By Longoria H.B. No. 3537
76R956 KEL-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, forfeiture, receipt, and specific
5-10 expenditure of all such proceeds and property in an audit, which is
5-11 to be performed annually by the commissioners court or governing
5-12 body of a municipality, as appropriate. The annual period of the
5-13 audit for a law enforcement agency is the fiscal year of the
5-14 appropriate county or municipality and the annual period for an
5-15 attorney representing the state is the state fiscal year. The
5-16 audit shall be completed on a form provided by the Criminal Justice
5-17 Division of the Governor's Office. Certified copies of the audit
5-18 shall be delivered by the law enforcement agency or attorney
5-19 representing the state to the Criminal Justice Division of the
5-20 Governor's Office not later than 30th day after the date on which
5-21 the annual period that is the subject of the audit ends.]
5-22 [(h) As a specific exception to the requirement of
5-23 Subdivisions (1)-(3) of Subsection (c) of this article that the
5-24 funds described by those subdivisions be used only for the official
5-25 purposes of the attorney representing the state or for law
5-26 enforcement purposes, on agreement between the attorney
5-27 representing the state or the head of a law enforcement agency and
6-1 the governing body of a political subdivision, the attorney
6-2 representing the state or the head of the law enforcement agency
6-3 shall comply with the request of the governing body to deposit not
6-4 more than a total of 10 percent of the gross amount credited to the
6-5 attorney's or agency's fund into the treasury of the political
6-6 subdivision. The governing body of the political subdivision
6-7 shall, by ordinance, order, or resolution, use funds received under
6-8 this subsection for:]
6-9 [(1) nonprofit programs for the prevention of drug
6-10 abuse;]
6-11 [(2) nonprofit chemical dependency treatment
6-12 facilities licensed under Chapter 464, Health and Safety Code; or]
6-13 [(3) nonprofit drug and alcohol rehabilitation or
6-14 prevention programs administered or staffed by professionals
6-15 designated as qualified and credentialed by the Texas Commission on
6-16 Alcohol and Drug Abuse. The governing body of a political
6-17 subdivision may not use funds received under this subchapter for
6-18 programs or facilities listed under Subdivisions (1)-(3) of this
6-19 subsection if an officer of or member of the Board of Directors of
6-20 the entity providing the program or facility is related to a member
6-21 of the governing body, the attorney representing the state, or the
6-22 head of the law enforcement agency within the third degree by
6-23 consanguinity or the second degree by affinity. As a specific
6-24 exception to Subdivision (4) of Subsection (c) of this article, the
6-25 director of a state law enforcement agency may use not more than 10
6-26 percent of the amount credited to the special fund of the agency
6-27 under that subdivision for the prevention of drug abuse and the
7-1 treatment of persons with drug-related problems.]
7-2 (f) [(i)] The attorney representing [for] the state shall
7-3 transfer all forfeited property that is income from, or acquired
7-4 with the income from, a movie, book, magazine article, tape
7-5 recording, phonographic record, radio or television presentation,
7-6 or live entertainment in which a crime is reenacted to the attorney
7-7 general. The attorney general shall deposit the money or proceeds
7-8 from the sale of the property into an escrow account. The money in
7-9 the account is available to satisfy a judgment against the person
7-10 who committed the crime in favor of a victim of the crime if the
7-11 judgment is for damages incurred by the victim caused by the
7-12 commission of the crime. The attorney general shall transfer the
7-13 money in the account that has not been ordered paid to a victim in
7-14 satisfaction of a judgment to the compensation to victims of crime
7-15 fund on the fifth anniversary of the date the account was
7-16 established. In this subsection, "victim" has the meaning assigned
7-17 by Article 56.32.
7-18 [(j) A law enforcement agency that, or an attorney
7-19 representing the state who, does not receive proceeds or property
7-20 under this chapter during an annual period as described by
7-21 Subsection (g) shall, not later than the 30th day after the date on
7-22 which the annual period ends, report to the Criminal Justice
7-23 Division of the Governor's Office that the agency or attorney, as
7-24 appropriate, did not receive proceeds or property under this
7-25 chapter during the annual period.]
7-26 [(k) As a specific exception to Subdivisions (1)-(3) of
7-27 Subsection (c), a law enforcement agency or attorney representing
8-1 the state may use proceeds received under this chapter to contract
8-2 with a person or entity to prepare an audit as required by
8-3 Subsection (g).]
8-4 SECTION 2. The change in law made by this Act applies only
8-5 to the disposition of property forfeited on or after the effective
8-6 date of this Act and proceeds from the sale of property forfeited
8-7 on or after that date. Property forfeited before the effective
8-8 date of this Act and proceeds from the sale of that property are
8-9 covered by the law in effect when the property was forfeited, and
8-10 the former law is continued in effect for that purpose.
8-11 SECTION 3. This Act takes effect September 1, 1999.
8-12 SECTION 4. The importance of this legislation and the
8-13 crowded condition of the calendars in both houses create an
8-14 emergency and an imperative public necessity that the
8-15 constitutional rule requiring bills to be read on three several
8-16 days in each house be suspended, and this rule is hereby suspended.