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S.B. 256 Enrolled

             1     

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 take a specified action regarding
             20      forfeiture of the property within 75 days after the seizure, the property shall be
             21      promptly returned and no further 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.
             28      Money Appropriated in this Bill:
             29          None


             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34           24-1-102 , as enacted by Laws of Utah 2013, Chapter 394
             35           24-4-104 , as enacted by Laws of Utah 2013, Chapter 394
             36           24-4-105 , as enacted by Laws of Utah 2013, Chapter 394
             37           24-4-110 , as enacted by Laws of Utah 2013, Chapter 394
             38           24-4-114 , as enacted by Laws of Utah 2013, Chapter 394
             39           24-4-115 , as enacted by Laws of Utah 2013, Chapter 394
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 24-1-102 is amended to read:
             43           24-1-102. Definitions.
             44          As used in this title:
             45          (1) "Account" means the Criminal Forfeiture Restricted Account created in Section
             46      24-4-116 .
             47          (2) (a) "Acquittal" means a finding by a jury or a judge at trial that a claimant is not
             48      guilty.
             49          (b) An acquittal does not include:
             50          (i) a verdict of guilty on a lesser or reduced charge;
             51          (ii) a plea of guilty to a lesser or reduced charge; or
             52          (iii) dismissal of a charge as a result of a negotiated plea agreement.
             53          (3) "Agency" means any agency of municipal, county, or state government, including
             54      law enforcement agencies, law enforcement personnel, and multijurisdictional task forces.
             55          (4) [(a)] "Claimant" means any:
             56          [(i)] (a) owner of property as defined in this section;
             57          [(ii)] (b) interest holder as defined in this section; or


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


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


             114      bona fide legal or equitable interest in real or personal property.
             115          (16) (a) "Proceeds" means:
             116          (i) property of any kind that is obtained directly or indirectly as a result of the
             117      commission of an offense that gives rise to forfeiture; or
             118          (ii) any property acquired directly or indirectly from, produced through, realized
             119      through, or caused by an act or omission regarding property under Subsection (16)(a)(i).
             120          (b) "Proceeds" includes any property of any kind without reduction for expenses
             121      incurred in the acquisition, maintenance, or production of that property, or any other purpose
             122      regarding property under Subsection (16)(a)(i).
             123          (c) "Proceeds" is not limited to the net gain or profit realized from the offense that
             124      gives rise to forfeiture.
             125          (17) "Program" means the State Asset Forfeiture Grant Program established in Section
             126      24-4-117 .
             127          (18) "Property" means all property, whether real or personal, tangible or intangible, but
             128      does not include contraband.
             129          (19) "Prosecuting attorney" means:
             130          (a) the attorney general and any assistant attorney general;
             131          (b) any district attorney or deputy district attorney;
             132          (c) any county attorney or assistant county attorney; and
             133          (d) any other attorney authorized to commence an action on behalf of the state under
             134      this title.
             135          (20) "Public interest use" means a:
             136          (a) use by a government agency as determined by the legislative body of the agency's
             137      jurisdiction; or
             138          (b) donation of the property to a nonprofit charity registered with the state.
             139          (21) "Real property" means land and includes any building, fixture, improvement,
             140      appurtenance, structure, or other development that is affixed permanently to land.
             141          Section 2. Section 24-4-104 is amended to read:


