Capelo H.B. No. 855
76R4121 KEL-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the use of proceeds from criminal asset forfeiture to
1-3 provide financial assistance to a person pursuing certain law
1-4 enforcement studies.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article 59.06, Code of Criminal Procedure, is
1-7 amended to read as follows:
1-8 Art. 59.06. DISPOSITION OF FORFEITED PROPERTY. (a) Except
1-9 as provided by Subsection (k) [(i)], all forfeited property shall
1-10 be administered by the attorney representing the state, acting as
1-11 the agent of the state, in accordance with accepted accounting
1-12 practices and with the provisions of any local agreement entered
1-13 into between the attorney representing the state and law
1-14 enforcement agencies. If a local agreement has not been executed,
1-15 the property shall be sold on the 75th day after the date of the
1-16 final judgment of forfeiture at public auction under the direction
1-17 of the county sheriff, after notice of public auction as provided
1-18 by law for other sheriff's sales. The proceeds of the sale shall
1-19 be distributed as follows:
1-20 (1) to any interest holder to the extent of the
1-21 interest holder's nonforfeitable interest; and
1-22 (2) the balance, if any, after deductions of all
1-23 storage and disposal costs, to be deposited not later than the 30th
1-24 day after the date of the sale in the state treasury to the credit
2-1 of the general revenue fund.
2-2 (b) If a local agreement exists between the attorney
2-3 representing the state and law enforcement agencies, the attorney
2-4 representing the state may transfer the property to law enforcement
2-5 agencies to maintain, repair, use, and operate the property for
2-6 official purposes if the property is free of any interest of an
2-7 interest holder. The agency receiving the forfeited property may
2-8 purchase the interest of an interest holder so that the property
2-9 can be released for use by the agency. The agency receiving the
2-10 forfeited property may maintain, repair, use, and operate the
2-11 property with money appropriated for current operations. If the
2-12 property is a motor vehicle subject to registration under the motor
2-13 vehicle registration laws of this state, the agency receiving the
2-14 forfeited vehicle is considered to be the purchaser and the
2-15 certificate of title shall issue to the agency. The agency at any
2-16 time may transfer the property to a municipal or county law
2-17 enforcement agency for the use of that agency.
2-18 (c) If a local agreement exists between the attorney
2-19 representing the state and law enforcement agencies, all money,
2-20 securities, negotiable instruments, stocks or bonds, or things of
2-21 value, or proceeds from the sale of those items, shall be deposited
2-22 according to the terms of the agreement into one or more of the
2-23 following funds:
2-24 (1) a special fund in the county treasury for the
2-25 benefit of the office of the attorney representing the state, to be
2-26 used by the attorney solely for the official purposes of his
2-27 office;
3-1 (2) a special fund in the municipal treasury if
3-2 distributed to a municipal law enforcement agency, to be used
3-3 solely for law enforcement purposes, such as salaries and overtime
3-4 pay for officers, officer training, specialized investigative
3-5 equipment and supplies, and items used by officers in direct law
3-6 enforcement duties;
3-7 (3) a special fund in the county treasury if
3-8 distributed to a county law enforcement agency, to be used solely
3-9 for law enforcement purposes; or
3-10 (4) a special fund in the state law enforcement agency
3-11 if distributed to a state law enforcement agency, to be used solely
3-12 for law enforcement purposes.
3-13 (d) Proceeds awarded under this chapter to a law enforcement
3-14 agency or to the attorney representing the state may be spent by
3-15 the agency or the attorney after a budget for the expenditure of
3-16 the proceeds has been submitted to the commissioners court or
3-17 governing body of the municipality. The budget must be detailed
3-18 and clearly list and define the categories of expenditures, but may
3-19 not list details that would endanger the security of an
3-20 investigation or prosecution. Expenditures are subject to audit
3-21 provisions established under this article. A commissioners court
3-22 or governing body of a municipality may not use the existence of an
3-23 award to offset or decrease total salaries, expenses, and
3-24 allowances that the agency or the attorney receives from the
3-25 commissioners court or governing body at or after the time the
3-26 proceeds are awarded. The head of the agency or attorney
3-27 representing the state may not use the existence of an award to
4-1 increase a salary, expense, or allowance for an employee of the
4-2 attorney or agency who is budgeted by the commissioners court or
4-3 governing body unless the commissioners court or governing body
4-4 first approves the expenditure.
4-5 (e) On the sale of contraband under this article, the
4-6 appropriate state agency shall issue a certificate of title to the
4-7 recipient if a certificate of title is required for the property by
4-8 other law.
4-9 (f) A final judgment of forfeiture under this chapter
4-10 perfects the title of the state to the property as of the date that
4-11 the contraband was seized or the date the forfeiture action was
4-12 filed, whichever occurred first, except that if the property
4-13 forfeited is real property, the title is perfected as of the date a
4-14 notice of lis pendens is filed on the property.
4-15 (g) All law enforcement agencies and attorneys representing
4-16 the state who receive proceeds or property under this chapter shall
4-17 account for the seizure, forfeiture, receipt, and specific
4-18 expenditure of all such proceeds and property in an audit, which is
4-19 to be performed annually by the commissioners court or governing
4-20 body of a municipality, as appropriate. The annual period of the
4-21 audit for a law enforcement agency is the fiscal year of the
4-22 appropriate county or municipality and the annual period for an
4-23 attorney representing the state is the state fiscal year. The
4-24 audit shall be completed on a form provided by the Criminal Justice
4-25 Division of the Governor's Office. Certified copies of the audit
4-26 shall be delivered by the law enforcement agency or attorney
4-27 representing the state to the Criminal Justice Division of the
5-1 Governor's Office not later than the 30th day after the date on
5-2 which the annual period that is the subject of the audit ends.
5-3 (h) As a specific exception to the requirement of
5-4 Subdivisions (1)-(3) of Subsection (c) of this article that the
5-5 funds described by those subdivisions be used only for the official
5-6 purposes of the attorney representing the state or for law
5-7 enforcement purposes, on agreement between the attorney
5-8 representing the state or the head of a law enforcement agency and
5-9 the governing body of a political subdivision, the attorney
5-10 representing the state or the head of the law enforcement agency
5-11 shall comply with the request of the governing body to deposit not
5-12 more than a total of 10 percent of the gross amount credited to the
5-13 attorney's or agency's fund into the treasury of the political
5-14 subdivision. The governing body of the political subdivision
5-15 shall, by ordinance, order, or resolution, use funds received under
5-16 this subsection for:
5-17 (1) nonprofit programs for the prevention of drug
5-18 abuse;
5-19 (2) nonprofit chemical dependency treatment facilities
5-20 licensed under Chapter 464, Health and Safety Code; [or]
5-21 (3) nonprofit drug and alcohol rehabilitation or
5-22 prevention programs administered or staffed by professionals
5-23 designated as qualified and credentialed by the Texas Commission on
5-24 Alcohol and Drug Abuse; or
5-25 (4) financial assistance as described by Subsection
5-26 (n).
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 Subsections (h)(1)-(3) [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 (n) The governing body of a political subdivision may
7-16 provide financial assistance under Subsection (h)(4) only to a
7-17 person who plans to enroll or is enrolled at an institution of
7-18 higher education in an undergraduate degree or certificate program
7-19 in a field related to law enforcement. The governing body of the
7-20 political subdivision may impose other reasonable criteria related
7-21 to the provision of this financial assistance. In this subsection,
7-22 "institution of higher education" has the meaning assigned by
7-23 Section 61.003, Education Code.
7-24 SECTION 2. This Act takes effect September 1, 1999.
7-25 SECTION 3. The importance of this legislation and the
7-26 crowded condition of the calendars in both houses create an
7-27 emergency and an imperative public necessity that the
8-1 constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended.