HR 1658 - The Hyde Civil Asset Forfeiture
Reform Act, as passed by the House of Representatives on June 24, 1999
This is the Hyde bill which FEAR has supported
for years. It does not have all of the reforms that FEAR would like
to see, but it is far superior to current law, and no other federal forfeiture
reform bill introduced since Rep. Conyers' bill in 1993 goes as far in
our direction.
Related pages on this website:
FEAR's analysis of the features of this
bill
The text of S. 1701, the competing forfeiture
expansion bill
The full text of the bill, as passed by
the House, appears below
106th CONGRESS
1st Session
H. R. 1658
IN THE SENATE OF THE UNITED STATES
June 28, 1999
Received; read twice and referred to the Committee on the Judiciary
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:
`(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.
(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:
MARTHA C. MORRISON,
Deputy Clerk.
END