             142           24-4-104. Civil forfeiture procedure.
             143          [(1) (a) Within 90 days from the date the property is seized, the prosecuting attorney
             144      may elect to file a complaint for civil forfeiture in the appropriate district court.]
             145          (1) (a) The law enforcement agency shall promptly return seized property, and the
             146      prosecuting attorney may take no further action to effect the forfeiture of the property, unless
             147      within 75 days after the property is seized the prosecuting attorney:
             148          (i) files a criminal forfeiture indictment or information under Subsection 24-4-105 (2);
             149          (ii) obtains a restraining order under Subsection 24-4-105 (3);
             150          (iii) files a petition under Subsection 24-4-114 (1); or
             151          (iv) files a civil forfeiture complaint.
             152          (b) [The] A complaint for civil forfeiture shall describe with reasonable particularity
             153      the:
             154          (i) property that is the subject of the forfeiture proceeding;
             155          (ii) date and place of seizure; and
             156          (iii) factual allegations that constitute a basis for forfeiture.
             157          (2) (a) After [the] a complaint is filed, the prosecuting attorney shall serve a copy of the
             158      complaint and summons upon each claimant known to the prosecuting attorney within 30 days.
             159          (b) The prosecuting attorney is not required to serve a copy of the complaint or the
             160      summons upon any claimant who has disclaimed, in writing, an ownership interest in the
             161      seized property.
             162          [(b)] (c) Service of the complaint and summons shall be by:
             163          (i) personal service;
             164          (ii) certified mail, return receipt requested, to the claimant's known address; or
             165          (iii) service by publication, if the prosecuting attorney demonstrates to the court that
             166      service cannot reasonably be made by personal service or certified mail[, the court may then
             167      allow service by electronic publication].
             168          (d) Service by publication shall be by publication of two notices, in two successive
             169      weeks, of the forfeiture proceeding:


             170          (i) in a newspaper of general circulation in the county in which the seizure occurred;
             171      and
             172          (ii) on Utah's Public Legal Notice Website established in Subsection 45-1-101 (2)(b).
             173          [(c)] (e) Service is effective upon the earlier of:
             174          (i) personal service;
             175          (ii) mailing of a written notice; or
             176          (iii) [electronic] publication.
             177          [(d)] (f) Upon motion of the prosecuting attorney and a showing of good cause, the
             178      court may extend the period to complete service under this section for an additional 60 days.
             179          (3) (a) In any case where the prosecuting attorney files a complaint for forfeiture, a
             180      claimant may file an answer to the complaint.
             181          (b) The answer shall be filed within 30 days after the complaint is served upon the
             182      claimant as provided in Subsection (2)(b).
             183          (4) Except as otherwise provided in this chapter, forfeiture proceedings are governed
             184      by the Utah Rules of Civil Procedure.
             185          (5) The court shall take all reasonable steps to expedite civil forfeiture proceedings and
             186      shall give these proceedings the same priority as is given to criminal cases.
             187          (6) In all suits or actions brought under this section for the civil forfeiture of any
             188      property, the burden of proof is on the prosecuting attorney to establish by clear and convincing
             189      evidence the extent to which, if any, the property is subject to forfeiture.
             190          (7) A claimant may file an answer to a complaint for civil forfeiture without posting
             191      bond with respect to the property subject to forfeiture.
             192          Section 3. Section 24-4-105 is amended to read:
             193           24-4-105. Criminal forfeiture procedure.
             194          (1) If a claimant is criminally prosecuted for conduct giving rise to the forfeiture, the
             195      prosecuting attorney may elect to seek forfeiture of the claimant's interest in the property
             196      through the criminal case.
             197          (2) If the prosecuting attorney elects to seek forfeiture of the claimant's interest in the


             198      property through the criminal case, the information or indictment shall state that the claimant's
             199      interest in the property is subject to forfeiture and the basis for the forfeiture.
             200          (3) (a) Upon application of the prosecuting attorney, the court may enter restraining
             201      orders or injunctions, or take other reasonable actions to preserve for forfeiture under this
             202      section, any property subject to forfeiture if, after notice to known claimants and claimants who
             203      can be identified after due diligence and who are known to have an interest in the property, and
             204      after affording those persons an opportunity for a hearing, the court determines that:
             205          (i) there is a substantial probability that the state will prevail on the issue of forfeiture
             206      and that failure to enter the order will result in the property being sold, transferred, destroyed,
             207      or removed from the jurisdiction of the court or otherwise made unavailable for forfeiture; and
             208          (ii) the need to preserve the availability of the property or prevent its sale, transfer,
             209      destruction, or removal through the entry of the requested order outweighs the hardship against
             210      any party against whom the order is to be entered.
             211          (b) A temporary restraining order may be entered ex parte upon application of the
             212      prosecuting attorney before or after an information or indictment has been filed with respect to
             213      the property, if the prosecuting attorney demonstrates that:
             214          (i) there is probable cause to believe that the property with respect to which the order is
             215      sought would, in the event of a conviction, be subject to forfeiture under this section; and
             216          (ii) provision of notice would jeopardize the availability of the property for forfeiture
             217      or would jeopardize an ongoing criminal investigation.
             218          (c) The temporary order expires not more than 10 days after entry unless extended for
             219      good cause shown or unless the party against whom it is entered consents to an extension.
             220          (d) After service of the temporary order upon any claimants known to the prosecuting
             221      attorney, a hearing concerning the order entered under this section shall be held as soon as
             222      practicable and prior to the expiration of the temporary order.
             223          (e) The court is not bound by the Utah Rules of Evidence regarding evidence it may
             224      receive and consider at any hearing under this section.
             225          (4) (a) Upon conviction of a claimant for conduct giving rise to criminal forfeiture, the


