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:
(c) FILING A COMPLAINT-
(1) In cases where property has been seized or restrained by the Government
and a claim has been filed, the Attorney General shall file a complaint
for forfeiture in the appropriate court in the manner set forth in the
Supplemental Rules for Certain Admiralty and Maritime Claims, or shall
include a forfeiture count in a criminal indictment or information, or
both, not later than 90 days after the claim was filed, or return the property
pending the filing of a complaint or indictment. By mutual agreement between
the Government and the claimants, the 90-day filing requirement may be
(2) The Government may apply to a Federal magistrate judge (as defined in the Federal Rules of Criminal Procedure) in any district where venue for a forfeiture action would lie under section 1355(b) of title 28 for an extension of time in which to comply with paragraph (1). Such an extension shall be granted based on a showing of good cause. If the reason for the extension is that the filing required by paragraph (1) would jeopardize an ongoing criminal investigation or prosecution or court-authorized electronic surveillance, the application may be made ex parte.
(3) Upon the filing of a civil complaint, the claimant shall file a claim and answer in accordance with the Supplemental Rules for Certain Admiralty and Maritime Claims.
(d) APPOINTMENT OF
(1) If the person filing a claim is financially unable to obtain representation by counsel and requests that counsel be appointed, the court may appoint counsel to represent that person with respect to the claim. In determining whether to appoint counsel to represent the person filing the claim, the court shall take into account-- `(A) the nature and value of the property subject to forfeiture, including the hardship to the claimant from the loss of the property seized, compared to the expense of appointing counsel; `(B) the claimant's standing to contest the forfeiture; and `(C) whether the claim appears to be made in good faith or to be frivolous.
(2) The court shall set the compensation for that representation, which shall be the equivalent to that provided for court-appointed representation under section 3006A of this title, and to pay such cost, there are authorized to be appropriated such sums as are necessary as an addition to the funds otherwise appropriated for the appointment of counsel under such section.
(3) The determination of whether to appoint counsel under this subsection shall be made following a hearing at which the Government shall have an opportunity to present evidence and examine the claimant. The testimony of the claimant at such hearing shall not be admitted in any other proceeding except in accordance with the rules which govern the admissibility of testimony adduced in a hearing on a motion to suppress evidence. Nothing in this paragraph shall be construed to prohibit the admission of any evidence that may be obtained in the course of civil discovery in the forfeiture proceeding or through any other lawful investigative means.
(e) BURDEN OF PROOF- In all suits or actions brought for the civil forfeiture of any property, the burden of proof at trial is on the United States to establish, by a preponderance of the evidence, that the property is subject to forfeiture. If the Government proves that the property is subject to forfeiture, the claimant shall have the burden of establishing any affirmative defense by a preponderance of the evidence.
(f) INNOCENT OWNERS-
(1) An innocent owner's interest in property shall not be forfeited in any civil forfeiture action.
(2) With respect to a property interest in existence at the time the illegal conduct giving rise to the forfeiture took place, the term `innocent owner' means an owner who-- `(A) did not know of the conduct giving rise to the forfeiture; or `(B) upon learning of the conduct giving rise to the forfeiture, did all that reasonably could be expected under the circumstances to terminate such use of the property.
(3)(A) With respect to a property interest acquired after the conduct giving rise to the forfeiture has taken place, the term `innocent owner' means a person who, at the time that person acquired the interest in the property, was a bona fide purchaser for value and was at the time of the purchase reasonably without cause to believe that the property was subject to forfeiture. `(B) Except as provided in paragraph (4), where the property subject to forfeiture is real property, and the claimant uses the property as his or her primary residence and is the spouse or minor child of the person who committed the offense giving rise to the forfeiture, an otherwise valid innocent owner claim shall not be denied on the ground that the claimant acquired the interest in the property-- `(i) in the case of a spouse, through dissolution of marriage or by operation of law, or `(ii) in the case of a minor child, as an inheritance upon the death of a parent, and not through a purchase. However, the claimant must establish, in accordance with subparagraph (A), that at the time of the acquisition of the property interest, the claimant was reasonably without cause to believe that the property was subject to forfeiture, and was an owner of the property, as defined in paragraph (6).
(4) Notwithstanding any provision of this section, no person may assert an ownership interest under this section-- `(A) in contraband or other property that it is illegal to possess; or `(B) in the illegal proceeds of a criminal act unless such person was a bona fide purchaser for value who was reasonably without cause to believe that the property was subject to forfeiture.
