1-1 By: Capelo, Uresti, Homer, et al. H.B. No. 855
1-2 (Senate Sponsor - Truan)
1-3 (In the Senate - Received from the House April 26, 1999;
1-4 April 27, 1999, read first time and referred to Committee on
1-5 Criminal Justice; May 14, 1999, reported favorably by the following
1-6 vote: Yeas 7, Nays 0; May 14, 1999, sent to printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the use of proceeds from criminal asset forfeiture to
1-10 provide financial assistance to a person pursuing certain law
1-11 enforcement studies.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Article 59.06, Code of Criminal Procedure, is
1-14 amended to read as follows:
1-15 Art. 59.06. DISPOSITION OF FORFEITED PROPERTY. (a) Except
1-16 as provided by Subsection (k) [(i)], all forfeited property shall
1-17 be administered by the attorney representing the state, acting as
1-18 the agent of the state, in accordance with accepted accounting
1-19 practices and with the provisions of any local agreement entered
1-20 into between the attorney representing the state and law
1-21 enforcement agencies. If a local agreement has not been executed,
1-22 the property shall be sold on the 75th day after the date of the
1-23 final judgment of forfeiture at public auction under the direction
1-24 of the county sheriff, after notice of public auction as provided
1-25 by law for other sheriff's sales. The proceeds of the sale shall
1-26 be distributed as follows:
1-27 (1) to any interest holder to the extent of the
1-28 interest holder's nonforfeitable interest; and
1-29 (2) the balance, if any, after deductions of all
1-30 storage and disposal costs, to be deposited not later than the 30th
1-31 day after the date of the sale in the state treasury to the credit
1-32 of the general revenue fund.
1-33 (b) If a local agreement exists between the attorney
1-34 representing the state and law enforcement agencies, the attorney
1-35 representing the state may transfer the property to law enforcement
1-36 agencies to maintain, repair, use, and operate the property for
1-37 official purposes if the property is free of any interest of an
1-38 interest holder. The agency receiving the forfeited property may
1-39 purchase the interest of an interest holder so that the property
1-40 can be released for use by the agency. The agency receiving the
1-41 forfeited property may maintain, repair, use, and operate the
1-42 property with money appropriated for current operations. If the
1-43 property is a motor vehicle subject to registration under the motor
1-44 vehicle registration laws of this state, the agency receiving the
1-45 forfeited vehicle is considered to be the purchaser and the
1-46 certificate of title shall issue to the agency. The agency at any
1-47 time may transfer the property to a municipal or county law
1-48 enforcement agency for the use of that agency.
1-49 (c) If a local agreement exists between the attorney
1-50 representing the state and law enforcement agencies, all money,
1-51 securities, negotiable instruments, stocks or bonds, or things of
1-52 value, or proceeds from the sale of those items, shall be deposited
1-53 according to the terms of the agreement into one or more of the
1-54 following funds:
1-55 (1) a special fund in the county treasury for the
1-56 benefit of the office of the attorney representing the state, to be
1-57 used by the attorney solely for the official purposes of his
1-58 office;
1-59 (2) a special fund in the municipal treasury if
1-60 distributed to a municipal law enforcement agency, to be used
1-61 solely for law enforcement purposes, such as salaries and overtime
1-62 pay for officers, officer training, specialized investigative
1-63 equipment and supplies, and items used by officers in direct law
1-64 enforcement duties;
2-1 (3) a special fund in the county treasury if
2-2 distributed to a county law enforcement agency, to be used solely
2-3 for law enforcement purposes; or
2-4 (4) a special fund in the state law enforcement agency
2-5 if distributed to a state law enforcement agency, to be used solely
2-6 for law enforcement purposes.
2-7 (d) Proceeds awarded under this chapter to a law enforcement
2-8 agency or to the attorney representing the state may be spent by
2-9 the agency or the attorney after a budget for the expenditure of
2-10 the proceeds has been submitted to the commissioners court or
2-11 governing body of the municipality. The budget must be detailed
2-12 and clearly list and define the categories of expenditures, but may
2-13 not list details that would endanger the security of an
2-14 investigation or prosecution. Expenditures are subject to audit
2-15 provisions established under this article. A commissioners court
2-16 or governing body of a municipality may not use the existence of an
2-17 award to offset or decrease total salaries, expenses, and
2-18 allowances that the agency or the attorney receives from the
2-19 commissioners court or governing body at or after the time the
2-20 proceeds are awarded. The head of the agency or attorney
2-21 representing the state may not use the existence of an award to
2-22 increase a salary, expense, or allowance for an employee of the
2-23 attorney or agency who is budgeted by the commissioners court or
2-24 governing body unless the commissioners court or governing body
2-25 first approves the expenditure.
2-26 (e) On the sale of contraband under this article, the
2-27 appropriate state agency shall issue a certificate of title to the
2-28 recipient if a certificate of title is required for the property by
2-29 other law.
2-30 (f) A final judgment of forfeiture under this chapter
2-31 perfects the title of the state to the property as of the date that
2-32 the contraband was seized or the date the forfeiture action was
2-33 filed, whichever occurred first, except that if the property
2-34 forfeited is real property, the title is perfected as of the date a
2-35 notice of lis pendens is filed on the property.
2-36 (g) All law enforcement agencies and attorneys representing
2-37 the state who receive proceeds or property under this chapter shall
2-38 account for the seizure, forfeiture, receipt, and specific
2-39 expenditure of all such proceeds and property in an audit, which is
2-40 to be performed annually by the commissioners court or governing
2-41 body of a municipality, as appropriate. The annual period of the
2-42 audit for a law enforcement agency is the fiscal year of the
2-43 appropriate county or municipality and the annual period for an
2-44 attorney representing the state is the state fiscal year. The
2-45 audit shall be completed on a form provided by the Criminal Justice
2-46 Division of the Governor's Office. Certified copies of the audit
2-47 shall be delivered by the law enforcement agency or attorney
2-48 representing the state to the comptroller's office and the Criminal
2-49 Justice Division of the Governor's Office not later than the 30th
2-50 day after the date on which the annual period that is the subject
2-51 of the audit ends.
