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S.B. 256

This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 10, 2014 at 12:05 PM by lpoole. -->             


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Senate 2nd & 3rd Reading Amendments 3-10-2014 lp/sca
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ASSET FORFEITURE AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Howard A. Stephenson

             5     
House Sponsor: John Knotwell

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Forfeiture and Disposition of Property Act regarding forfeiture
             10      procedures.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies the definition of a claimant of property seized for forfeiture;
             14          .    reduces, and makes mandatory, the number of days within which a prosecutor must
             15      file a complaint for civil forfeiture;
             16          .    provides that the prosecutor is not required to serve notice on a claimant who has
             17      disclaimed ownership of the seized property;
             18          .    requires that service by publication must include a newspaper of general circulation;
             19          .    provides that if the prosecuting attorney does not S. [ file a forfeiture complaint ] take a
             19a      specified action regarding forfeiture of the property .S within
             20      S. [ 60 ] 75 .S days after the seizure, the property shall be promptly returned and no further
             21      prosecutorial action may be taken;
             22          .    requires that a prevailing property owner shall be awarded reasonable legal and
             23      attorney costs;
             24          .    establishes limitations and procedural requirements regarding the transfer of seized
             25      property to the federal government; and
             26          .    limits the amount of forfeited property that may be applied to prosecutorial attorney
             27      fees to 20% of the value of the property S. [ or the actual amount of attorney fees,.S



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             28
    
S.whichever is less ] .S
.
             29      Money Appropriated in this Bill:
             30          None
             31      Other Special Clauses:
             32          None
             33      Utah Code Sections Affected:
             34      AMENDS:
             35          24-1-102, as enacted by Laws of Utah 2013, Chapter 394
             36          24-4-104, as enacted by Laws of Utah 2013, Chapter 394
             37          24-4-105, as enacted by Laws of Utah 2013, Chapter 394
             38          24-4-110, as enacted by Laws of Utah 2013, Chapter 394
             39          24-4-114, as enacted by Laws of Utah 2013, Chapter 394
             40          24-4-115, as enacted by Laws of Utah 2013, Chapter 394
             41     

             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 24-1-102 is amended to read:
             44           24-1-102. Definitions.
             45          As used in this title:
             46          (1) "Account" means the Criminal Forfeiture Restricted Account created in Section
             47      24-4-116 .
             48          (2) (a) "Acquittal" means a finding by a jury or a judge at trial that a claimant is not
             49      guilty.
             50          (b) An acquittal does not include:
             51          (i) a verdict of guilty on a lesser or reduced charge;
             52          (ii) a plea of guilty to a lesser or reduced charge; or
             53          (iii) dismissal of a charge as a result of a negotiated plea agreement.
             54          (3) "Agency" means any agency of municipal, county, or state government, including
             55      law enforcement agencies, law enforcement personnel, and multijurisdictional task forces.
             56          (4) [(a)] "Claimant" means any:
             57          [(i)] (a) owner of property as defined in this section;
             58          [(ii)] (b) interest holder as defined in this section; or



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         [(iii) person from whom property is seized for forfeiture.]
             60          [(b) A claimant does not include a person or entity who disclaims in writing ownership
             61      of or interest in property.]
             62          (c) person or entity who asserts a claim to any property seized for forfeiture under this
             63      title.
             64          (5) "Commission" means the Utah Commission on Criminal and Juvenile Justice.
             65          (6) "Complaint" means a civil in rem complaint seeking the forfeiture of any real or
             66      personal property under this title.
             67          (7) "Constructive seizure" means a seizure of property where the property is left in the
             68      control of the owner and the seizing agency posts the property with a notice of intent to seek
             69      forfeiture.
             70          (8) (a) "Contraband" means any property, item, or substance that is unlawful to
             71      produce or to possess under state or federal law.
             72          (b) All controlled substances that are possessed, transferred, distributed, or offered for
             73      distribution in violation of Title 58, Chapter 37, Utah Controlled Substances Act, are
             74      contraband.
             75          (9) "Innocent owner" means a claimant who:
             76          (a) held an ownership interest in property at the time the conduct subjecting the
             77      property to forfeiture occurred, and:
             78          (i) did not have actual knowledge of the conduct subjecting the property to forfeiture;
             79      or
             80          (ii) upon learning of the conduct subjecting the property to forfeiture, took reasonable
             81      steps to prohibit the illegal use of the property; or
             82          (b) acquired an ownership interest in the property and who had no knowledge that the
             83      illegal conduct subjecting the property to forfeiture had occurred or that the property had been
             84      seized for forfeiture, and:
             85          (i) acquired the property in a bona fide transaction for value;
             86          (ii) was a person, including a minor child, who acquired an interest in the property
             87      through probate or inheritance; or
             88          (iii) was a spouse who acquired an interest in property through dissolution of marriage
             89      or by operation of law.



