HR 1965 105th CONGRESS -- 1st Session

To provide a more just and uniform procedure for Federal civil forfeitures, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

June 19, 1997

Mr. HYDE (for himself and Mr. CONYERS) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Ways and Means, and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

A BILL 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 AND TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Civil Asset Forfeiture Reform Act'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Creation of general rules relating to civil forfeiture proceedings.
Sec. 3. Compensation for damage to seized property.
Sec. 4. Prejudgment and postjudgment interest.
Sec. 5. Seizure warrant requirement.
Sec. 6. Access to records in bank secrecy jurisdictions.
Sec. 7. Access to other records.
Sec. 8. Disclosure of grand jury information to Federal prosecutors.
Sec. 9. Use of forfeited funds to pay restitution to crime victims and regulatory agencies.
Sec. 10. Enforcement of foreign forfeiture judgment.
Sec. 11. Admissibility of foreign business records.
Sec. 12. Conforming amendments to title 28, to rules of procedure, and to the controlled substances act.
Sec. 13. Inapplicability of the customs laws.
Sec. 14. Applicability. Sec. 15. Jurisdiction and venue in forfeiture cases.
Sec. 16. Minor and technical amendments relating to 1992 forfeiture amendments.
Sec. 17. Drug paraphernalia technical amendments.
Sec. 18. Certificate of reasonable cause.
Sec. 19. Authorization to share forfeited property with cooperating foreign governments.
Sec. 20. Forfeiture of property used to facilitate foreign drug crimes.
Sec. 21. Forfeiture of proceeds traceable to facilitating property in drug cases.
Sec. 22. Forfeiture of proceeds of certain foreign crimes.
Sec. 23. Civil forfeiture of coins and currency in confiscated gambling devices.
Sec. 24. Clarification of judicial review of forfeiture.
Sec. 25. Technical amendments relating to obliterated motor vehicles identification numbers.
Sec. 26. Statute of limitations for civil forfeiture actions.
Sec. 27. Destruction or removal of property to prevent seizure.
Sec. 28. In personam judgments.
Sec. 29. Uniform procedures for criminal forfeiture.
Sec. 30. Availability of criminal forfeiture.
Sec. 31. Discovery procedure for locating forfeited assets.
Sec. 32. Criminal forfeiture for money laundering conspiracies.
Sec. 33. Correction to criminal forfeiture provision for alien smuggling and other immigration offenses.
Sec. 34. Repatriation of property placed beyond the jurisdiction of the court.
Sec. 35. Right of third parties to contest forfeiture of substitute assets.
Sec. 36. Archeological Resources Protection Act.
Sec. 37. Forfeiture of instrumentalities of terrorism, telemarketing fraud, and other offenses.
Sec. 38. Forfeiture of criminal proceeds transported in interstate commerce.
Sec. 39. Forfeitures of proceeds of Federal Food, Drug, and Cosmetic Act violations.
Sec. 40. Forfeiture of counterfeit paraphernalia.
Sec. 41. Closing of loophole to defeat criminal forfeiture through bankruptcy.
Sec. 42. Collection of criminal forfeiture judgment.
Sec. 43. Criminal forfeiture of property in Government custody.
Sec. 44. Delivery of property to the Marshals Service.
Sec. 45. Forfeiture for odometer tampering offenses.
Sec. 46. Pre-trial restraint of substitute assets.

SEC. 2. CREATION OF GENERAL RULES RELATING TO CIVIL FORFEITURE PROCEEDINGS. (a) IN GENERAL- Chapter 46 of title 18, United States Code, is amended by inserting the following new section after section 982:

(b) CONFORMING AMENDMENT- Section 274(b)(5) of the Immigration and Naturalization Act (8 U.S.C. 1324(b)(5)) is amended-- (c) STRIKING SUPERSEDED PROVISIONS- (1) Section 981(a) of title 18, United States Code, is amended by-- (d) RELEASE OF PROPERTY- Chapter 46 of title 18, United States Code, is amended to add the following section after section 984: (e) CHAPTER ANALYSIS- The chapter analysis for chapter 46 of title 18, United States Code, is amended-- (1) by inserting after the item relating to section 982 the following: '983. Civil forfeiture procedures'; and (2) by inserting after the item relating to section 984 the following: `985. Release of property to avoid hardship'.

