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A BILL TO BE ENTITLED
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AN ACT
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relating to disposition of proceeds and property from asset |
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forfeiture proceedings under the Code of Criminal Procedure. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article 59.05(e), Code of Criminal Procedure, is |
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amended to read as follows: |
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(e) It is the intention of the legislature that asset |
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forfeiture is remedial in nature and not a form of punishment. If |
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the court finds that all or any part of the property is subject to |
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forfeiture, the judge shall forfeit the property to the state, with |
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the attorney representing the state as the agent for the state, |
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except that if the court finds that the nonforfeitable interest of |
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an interest holder in the property is valued in an amount greater |
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than or substantially equal to the present value of the property, |
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the court shall order the property released to the interest holder. |
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If the court finds that the nonforfeitable interest of an interest |
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holder is valued in an amount substantially less than the present |
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value of the property and that the property is subject to |
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forfeiture, the court shall order the property forfeited to the |
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state with the attorney representing the state acting as the agent |
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of the state, and making necessary orders to protect the |
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nonforfeitable interest of the interest holder. On final judgment |
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of forfeiture, [the attorney representing the state shall dispose
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of] the property shall be disposed of in the manner required by |
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Article 59.06 [of this code]. |
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SECTION 2. Articles 59.06(a), (c), (e), and (l), Code of |
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Criminal Procedure, are amended to read as follows: |
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(a) Except as provided by Subsection (c) [(k)], the attorney |
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representing the state shall transfer all forfeited property to the |
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comptroller. The comptroller shall dispose of [shall be
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administered by the attorney representing the state, acting as the
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agent of the state, in accordance with accepted accounting
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practices and with the provisions of any local agreement entered
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into between the attorney representing the state and law
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enforcement agencies.
If a local agreement has not been executed,] |
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the property at public auction [shall be sold] on the 75th day after |
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the date of the final judgment of forfeiture [at public auction
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under the direction of the county sheriff, after notice of public
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auction as provided by law for other sheriff's sales]. The |
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comptroller shall distribute the proceeds of the sale [shall be
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distributed] as follows: |
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(1) to any interest holder to the extent of the |
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interest holder's nonforfeitable interest; |
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(2) after any distributions under Subdivision (1), if |
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the Title IV-D agency has filed a child support lien in the |
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forfeiture proceeding, to the Title IV-D agency in an amount not to |
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exceed the amount of child support arrearages identified in the |
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lien; and |
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(3) the balance, if any, after the deduction of court |
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costs to which a district court clerk is entitled under Article |
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59.05(f) and, after that deduction, the deduction of storage and |
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disposal costs, to be deposited not later than the 30th day after |
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the date of the sale in the compensation to victims of crime fund |
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[state treasury to the credit of the general revenue fund]. |
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(c) All [If a local agreement exists between the attorney
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representing the state and law enforcement agencies, all] money, |
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securities, negotiable instruments, or stocks or bonds shall be |
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transferred to the comptroller. The comptroller shall sell any |
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item that is not money and shall deposit any money received under |
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this article and the proceeds of any sale [, or things of value, or
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proceeds from the sale of those items, shall be deposited], after |
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the deduction of court costs to which a district court clerk is |
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entitled under Article 59.05(f), in the compensation to victims of |
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crime fund [according to the terms of the agreement into one or more
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of the following funds:
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[(1)
a special fund in the county treasury for the
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benefit of the office of the attorney representing the state, to be
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used by the attorney solely for the official purposes of his office;
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[(2)
a special fund in the municipal treasury if
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distributed to a municipal law enforcement agency, to be used
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solely for law enforcement purposes;
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[(3)
a special fund in the county treasury if
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distributed to a county law enforcement agency, to be used solely
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for law enforcement purposes; or
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[(4)
a special fund in the state law enforcement