(5) For the purposes of paragraph (2) of this subsection a person does all that reasonably can be expected if the person takes all steps that a reasonable person would take in the circumstances to prevent or terminate the illegal use of the person's property. There is a rebuttable presumption that a property owner took all the steps that a reasonable person would take if the property owner-- `(A) gave timely notice to an appropriate law enforcement agency of information that led to the claimant to know the conduct giving rise to a forfeiture would occur or has occurred; and `(B) in a timely fashion, revoked permission for those engaging in such conduct to use the property or took reasonable steps in consultation with a law enforcement agency to discourage or prevent the illegal use of the property. The person is not required to take extraordinary steps that the person reasonably believes would be likely to subject the person to physical danger.
(6) As used in this subsection-- `(A) the term `civil forfeiture statute' means any provision of Federal law providing for the forfeiture of property other than as a sentence imposed upon conviction of a criminal offense; `(B) the term `owner' means a person with an ownership interest in the specific property sought to be forfeited, including a lien, mortgage, recorded security device, or valid assignment of an ownership interest. Such term does not include-- `(i) a person with only a general unsecured interest in, or claim against, the property or estate of another; `(ii) a bailee unless the bailor is identified and the bailee shows a colorable legitimate interest in the property seized; or `(iii) a nominee who exercises no dominion or control over the property; `(C) a person shall be considered to have known that the person's property was being used or was likely to be used in the commission of an illegal act if the person was willfully blind.
(7) If the court determines, in accordance with this subsection, that an innocent owner had a partial interest in property otherwise subject to forfeiture, or a joint tenancy or tenancy by the entirety in such property, the court shall enter an appropriate order-- `(A) severing the property; `(B) transferring the property to the Government with a provision that the Government compensate the innocent owner to the extent of his or her ownership interest once a final order of forfeiture has been entered and the property has been reduced to liquid assets; or `(C) permitting the innocent owner to retain the property subject to a lien in favor of the Government, to the extent of the forfeitable interest in the property, that will permit the Government to realize its forfeitable interest if the property is transferred to another person. To effectuate the purposes of this subsection, a joint tenancy or tenancy by the entireties shall be converted to a tenancy in common by order of the court, irrespective of state law.
(8) An innocent owner defense under this subsection is an affirmative defense.
(g) MOTION TO SUPPRESS SEIZED EVIDENCE- At any time after a claim and answer are filed in a judicial forfeiture proceeding, a claimant with standing to contest the seizure of the property may move to suppress the fruits of the seizure in accordance with the normal rules regarding the suppression of illegally seized evidence. If the claimant prevails on such motion, the fruits of the seizure shall not be admitted into evidence as to that claimant at the forfeiture trial. However, a finding that evidence should be suppressed shall not bar the forfeiture of the property based on evidence obtained independently before or after the seizure.
(h) USE OF HEARSAY AT PRE-TRIAL HEARINGS- At any pre-trial hearing under this section in which the governing standard is probable cause, the court may accept and consider hearsay otherwise inadmissible under the Federal Rules of Evidence.
(i) STIPULATIONS- Notwithstanding the claimant's offer to stipulate to the forfeitability of the property, the Government shall be entitled to present evidence to the finder of fact on that issue before the claimant presents any evidence in support of any affirmative defense.
(j) PRESERVATION OF PROPERTY SUBJECT TO FORFEITURE- The court, before or after the filing of a forfeiture complaint and on the application of the Government, may-- `(1) enter any restraining order or injunction in the manner set forth in section 413(e) of the Controlled Substances Act (21 U.S.C. 853(e)); `(2) require the execution of satisfactory performance bonds; `(3) create receiverships; `(4) appoint conservators, custodians, appraisers, accountants or trustees; or `(5) take any other action to seize, secure, maintain, or preserve the availability of property subject to forfeiture under this section.
(k) EXCESSIVE FINES- (1) At the conclusion of the trial and following the entry of a verdict of forfeiture, or upon the entry of summary judgment for the Government as to the forfeitability of the property, the claimant may petition the court to determine whether the excessive fines clause of the Eighth Amendment applies, and if so, whether forfeiture is excessive. The claimant shall have the burden of establishing that a forfeiture is excessive by a preponderance of the evidence at a hearing conducted in the manner provided in Rule 43(e), Federal Rules of Civil Procedure, by the Court without a jury. If the court determines that the forfeiture is excessive, it shall adjust the forfeiture to the extent necessary to avoid the Constitutional violation. `(2) The claimant may not object to the forfeiture on Eighth Amendment grounds other than as set forth in paragraph (1), except that a claimant may, at any time, file a motion for summary judgment asserting that even if the property is subject to forfeiture, the forfeiture would be excessive. The court shall rule on such motion for summary judgment only after the Government has had an opportunity-- `(A) to conduct full discovery on the Eighth Amendment issue; and `(B) to place such evidence as may be relevant to the excessive fines determination before the court in affidavits or at an evidentiary hearing.
(l) PRE-DISCOVERY STANDARD- In a judicial proceeding on the forfeiture of property, the Government shall not be required to establish the forfeitability of the property before the completion of discovery pursuant to the Federal Rules of Civil Procedure, particularly Rule 56(f) as may be ordered by the court or if no discovery is ordered before trial.
(m) APPLICABILITY- The procedures set forth in this section apply to any civil forfeiture action brought under any provision of this title, the Controlled Substances Act, or the Immigration and Naturalization Act.'.
(2) by adding after and below subparagraph (C) the following: `The procedures set forth in chapter 46 of title 18, United States Code, shall govern judicial forfeiture actions under this section.
(a) A person who has filed a claim under section 983 is entitled to
release pursuant to subsection (b) of seized property pending trial if--
`(1) the claimant has a possessory interest in the property sufficient
to establish standing to contest forfeiture and has filed a nonfrivolous
claim on the merits of the forfeiture action;
(2) the claimant has sufficient ties to the community to provide assurance that the property will be available at the time of the trial;
(3) the continued possession by the United States Government pending the final disposition of forfeiture proceedings will cause substantial hardship to the claimant, such as preventing the claimant from working, leaving the claimant homeless, or preventing the functioning of a business;
(4) the claimant's hardship outweighs the risk that the property will be destroyed, damaged, lost, concealed, diminished in value or transferred if it is returned to the claimant during the pendency of the proceeding; and
(5) none of the conditions set forth in subsection (c) applies;
(b)(1) The claimant may make a request for the release of property under
this subsection at any time after the claim is filed. If, at the time the
request is made, the seizing agency has not yet referred the claim to a
United States Attorney pursuant to section 608 of the Tariff Act of 1930
(19 U.S.C. 1608), the request may be filed with the seizing agency; otherwise
the request must be filed with the United States Attorney to whom the claim
was referred. In either case, the request must set forth the basis on which
the requirements of subsection (a)(1) are met.
(2) If the seizing agency, or the United States Attorney, as the case may be, denies the request or fails to act on the request within 20 days, the claimant may file the request as a motion for the return of seized property in the district court for the district represented by the United States Attorney to whom the claim was referred, or if the claim has not yet been referred, in the district court that issued the seizure warrant for the property, or if no warrant was issued, in any district court that would have jurisdiction to consider a motion for the return of seized property under Rule 41(e), Federal Rules of Criminal Procedure. The motion must set forth the basis on which the requirements of subsection (a) have been met and the steps the claimant has taken to secure the release of the property from the appropriate official. (3) The district court must act on a motion made pursuant to this subsection within 30 days or as soon thereafter as practicable, and must grant the motion if the claimant establishes that the requirements of subsection (a) have been met. If the court grants the motion, the court must enter any order necessary to ensure that the value of the property is maintained while the forfeiture action is pending, including permitting the inspection, photographing and inventory of the property, and the court may take action in accordance with Rule E of the Supplemental Rules for Certain Admiralty and Maritime Cases. The Government is authorized to place a lien against the property or to file a lis pendens to ensure that it is not transferred to another person. The Government, in responding to a motion under this subsection, may, in appropriate cases, submit evidence ex parte in order to avoid disclosing any matter relating to an ongoing criminal investigation or pending trial.
(4) If property returned to the claimant under this section is lost, stolen, or diminished in value, any insurance proceeds shall be paid to the United States and such proceeds shall be subject to forfeiture in place of the property originally seized.
(c) This section shall not apply if the seized property--
(1) is contraband, currency or other monetary instrument, or electronic funds unless such currency or other monetary instrument or electronic funds constitutes the assets of a business which has been seized,
(2) is evidence of a violation of the law,
(3) by reason of design or other characteristic, is particularly suited for use in illegal activities; or
(4) is likely to be used to commit additional criminal acts if returned to the claimant.'
(d) Once a motion for the release of property under this section is filed, the person filing the motion may request that the motion be transferred to another district where venue for the forfeiture action would lie under section 1355(b) of title 28 pursuant to the change of venue provisions in section 1404 of title 28.'.
(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,'.
(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:
(1) by inserting `(a) IN GENERAL- ' before `Upon'; and (2) adding at the end the following:
(1) by amending subsection (e)(6) to read as follows:
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:
(a) DEFINITIONS- As used in this section:
(1) The term `foreign nation' shall mean a country that has become a party to the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (hereafter `the United Nations Convention') or a foreign jurisdiction with which the United States has a treaty or other formal international agreement in effect providing for mutual forfeiture assistance.