(f) CIVIL FORFEITURE OF PROCEEDS- Section 981(a)(1) of title 18, United States Code, is amended-- (1) in subparagraph (C) by inserting before the period the following: `or any offense constituting `specified unlawful activity' as defined in section 1956(c)(7) of this title or a conspiracy to commit such offense'; and (2) by striking subparagraph (E).

(g) CRIMINAL FORFEITURE OF PROCEEDS- Section 982(a)(2) of title 18, United States Code, is amended by-- (1) striking `or' at the end of subparagraph (A); (2) inserting `or' after the comma at the end of subparagraph (B); and (3) inserting the following after subparagraph (B): `(C) any offense constituting `specified unlawful activity' as defined in section 1956(c)(7) of this title,'.

(2) Section 982 of title 18, United States Code, is amended-- (A) in subsection (a), by striking `gross receipts' and `gross proceeds' wherever those terms appear and inserting `proceeds'; and (B) in subsection (b), by adding at the end the following: 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:

(b) DEPARTMENT OF JUSTICE- SEC. 4. PREJUDGMENT AND POSTJUDGMENT INTEREST.
Section 2465 of title 28, United States Code, is amended--

(1) by inserting `(a) IN GENERAL- ' before `Upon'; and (2) adding at the end the following:

SEC. 5. SEIZURE WARRANT REQUIREMENT.
(a) IN GENERAL- Section 981(b) of title 18, United States Code, is amended to read as follows: (b) DRUG FORFEITURES- Section 511(b) of the Controlled Substances Act (21 U.S.C. 881(b)) is amended to read as follows: SEC. 6. ACCESS TO RECORDS IN BANK SECRECY JURISDICTIONS. Section 986 of title 18, United States Code, is amended by adding at the end the following: SEC. 7. ACCESS TO OTHER RECORDS. Section 6103(i)(1) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(i)(1)) is amended-- SEC. 8. DISCLOSURE OF GRAND JURY INFORMATION TO FEDERAL PROSECUTORS. Section 3322(a) of title 18, United States Code, is amended-- SEC. 9. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME VICTIMS AND REGULATORY AGENCIES. Section 981 of title 18, United States Code, is amended--

(1) by amending subsection (e)(6) to read as follows:

(2) in subsections (e)(3), (4) and (5), by striking `in the case of property referred to in subsection (a)(1)(C)' and inserting (3) in subsection (e)(7), by striking `In the case of property referred to in subsection (a)(1)(D)' and inserting `In the case of property forfeited in connection with an offense relating to the sale of assets acquired or held by any Federal financial institution or regulatory agency, or person appointed by such agency, as receiver, conservator or liquidating agent for a financial institution'.

SEC. 10. ENFORCEMENT OF FOREIGN FORFEITURE JUDGMENT. (a) IN GENERAL- Chapter 163 of title 28, United States Code, is amended by inserting the following new section:

(b) CONFORMING AMENDMENT- The table of sections for chapter 163, title 28, United States Code, is amended by inserting the following at the end: (b) CONFORMING AMENDMENT- The table of sections for chapter 163 of title 28, United States Code, is amended by inserting the following at the end: SEC. 12. CONFORMING AMENDMENTS TO TITLE 28, TO RULES OF PROCEDURE, AND TO THE CONTROLLED SUBSTANCES ACT.

(a) IN GENERAL- Section 524(c) of title 28, United States Code, is amended-- (1) by striking out `law enforcement purposes--' in the matter preceding subparagraph (A) of paragraph (1) and inserting `purposes--'; (2) by striking out `(H)' in the first sentence after the last subparagraph in paragraph (1) and in subparagraph (A) of paragraph (8) and inserting `(I)'; and (3) by striking the last subparagraph (I) in paragraph (1) and inserting after and below subparagraph (I) the following: `After all reimbursements and program related expenses have been met at the end of fiscal year 1989, the Attorney General may transfer deposits from the Fund to the building and facilities account of the Federal prison system for the construction of correctional institutions.'.