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             90
         (10) (a) "Interest holder" means a secured party as defined in Section 70A-9a-102 , a
             91      mortgagee, lien creditor, or the beneficiary of a security interest or encumbrance pertaining to
             92      an interest in property, whose interest would be perfected against a good faith purchaser for
             93      value.
             94          (b) "Interest holder" does not mean a person who holds property for the benefit of or as
             95      an agent or nominee for another person, or who is not in substantial compliance with any
             96      statute requiring an interest in property to be recorded or reflected in public records in order to
             97      perfect the interest against a good faith purchaser for value.
             98          (11) "Known address" means any address provided by a claimant to the agency at the
             99      time the property was seized, or the claimant's most recent address on record with a
             100      governmental entity if no address was provided at the time of the seizure.
             101          (12) "Legal costs" means the costs and expenses incurred by a party in a forfeiture
             102      action.
             103          (13) "Legislative body" means:
             104          (a) (i) the Legislature, county commission, county council, city commission, city
             105      council, or town council that has fiscal oversight and budgetary approval authority over an
             106      agency; or
             107          (ii) the agency's governing political subdivision; or
             108          (b) the lead governmental entity of a multijurisdictional task force, as designated in a
             109      memorandum of understanding executed by the agencies participating in the task force.
             110          (14) "Multijurisdictional task force" means a law enforcement task force or other
             111      agency comprised of persons who are employed by or acting under the authority of different
             112      governmental entities, including federal, state, county or municipal governments, or any
             113      combination of these agencies.
             114          (15) "Owner" means any person or entity, other than an interest holder, that possesses a
             115      bona fide legal or equitable interest in real or personal property.
             116          (16) (a) "Proceeds" means:
             117          (i) property of any kind that is obtained directly or indirectly as a result of the
             118      commission of an offense that gives rise to forfeiture; or
             119          (ii) any property acquired directly or indirectly from, produced through, realized
             120      through, or caused by an act or omission regarding property under Subsection (16)(a)(i).



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         (b) "Proceeds" includes any property of any kind without reduction for expenses
             122      incurred in the acquisition, maintenance, or production of that property, or any other purpose
             123      regarding property under Subsection (16)(a)(i).
             124          (c) "Proceeds" is not limited to the net gain or profit realized from the offense that
             125      gives rise to forfeiture.
             126          (17) "Program" means the State Asset Forfeiture Grant Program established in Section
             127      24-4-117 .
             128          (18) "Property" means all property, whether real or personal, tangible or intangible, but
             129      does not include contraband.
             130          (19) "Prosecuting attorney" means:
             131          (a) the attorney general and any assistant attorney general;
             132          (b) any district attorney or deputy district attorney;
             133          (c) any county attorney or assistant county attorney; and
             134          (d) any other attorney authorized to commence an action on behalf of the state under
             135      this title.
             136          (20) "Public interest use" means a:
             137          (a) use by a government agency as determined by the legislative body of the agency's
             138      jurisdiction; or
             139          (b) donation of the property to a nonprofit charity registered with the state.
             140          (21) "Real property" means land and includes any building, fixture, improvement,
             141      appurtenance, structure, or other development that is affixed permanently to land.
             142          Section 2. Section 24-4-104 is amended to read:
             143           24-4-104. Civil forfeiture procedure.
             144          (1) (a) S. [ Within [90] 60 days from the date the property is seized, the prosecuting
             145      attorney [may elect to] shall file a complaint for civil forfeiture in the appropriate district court.
]

