[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1916 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1916

      To reform certain statutes regarding civil asset forfeiture.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 22, 1995

   Mr. Hyde introduced the following bill; which was referred to the 
 Committee on the Judiciary, and in addition to the Committee on Ways 
 and Means, 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 reform certain statutes regarding civil asset forfeiture.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Civil Asset Forfeiture Reform Act''.
SEC. 2. LIMITATION OF CUSTOMS AND TAX EXEMPTION UNDER THE TORT CLAIMS 
              PROCEDURES.

    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: ``, 
        except that the provisions of this chapter and section 1346(b) 
        of this title shall apply to any claim based on the negligent 
        destruction, injury, or loss of goods or merchandise (including 
        real property) while in the possession of any officer of 
        customs or excise or any other law enforcement officer''.

SEC. 3. LONGER PERIOD FOR FILING CLAIMS IN CERTAIN 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 
``30 days''.
SEC. 4. BURDEN OF PROOF IN FORFEITURE PROCEEDINGS.

    Section 615 of the Tariff Act of 1930 (19 U.S.C. 1615) is amended 
to read as follows:

``SEC. 615. BURDEN OF PROOF IN FORFEITURE PROCEEDINGS.

    ``In--
            ``(1) all suits or actions (other than those arising under 
        section 592) brought for the forfeiture of any vessel, vehicle, 
        aircraft, merchandise, or baggage seized under the provisions 
        of any law relating to the collection of duties on imports or 
        tonnage; and
            ``(2) in all suits or actions brought for the recovery of 
        the value of any vessel, vehicle, aircraft, merchandise, or 
        baggage, because of violation of any such law;
the burden of proof is on the United States Government to establish, by 
clear and convincing evidence, that the property was subject to 
forfeiture.''.

SEC. 5. CLAIM AFTER SEIZURE.

    Section 608 of the Tariff Act of 1930 (19 U.S.C. 1608) is amended 
to read as follows:

``SEC. 608. SEIZURE; CLAIMS; REPRESENTATION.

    ``(a) In General.--Any person claiming such vessel, vehicle, 
aircraft, merchandise, or baggage may at any time within 30 days from 
the date of the first publication of the notice of seizure file with 
the appropriate customs officer a claim stating his interest therein. 
Upon the filing of such claim, the customs officer shall transmit such 
claim, with a duplicate list and description of the articles seized, to 
the United States attorney for the district in which seizure was made, 
who shall proceed to a condemnation of the merchandise or other 
property in the manner prescribed by law.
    ``(b) Court-Appointed Representation.--If the person filing a claim 
under subsection (a), or a claim regarding seized property under any 
other provision of law that incorporates by reference the seizure, 
forfeiture, and condemnation procedures of the customs laws, is 
financially unable to obtain representation of counsel, the court may 
appoint appropriate counsel to represent that person with respect to 
the claim. The court shall set the compensation for that 
representation, which shall--
            ``(1) be equivalent to that provided for court-appointed 
        representation under section 3006A of title 18, United States 
        Code, and
            ``(2) be paid from the Justice Assets Forfeiture Fund 
        established under section 524 of title 28, United States 
        Code.''.
SEC. 6. RELEASE OF SEIZED PROPERTY FOR SUBSTANTIAL HARDSHIP.

    Section 614 of the Tariff Act of 1930 (19 U.S.C. 1614) is amended--
            (1) by inserting before the first word in the section the 
        following: ``(a) Release Upon Payment.--''; and
            (2) by adding at the end the following:
    ``(b) Release of Seized Property for Substantial Hardship.--
            ``(1) Request for release.--A claimant is entitled to 
        immediate release of seized property if continued possession by 
        the United States Government would cause the claimant 
        substantial hardship, such as preventing the functioning of a 
        business, preventing an individual from working, or leaving an 
        individual homeless. A claimant seeking release of property 
        under this subsection must request possession of the property 
        from the appropriate customs officer, and the request must set 
        forth the basis therefor. If within 10 days after the date of 
        the request the property has not been released, the claimant 
        may file a complaint in any district court that would have 
        jurisdiction of forfeiture proceedings relating to the property 
        setting forth--
                    ``(A) the nature of the claim to the seized 
                property;
                    ``(B) the reason why the continued possession by 
                the United States Government pending the final 
                disposition of forfeiture proceedings will cause 
                substantial hardship to the claimant; and
                    ``(C) the steps the claimant has taken to secure 
                release of the property from the appropriate customs 
                officer.
            ``(2) Return of property.--If a complaint is filed under 
        paragraph (1), the district court shall order that the property 
        be returned to the claimant, pending completion of proceedings 
        by the United States Government to obtain forfeiture of the 
        property, if the claimant shows that--
                    ``(A) the claimant is likely to demonstrate a 
                possessory interest in the seized property; and
                    ``(B) continued possession by the United States 
                Government of the seized property is likely to cause 
                substantial hardship to the claimant.
        The court may place such conditions on release of the property 
        as it finds are appropriate to preserve the availability of the 
        property or its equivalent for forfeiture.
            ``(3) Time for decision.--The district court shall render a 
        decision on a complaint filed under paragraph (2) no later than 
        30 days after the date of the filing, unless such 30-day 
        limitation is extended by consent of the parties or by the 
        court for good cause shown.''.

SEC. 7. JUSTICE ASSETS FORFEITURE FUND.

    Section 524(c) of title 28, United States Code, is amended--
            (1) by striking out ``law enforcement purposes--'' in the 
        matter preceding subparagraph (A) in paragraph (1) and 
        inserting ``purposes--'';
            (2) by redesignating the final 3 subparagraphs in paragraph 
        (1) as subparagraphs (I), (J), and (K), respectively;
            (3) by inserting after subparagraph (G) of paragraph (1) 
        the following new subparagraph:
            ``(H) payment of court-awarded compensation for 
        representation of claimants pursuant to section 608(b) of the 
        Tariff Act of 1930;''; and
            (4) by striking out ``(H)'' in subparagraph (A) of 
        paragraph (9) and inserting ``(I)''.

SEC. 8. CLARIFICATION REGARDING FORFEITURES UNDER THE CONTROLLED 
              SUBSTANCES ACT.

    (a) In General.--Section 511(a) of the Controlled Substances Act 
(21 U.S.C. 881(a)) is amended--
            (1) in paragraph (4)(C), by striking ``without the 
        knowledge, consent, or willful blindness of the owner.'' and 
        inserting ``either without the knowledge of that owner or 
        without the consent of that owner.''
            (2) in each of paragraphs (6) and (7), by striking 
        ``without the knowledge or consent of that owner.'' and 
        inserting ``either without the knowledge of that owner or 
        without the consent of that owner.''.
    (b) Special Rule.--
            (1) Generally.--Section 511 of the Controlled Substances 
        Act (21 U.S.C. 881) is amended by adding at the end the 
        following:
    ``(l) For the purposes of this section, property shall not be 
considered to have been used for a proscribed use without the knowledge 
or without the consent of the owner of an interest in that property, if 
that owner was wilfully blind to, or has failed to take reasonable 
steps to prevent, the proscribed use.''.
            (2) Conforming technical amendment.--The subsection (l) of 
        section 511 that relates to an agreement between the Attorney 
        General and the Postal Service is redesignated as subsection 
        (k).

SEC. 9. APPLICABILITY.

    The amendments made by this Act apply with respect to claims, 
suits, and actions filed on or after the date of the enactment of this 
Act.
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