(b) IN REM PROCEEDINGS- Paragraph (6) of Rule C of the Supplemental Rules for Certain Admiralty and Maritime Claims to the Federal Rules of Civil Procedure (28 U.S.C. Appendix) is amended by striking `10 days' and inserting `20 days'.

(c) CONTROLLED SUBSTANCES ACT- Section 518 and the item relating to section 518 in the table of contents of the Controlled Substances Act (21 U.S.C. 888) are repealed.

SEC. 13. INAPPLICABILITY OF THE CUSTOMS LAWS.

(a) TITLE 18, UNITED STATES CODE- Section 981(d) of title 18, United States Code, is amended by inserting after the first sentence the following:

(b) CONTROLLED SUBSTANCES ACT- Section 511(d) of the Controlled Substances Act (21 U.S.C. 881(d)) is amended by inserting after the first sentence the following: `However, the cost bond provision of section 608 of the Tariff Act of 1930 (19 U.S.C. 1608) and the burden of proof provision of section 615 of the Tariff Act of 1930 (19 U.S.C. 1615) shall not apply to any forfeiture governed by the procedures set forth in chapter 46 of title 18, United States Code.

(c) LIBEL IN ADMIRALTY- Section 2461(b) of title 28, United States Code, is amended--
(1) by striking `may be enforced by libel in admiralty' and inserting

(2) by striking `may be enforced by a proceeding by libel which shall conform as near as may be to proceedings in admiralty' and inserting SEC. 14. APPLICABILITY.

(a) IN GENERAL- Unless otherwise specified in this Act, the amendments made by this Act apply to forfeiture proceedings commenced on or after the date of the enactment of this Act.

(b) ADMINISTRATIVE FORFEITURES- The amendments in this Act relating to seizures and administrative forfeitures shall apply to seizures and forfeitures occurring on or after the 60th day after the date of the enactment of this Act.

(c) CIVIL JUDICIAL FORFEITURES- The amendments in this Act relating to judicial procedures applicable once a civil forfeiture complaint is filed by the Government shall apply to all cases in which the forfeiture complaint is filed on or after the date of the enactment of this Act.

(d) SUBSTANTIVE LAW- The amendments in this Act expanding substantive forfeiture law to make property subject to civil or criminal forfeiture which was not previously subject to civil or criminal forfeiture shall apply to offenses occurring after the date of the enactment of this Act.

SEC. 15. JURISDICTION AND VENUE IN FORFEITURE CASES.

(a) ADMINISTRATIVE FORFEITURES- Section 608 of the Tariff Act of 1930 (19 U.S.C. 1608) is amended by striking `to the United States Attorney for the district in which seizure was made' and inserting `to the United States attorney for a district in which a forfeiture action could be filed pursuant to title 28, United States Code, section 1355(b)'.

(b) JUDICIAL FORFEITURES- Section 610 of the Tariff Act of 1930 (19 U.S.C. 1610) is amended by striking `to the United States attorney for the district in which the seizure was made' and inserting `to the United States attorney for a district in which a forfeiture action could be filed pursuant to title 28, United States Code, Section 1355(b)'.

(c) ADMIRALTY RULES- The Supplemental Rules for Certain Admiralty and Maritime Claims are amended-- (1) in Rule E(3), by inserting the following at the end of paragraph (a): `This provision shall not apply in forfeiture cases governed by section 1355 of title 28 or any other statute providing for service of process outside of the district.'; and (2) in Rule C(2), by inserting the following after `that it is within the district or will be during the pendency of the action.': `If the property is located outside of the district, the complaint shall state the statutory basis for the court's exercise of jurisdiction over the property'.