             226      prosecutor shall ask the finder of fact to make a specific finding as to whether the property or
             227      any part of it is subject to forfeiture.
             228          (b) A determination of whether property is subject to forfeiture under this section shall
             229      be proven beyond a reasonable doubt.
             230          (5) (a) Upon conviction of a claimant for violating any provision of state law
             231      subjecting a claimant's property to forfeiture and a finding by the trier of fact that the property
             232      is subject to forfeiture, the court shall enter a judgment and order the property forfeited to the
             233      state upon the terms stated by the court in its order.
             234          (b) Following the entry of an order declaring property forfeited, the court may, upon
             235      application of the prosecuting attorney, enter appropriate restraining orders or injunctions,
             236      require the execution of satisfactory performance bonds, appoint receivers, conservators,
             237      appraisers, accountants, or trustees, or take any other action to protect the interest of the state in
             238      property ordered forfeited.
             239          (6) (a) (i) After property is ordered forfeited under this section, the seizing agency shall
             240      direct the disposition of the property under Section 24-4-115 .
             241          (ii) Any property right or interest under this Subsection (6)(a) not exercisable by or
             242      transferable for value to the state expires and does not revert to the defendant.
             243          (iii) The defendant or any person acting in concert with or on behalf of the defendant is
             244      not eligible to purchase forfeited property at any sale held by the seizing agency unless
             245      approved by the judge.
             246          (b) The court may stay the sale or disposition of the property pending the conclusion of
             247      any appeal of the criminal case giving rise to the forfeiture if the defendant demonstrates that
             248      proceeding with the sale or disposition of the property may result in irreparable injury, harm, or
             249      loss.
             250          (7) Except as provided under Subsection (3) or (10), a party claiming an interest in
             251      property subject to forfeiture under this section:
             252          (a) may not intervene in a trial or appeal of a criminal case involving the forfeiture of
             253      property under this section; and


             254          (b) may not commence an action at law or equity concerning the validity of the party's
             255      alleged interests in the property subsequent to the filing of an indictment or an information
             256      alleging that the property is subject to forfeiture under this section.
             257          (8) The district court that has jurisdiction of a case under this part may enter orders
             258      under this section without regard to the location of any property that may be subject to
             259      forfeiture under this section or that has been ordered forfeited under this section.
             260          (9) To facilitate the identification or location of property declared forfeited and to
             261      facilitate the disposition of petitions for remission or mitigation of forfeiture after the entry of
             262      an order declaring property forfeited to the state, the court may, upon application of the
             263      prosecuting attorney, order that the testimony of any witness relating to the forfeited property
             264      be taken by deposition, and that any book, paper, document, record, recording, or other
             265      material shall be produced as provided for depositions and discovery under the Utah Rules of
             266      Civil Procedure.
             267          (10) (a) (i) Following the entry of an order of forfeiture under this section, the
             268      prosecuting attorney shall publish notice of the order's intent to dispose of the property by
             269      [electronic] publication. Service by publication shall be by publication of two notices, in two
             270      successive weeks, of the forfeiture proceeding:
             271          (A) in a newspaper of general circulation in the county in which the seizure occurred;
             272      and
             273          (B) on Utah's Public Legal Notice Website established in Subsection 45-1-101 (2)(b).
             274          (ii) The prosecuting attorney shall also send written notice to any claimants, other than
             275      the defendant, known to the prosecuting attorney to have an interest in the property, at the
             276      claimant's known address.
             277          (b) (i) Any claimant, other than the defendant, asserting a legal interest in property that
             278      has been ordered forfeited to the state under this section may, within 30 days after the notice
             279      has been published or the claimant receives the written notice under Subsection (10)(a),
             280      whichever is earlier, petition the court for a hearing to adjudicate the validity of the claimant's
             281      alleged interest in the property.