2-52 (h) As a specific exception to the requirement of
2-53 Subdivisions (1)-(3) of Subsection (c) of this article that the
2-54 funds described by those subdivisions be used only for the official
2-55 purposes of the attorney representing the state or for law
2-56 enforcement purposes, on agreement between the attorney
2-57 representing the state or the head of a law enforcement agency and
2-58 the governing body of a political subdivision, the attorney
2-59 representing the state or the head of the law enforcement agency
2-60 shall comply with the request of the governing body to deposit not
2-61 more than a total of 10 percent of the gross amount credited to the
2-62 attorney's or agency's fund into the treasury of the political
2-63 subdivision. The governing body of the political subdivision
2-64 shall, by ordinance, order, or resolution, use funds received under
2-65 this subsection for:
2-66 (1) nonprofit programs for the prevention of drug
2-67 abuse;
2-68 (2) nonprofit chemical dependency treatment facilities
2-69 licensed under Chapter 464, Health and Safety Code; [or]
3-1 (3) nonprofit drug and alcohol rehabilitation or
3-2 prevention programs administered or staffed by professionals
3-3 designated as qualified and credentialed by the Texas Commission on
3-4 Alcohol and Drug Abuse; or
3-5 (4) financial assistance as described by Subsection
3-6 (o).
3-7 (i) The governing body of a political subdivision may not
3-8 use funds received under this subchapter for programs or facilities
3-9 listed under Subsections (h)(1)-(3) [Subdivisions (1)-(3) of this
3-10 subsection] if an officer of or member of the Board of Directors of
3-11 the entity providing the program or facility is related to a member
3-12 of the governing body, the attorney representing the state, or the
3-13 head of the law enforcement agency within the third degree by
3-14 consanguinity or the second degree by affinity.
3-15 (j) As a specific exception to Subdivision (4) of Subsection
3-16 (c) of this article, the director of a state law enforcement agency
3-17 may use not more than 10 percent of the amount credited to the
3-18 special fund of the agency under that subdivision for the
3-19 prevention of drug abuse and the treatment of persons with
3-20 drug-related problems.
3-21 (k) [(i)] The attorney for the state shall transfer all
3-22 forfeited property that is income from, or acquired with the income
3-23 from, a movie, book, magazine article, tape recording, phonographic
3-24 record, radio or television presentation, or live entertainment in
3-25 which a crime is reenacted to the attorney general. The attorney
3-26 general shall deposit the money or proceeds from the sale of the
3-27 property into an escrow account. The money in the account is
3-28 available to satisfy a judgment against the person who committed
3-29 the crime in favor of a victim of the crime if the judgment is for
3-30 damages incurred by the victim caused by the commission of the
3-31 crime. The attorney general shall transfer the money in the
3-32 account that has not been ordered paid to a victim in satisfaction
3-33 of a judgment to the compensation to victims of crime fund on the
3-34 fifth anniversary of the date the account was established. In this
3-35 subsection, "victim" has the meaning assigned by Article 56.32.
3-36 (l) [(j)] A law enforcement agency that, or an attorney
3-37 representing the state who, does not receive proceeds or property
3-38 under this chapter during an annual period as described by
3-39 Subsection (g) shall, not later than the 30th day after the date on
3-40 which the annual period ends, report to the Criminal Justice
3-41 Division of the Governor's Office that the agency or attorney, as
3-42 appropriate, did not receive proceeds or property under this
3-43 chapter during the annual period.
3-44 (m) [(k)] As a specific exception to Subdivisions (1)-(3) of
3-45 Subsection (c), a law enforcement agency or attorney representing
3-46 the state may use proceeds received under this chapter to contract
3-47 with a person or entity to prepare an audit as required by
3-48 Subsection (g).
3-49 (n) As a specific exception to Subsection (c)(2) or (3), a
3-50 local law enforcement agency may transfer not more than a total of
3-51 10 percent of the gross amount credited to the agency's fund to a
3-52 separate special fund in the treasury of the political subdivision.
3-53 The agency shall administer the separate special fund, and
3-54 expenditures from the fund are at the sole discretion of the agency
3-55 and may be used only for financial assistance as described by
3-56 Subsection (o).
3-57 (o) The governing body of a political subdivision or a local
3-58 law enforcement agency may provide financial assistance under
3-59 Subsection (h)(4) or (n) only to a person who is a Texas resident,
3-60 who plans to enroll or is enrolled at an institution of higher
3-61 education in an undergraduate degree or certificate program in a
3-62 field related to law enforcement, and who plans to return to that
3-63 locality to work for the political subdivision or the agency in a
3-64 field related to law enforcement. To ensure the promotion of a law
3-65 enforcement purpose of the political subdivision or the agency, the
3-66 governing body of the political subdivision or the agency shall
3-67 impose other reasonable criteria related to the provision of this
3-68 financial assistance, including a requirement that a recipient of
3-69 the financial assistance work for a certain period of time for the
4-1 political subdivision or the agency in a field related to law
4-2 enforcement and including a requirement that the recipient sign an
4-3 agreement to perform that work for that period of time. In this
4-4 subsection, "institution of higher education" has the meaning
4-5 assigned by Section 61.003, Education Code.
4-6 SECTION 2. This Act takes effect September 1, 1999.
4-7 SECTION 3. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended.
4-12 * * * * *