(2) The term `value-based confiscation judgment' shall mean a final order of a foreign nation compelling a defendant, as a consequence of the defendant's criminal conviction for an offense described in Article 3, Paragraph 1, of the United Nations Convention, to pay a sum of money representing the proceeds of such offense or property the value of which corresponds to such proceeds.
(b) REVIEW BY ATTORNEY GENERAL- A foreign nation seeking to have its value-based confiscation judgment registered and enforced by a United States district court under this section must first submit a request to the Attorney General or the Attorney General's designee. Such request shall include--
(1) a summary of the facts of the case and a description of the criminal proceeding which resulted in the value-based confiscation judgment;
(2) certified copies of the judgment of conviction and value-based confiscation judgment;
(3) an affidavit or sworn declaration establishing that the defendant received notice of the proceedings in sufficient time to enable the defendant to defend against the charges that the value-based confiscation judgment rendered is in force and is not subject to appeal;
(4) an affidavit or sworn declaration that all reasonable efforts have been undertaken to enforce the value-based confiscation judgment against the defendant's property, if any, in the foreign country; and
(5) such additional information and evidence as may be required by the Attorney General or the Attorney General's designee. The Attorney General or the Attorney General's designee, in consultation with the Secretary of State or the Secretary of State's designee, shall determine whether to certify the request, and such decision shall be final and not subject to either judicial review or review under chapter 7 of title 5, United States Code.
(c) JURISDICTION AND VENUE- Where the Attorney General or the Attorney General's designee certifies a request under paragraph (b), the foreign nation may file a civil proceeding in United States district court seeking to enforce the foreign value-based confiscation judgment as if the judgment had been entered by a court in the United States. In such a proceeding, the foreign nation shall be the plaintiff and the person against whom the value-based confiscation judgment was entered shall be the defendant. Venue shall lie in the district court for the District of Columbia or in any other district in which the defendant or the property that may be the basis for satisfaction of a judgment under this section may be found. The United States district court shall have personal jurisdiction over a defendant residing outside of the United States if the defendant is served with process in accordance with Rule 4 of the Federal Rules of Civil Procedure.
(d) ENTRY AND ENFORCEMENT OF JUDGMENT- The United States district court
shall enter such orders as may be necessary to enforce the value-based
confiscation judgment on behalf of the foreign nation where it finds that
all of the following requirements have been met:
(1) The value-based confiscation judgment was rendered under a system which provides impartial tribunals or procedures compatible with the requirements of due process of law.
(2) The foreign court had personal jurisdiction over the defendant.
(3) The foreign court had jurisdiction over the subject matter.
(4) The defendant in the proceedings in the foreign court received notice of the proceedings in sufficient time to enable the defendant to defend.
(5) The judgment was not obtained by fraud. Process to enforce a judgment under this section will be in accordance with Rule 69(a) of the Federal Rules of Civil Procedure.
(e) FINALITY OF FOREIGN FINDINGS- Upon a finding by the United States district court that the conditions set forth in subsection (d) have been satisfied, the court shall be bound by the findings of facts insofar as they are stated in the foreign judgment of conviction and value-based confiscation judgment.
(f) CURRENCY CONVERSION- Insofar as a value-based confiscation judgment requires the payment of a sum of money, the rate of exchange in effect at time when the suit to enforce is filed by the foreign nation shall be used in calculating the amount stated in the judgment submitted for registration.
(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:
(c) LIBEL IN ADMIRALTY- Section 2461(b) of title 28, United States Code,
(1) by striking `may be enforced by libel in admiralty' and inserting
(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:
SEC. 30. AVAILABILITY OF CRIMINAL FORFEITURE.
(a) IN GENERAL- Section 2461 of title 28, United States Code, is amended by adding the following subsection:
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:
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): `
(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. 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: `
CRIMINAL FORFEITURE OF PROCEEDS OF FEDERAL FOOD, DRUG, AND COSMETIC
ACT VIOLATIONS `SEC. 312.
(a) Any person convicted of a violation of, or a conspiracy to violate, a provision of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301-395) shall forfeit to the United States, irrespective of any provision of State law, any property constituting, or derived from, any proceeds the person obtained, directly or indirectly, as the result of such violation. The court, in imposing sentence on such person, shall order that the person forfeit to the United States all property described in this subsection.
(b) Property subject to forfeiture under this section, any seizure and disposition thereof, and any administrative or judicial proceeding in relation thereto, shall be governed by the provisions of section 413 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), except for subsection 413(d) which shall not apply to forfeitures under this section.'.
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. 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:
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: