[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[H.R. 1658 Engrossed in House (EH)]
1st Session
H. R. 1658
_______________________________________________________________________
AN ACT
To provide a more just and uniform procedure for Federal civil
forfeitures, and for other purposes.
106th CONGRESS
1st Session
H. R. 1658
_______________________________________________________________________
AN ACT
To provide a more just and uniform procedure for Federal civil
forfeitures, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Civil Asset Forfeiture Reform Act''.
SEC. 2. CREATION OF GENERAL RULES RELATING TO CIVIL FORFEITURE
PROCEEDINGS.
Section 981 of title 18, United States Code, is amended--
(1) by inserting after subsection (i) the following:
``(j)(1)(A) In any nonjudicial civil forfeiture proceeding under a
civil forfeiture statute, with respect to which the agency conducting a
seizure of property must give written notice to interested parties,
such notice shall be given as soon as practicable and in no case more
than 60 days after the later of the date of the seizure or the date the
identity of the interested party is first known or discovered by the
agency, except that the court may extend the period for filing a notice
for good cause shown.
``(B) A person entitled to written notice in such proceeding to
whom written notice is not given may on motion void the forfeiture with
respect to that person's interest in the property, unless the agency
shows--
``(i) good cause for the failure to give notice to that
person; or
``(ii) that the person otherwise had actual notice of the
seizure.
``(C) If the Government does not provide notice of a seizure of
property in accordance with subparagraph (A), it shall return the
property and may not take any further action to effect the forfeiture
of such property.
``(2)(A) Any person claiming property seized in a nonjudicial
forfeiture proceeding may file a claim with the appropriate official
after the seizure.
``(B) A claim under subparagraph (A) may not be filed later than 30
days after--
``(i) the date of final publication of notice of seizure;
or
``(ii) in the case of a person entitled to written notice,
the date that notice is received.
``(C) The claim shall state the claimant's interest in the
property.
``(D) Not later than 90 days after a claim has been filed, the
Attorney General shall file a complaint for forfeiture in the
appropriate court or return the property, except that a court in the
district in which the complaint will be filed may extend the period for
filing a complaint for good cause shown or upon agreement of the
parties.
``(E) If the Government does not file a complaint for forfeiture of
property in accordance with subparagraph (D), it shall return the
property and may not take any further action to effect the forfeiture
of such property.
``(F) Any person may bring a claim under subparagraph (A) without
posting bond with respect to the property which is the subject of the
claim.
``(3)(A) In any case where the Government files in the appropriate
United States district court a complaint for forfeiture of property,
any person claiming an interest in the seized property may file a claim
asserting such person's interest in the property within 30 days of
service of the Government's complaint or, where applicable, within 30
days of alternative publication notice.
``(B) A person asserting an interest in seized property in
accordance with subparagraph (A) shall file an answer to the
Government's complaint for forfeiture within 20 days of the filing of
the claim.
``(4)(A) If the person filing a claim is financially unable to
obtain representation by counsel, the court may appoint counsel to
represent that person with respect to the claim.
``(B) In determining whether to appoint counsel to represent the
person filing the claim, the court shall take into account such factors
as--
``(i) the claimant's standing to contest the forfeiture;
and
``(ii) whether the claim appears to be made in good faith
or to be frivolous.
``(C) The court shall set the compensation for that representation,
which shall be equivalent to that provided for court-appointed
representation under section 3006A of this title, and to pay such cost
there are authorized to be appropriated such sums as are necessary as
an addition to the funds otherwise appropriated for the appointment of
counsel under such section.
``(5) In all suits or actions brought under any civil forfeiture
statute for the civil forfeiture of any property, the burden of proof
is on the United States Government to establish, by clear and
convincing evidence, that the property is subject to forfeiture.
``(6)(A) An innocent owner's interest in property shall not be
forfeited under any civil forfeiture statute.
``(B) With respect to a property interest in existence at the time
the illegal conduct giving rise to forfeiture took place, the term
`innocent owner' means an owner who--
``(i) did not know of the conduct giving rise to
forfeiture; or
``(ii) upon learning of the conduct giving rise to the
forfeiture, did all that reasonably could be expected under the
circumstances to terminate such use of the property.