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agency if distributed to a state law enforcement agency, to be used
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solely for law enforcement purposes]. |
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(e) On the sale of contraband under this article, the |
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comptroller [appropriate state agency] shall issue a certificate of |
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title to the recipient if a certificate of title is required for the |
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property by other law. |
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(l) A law enforcement agency that[, or an attorney
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representing the state who,] does not seize property under this |
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chapter during an annual period described by Subsection (g), and an |
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attorney representing the state who does not receive or transfer |
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proceeds or property under this chapter during an annual period |
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[as] described by Subsection (g), shall, not later than the 30th day |
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after the date on which the annual period ends, report to the |
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attorney general that the agency or attorney, as appropriate, did |
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not seize property or receive or transfer proceeds or property |
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under this chapter during the annual period. |
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SECTION 3. Article 59.06(g)(1), Code of Criminal Procedure, |
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is amended to read as follows: |
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(1) All law enforcement agencies that seize [and
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attorneys representing the state who receive proceeds or] property |
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under this chapter shall account for the seizure in an audit. All |
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attorneys representing the state who appear in forfeiture |
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proceedings under this chapter shall account for the[, forfeiture,] |
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receipt[,] and transfer [specific expenditure] of all forfeited |
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[the] proceeds and property in an audit. The audits required by |
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this subsection must[, which is to] be performed annually by the |
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commissioners court or governing body of a municipality, as |
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appropriate. The annual period of the audit for a law enforcement |
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agency is the fiscal year of the appropriate county or municipality |
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and the annual period for an attorney representing the state is the |
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state fiscal year. The audit must be completed on a form provided |
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by the attorney general [and must include a detailed report and
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explanation of all expenditures, including salaries and overtime
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pay, officer training, investigative equipment and supplies, and
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other items]. Certified copies of the audit shall be delivered by |
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the law enforcement agency or attorney representing the state to |
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the attorney general not later than the 60th day after the date on |
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which the annual period that is the subject of the audit ends. |
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SECTION 4. Article 59.061(a), Code of Criminal Procedure, |
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is amended to read as follows: |
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(a) The state auditor may at any time perform an audit or |
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conduct an investigation, in accordance with this article and |
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Chapter 321, Government Code, related to the seizure, forfeiture, |
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receipt, and transfer [specific expenditure] of proceeds and |
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property received under this chapter. |
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SECTION 5. Article 59.08(b), Code of Criminal Procedure, is |
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amended to read as follows: |
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(b) If a final judgment is rendered concerning contraband, |
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money that has been placed in an interest-bearing bank account |
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under Subsection (a) of this article shall be distributed in the |
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same manner as proceeds are distributed under Article 59.06 [of
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this code], with any interest being distributed in the same manner |
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[and used for the same purpose as the principal]. |
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SECTION 6. The following provisions are repealed: |
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(1) Articles 59.06(b), (b-1), (b-2), (c-1), (c-2), |
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(c-3), (c-4), (d), (d-1), (d-2), (d-3), (d-4), (h), (i), (j), (k), |
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(m), (n), (o), (p), (q), and (r), 59.062(e), and 59.11, Code of |
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Criminal Procedure; and |
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(2) Section 24.377(c), Government Code. |
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SECTION 7. Articles 59.06(a) and (c), Code of Criminal |
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Procedure, as amended by this Act, apply to the disposition, on or |
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after the effective date of this Act, of proceeds or property |
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received by a law enforcement agency or attorney representing the |
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state under Chapter 59, Code of Criminal Procedure, regardless of |
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whether the receipt of the proceeds or property occurred before, |
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on, or after the effective date of this Act. |
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SECTION 8. Article 59.06(g), Code of Criminal Procedure, as |
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amended by this Act, applies to an audit performed on or after the |
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effective date of this Act in which all property is seized on or |
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after the effective date of this Act. An audit in which any |
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property was seized before the effective date of this Act is |
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governed by the law in effect on the date the property was seized, |
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and the former law is continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2017. |