SEC. 16. MINOR AND TECHNICAL AMENDMENTS RELATING TO 1992 FORFEITURE AMENDMENTS. (a) CRIMINAL FORFEITURE- Section 982(b) of title 18, United States Code, is amended in subsection (b)(2), by striking `The substitution' and inserting `With respect to a forfeiture under subsection (a)(1), the substitution'. (b) SUBPOENAS FOR BANK RECORDS- Section 986(a) of title 18, United States Code, is amended by-- (1) striking `section 1956, 1957 or 1960 of this title, section 5322 or 5324 of title 31, United States Code' and inserting `section 981 of this title'; (2) striking `after' and inserting `before or after'; and (3) striking the last sentence. (c) Section 981(d) of title 18, United States Code, is amended by striking `sale of this section' and inserting `sale of such property'.

SEC. 17. DRUG PARAPHERNALIA TECHNICAL AMENDMENTS.

(a) Section 511(a)(10) of the Controlled Substances Act (21 U.S.C. 881(a)(10)) is amended by striking `section 1822 of the Mail Order Drug Paraphernalia Control Act' and inserting `section 422'.

(b) Section 422 of the Controlled Substances Act (21 U.S.C. 863) is amended-- (1) by deleting subsection (c); and (2) by redesignating subsections (d), (e), and (f) to be subsections (c), (d), and (e).

SEC. 18. CERTIFICATE OF REASONABLE CAUSE. Section 2465 of title 28, United States Code, is amended-- (1) by striking `property seized' and inserting `property seized or arrested' and (2) by striking `seizure' each time it appears and inserting `seizure or arrest'.

SEC. 19. AUTHORIZATION TO SHARE FORFEITED PROPERTY WITH COOPERATING FOREIGN GOVERNMENTS.

(a) IN GENERAL- Section 981(i)(1) of title 18, United States Code, is amended by striking `this chapter' and inserting `any provision of Federal law'.

(b) CONFORMING AMENDMENT- Section 511(e)(1) of the Controlled Substances Act (21 U.S.C. 881(e)(1) ) is amended by inserting `or' at the end of subparagraph (c), by striking `; or' at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E).

SEC. 20. FORFEITURE OF PROPERTY USED TO FACILITATE FOREIGN DRUG CRIMES. Section 981(a)(1)(B) of title 18, United States Code, is amended by inserting `, or any property used to facilitate such offense' at the end before the period.

SEC. 21. FORFEITURE OF PROCEEDS TRACEABLE TO FACILITATING PROPERTY IN DRUG CASES.

(a) CONVEYANCES- Section 511(a)(4) of the Controlled Substances Act (21 U.S.C. 881(a)(4)) is amended-- (1) by inserting `, and any property traceable to such conveyances' after `property described in paragraph (1), (2), or (9)'; (2) in subparagraph (A) by inserting `, and no property traceable to such conveyance,' before `shall be forfeited'; and (3) in subparagraphs (B) and (C) by inserting `and no property traceable to such conveyance' before `shall be forfeited'.

(b) REAL PROPERTY- Section 511(a)(7) of the Controlled Substances Act (21 U.S.C. 881(a)(7)) is amended by inserting `, and any property traceable to such property' after `one year's imprisonment'.

(c) NEGOTIABLE INSTRUMENTS AND SECURITIES- Section 511(a)(6) of the Controlled Substances Act (21 U.S.C. 881(a)(6)) is amended by inserting `, and any property traceable to such property' after `this title' the second time it appears. SEC. 22. FORFEITURE OF PROCEEDS OF CERTAIN FOREIGN CRIMES. Section 981(a)(1)(B) of title 18, United States Code, is amended by-- (1) inserting `(i)' after `against a foreign nation involving'; and (2) inserting `or (ii) any other conduct described in section 1956(c)(7)(B),' after `(as such term is defined for the purposes of the Controlled Substances Act)'.

SEC. 23. CIVIL FORFEITURE OF COINS AND CURRENCY IN CONFISCATED GAMBLING DEVICES. Section 7 of Public Law 81-906 (15 U.S.C. 1177) is amended-- (1) by inserting `Any coin or currency contained in any gambling device at the time of its seizure pursuant to the preceding sentence shall also be seized and forfeited to the United States.' after the first sentence; and (2) in the last sentence, by inserting `, coins, or currency' after `gambling devices'.

SEC. 24. CLARIFICATION OF JUDICIAL REVIEW OF FORFEITURE. Section 507 of the Controlled Substances Act (21 U.S.C. 877) is amended by adding at the end the following: `This section does not apply to any findings, conclusions, rulings, decisions, or declarations of the Attorney General, or any designee of the Attorney General, relating to the seizure, forfeiture, or disposition of forfeited property brought under this subchapter.'.

SEC. 25. TECHNICAL AMENDMENTS RELATING TO OBLITERATED MOTOR VEHICLES IDENTIFICATION NUMBERS. Section 512 of title 18, United States Code, is amended-- (1) in subsection (b), by inserting `and the provisions of chapter 46 of this title relating to civil judicial forfeitures' before `shall apply'; and (2) in subsection (a)(1), by striking `does not know' and all that follows up to the semicolon and inserting `is an innocent owner as defined in section 983 of this title'.

SEC. 26. STATUTE OF LIMITATIONS FOR CIVIL FORFEITURE ACTIONS. Section 621 of the Tariff Act of 1930 (19 U.S.C. 1621) is amended by inserting `, or in the case of forfeiture, within 2 years after the time when the involvement of the property in the alleged offense was discovered, whichever was later' after `within five years after the time when the alleged offense was discovered'.

SEC. 27. DESTRUCTION OR REMOVAL OF PROPERTY TO PREVENT SEIZURE.

(a) Section 2232(a) of title 18, United States Code, is amended by-- (1) inserting `OR SEIZURE' after `PHYSICAL INTERFERENCE WITH SEARCH'; (2) inserting `, including seizure for forfeiture,' after `after seizure'; (3) striking `searches and seizures' after `authorized to make' and inserting `searches or seizures'; (4) striking `or' after `wares,'; and (5) inserting `, or other property, real or personal,' after `merchandise.'

(b) Section 2232(b) of title 18, United States Code, is amended by-- (1) inserting `OR SEIZURE' after `NOTICE OF SEARCH'; (2) striking `searches and seizures' after `authorized to make' and inserting `searches or seizures'; (3) inserting `, including seizure for forfeiture' after `likely to make a search or seizure'; and (4) inserting `real or personal,' after `merchandise or other property,'.

SEC. 28. IN PERSONAM JUDGMENTS. Section 1963(l)(1) of title 18, United States Code, and section 413(n)(1) of the Controlled Substances Act (21 U.S.C. 853(n)(1)) are each amended by adding the following sentence at the end: `To the extent that the order of forfeiture includes only an in personam money judgment against the defendant, no proceeding under this subsection shall be necessary.'

SEC. 29. UNIFORM PROCEDURES FOR CRIMINAL FORFEITURE.

(a) IN GENERAL- Section 982(b)(1) of title 18, United States Code, is amended to read as follows:

(b) CONFORMING AMENDMENT- The second paragraph (6) of section 982(a), of title 18, United States Code, is amended by striking `(A)', by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively, by striking out `this subparagraph' and inserting `this subsection', and by striking all of subparagraph (B).

SEC. 30. AVAILABILITY OF CRIMINAL FORFEITURE.

(a) IN GENERAL- Section 2461 of title 28, United States Code, is amended by adding the following subsection:

(b) ORDER OF FORFEITURE- Section 3554 of title 18, United States Code, is amended--
(1) by striking `an offense described in section 1962 of this title or in title II or III of the Comprehensive Drug Abuse Prevention and Control Act of 1970' and inserting `an offense for which criminal forfeiture is authorized'; and
(2) by inserting `pursuant to the Federal Rules of Criminal Procedure,' after `shall order,'.

SEC. 31. DISCOVERY PROCEDURE FOR LOCATING FORFEITED ASSETS.