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


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


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


             366      standard of preponderance of the evidence.
             367          (B) In making the determination, the court shall consider evidence regarding hardship,
             368      complexity, judicial and law enforcement resources, and any other matter the court determines
             369      to be relevant.
             370          (2) All property, money, or other things of value received by an agency pursuant to
             371      federal law, which authorizes the sharing or transfer of all or a portion of forfeited property or
             372      the proceeds of the sale of forfeited property to an agency:
             373          (a) shall be used in compliance with federal laws and regulations relating to equitable
             374      sharing;
             375          (b) may be used for those law enforcement purposes specified in Subsection
             376      24-4-117 (9); and
             377          (c) may not be used for those law enforcement purposes prohibited in Subsection
             378      24-4-117 (10).
             379          (3) A state or local law enforcement agency awarded any equitable share of property
             380      forfeited by the federal government may only use the award money after approval of the use by
             381      the agency's legislative body.
             382          (4) Each year, every agency awarded any equitable share of property forfeited by the
             383      federal government shall file with the commission:
             384          (a) a copy of that agency's federal equitable sharing certification; and
             385          (b) information, on a form provided by the commission, that details all awards received
             386      from the federal government during the preceding reporting period, including:
             387          (i) the agency's case number or other identification;
             388          (ii) the amount of the award;
             389          (iii) the date of the award;
             390          (iv) the identity of any federal agency involved in the forfeiture;
             391          (v) how the awarded property has been used; and
             392          (vi) a statement signed by both the agency's executive officer or designee and by the
             393      agency's legal counsel confirming that the agency has only used the awarded property for crime


             394      reduction or law enforcement purposes authorized under Section 24-4-117 , and only upon
             395      approval by the agency's legislative body.
             396          Section 6. Section 24-4-115 is amended to read:
             397           24-4-115. Disposition and allocation of forfeiture property.
             398          (1) Upon finding that property is subject to forfeiture under this chapter, the court shall
             399      order the property forfeited to the state.
             400          (2) (a) If the property is not currency, the seizing agency shall authorize a public or
             401      otherwise commercially reasonable sale of that property that is not required by law to be
             402      destroyed and that is not harmful to the public.
             403          (b) If the property forfeited is an alcoholic product as defined in Section 32B-1-102 , it
             404      shall be disposed of as follows:
             405          (i) an alcoholic product shall be sold if the alcoholic product is:
             406          (A) unadulterated, pure, and free from any crude, unrectified, or impure form of ethylic
             407      alcohol, or any other deleterious substance or liquid; and
             408          (B) otherwise in saleable condition; or
             409          (ii) an alcoholic product and its package shall be destroyed if the alcoholic product is
             410      impure, adulterated, or otherwise unfit for sale.
             411          (c) If the property forfeited is a cigarette or other tobacco product as defined in Section
             412      59-14-102 , it shall be destroyed, except that prior to the destruction of any cigarette or other
             413      tobacco product seized pursuant to this part, the lawful holder of the trademark rights in the
             414      cigarette or tobacco product brand shall be permitted to inspect the cigarette.
             415          (d) The proceeds of the sale of forfeited property shall remain segregated from other
             416      property, equipment, or assets of the seizing agency until transferred to the state in accordance
             417      with this chapter.
             418          (3) From the forfeited property, both currency and the proceeds or revenue from the
             419      sale of the property, the seizing agency shall:
             420          (a) deduct the seizing agency's direct costs and expenses of obtaining and maintaining
             421      the property pending forfeiture; and


             422          (b) pay the office of the prosecuting attorney the legal costs [and attorney fees]
             423      associated with the litigation of the forfeiture proceeding, and up to 20% of the value of the
             424      forfeited property in attorney fees.
             425          (4) If the forfeiture arises from any violation relating to wildlife resources, the
             426      remaining currency and the proceeds or revenue from the sale of the property shall be deposited
             427      in the Wildlife Resources Account created in Section 23-14-13 .
             428          (5) The remaining currency and the proceeds or revenue from the sale of the property
             429      shall then be transferred to the commission and deposited into the account.


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