             145a      The law enforcement agency shall promptly return seized property, and the prosecuting
             145b      attorney may take no further action to effect the forfeiture of the property, unless within 75
             145c      days after the property is seized the prosecuting attorney:
             145d      (i) files a criminal forfeiture indictment or information under Subsection 24-4-105(2);
             145e      (ii) obtains a restraining order under Subsection 24-4-105(3);
             145f      (iii) files a petition under Subsection 24-4-114(1); or
             145g      (iv) files a civil forfeiture complaint. .S
             146          (b) S. [ The ] A .S complaint S. for civil forfeiture .S shall describe with reasonable
             146a      particularity the:


            
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         (i) property that is the subject of the forfeiture proceeding;
             148          (ii) date and place of seizure; and
             149          (iii) factual allegations that constitute a basis for forfeiture.
             150          (2) (a) After S. [ the ] a .S complaint is filed, the prosecuting attorney shall serve a copy
             150a      of the
             151      complaint and summons upon each claimant known to the prosecuting attorney within 30 days.



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         (b) The prosecuting attorney is not required to serve a copy of the complaint or the
             153      summons upon any claimant who has disclaimed, in writing, an ownership interest in the
             154      seized property.
             155          [(b)] (c) Service of the complaint and summons shall be by:
             156          (i) personal service;
             157          (ii) certified mail, return receipt requested, to the claimant's known address; or
             158          (iii) service by publication, if the prosecuting attorney demonstrates to the court that
             159      service cannot reasonably be made by personal service or certified mail[, the court may then
             160      allow service by electronic publication].
             161          (d) Service by publication shall be by publication of two notices, in two successive
             162      weeks, of the forfeiture proceeding:
             163          (i) in a newspaper of general circulation in the county in which the seizure occurred;
             164      and
             165          (ii) on Utah's Public Legal Notice Website established in Subsection 45-1-101 (2)(b).
             166          [(c)] (e) Service is effective upon the earlier of:
             167          (i) personal service;
             168          (ii) mailing of a written notice; or
             169          (iii) [electronic] publication.
             170          [(d)] (f) Upon motion of the prosecuting attorney and a showing of good cause, the
             171      court may extend the period to complete service under this section for an additional 60 days.
             172          (3) (a) In any case where the prosecuting attorney files a complaint for forfeiture, a
             173      claimant may file an answer to the complaint.
             174          (b) The answer shall be filed within 30 days after the complaint is served upon the
             175      claimant as provided in Subsection (2)(b).
             176          (4) Except as otherwise provided in this chapter, forfeiture proceedings are governed
             177      by the Utah Rules of Civil Procedure.
             178          (5) The court shall take all reasonable steps to expedite civil forfeiture proceedings and
             179      shall give these proceedings the same priority as is given to criminal cases.
             180          (6) In all suits or actions brought under this section for the civil forfeiture of any
             181      property, the burden of proof is on the prosecuting attorney to establish by clear and convincing
             182      evidence the extent to which, if any, the property is subject to forfeiture.



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         (7) A claimant may file an answer to a complaint for civil forfeiture without posting
             184      bond with respect to the property subject to forfeiture.
             185           S. [ (8) If the prosecuting attorney does not file a civil complaint for forfeiture within 60
             186      days of the seizure of the property, as required by Subsection 24-4-104 (1):
             187          (a) the seizing agency shall promptly return the property to the claimant; and
             188          (b) the prosecuting attorney may take no further action to effect the forfeiture of the
             189      property.
] .S