(a) IN GENERAL- Section 1963(k) of title 18, United States Code, and section 413(m) of the Controlled Substances Act (21 U.S.C. 853(m)) are each amended by-- (1) adding the following at the end before the period: `to the extent that the provisions of the Rule are consistent with the purposes for which discovery is conducted under this subsection'; and (2) adding the following additional sentence:

(b) BANK RECORDS- Section 986 of title 18, United States Code, is amended-- (1) in subsection (a), by striking `in rem'; and (2) in subsection (c), by inserting `or Criminal' after `Civil'.

SEC. 32. CRIMINAL FORFEITURE FOR MONEY LAUNDERING CONSPIRACIES. Section 982(a)(1) of title 18, United States Code, is amended by inserting `, or a conspiracy to commit any such offense' after `of this title'.

SEC. 33. CORRECTION TO CRIMINAL FORFEITURE PROVISION FOR ALIEN SMUGGLING AND OTHER IMMIGRATION OFFENSES. Section 982(a) of title 18, United States Code, as amended by section 29(b) is amended-- (1) by redesignating the second paragraph (6) as paragraph (7); (2) by inserting `sections 274(a), 274A(a)(1), or 274A(a)(2) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1324(a), 1324A(a)(1), and 1324A(a)(2)),' before `section 1425' the first time it appears; (3) in subparagraph (A), by striking `a violation of, or a conspiracy to violate, subsection (a)' and inserting `the offense of which the person is convicted'; and (4) in subparagraph (B)(i) and (ii), by striking `a violation of, or a conspiracy to violate, subsection (a)' through `of this title' and inserting `the offense of which the person is convicted'.

SEC. 34. REPATRIATION OF PROPERTY PLACED BEYOND THE JURISDICTION OF THE COURT.

(a) ORDER OF FORFEITURE- Section 413(p) of the Controlled Substances Act (21 U.S.C. 853(p)) is amended by inserting the following at the end: `In the case of property described in paragraph (3), the court may, in addition, order the defendant to return the property to the jurisdiction of the court so that it may be seized and forfeited.'.

(b) PRE-TRIAL RESTRAINING ORDER- Section 413(e) of the Controlled Substances Act (21 U.S.C. 853(e)) is amended by adding the following after paragraph (3): `

SEC. 35. RIGHT OF THIRD PARTIES TO CONTEST FORFEITURE OF SUBSTITUTE ASSETS.

(a) IN GENERAL- Section 413(c) of the Controlled Substances Act (21 U.S.C. 853(c)), is amended by-- (1) inserting the following after the first sentence: `All right, title and interest in property described in subsection (p) of this section vests in the United States at the time an indictment, information or bill of particulars specifically describing the property as substitute assets is filed.'; and (2) by striking `Any such property that is subsequently transferred to a person other than the defendant' and inserting `Any property that is transferred to a person other than the defendant after the United States' interest in the property has vested pursuant to this subsection'.

(b) CONFORMING AMENDMENT- Section 413(n)(6) of the Controlled Substances Act (21 U.S.C. 853(n)(6)) is amended by adding at the end the following sentence:

SEC. 36. ARCHEOLOGICAL RESOURCES PROTECTION ACT. Section 8(b) of the Archeological Resources Protection Act of 1979 (16 U.S.C. 470gg(b)) is amended by-- (1) inserting `all proceeds derived directly or indirectly from such violation or any property traceable thereto,' before `and all vehicles' in the unnumbered paragraph; (2) inserting `proceeds,' before `vehicles' in paragraph (3); and (3) inserting the following at the end of the subsection: `If a forfeiture count is included within an indictment in accordance with the Federal Rules of Criminal Procedure, and the defendant is convicted of the offense giving rise to the forfeiture, the forfeiture may be ordered as part of the criminal sentence in accordance with the procedures for criminal forfeitures in chapter 46 of title 18, United States Code. Otherwise, the forfeiture shall be civil in nature in accordance with the procedures for civil forfeiture in said chapter 46 of title 18.'.

SEC. 37. FORFEITURE OF INSTRUMENTALITIES OF TERRORISM, TELEMARKETING FRAUD, AND OTHER OFFENSES.