``(C) With respect to a property interest acquired after the
conduct giving rise to the forfeiture has taken place, the term
`innocent owner' means a person who, at the time that person acquired
the interest in the property, was--
``(i)(I) a bona fide purchaser or seller for value
(including a purchaser or seller of goods or services for
value); or
``(II) a person who acquired an interest in property
through probate or inheritance; and
``(ii) at the time of the purchase or acquisition
reasonably without cause to believe that the property was
subject to forfeiture.
``(D) Where the property subject to forfeiture is real property,
and the claimant uses the property as the claimant's primary residence
and is the spouse or minor child of the person who committed the
offense giving rise to the forfeiture, an otherwise valid innocent
owner claim shall not be denied on the ground that the claimant
acquired the interest in the property--
``(i) in the case of a spouse, through dissolution of
marriage or by operation of law; or
``(ii) in the case of a minor child, as an inheritance upon
the death of a parent,
and not through a purchase. However, the claimant must establish, in
accordance with subparagraph (C), that at the time of the acquisition
of the property interest, the claimant was reasonably without cause to
believe that the property was subject to forfeiture.
``(7) For the purposes of paragraph (6)--
``(A) ways in which a person may show that such person did
all that reasonably can be expected may include demonstrating
that such person, to the extent permitted by law--
``(i) gave timely notice to an appropriate law
enforcement agency of information that led the person
to know the conduct giving rise to a forfeiture would
occur or has occurred; and
``(ii) in a timely fashion revoked or attempted to
revoke permission for those engaging in such conduct to
use the property or took reasonable actions in
consultation with a law enforcement agency to
discourage or prevent the illegal use of the property;
and
``(B) in order to do all that can reasonably be expected, a
person is not required to take steps that the person reasonably
believes would be likely to subject any person (other than the
person whose conduct gave rise to the forfeiture) to physical
danger.
``(8) As used in this subsection:
``(1) The term `civil forfeiture statute' means any
provision of Federal law (other than the Tariff Act of 1930 or
the Internal Revenue Code of 1986) providing for the forfeiture
of property other than as a sentence imposed upon conviction of
a criminal offense.
``(2) The term `owner' means a person with an ownership
interest in the specific property sought to be forfeited,
including a leasehold, lien, mortgage, recorded security
device, or valid assignment of an ownership interest. Such term
does not include--
``(i) a person with only a general unsecured
interest in, or claim against, the property or estate
of another;
``(ii) a bailee unless the bailor is identified and
the bailee shows a colorable legitimate interest in the
property seized; or
``(iii) a nominee who exercises no dominion or
control over the property.
``(k)(1) A claimant under subsection (j) is entitled to immediate
release of seized property if--
``(A) the claimant has a possessory interest in the
property;
``(B) the continued possession by the United States
Government pending the final disposition of forfeiture
proceedings will cause substantial hardship to the claimant,
such as preventing the functioning of a business, preventing an
individual from working, or leaving an individual homeless; and
``(C) the claimant's likely hardship from the continued
possession by the United States Government of the seized
property outweighs the risk that the property will be
destroyed, damaged, lost, concealed, or transferred if it is
returned to the claimant during the pendency of the proceeding.
``(2) A claimant seeking release of property under this subsection
must request possession of the property from the appropriate official,
and the request must set forth the basis on which the requirements of
paragraph (1) are met.
``(3) If within 10 days after the date of the request the property
has not been released, the claimant may file a motion or complaint in
any district court that would have jurisdiction of forfeiture
proceedings relating to the property setting forth--
``(A) the basis on which the requirements of paragraph (1)
are met; and
``(B) the steps the claimant has taken to secure release of
the property from the appropriate official.
``(4) If a motion or complaint is filed under paragraph (3), the
district court shall order that the property be returned to the
claimant, pending completion of proceedings by the United States
Government to obtain forfeiture of the property, if the claimant shows
that the requirements of paragraph (1) have been met. The court may
place such conditions on release of the property as it finds are
appropriate to preserve the availability of the property or its
equivalent for forfeiture.
``(5) The district court shall render a decision on a motion or
complaint filed under paragraph (3) no later than 30 days after the
date of the filing, unless such 30-day limitation is extended by
consent of the parties or by the court for good cause shown.''; and
(2) by redesignating existing subsection (j) as subsection
(l).
SEC. 3. COMPENSATION FOR DAMAGE TO SEIZED PROPERTY.
(a) Tort Claims Act.--Section 2680(c) of title 28, United States
Code, is amended--
(1) by striking ``law-enforcement'' and inserting ``law
enforcement''; and
(2) by inserting before the period the following: ``,
except that the provisions of this chapter and section 1346(b)
of this title do apply to any claim based on the destruction,
injury, or loss of goods, merchandise, or other property, while
in the possession of any officer of customs or excise or any
other law enforcement officer, if the property was seized for
the purpose of forfeiture under any provision of Federal law
(other than the Tariff Act of 1930 or the Internal Revenue Code
of 1986) providing for the forfeiture of property other than as
a sentence imposed upon conviction of a criminal offense but
the interest of the claimant is not forfeited''.
(b) Department of Justice.--
(1) In general.--With respect to a claim that cannot be
settled under chapter 171 of title 28, United States Code, the
Attorney General may settle, for not more than $50,000 in any
case, a claim for damage to, or loss of, privately owned
property caused by an investigative or law enforcement officer
(as defined in section 2680(h) of title 28, United States Code)
who is employed by the Department of Justice acting within the
scope of his or her employment.
(2) Limitations.--The Attorney General may not pay a claim
under paragraph (1) that--
(A) is presented to the Attorney General more than
1 year after it occurs; or
(B) is presented by an officer or employee of the
United States Government and arose within the scope of
employment.
SEC. 4. PRE-JUDGMENT AND POST-JUDGMENT INTEREST.
Section 2465 of title 28, United States Code, is amended--
(1) by inserting ``(a)'' before ``Upon''; and
(2) adding at the end the following:
``(b) Interest.--
``(1) Post-judgment.--Upon entry of judgment for the
claimant in any proceeding to condemn or forfeit property
seized or arrested under any provision of Federal law (other
than the Tariff Act of 1930 or the Internal Revenue Code of
1986) providing for the forfeiture of property other than as a
sentence imposed upon conviction of a criminal offense, the
United States shall be liable for post-judgment interest as set
forth in section 1961 of this title.
``(2) Pre-judgment.--The United States shall not be liable
for pre-judgment interest in a proceeding under any provision
of Federal law (other than the Tariff Act of 1930 or the
Internal Revenue Code of 1986) providing for the forfeiture of
property other than as a sentence imposed upon conviction of a
criminal offense, except that in cases involving currency,
other negotiable instruments, or the proceeds of an
interlocutory sale, the United States shall disgorge to the
claimant any funds representing--
``(A) interest actually paid to the United States
from the date of seizure or arrest of the property that
resulted from the investment of the property in an
interest-bearing account or instrument; and
``(B) for any period during which no interest is
actually paid, an imputed amount of interest that such
currency, instruments, or proceeds would have earned at
the rate described in section 1961.
``(3) Limitation on other payments.--The United States
shall not be required to disgorge the value of any intangible
benefits in a proceeding under any provision of Federal law
(than the Tariff Act of 1930 or the Internal Revenue Code of
1986) providing for the forfeiture of property other than as a
sentence imposed upon conviction of a criminal offense nor make
any other payments to the claimant not specifically authorized
by this subsection.''.
SEC. 5. APPLICABILITY.
(a) In General.--Unless otherwise specified in this Act, the
amendments made by this Act apply with respect to claims, suits, and
actions filed on or after the date of the enactment of this Act.
(b) Exceptions.--
(1) The standard for the required burden of proof set forth
in section 981 of title 18, United States Code, as amended by
section 2, shall apply in cases pending on the date of the
enactment of this Act.
(2) The amendment made by section 4 shall apply to any
judgment entered after the date of the enactment of this Act.
Passed the House of Representatives June 24, 1999.
Attest:
Clerk.