             190          Section 3. Section 24-4-105 is amended to read:
             191           24-4-105. Criminal forfeiture procedure.
             192          (1) If a claimant is criminally prosecuted for conduct giving rise to the forfeiture, the
             193      prosecuting attorney may elect to seek forfeiture of the claimant's interest in the property
             194      through the criminal case.
             195          (2) If the prosecuting attorney elects to seek forfeiture of the claimant's interest in the
             196      property through the criminal case, the information or indictment shall state that the claimant's
             197      interest in the property is subject to forfeiture and the basis for the forfeiture.
             198          (3) (a) Upon application of the prosecuting attorney, the court may enter restraining
             199      orders or injunctions, or take other reasonable actions to preserve for forfeiture under this
             200      section, any property subject to forfeiture if, after notice to known claimants and claimants who
             201      can be identified after due diligence and who are known to have an interest in the property, and
             202      after affording those persons an opportunity for a hearing, the court determines that:
             203          (i) there is a substantial probability that the state will prevail on the issue of forfeiture
             204      and that failure to enter the order will result in the property being sold, transferred, destroyed,
             205      or removed from the jurisdiction of the court or otherwise made unavailable for forfeiture; and
             206          (ii) the need to preserve the availability of the property or prevent its sale, transfer,
             207      destruction, or removal through the entry of the requested order outweighs the hardship against
             208      any party against whom the order is to be entered.
             209          (b) A temporary restraining order may be entered ex parte upon application of the
             210      prosecuting attorney before or after an information or indictment has been filed with respect to
             211      the property, if the prosecuting attorney demonstrates that:
             212          (i) there is probable cause to believe that the property with respect to which the order is
             213      sought would, in the event of a conviction, be subject to forfeiture under this section; and



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         (ii) provision of notice would jeopardize the availability of the property for forfeiture
             215      or would jeopardize an ongoing criminal investigation.
             216          (c) The temporary order expires not more than 10 days after entry unless extended for
             217      good cause shown or unless the party against whom it is entered consents to an extension.
             218          (d) After service of the temporary order upon any claimants known to the prosecuting
             219      attorney, a hearing concerning the order entered under this section shall be held as soon as
             220      practicable and prior to the expiration of the temporary order.
             221          (e) The court is not bound by the Utah Rules of Evidence regarding evidence it may
             222      receive and consider at any hearing under this section.
             223          (4) (a) Upon conviction of a claimant for conduct giving rise to criminal forfeiture, the
             224      prosecutor shall ask the finder of fact to make a specific finding as to whether the property or
             225      any part of it is subject to forfeiture.
             226          (b) A determination of whether property is subject to forfeiture under this section shall
             227      be proven beyond a reasonable doubt.
             228          (5) (a) Upon conviction of a claimant for violating any provision of state law
             229      subjecting a claimant's property to forfeiture and a finding by the trier of fact that the property
             230      is subject to forfeiture, the court shall enter a judgment and order the property forfeited to the
             231      state upon the terms stated by the court in its order.
             232          (b) Following the entry of an order declaring property forfeited, the court may, upon
             233      application of the prosecuting attorney, enter appropriate restraining orders or injunctions,
             234      require the execution of satisfactory performance bonds, appoint receivers, conservators,
             235      appraisers, accountants, or trustees, or take any other action to protect the interest of the state in
             236      property ordered forfeited.
             237          (6) (a) (i) After property is ordered forfeited under this section, the seizing agency shall
             238      direct the disposition of the property under Section 24-4-115 .
             239          (ii) Any property right or interest under this Subsection (6)(a) not exercisable by or
             240      transferable for value to the state expires and does not revert to the defendant.
             241          (iii) The defendant or any person acting in concert with or on behalf of the defendant is
             242      not eligible to purchase forfeited property at any sale held by the seizing agency unless
             243      approved by the judge.
             244          (b) The court may stay the sale or disposition of the property pending the conclusion of



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             245
     any appeal of the criminal case giving rise to the forfeiture if the defendant demonstrates that
             246      proceeding with the sale or disposition of the property may result in irreparable injury, harm, or
             247      loss.
             248          (7) Except as provided under Subsection (3) or (10), a party claiming an interest in
             249      property subject to forfeiture under this section:
             250          (a) may not intervene in a trial or appeal of a criminal case involving the forfeiture of
             251      property under this section; and
             252          (b) may not commence an action at law or equity concerning the validity of the party's
             253      alleged interests in the property subsequent to the filing of an indictment or an information
             254      alleging that the property is subject to forfeiture under this section.
             255          (8) The district court that has jurisdiction of a case under this part may enter orders
             256      under this section without regard to the location of any property that may be subject to
             257      forfeiture under this section or that has been ordered forfeited under this section.
             258          (9) To facilitate the identification or location of property declared forfeited and to
             259      facilitate the disposition of petitions for remission or mitigation of forfeiture after the entry of
             260      an order declaring property forfeited to the state, the court may, upon application of the
             261      prosecuting attorney, order that the testimony of any witness relating to the forfeited property
             262      be taken by deposition, and that any book, paper, document, record, recording, or other
             263      material shall be produced as provided for depositions and discovery under the Utah Rules of
             264      Civil Procedure.
             265          (10) (a) (i) Following the entry of an order of forfeiture under this section, the
             266      prosecuting attorney shall publish notice of the order's intent to dispose of the property by
             267      [electronic] publication. Service by publication shall be by publication of two notices, in two
             268      successive weeks, of the forfeiture proceeding:
             269          (A) in a newspaper of general circulation in the county in which the seizure occurred;
             270      and
             271          (B) on Utah's Public Legal Notice Website established in Subsection 45-1-101 (2)(b).
             272          (ii) The prosecuting attorney shall also send written notice to any claimants, other than
             273      the defendant, known to the prosecuting attorney to have an interest in the property, at the
             274      claimant's known address.
             275          (b) (i) Any claimant, other than the defendant, asserting a legal interest in property that



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             276
     has been ordered forfeited to the state under this section may, within 30 days after the notice
             277      has been published or the claimant receives the written notice under Subsection (10)(a),
             278      whichever is earlier, petition the court for a hearing to adjudicate the validity of the claimant's
             279      alleged interest in the property.
             280          (ii) Any genuine issue of material fact, including issues of standing, may be tried to a
             281      jury upon demand of any party.
             282          (c) The petition shall:
             283          (i) be in writing and signed by the claimant under penalty of perjury;
             284          (ii) set forth the nature and extent of the claimant's right, title, or interest in the
             285      property, the time and circumstances of the claimant's acquisition of the right, title, or interest
             286      in the property; and
             287          (iii) set forth any additional facts supporting the claimant's claim and the relief sought.
             288          (d) The trial or hearing on the petition shall be expedited to the extent practicable. The
             289      court may consolidate a trial or hearing on the petition and any petition filed by any claimant
             290      other than the defendant under this section. The court shall permit the parties to conduct
             291      pretrial discovery pursuant to the Utah Rules of Civil Procedure.
             292          (e) (i) At the trial or hearing, the claimant may testify and present evidence and
             293      witnesses on the claimant's own behalf and cross-examine witnesses who appear at the hearing.
             294      The prosecuting attorney may present evidence and witnesses in rebuttal and in defense of the
             295      claim to the property and cross-examine witnesses who appear.
             296          (ii) In addition to testimony and evidence presented at the trial or hearing, the court
             297      may consider the relevant portion of the record of the criminal case that resulted in the order of
             298      forfeiture.
             299          (iii) Any trial or hearing shall be conducted pursuant to the Utah Rules of Evidence.
             300          (f) The court shall amend the order of forfeiture in accordance with its determination, if
             301      after the trial or hearing, the court or jury determines that the petitioner has established by a
             302      preponderance of the evidence that:
             303          (i) the claimant has a legal right, title, or interest in the property, and the right, title, or
             304      interest renders the order of forfeiture invalid in whole or in part because the right, title, or
             305      interest was vested in the claimant rather than the defendant or was superior to any right, title,
             306      or interest of the defendant at the time of the commission of the acts or conduct that gave rise



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     to the forfeiture of the property under this section; or
             308          (ii) the claimant acquired the right, title, or interest in the property in a bona fide
             309      transaction for value, and, at the time of acquisition, the claimant did not know that the
             310      property was subject to forfeiture.
             311          (g) Following the court's disposition of all petitions filed under this Subsection (10), or
             312      if no petitions are filed following the expiration of the period provided in Subsection (10)(b)
             313      for the filing of petitions, the state has clear title to property subject to the order of forfeiture
             314      and may warrant good title to any subsequent purchaser or transferee.
             315          Section 4. Section 24-4-110 is amended to read:
             316           24-4-110. Attorney fees and costs.
             317          (1) In any forfeiture proceeding under this chapter, the court [may] shall award a
             318      prevailing [party] property owner reasonable:
             319          (a) legal costs; and
             320          (b) attorney fees.
             321          (2) The legal costs and attorney fees awarded by the court to the prevailing party may
             322      not exceed 20% of the value of the property.
             323          (3) A [party] property owner that prevails only in part is entitled to recover reasonable
             324      legal costs and attorney fees only on those issues on which the party prevailed.
             325          Section 5. Section 24-4-114 is amended to read:
             326           24-4-114. Transfer and sharing procedures.
             327          (1) (a) Seizing agencies or prosecuting attorneys authorized to bring forfeiture
             328      proceedings under this chapter may not directly or indirectly transfer property held for
             329      forfeiture and not already named in a criminal indictment to any federal agency or any
             330      governmental entity not created under and subject to state law unless[:] the court enters an
             331      order, upon petition of the prosecuting attorney, authorizing the property to be transferred.
             332          (b) The court may not enter an order authorizing a transfer under Subsection (1)(a)
             333      unless:
             334          (i) the conduct giving rise to the investigation or seizure is interstate in nature and
             335      sufficiently complex to justify the transfer;
             336          (ii) the property may only be forfeited under federal law; or
             337          (iii) pursuing forfeiture under state law would unreasonably burden prosecuting



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             338
     attorneys or state law enforcement agencies.
             339          [(b) In making a determination under this section, a court may conduct an in camera
             340      inspection of evidence provided by the prosecuting attorney or seizing agency.]
             341          (c) A petition to transfer property to a federal agency under this section shall include:
             342          (i) a detailed description of the property seized;
             343          (ii) the location where the property was seized;
             344          (iii) the date the property was seized;
             345          (iv) the case number assigned by the seizing law enforcement agency; and
             346          (v) a declaration that:
             347          (A) states the basis for relinquishing jurisdiction to a federal agency;
             348          (B) contains the names and addresses of any claimants then known; and
             349          (C) is signed by the prosecutor.
             350          (d) The court may not authorize the transfer of property to the federal government if
             351      the transfer would circumvent the protections of the Utah Constitution or of this chapter that
             352      would otherwise be available to the property owner.
             353          (e) (i) Prior to granting any order to transfer pursuant to this section, the court shall
             354      give any claimant the right to be heard with regard to the transfer by the mailing of a notice to
             355      each address contained in the declaration.
             356          (ii) If no claimant objects to the petition to transfer property within 10 days of the
             357      mailing of the notice, the court shall issue its order under this section.
             358          (iii) If the declaration does not include an address for a claimant, the court shall delay
             359      its order under this section for 20 days to allow time for the claimant to appear and make an
             360      objection.
             361          (f) (i) If a claimant contests a petition to transfer property to a federal agency, the court
             362      shall promptly set the matter for hearing.
             363          (ii) (A) The court shall determine whether the state may relinquish jurisdiction by a
             364      standard of preponderance of the evidence.
             365          (B) In making the determination, the court shall consider evidence regarding hardship,
             366      complexity, judicial and law enforcement resources, and any other matter the court determines
             367      to be relevant.
             368          (2) All property, money, or other things of value received by an agency pursuant to



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             369
     federal law, which authorizes the sharing or transfer of all or a portion of forfeited property or
             370      the proceeds of the sale of forfeited property to an agency:
             371          (a) shall be used in compliance with federal laws and regulations relating to equitable
             372      sharing;
             373          (b) may be used for those law enforcement purposes specified in Subsection
             374      24-4-117 (9); and
             375          (c) may not be used for those law enforcement purposes prohibited in Subsection
             376      24-4-117 (10).
             377          (3) A state or local law enforcement agency awarded any equitable share of property
             378      forfeited by the federal government may only use the award money after approval of the use by
             379      the agency's legislative body.
             380          (4) Each year, every agency awarded any equitable share of property forfeited by the
             381      federal government shall file with the commission:
             382          (a) a copy of that agency's federal equitable sharing certification; and
             383          (b) information, on a form provided by the commission, that details all awards received
             384      from the federal government during the preceding reporting period, including:
             385          (i) the agency's case number or other identification;
             386          (ii) the amount of the award;
             387          (iii) the date of the award;
             388          (iv) the identity of any federal agency involved in the forfeiture;
             389          (v) how the awarded property has been used; and
             390          (vi) a statement signed by both the agency's executive officer or designee and by the
             391      agency's legal counsel confirming that the agency has only used the awarded property for crime
             392      reduction or law enforcement purposes authorized under Section 24-4-117 , and only upon
             393      approval by the agency's legislative body.
             394          Section 6. Section 24-4-115 is amended to read:
             395           24-4-115. Disposition and allocation of forfeiture property.
             396          (1) Upon finding that property is subject to forfeiture under this chapter, the court shall
             397      order the property forfeited to the state.
             398          (2) (a) If the property is not currency, the seizing agency shall authorize a public or
             399      otherwise commercially reasonable sale of that property that is not required by law to be



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Senate 2nd & 3rd Reading Amendments 3-10-2014 lp/sca
             400
     destroyed and that is not harmful to the public.
             401          (b) If the property forfeited is an alcoholic product as defined in Section 32B-1-102 , it
             402      shall be disposed of as follows:
             403          (i) an alcoholic product shall be sold if the alcoholic product is:
             404          (A) unadulterated, pure, and free from any crude, unrectified, or impure form of ethylic
             405      alcohol, or any other deleterious substance or liquid; and
             406          (B) otherwise in saleable condition; or
             407          (ii) an alcoholic product and its package shall be destroyed if the alcoholic product is
             408      impure, adulterated, or otherwise unfit for sale.
             409          (c) If the property forfeited is a cigarette or other tobacco product as defined in Section
             410      59-14-102 , it shall be destroyed, except that prior to the destruction of any cigarette or other
             411      tobacco product seized pursuant to this part, the lawful holder of the trademark rights in the
             412      cigarette or tobacco product brand shall be permitted to inspect the cigarette.
             413          (d) The proceeds of the sale of forfeited property shall remain segregated from other
             414      property, equipment, or assets of the seizing agency until transferred to the state in accordance
             415      with this chapter.
             416          (3) From the forfeited property, both currency and the proceeds or revenue from the
             417      sale of the property, the seizing agency shall:
             418          (a) deduct the seizing agency's direct costs and expenses of obtaining and maintaining
             419      the property pending forfeiture; and
             420          (b) pay the office of the prosecuting attorney the legal costs [and attorney fees]
             421      associated with the litigation of the forfeiture proceeding, and up to 20% of the value of the
             422      S. [ seized ] forfeited .S property in attorney fees S. [ or the actual amount of the attorney fees,
             422a      whichever is less ] .S .
             423          (4) If the forfeiture arises from any violation relating to wildlife resources, the
             424      remaining currency and the proceeds or revenue from the sale of the property shall be deposited
             425      in the Wildlife Resources Account created in Section 23-14-13 .
             426          (5) The remaining currency and the proceeds or revenue from the sale of the property
             427      shall then be transferred to the commission and deposited into the account.



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Legislative Review Note
    as of 2-26-14 9:22 AM


Office of Legislative Research and General Counsel


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