(a) CIVIL FORFEITURE- Section 981(a)(1) of title 18, United States Code is amended by adding the following subparagraphs: `

(b) CRIMINAL FORFEITURE- Section 982(a) of title 18, United States Code is amended by redesignating the second paragraph (6) as paragraph (7) and by adding at the end the following: ` SEC. 38. FORFEITURE OF CRIMINAL PROCEEDS TRANSPORTED IN INTERSTATE COMMERCE. Section 1952 of title 18, United States Code, is amended by adding the following subsection: SEC. 39. FORFEITURES OF PROCEEDS OF FEDERAL FOOD, DRUG, AND COSMETIC ACT VIOLATIONS. Chapter III of the Federal Food, Drug, and Cosmetic Act is amended by adding at the end the following: SEC. 40. FORFEITURE OF COUNTERFEIT PARAPHERNALIA. Section 492 of title 18, United States Code, is amended-- (1) by striking the third and fourth undesignated paragraphs; (2) by designating the remaining paragraphs as subsections (a) and (b); (3) by adding the following new subsections: SEC. 41. CLOSING OF LOOPHOLE TO DEFEAT CRIMINAL FORFEITURE THROUGH BANKRUPTCY. Section 413(a) of the Controlled Substances Act (21 U.S.C. 853(a)) is amended by inserting `, or of any bankruptcy proceeding instituted after or in contemplation of a prosecution of such violation' after `shall forfeit to the United States, irrespective of any provision of State law'.

SEC. 42. COLLECTION OF CRIMINAL FORFEITURE JUDGMENT. Section 413 of the Controlled Substances Act (21 U.S.C. 853) is amended by redesignating subsection (q) as subsection (r) and by adding after subsection (p) the following:

SEC. 43. CRIMINAL FORFEITURE OF PROPERTY IN GOVERNMENT CUSTODY. Section 413(f) of the Controlled Substances Act (21 U.S.C. 853(f)) is amended by adding the following at the end: SEC. 44. DELIVERY OF PROPERTY TO THE MARSHALS SERVICE. Section 413(j) of the Controlled Substances Act (21 U.S.C. 853(j)) is amended by inserting `, and Rule C(5) of the Supplemental Rules for Certain Admiralty and Maritime Claims,' before `shall apply to a criminal forfeiture'.

SEC. 45. FORFEITURE FOR ODOMETER TAMPERING OFFENSES.

(a) CRIMINAL FORFEITURE- Section 982(a)(5) of title 18, United States Code, is amended-- (1) by striking `or' at the end of subparagraph (D); (2) by inserting `or' after the semicolon at the end of subparagraph (E); (3) by inserting the following after subparagraph (E), as amended: `(F) section 32703 of title 49, United States Code (motor vehicle odometer tampering);'; and (4) by adding the following after the last period:

(b) CIVIL FORFEITURE- Section 981(a)(1)(F) of title 18, United States Code, is amended-- (1) by striking `or' at the end of clause (iv); (2) by striking the period at the end of clause (v) and inserting `; or'; (3) by inserting the following after clause (v), as amended: `(vi) section 32703 of title 49, United States Code (motor vehicle odometer tampering).'; and (4) by adding the following after the last period: SEC. 46. PRE-TRIAL RESTRAINT OF SUBSTITUTE ASSETS. Section 413(e)(1) of the Controlled Substances Act (21 U.S.C. 853(e)(1)) is amended-- (1) by striking `(a)' and inserting `(a) or (p)'; and (2) by adding at the end the following: `To the extent that property forfeitable only pursuant to subsection (p) is restrained under this paragraph, the court shall afford the defendant a prompt post-restraint hearing and shall exempt from such restraint such property as may reasonably be needed by the defendant to pay attorney's fees, other necessary cost-of-living expenses, and expenses of maintaining restrained assets pending the entry of judgment in the criminal case.'.

SEC. 47. HEARINGS ON PRE-TRIAL RESTRAINING ORDERS; ASSETS NEEDED TO PAY ATTORNEY'S FEES. Section 413(e) of the Controlled Substances Act (21 U.S.C. 853(e)) is amended by adding the following new paragraph: