REPORT TITLE:
Drug Offenses; Forfeiture


DESCRIPTION:
Requires moneys from property seized and forfeited for drug
offenses to be distributed to the Department of Public Safety to
be used for drug treatment programs for inmates. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2410
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO FORFEITURE.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 712A-16, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§712A-16  Disposition of property forfeited.(1)  All
 
 4 property forfeited to the State under this chapter shall be
 
 5 transferred to the attorney general, subject to subsection (5),
 
 6 who:
 
 7      (a)  May transfer property, other than currency, which shall
 
 8           be distributed in accordance with subsection (2) to any
 
 9           local or state government entity, municipality, or law
 
10           enforcement agency within the State;
 
11      (b)  May sell forfeited property to the public by public
 
12           sale; provided that for leasehold real property:
 
13           (i)  The attorney general shall first offer the holder
 
14                of the immediate reversionary interest the right
 
15                to acquire the leasehold interest and any
 
16                improvements built or paid for by the lessee for
 
17                the then fair market value of the leasehold
 
18                interest and improvements.  The holder of the
 
19                immediate reversionary interest shall have thirty
 

 
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 1                days after receiving written notice within which
 
 2                to accept or reject the offer in writing; provided
 
 3                that the offer shall be deemed to be rejected if
 
 4                the holder of the immediate reversionary interest
 
 5                has not communicated acceptance to the attorney
 
 6                general within the thirty-day period.  The holder
 
 7                of the immediate reversionary interest shall have
 
 8                thirty days after acceptance to tender to the
 
 9                attorney general the purchase price for the
 
10                leasehold interest and any improvements, upon
 
11                which tender the leasehold interest and
 
12                improvements shall be conveyed to the holder of
 
13                the immediate reversionary interest[.];
 
14          (ii)  If the holder of the immediate reversionary
 
15                interest fails to exercise the right of first
 
16                refusal provided in subparagraph (i), the attorney
 
17                general may proceed to sell the leasehold interest
 
18                and any improvements by public sale[.]; and
 
19         (iii)  Any dispute between the attorney general and the
 
20                holder of the immediate reversionary interest as
 
21                to the fair market value of the leasehold interest
 
22                and improvements shall be settled by arbitration
 
23                pursuant to chapter 658;
 

 
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 1      (c)  May sell or destroy all raw materials, products, and
 
 2           equipment of any kind used or intended for use in
 
 3           manufacturing, compounding, or processing a controlled
 
 4           substance;
 
 5      (d)  May compromise and pay valid claims against property
 
 6           forfeited pursuant to this chapter; or
 
 7      (e)  May make any other disposition of forfeited property
 
 8           authorized by law.
 
 9      (2)  All forfeited property and the sale proceeds thereof,
 
10 [up to a maximum of three million dollars per year,] not
 
11 previously transferred pursuant to [[]subsection[]] (1)(a) of
 
12 this section, shall, subject to subsection (5), and after payment
 
13 of expenses of administration and sale, be distributed as
 
14 follows:
 
15      (a)  One quarter shall be distributed to the unit or units
 
16           of state or local government [[]whose[]] officers or
 
17           employees conducted the investigation and caused the
 
18           arrest of the person whose property was forfeited or
 
19           seizure of the property for forfeiture;
 
20      (b)  One quarter shall be distributed to the prosecuting
 
21           attorney who instituted the action producing the
 
22           forfeiture; and
 
23      (c)  One half shall be deposited into the criminal
 

 
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                                     S.B. NO.           2410
                                                        
                                                        

 
 1           forfeiture fund established by this chapter.
 
 2      (3)  Property and money distributed to units of state and
 
 3 local government shall be used for law enforcement purposes, and
 
 4 shall complement but not supplant the funds regularly
 
 5 appropriated for such purposes.
 
 6      (4)  There is established in the department of the attorney
 
 7 general a revolving fund to be known as the criminal forfeiture
 
 8 fund, hereinafter referred to as the "fund" in which, subject to
 
 9 subsection (5), shall be deposited one-half of the proceeds of a
 
10 forfeiture and any penalties paid pursuant to section 712A-10(6).
 
11 All moneys in the fund shall be expended by the attorney general
 
12 [and are hereby appropriated] for [the following purposes]:
 
13      (a)  The payment of any expenses necessary to seize, detain,
 
14           appraise, inventory, safeguard, maintain, advertise, or
 
15           sell property seized, detained, or forfeited pursuant
 
16           to this chapter or of any other necessary expenses
 
17           incident to the seizure, detention, or forfeiture of
 
18           such property and such contract services and payments
 
19           to reimburse any federal, state, or county agency for
 
20           any expenditures made to perform the foregoing
 
21           functions;
 
22      (b)  The payment of awards for information or assistance
 
23           leading to a civil or criminal proceeding;
 

 
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 1      (c)  The payment of supplemental sums to state and county
 
 2           agencies for law enforcement purposes; and
 
 3      (d)  The payment of expenses arising in connection with
 
 4           programs for training and education of law enforcement
 
 5           officers.
 
 6      (5)  Notwithstanding subsection (1), (2,) (3), or (4), all
 
 7 moneys obtained from the forfeiture of property for drug-related
 
 8 offenses, including currency and proceeds from the sale of
 
 9 forfeited property, shall be distributed by the attorney general
 
10 to the department of public safety.  The moneys shall be used by
 
11 the department to fund drug treatment programs for inmates.
 
12     [(5)] (6)  The attorney general may, without regard to the
 
13 requirements of chapter 91, [promulgate] adopt rules [and
 
14 regulations] concerning the disposition of property, the use of
 
15 the fund, and compromising and paying valid claims against
 
16 property forfeited pursuant to this chapter.
 
17     [(6)] (7)  Not less than twenty days prior to the convening
 
18 of each regular session, the attorney general shall provide to
 
19 the legislature a report on the use of the Hawaii omnibus
 
20 criminal forfeiture act during the fiscal year preceding the
 
21 legislative session.  The report shall include:
 
22      (a)  The total amount and type of property seized by law
 
23           enforcement agencies;
 

 
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                                     S.B. NO.           2410
                                                        
                                                        

 
 1      (b)  The total number of administrative and judicial actions
 
 2           filed by prosecuting attorneys and the disposition
 
 3           thereof;
 
 4      (c)  The total number of claims or petitions for remission
 
 5           or mitigation filed in administrative actions and the
 
 6           dispositions thereof;
 
 7      (d)  The total amount and type of property forfeited and the
 
 8           sale proceeds thereof;
 
 9      (e)  The total amount and type of property distributed to
 
10           units of state and local government;
 
11      (f)  The amount of money deposited into the criminal
 
12           forfeiture fund; [and]
 
13      (g)  The amount of money expended by the attorney general
 
14           from the criminal forfeiture fund under subsection (5)
 
15           and the reason for the expenditures[.]; and
 
16      (h)  The total amount of moneys distributed to the
 
17           department of public safety pursuant to subsection
 
18           (5)."
 
19      SECTION 2.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 3.  This Act shall take effect upon its approval.
 
22 
 
23                           INTRODUCED BY:  _______________________