[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1745 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1745

                    To reform asset forfeiture laws.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1997

 Mr. Schumer 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 asset forfeiture laws.

    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 Forfeiture Act of 1997.

SEC. 2. TABLE OF CONTENTS.

                  TITLE I--ADMINISTRATIVE FORFEITURES

Sec. 101. Time for filing claim; waiver of cost bond.
Sec. 102. Jurisdiction and venue.
Sec. 103. Judicial review of administrative forfeitures.
Sec. 104. Judicial forfeiture of real property.
Sec. 105. Preservation of arrested real property.
Sec. 106. Amendment to Federal Tort Claims Act exceptions.
Sec. 107. Prejudgment interest.
Sec. 108. Seizure warrant requirement.
                     TITLE II--JUDICIAL FORFEITURES

Sec. 201. Trial procedure for civil forfeiture.
Sec. 202. Uniform innocent owner defense.
Sec. 203. Stay of civil forfeiture case.
Sec. 204. Application of forfeiture procedures.
Sec. 205. Civil investigative demands.
Sec. 206. Access to records in bank secrecy jurisdictions.
Sec. 207. Access to other records.
Sec. 208. Disclosure of grand jury information to Federal prosecutors.
Sec. 209. Currency forfeitures.
               TITLE III--PROPERTY SUBJECT TO FORFEITURE

Sec. 301. Forfeiture of proceeds of Federal offenses.
Sec. 302. Uniform definition of proceeds.
Sec. 303. Forfeiture of firearms used in crimes of violence and 
                            felonies.
Sec. 304. Forfeiture of proceeds traceable to facilitating property in 
                            drug cases.
Sec. 305. Forfeiture for alien smuggling.
Sec. 306. Forfeiture of proceeds of certain foreign crimes.
Sec. 307. Forfeiture of property used to facilitate foreign drug 
                            crimes.
Sec. 308. Forfeiture for violations of sections 6050I and 1960.
Sec. 309. Criminal forfeiture for money laundering conspiracies.
Sec. 310. Archeological Resources Protection Act.
Sec. 311. Forfeiture of the instrumentalities of terrorism, 
                            telemarketing fraud and other offenses.
Sec. 312. Forfeiture of vehicles used for gun running.
Sec. 313. Forfeiture of criminal proceeds transported in interstate 
                            commerce.
Sec. 314. Forfeiture of proceeds of Federal Food, Drug, and Cosmetic 
                            Act violations.
Sec. 315. Forfeiture for food stamp fraud.
Sec. 316. Forfeiture for odometer tampering offenses.
             TITLE IV--MISCELLANEOUS FORFEITURE AMENDMENTS

Sec. 401. Use of forfeited funds to pay restitution to crime victims 
                            and regulatory agencies.
Sec. 402. Enforcement of foreign forfeiture judgment.
Sec. 403. Minor and technical amendments relating to 1992 Forfeiture 
                            Amendments.
Sec. 404. Civil forfeiture of coins and currency in confiscated 
                            gambling devices.
Sec. 405. Drug paraphernalia technical amendments.
Sec. 406. Authorization to share forfeited property with cooperating 
                            foreign governments.
Sec. 407. Forfeiture of counterfeit paraphernalia.
Sec. 408. Closing of loophole to defeat forfeiture through bankruptcy.
Sec. 409. Statute of limitations for civil forfeiture actions.
Sec. 410. Assets forfeiture fund and property disposition.
Sec. 411. Clarification of 21 U.S.C. 877.
Sec. 412. Certificate of reasonable cause.
Sec. 413. Conforming Treasury and Justice funds.
Sec. 414. Disposition of property forfeited under Customs laws.
Sec. 415. Technical amendments relating to obliterated motor vehicle 
                            identification numbers.
Sec. 416. Fugitive disentitlement.
Sec. 417. Admissibility of foreign business records.
Sec. 418. Destruction or removal of property to prevent seizure.
Sec. 419. Prospective application.
                      TITLE V--CRIMINAL FORFEITURE

Sec. 501. Uniform procedures for criminal forfeiture.
Sec. 502. Use of criminal forfeiture as an alternative to civil 
                            forfeiture.
Sec. 503. Federal Rules of Criminal Procedure.
Sec. 504. Pretrial restraint of substitute assets.
Sec. 505. Repatriation of property placed beyond the jurisdiction of 
                            the court.
Sec. 506. Hearings on Pretrial restraining orders; assets needed to pay 
                            attorneys fees.
Sec. 507. Criminal seizure warrants.
Sec. 508. Standard of proof for criminal forfeiture.
Sec. 509. Discovery procedure for locating forfeited assets.
Sec. 510. Collection of criminal forfeiture judgment.
Sec. 511. Appeals in criminal forfeiture cases.
Sec. 512. Nonabatement of forfeiture when defendant dies pending 
                            appeal.
Sec. 513. Standing of third parties to contest criminal forfeiture 
                            orders.
Sec. 514. Motion and discovery procedures for ancillary hearings.
Sec. 515. Intervention by the defendant in the ancillary proceeding.
Sec. 516. In personam judgments.
Sec. 517. Right of third parties to contest forfeiture of substitute 
                            assets.
Sec. 518. Forfeitable property transferred to third parties.
Sec. 519. Forfeiture of third party interests in criminal cases.
Sec. 520. Severance of jointly held property.
Sec. 521. Victim restitution.
Sec. 522. Delivery of property to the Marshals Service.

                  TITLE I--ADMINISTRATIVE FORFEITURES

SEC. 101. TIME FOR FILING CLAIM; WAIVER OF COST BOND.

    (a) In General.--Section 608 of the Tariff Act of 1930 (19 U.S.C. 
1608) is amended to read as follows:
``Sec. 608. Seizures; claims; judicial condemnation
    ``(a) Any person claiming seized property may file a claim with the 
appropriate customs officer at any time after the seizure: Provided, 
That such claim must be filed not later than 30 days after the final 
publication of notice of seizure. The claim shall be signed by the 
claimant under penalty of perjury and shall contain a brief statement 
of the nature and extent of the claimant's ownership interest in the 
property and how and when it was acquired.
    ``(b) Any claim filed pursuant to subsection (a) shall include the 
posting of a bond to the United States in the sum of $5,000 or 10 
percent of the value of the claimed property, whichever is lower, but 
not less than $250, with sureties to be approved by the customs officer 
with whom the claim is filed. No bond shall be required, however, if 
the property is seized by the Attorney General and consists of currency 
or other monetary instruments, or if the claim is filed in forma 
pauperis with all supporting information as required by the seizing 
agency. The Attorney General and the Secretary of the Treasury, with 
respect to matters within their respective jurisdiction, shall have the 
authority to waive or reduce the bond requirement in any additional 
category of cases where he or she determines that the posting of a bond 
is not required in the interests of justice.
    ``(c) Upon the filing of a claim pursuant to this section, the 
customs officer shall transmit the claim, with a duplicate list and 
description of the articles seized, to the United States attorney for a 
district in which a forfeiture action could be filed pursuant to 
section 1355(b) of title 28, United States Code, who shall proceed to a 
condemnation of the merchandise or other property in the manner 
prescribed in the Supplemental Rules for Certain Admiralty and Maritime 
Claims.''
    (b) Conforming Amendment.--Section 609 of the Tariff Act of 1930 
(19 U.S.C. 1609) is amended by striking ``twenty'' and inserting 
``30''.

SEC. 102. JURISDICTION AND VENUE.

    (a) Transmittal to the United States Attorney.--Section 610 of the 
Tariff Act of 1930 (19 U.S.C. 1610) is amended by striking ``the 
district in which the seizure was made'' and inserting ``a district in 
which a forfeiture action could be filed pursuant to section 1355(b) of 
title 28, United States Code''.
    (b) 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 28 U.S.C. 1355 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. 103. JUDICIAL REVIEW OF ADMINISTRATIVE FORFEITURES.

    Section 609 of the Tariff Act of 1930 (19 U.S.C. 1609) is amended 
by adding the following new subsection:
    ``(d)(1) Where no timely claim to the seized property is filed, and 
a declaration of forfeiture is entered pursuant to this section by the 
seizing agency, the declaration shall be final and not subject to 
judicial review under any other provision of law except as follows: If 
a claimant, upon the filing of an action to set aside a declaration of 
forfeiture under this section, establishes by a preponderance of the 
evidence (A) that the seizing agency failed to take reasonable steps to 
provide the claimant with notice of the forfeiture, and (B) that the 
claimant had no actual notice of the forfeiture proceeding within the 
period for filing a claim, the district court shall order that the 
declaration of forfeiture be set aside pending forfeiture proceedings 
in accordance with sections 602 et seq.
    ``(2) The following shall be considered sufficient, but not 
necessary, to satisfy the requirement of taking reasonable steps to 
provide notice of the forfeiture:
            ``(A) sending, by mail or commercial carrier, notice of the 
        forfeiture to the place where the claimant resides at the time 
        the notice is sent;
            ``(B) serving notice of the forfeiture on the claimant's 
        attorney of record in the forfeiture case or in a related 
        criminal case.
    ``(3) An action to set aside a declaration of forfeiture under this 
section must be filed within 2 years of the last date of publication of 
notice of the forfeiture of the property.''

SEC. 104. JUDICIAL FORFEITURE OF REAL PROPERTY.

    Section 610 of the Tariff Act of 1930 (19 U.S.C. 1610) is amended 
by adding at the end the following sentence. ``Notwithstanding any 
other provision of law, all forfeitures of real property and interests 
in real property shall proceed as judicial forfeitures as provided in 
this section.''

SEC. 105. PRESERVATION OF ARRESTED REAL PROPERTY.

    Rule E of the Supplemental Rules for Certain Admiralty and Maritime 
Claims is amended by adding the following new subsection:
            ``(10) Preservation of property.--Whenever property is 
        attached or arrested pursuant to the provisions of Rule E(4)(b) 
        that permit the marshal or other person having the warrant to 
execute the process without taking actual possession of the property, 
and the owner or occupant of the property is thereby permitted to 
remain in possession, the court, on the motion of any party or on its 
own motion, shall enter any order necessary to preserve the value of 
the property, its contents, and any income derived therefrom, and to 
prevent the destruction, removal or diminution in value of such 
property, contents and income. If the order is made necessary by 
exigent circumstances, or if the order would not interfere with the 
owner or occupant's use or enjoyment of the property, it may be entered 
ex parte. Otherwise the order may be entered only after notice and an 
opportunity to be heard.''

SEC. 106. AMENDMENT TO FEDERAL TORT CLAIMS ACT EXCEPTIONS.

    Section 2680(c) of title 28, United States Code, is amended to read 
as follows:
    ``(c) Any claim arising in respect of the assessment or collection 
of any tax or customs duty, or the detention of any goods, merchandise, 
or other property by any law enforcement officer performing any 
official law enforcement function, except that the provisions of this 
chapter and section 1346(b) of this title shall apply to any claim 
based on the loss of, or negligent destruction or injury to, goods, 
merchandise, or other tangible property while in the possession, 
custody or control of any law enforcement agency, if the property was 
seized for the purpose of forfeiture and is neither forfeited nor the 
subject of a pending forfeiture proceeding. For purposes of this 
subsection, the definition of ``law enforcement officer'' in subsection 
(h) shall apply.''

SEC. 107. PRE-JUDGMENT INTEREST.

    (a) In General.--Section 2465 of title 28, United States Code, is 
amended by--
            (1) designating the present matter as subsection (a); and
            (2) inserting the following new subsection:
    ``(b) Interest.--Upon entry of judgment for the claimant in any 
proceeding to condemn or forfeit property seized or arrested under any 
Act of Congress, the United States shall be liable for post-judgment 
interest as set forth in section 1961 of this title. The United States 
shall not be liable for pre-judgment interest, except that in cases 
involving currency or other negotiable instruments, the United States 
shall disgorge to the claimant any funds representing interest actually 
paid to the United States from the date of seizure or arrest of the 
property that resulted from the investment of the property in an 
interest-bearing account or instrument. The United States shall not be 
required to disgorge the value of any intangible benefits nor make any 
other payments to the claimant not specifically authorized by this 
subsection.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any judgment entered after the date of enactment of this Act.

SEC. 108. SEIZURE WARRANT REQUIREMENT.

    (a) In General.--Section 981(b) of title 18, United States Code, is 
amended to read as follows--
    ``(b)(1) Any property subject to forfeiture to the United States 
under this section may be seized by the Attorney General. In addition, 
in the case of property involved in a violation investigated by the 
Secretary of the Treasury or the United States Postal Service, the 
property may also be seized by the Secretary of the Treasury or the 
Postal Service, respectively.
    ``(2) Seizures pursuant to this section shall be made pursuant to a 
warrant obtained in the same manner as provided for a search warrant 
under the Federal Rules of Criminal Procedure, except that a seizure 
may be made without a warrant, if--
            ``(A) a complaint for forfeiture has been filed in the 
        district court and the court has issued an arrest warrant in 
        rem pursuant to the Supplemental Rules for Certain Admiralty 
        and Maritime Claims;
            ``(B) the seizure is made pursuant to a lawful arrest or 
        search, or if there is probable cause to believe that the 
        property is subject to forfeiture and another exception to the 
        Fourth Amendment warrant requirement would apply; or
            ``(C) the property was lawfully seized by a state or local 
        law enforcement agency and has been transferred to a Federal 
        agency in accordance with State law.''
    ``(3) Notwithstanding the provisions of rule 41(a), Federal Rules 
of Criminal Procedure, a seizure warrant may be issued pursuant to this 
subsection by a judicial officer in any district in which a forfeiture 
action against the property may be filed under section 1355(b) of title 
28, United States Code, and executed in any district in which the 
property is found. Any motion for the return of property seized under 
this section shall be filed in the district in which the seizure 
warrant was issued.
    ``(4) In the event of a seizure pursuant to paragraph (2) of this 
subsection, proceedings under subsection (d) of this section or an 
applicable criminal forfeiture statute shall be instituted as soon as 
practicable, taking into account the status of any criminal 
investigation to which the seizure may be related.
    ``(5) If any person is arrested or charged in a foreign country in 
connection with an offense that would give rise to the forfeiture of 
property in the United States under this section or under the 
Controlled Substances Act, the Attorney General may apply to any 
Federal judge or magistrate judge in the district where the property is 
located for an ex parte order restraining the property subject to 
forfeiture for not more than 30 days, except that the time may be 
extended for good cause shown at a hearing conducted in the manner 
provided in rule 43(e), Federal Rules of Civil Procedure. The 
application for the restraining order shall set forth the nature and 
circumstances of the foreign charges and the basis for belief that the 
person arrested or charged has property in the United States that would 
be subject to forfeiture, and shall contain a statement that the 
restraining order is needed to preserve the availability of property 
for such time as is necessary to receive evidence from the foreign 
country or elsewhere in support of probable cause for the seizure of 
the property under this subsection.
    ``(6) Any owner of property seized pursuant to this section may 
obtain release of the property pending resolution of the forfeiture 
action upon payment of a substitute res in an amount equal to the 
appraised value of the property, unless the seized property--
            ``(A) is contraband,
            ``(B) is evidence of a violation of the law,
            ``(C) by reason of design or other characteristic, is 
        particularly suited for use in illegal activities, or
            ``(D) is likely to be used to commit additional criminal 
        acts if returned to the owner.
The substitute res must be in the form of a traveler's check, money 
order, cashier's check or irrevocable letter of credit made payable to 
the seizing agency. If such substitute res is provided, the court or in 
the case of administrative forfeiture, the seizing agency, shall have 
jurisdiction to proceed with the forfeilture of the substitute res in 
lieu of the property. If, at the conclusion of the forfeiture 
proceeding, the property is declared forfeited, the owner shall 
surrender the property and recover the substitute res, unless the 
Attorney General or the seizing agency elects to retain the substitute 
res in lieu of the property.''
    (b) Drug Forfeitures.--Section 511(b) of the Controlled Substances 
Act (21 U.S.C. 881(b)) is amended to read as follows:
    ``(b) Any property subject to forfeiture to the United States under 
this section may be seized by the Attorney General in the manner set 
forth in section 981(b) of title 18, United States Code.
    ``(c) Conforming Amendment.--Section 518(d) of the Controlled 
Substances Act (21 U.S.C. 888(d)) is repealed.''

                     TITLE II--JUDICIAL FORFEITURES

SEC. 201. TRIAL PROCEDURE FOR CIVIL FORFEITURE.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting the following new section:
``Sec. 987. Judicial forfeiture proceedings
    ``(a) Complaint.--The Attorney General may file a civil forfeiture 
complaint in the manner set forth in the Supplemental Rules for Certain 
Admiralty and Maritime Claims. In cases where the applicable law 
authorizes the institution of civil and criminal forfeiture proceedings 
in connection with an offense, the Attorney General shall have the 
discretion to determine whether to file a civil complaint under this 
section, a criminal complaint, indictment or information including a 
forfeiture count in accordance with the applicable criminal forfeiture 
statute, or both civil and criminal actions.
    ``(b) Time for Filing Complaint.--(1) If property is seized and a 
claim is filed pursuant to section 608 of the Tariff Act of 1930 (19 
U.S.C. 1608), or if the seizure is referred to the Attorney General 
pursuant to section 610 (19 U.S.C. 1610), the Attorney General shall 
determine as soon as practicable whether a forfeiture action should be 
instituted.
    ``(2) If the Attorney General determines not to institute a 
forfeiture action, he or she shall so advise the seizing agency. A 
decision not to institute a forfeiture action shall not preclude the 
seizing agency from transferring or returning the seized property to a 
State or local law enforcement authority for appropriate forfeiture 
action in accordance with State law. Nor shall a decision not to 
institute a forfeiture action imply that the action of the seizing 
agency in seizing the property was in any way improper.
    ``(3) If the Attorney General determines that a forfeiture action 
should be instituted, he or she shall institute such action as soon as 
practicable, taking into account the status of any criminal 
investigation to which the forfeiture action may be related.
    ``(c) Claim and Answer.--A claim and answer to a civil forfeiture 
complaint shall be filed in accordance with rule C of the Supplemental 
Rules for Certain Admiralty and Maritime Claims and shall set forth the 
nature and extent of the claimant's ownership interest in the property, 
the time and circumstances of the claimant's acquisition of the 
interest in the property, and any additional facts supporting the 
claimant's standing to file a claim challenging the forfeiture action.
    ``(d) Standing.--If the Government, at the time of trial or at any 
time prior to trial, files a motion to dismiss the claim for lack of 
standing, the court shall conduct a hearing, in the manner provided in 
rule 43(e), Federal Rules of Civil Procedure, and shall determine 
whether the claimant has established, by a preponderance of the 
evidence, that he or she has the requisite ownership interest in the 
property, as defined in section 983(c), to challenge the forfeiture 
action. If the court determines that a claimant lacks standing, it 
shall dismiss the claim with prejudice and enter a final judgment as to 
that claimant.
    ``(e) Burden of Proof.--At trial in a civil forfeiture case, the 
Government shall have the initial burden of proving that the property 
is subject to forfeiture by a preponderance of the evidence. If the 
Government proves that the property is subject to forfeiture, the 
claimant shall have the burden of proving by a preponderance of the 
evidence that he or she has an interest in the property that is not 
forfeitable under section 983 of this title. If the Government's theory 
of forfeiture is that the property facilitated the commission of a 
criminal offense, the Government must establish that there was a 
substantial connection between the property and the offense.
    ``(f) Affirmative Defenses.--The claimant shall set forth all 
affirmative defenses, including constitutional defenses, in his or her 
answer, as provided in rule 8, Federal Rules of Civil Procedure, and 
shall comply with discovery requests regarding such defenses in advance 
of trial.
    ``(g) Motion To Suppress Seized Evidence.--At any time after a 
claim and answer are filed, a claimant with standing to contest the 
seizure of the property may move to suppress such property in 
accordance with the normal rules regarding the suppression of evidence. 
If the claimant prevails on such motion, the property shall not be 
admitted into evidence as to that claimant at the forfeiture trial. 
However, a finding that property 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, the court may accept and consider hearsay 
otherwise inadmissible under the Federal Rules of Evidence. The court 
shall not require the government to reveal the identity of any 
confidential informant at a pre-trial hearing if there are sufficient 
indicia of reliability regarding such testimony to allow the statement 
of such informant to be related by a law enforcement officer.
    ``(i) Adverse Inferences.--The assertion by the claimant of any 
fifth amendment privilege against compelled testimony in the course of 
the forfeiture proceeding, including pre-trial discovery, shall give 
rise to an adverse inference regarding the matter on which such 
privilege is asserted. The Government may rely on such adverse 
inference in support of its burden to establish the forfeitability of 
the property and in response to any affirmative defense. However, the 
government may not rely solely on such adverse inferences to satisfy 
its burden of proof.
    ``(j) 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.
    ``(k) 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 pursuant to 
        section 413(3) 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.
    ``(l) Release of Property To Pay Criminal Defense Costs.--
            ``(1) A person charged with a criminal offense may apply 
        for the release of property seized for forfeiture to pay the 
        necessary expenses of the person's criminal defense. Such 
        application shall be filed with the court where the forfeiture 
        proceeding is pending.
            ``(2) When an application is filed pursuant to paragraph 
        (1), the burden shall first be upon the applicant to establish 
        that he has no access to other assets adequate for the payment 
        of criminal defense counsel, and that the interest in property 
        to be released is not subject to any claim other than the 
        forfeiture. The Government shall have an opportunity to cross-
        examine the applicant and any witnesses he or she may present 
        on this issue.
            ``(3) If the court determines that the applicant has met 
        the requirements set forth in paragraph (2), the court shall 
        hold a probable cause hearing at which the applicant shall have 
        the burden of proving the absence of probable cause for the 
        forfeiture of the property. If the court finds that there is no 
        probable cause for the forfeiture, it shall order the release 
        of the assets for which probable cause is lacking. Otherwise, 
        it shall dismiss the application. The court shall not consider 
        any affirmative defenses to the forfeiture at the probable 
        cause hearing.
    ``(m) Excessive Fines.--At the conclusion of the trial and 
following the entry of a verdict of forfeiture, 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.
    ``(n) Applicability.--This section shall apply to any judicial 
forfeiture action brought pursuant to this title, the Controlled 
Substances Act, or the Immigration and Naturalization Act of 1952. 
Section 615 of the Tariff Act of 1930 (19 U.S.C. 1615) shall not apply 
to forfeitures under this section, nor shall this section apply to 
forfeitures under the customs laws.
    ``(o) Abatement.--A civil forfeiture action or judgment under this 
or any other provision of federal law shall not abate because of the 
death of any person.''
    (b) Rebuttable Presumptions.--Section 981 of title 18, United 
States Code, is amended by adding the following new subsection:
    ``(k) Rebuttable Presumptions.--(1) At the trial of an action 
brought pursuant to subsection (a)(1)(B), there is a presumption, 
governed by Rule 301 of the Federal Rules of Evidence, that the 
property is subject to forfeiture if the United States establishes, by 
a preponderance of the evidence, that such property was acquired during 
a period of time when the person who acquired the property was engaged 
in an offense against a foreign nation described in subsection 
(a)(1)(B) or within a reasonable time after such period, and there was 
no likely source for such property other than such offense.
    ``(2) At the trial of an action brought pursuant to subsection 
(a)(1)(A), there is a presumption, governed by rule 301 of the Federal 
Rules of Evidence, that the property was involved in a violation of 
section 1956 or 1957 of this title if the United States establishes, by 
a preponderance of the evidence, any three of the following factors:
            ``(A) the property constitutes or is traceable to more than 
        $10,000 that has been or was intended to be transported, 
        transmitted or transferred to or from a major drug-transit 
        country, a major illicit drug producing country, or a major 
        money laundering country, as those terms are determined 
        pursuant to sections 481(e) and 490(h) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2291(e) and 2291j(h));
            ``(B) the transaction giving rise to the forfeiture 
        occurred in part in a foreign country whose bank secrecy laws 
        have rendered the United States unable to obtain records 
        relating to the transaction by judicial process, treaty or 
        executive agreement;
            ``(C) a person more than minimally involved in the 
        transaction giving rise to the forfeiture action (i) has been 
        convicted in any State, Federal, or foreign jurisdiction of a 
        felony involving money laundering or the manufacture, 
        importation, sale or distribution of a controlled substance, or 
        (ii) is a fugitive from prosecution for such offense; or
            ``(D) the transaction giving rise to the forfeiture action 
        was conducted by, to or through a shell corporation not engaged 
        in any legitimate business activity in the United States.
    ``(3) For the purposes of this paragraph, `shell corporation' means 
any corporation that does not conduct any ongoing and significant 
commercial or manufacturing business or any other form of commercial 
operation.
    ``(4) The enumeration of presumptions in this subsection shall not 
preclude the development of other judicially created presumptions.''
    (c) Conforming Amendment.--Section 274(b)(5) of the Immigration and 
Naturalization Act (8 U.S.C. 1324(b)(5)) is amended--
            ``(1) by striking ``the burden of proof shall lie upon such 
        claimant, except that probable cause shall be first shown for 
        the institution of such suit or action. In determining whether 
        probable cause exists,''; and
            ``(2) by adding at the end the following sentence: ``The 
        procedures set forth in chapter 46 of title 18, United States 
        Code, shall govern judicial forfeiture actions under this 
        section.''
    (d) Chapter Analysis.--The chapter analysis for chapter 46 of title 
18, United States Code, is amended by inserting the following at the 
appropriate place:

``987. Judicial forfeiture proceedings.''

SEC. 202. UNIFORM INNOCENT OWNER DEFENSE.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 982 the following new section:
``Sec. 983. Innocent owners
    ``(a) An innocent owner's interest in property shall not be 
forfeited in any judicial action under any civil forfeiture provision 
of this title, the Controlled Substances Act, or the Immigration and 
Naturalization Act of 1952.
    ``(b)(1) With respect to a property interest in existence at the 
time the illegal act giving rise to forfeiture took place, a person is 
an innocent owner if he or she establishes, by a preponderance of the 
evidence--
            ``(A) that he or she did not know that the property was 
        being used or was likely to be used in the commission of such 
        illegal act, or
            ``(B) that upon learning that the property was being used 
        or was likely to be used in the commission of such illegal act, 
        he or she promptly did all that reasonably could be expected to 
        terminate or to prevent such use of the property.
    ``(2) With respect to a property interest acquired after the act 
giving rise to the forfeiture took place, a person is an innocent owner 
if he or she establishes, by a preponderance of the evidence, that he 
or she acquired the property as a bona fide purchaser for value who at 
the time of the purchase did not know and was reasonably without cause 
to believe that the property was subject to forfeiture. A purchaser is 
``reasonably without cause to believe that the property was subject to 
forfeiture'' if, in light of the circumstances, the purchaser did all 
that reasonably could be expected to ensure that he or she was not 
acquiring property that was subject to forfeiture.
    ``(3) Notwithstanding any provision of this section, no person may 
assert an ownership interest under this section in contraband or other 
property that it is illegal to possess. In addition, except as set 
forth in paragraph (2), no person may assert an ownership interest 
under this section in the illegal proceeds of a criminal act, 
irrespective of state property law.
    ``(c) For the purposes of this section--
            ``(1) an ``owner'' is a person with an ownership interest 
        in the specific property sought to be forfeited, including but 
        not limited to a lien, mortgage, recorded security device or 
        valid assignment of an ownership interest. An owner does not 
        include: (A) a person with only a general unsecured interest 
        in, or claim against, the property or estate of another person; 
        (B) a bailee; (C) a nominee who exercises no dominion or 
        control over the property; or (D) a beneficiary of a 
        constructive trust; and
            ``(2) a person shall be considered to have known that his 
        or her property was being used or was likely to be used in the 
        commission of an illegal act if the government establishes the 
        existence of facts and circumstances that should have created a 
        reasonable suspicion that the property was being or would be 
        used for an illegal purpose.
    ``(d) If the court determines, in accordance with this section, 
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 (1) severing 
the property; (2) 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 (3) 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. 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.
    ``(e) If the person asserting a defense under subsection (b)(1) or 
(b)(2) is a financial institution, as defined in section 20 of this 
title, there shall be a presumption, governed by rule 301 of the 
Federal Rules of Evidence, that the institution acted ``reasonably'' if 
the institution establishes that it followed rigorous and regular 
internal procedures relating to the approval of any loan or the 
acquisition of any property interest in accordance with the standards 
for due diligence in the lending industry. The presumption shall not 
apply if the government establishes that the financial institution had 
notice that the property was subject to forfeiture before it acquired 
any interest in the property.''
    (b) Striking Superseded Provisions.--(1) Section 981(a) of title 
18, United States Code, is amended by--
            (A) striking subsection (a)(2) and renumbering any 
        subsections added by this Act accordingly; and
            (B) striking ``Except as provided in paragraph (2), the'' 
        and inserting ``The''.
    (2) Sections 511(a) (4), (6) and (7) of the Controlled Substances 
Act (21 U.S.C. 881(a) (4), (6) and (7)) are amended by striking ``, 
except that'' and all that follows, each time it appears.
    (3) Sections 2254(a) (2) and (3) of title 18, United States Code, 
are amended by striking ``, except that'' and all that follows, each 
time it appears.
    (c) Conforming Amendment.--The chapter analysis for chapter 46 of 
title 18, United States Code, is amended by inserting the following at 
the appropriate place:

``983. Innocent owners.''

SEC. 203. STAY OF CIVIL FORFEITURE CASE.

    (a) In General.--Section 981(g) of title 18, United States Code, is 
amended to read as follows:
    ``(g)(1) Upon the motion of the United States, the court shall stay 
the civil forfeiture proceeding if it determines that civil discovery 
or trial could adversely affect the government's ability to conduct a 
related criminal investigation or the prosecution of a related criminal 
case.
    ``(2) Upon the motion of a claimant, the court shall stay the civil 
forfeiture proceeding with respect to that claimant if it determines 
that the claimant is the subject of a related criminal investigation or 
case, that the claimant has standing to assert a claim in the civil 
forfeiture proceeding, and that continuation of the forfeiture 
proceeding may infringe upon the claimant's right against self-
incrimination in the related investigation or case.
    ``(3) With respect to the impact of civil discovery described in 
paragraphs (1) and (2), the court may determine that a stay is 
unnecessary if a protective order limiting discovery would protect the 
interest of one party without unfairly limiting the ability of the 
opposing party to pursue the civil case. In no case, however, shall the 
court impose a protective order as an alternative to a stay if the 
effect of such protective order would be to allow one party to pursue 
discovery while the other party was substantially unable to do so.
    ``(4) For the purposes of this subsection, ``a related criminal 
case'' and ``a related criminal investigation'' mean an actual 
prosecution or investigation in progress at the time the request for 
the stay is made. In determining whether a criminal case or 
investigation is ``related'' to a civil forfeiture proceeding, the 
court shall consider the degree of similarity between the parties, 
witnesses, facts and circumstances involved in the two proceedings 
without requiring an identity with respect to any one or more factors.
    ``(5) Any presentation to the court under this subsection that 
involves an on-going criminal investigation shall be made by the 
Government ex parte and under seal.
    ``(6) Whenever a civil forfeiture proceeding is stayed pursuant to 
this subsection, the court shall enter any order necessary to preserve 
the value of the property or to protect the rights of lienholders or 
other persons with an interest in the property while the stay is in 
effect.
    ``(7) A determination by the court that the claimant has standing 
to request a stay pursuant to paragraph (2) shall apply only to the 
provisions of this subsection and shall not preclude the Government 
from objecting to the claimant's standing to the time of trial in 
accordance with Section 987(d) of this title.
    ``(8) An order imposing a stay pursuant to this subsection shall 
expire in 180 days unless the court determines, at the end of such time 
period, that there are compelling reasons why the stay should be 
continued. An order renewing a stay shall be reviewed by the court 
every 90 days unless the parties agree that such review is 
unnecessary.''
    (b) Drug Forfeitures.--Section 511(i) of the Controlled Substances 
Act (21 U.S.C. 881(i)) is amended to read as follows:
    ``(i) The provisions of section 981(g) of title 18, United States 
Code, regarding the stay of the civil forfeiture proceeding shall apply 
to forfeitures under this section.''
    (c) Guidelines.--Within 180 days after the effective date of this 
section, the Attorney General and the Secretary of the Treasury shall 
jointly promulgate guidelines governing the preservation of the value 
of property subject to forfeiture in a case that has been stayed 
pursuant to section 511(i) of the Controlled Substances Act (21 U.S.C. 
881(i)) or section 981(g) of title 18, United States Code. The 
guidelines shall take into account the interests of both the Government 
and the claimant in avoiding the depreciation, destruction or 
dissipation of the property pending conclusion of the forfeiture 
proceeding.

SEC. 204. APPLICATION OF FORFEITURE PROCEDURES.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by adding the following section:
``Sec. 988. Application of forfeiture procedures
    ``(a) Civil Forfeitures.--Whenever a statute in this title provides 
for the civil forfeiture of property without specifying the procedures 
governing a judicial forfeiture action, the provisions of this chapter 
relating to civil forfeitures shall apply.
    ``(b) Criminal Forfeitures.--Whenever a statute in this title 
provides for the criminal forfeiture of property without specifying the 
procedures governing such forfeitures, the provisions of this chapter 
relating to criminal forfeitures shall apply.''
    (b) Conforming Amendment.--The chapter analysis for Chapter 46, of 
title 18, United States Code, is amended by adding the following:

``988. Application of Forfeiture Procedures.''

SEC. 205. CIVIL INVESTIGATIVE DEMANDS.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by adding at the end of the following new section:
``Sec. 985. Civil investigative demands
    ``(a) For the purpose of conducting an investigation in 
contemplation of any civil forfeiture proceedings, the Attorney General 
may--
            ``(1) administer oaths and affirmations;
            ``(2) take evidence; and
            ``(3) by subpoena, summon witnesses and require the 
        production of any books, papers, correspondence, memoranda, or 
        other records which the Attorney General deems relevant or 
        material to the inquiry. Such subpoena may require the 
        attendance of witnesses and the production of any such records 
        from any place in the United States at any place in the United 
        States designated by the Attorney General.
    ``(b) Except as provided in this section, the procedures and 
limitations that apply to civil investigative demands in subsections 
(g), (h), and (j) of section 1968 of title 18, United States Code, 
shall apply with respect to civil investigative demands issued under 
this subsection. Process required by such subsections of section 1968 
to be served upon `the custodian' shall be served on the Attorney 
General. Failure to comply with an order of the court to enforce such 
demand shall be punishable as civil or criminal contempt.
    ``(c) In the case of a civil investigative demand for which the 
return date is less than 5 days after the date of service, no person 
shall be found in contempt for failure to comply by the return date if 
such person files a petition under subsection (b) not later than 5 days 
after the date of service.
    ``(d) A civil investigative demand may be issued pursuant to this 
section in furtherance of an investigation directed toward the 
forfeiture of an asset at any time up to the filing of a civil 
forfeiture complaint with respect to that asset, except that no demand 
relating to a given asset may be served upon any person who files a 
claim to that asset pursuant to section 1608 of title 19, United States 
Code, once such claim is filed. Once a given asset is made the subject 
of a civil forfeiture complaint, all further discovery regarding the 
forfeiture of that asset shall proceed in accordance with the Federal 
Rules of Civil Procedure. Investigation relating to the forfeiture of 
assets not subject to a claim or to a forfeiture complaint may proceed 
pursuant to this section at any time.
    ``(e) In this section, `Attorney General' means any attorney for 
the Government employed by the Department of Justice as defined by rule 
54(c) of the Federal Rules of Criminal Procedure, and shall not include 
an attorney, agent or other employee of any agency of the Department.''
    (b) Conforming Amendment.--The chapter analysis for chapter 46 of 
title 18, United States Code is amended by adding the following at the 
appropriate place:

``985. Civil investigative demands.''
    (c) Obstruction of Civil Investigative Demand.--Section 1505 of 
title 18, United States Code, is amended by inserting ``section 985 of 
this title or'' before ``the Anti-trust Civil Process Act''.
    (d) Right to Financial Privacy Act Amendment.--Section 
1120(b)(1)(A) of the Right to Financial Privacy Act (12 U.S.C. 
3420(b)(1)(A)) is amended by inserting ``or civil investigative 
demand'' after ``a grand jury subpoena''.
    (e) Fair Credit Reporting Act Amendment.--Paragraph (1) of section 
604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by 
striking ``or'' and inserting ``, or a civil investigative demand'' 
after ``grand jury''.

SEC. 206. ACCESS TO RECORDS IN BANK SECRECY JURISDICTIONS

    Section 986 of title 18, United States Code, is amended by adding 
the following new subsection:

                   ``access to records located abroad

    ``(d) In any civil forfeiture case, or in any ancillary proceeding 
in any criminal forfeiture case governed by section 413(n) of the 
Controlled Substances Act (21 U.S.C. 853(n)), where--
            ``(1) financial records located in a foreign country may be 
        material (A) to any claim or to the ability of the government 
        to respond to such claim, or (B) in a civil forfeiture case, to 
        the Government's ability to establish the forfeitability of the 
        property; and
            ``(2) it is within the capacity of the claimant to waive 
        his or her rights under such secrecy laws, or to obtain the 
        records him or herself, so that the records can be made 
        available,
the refusal of the claimant to provide the records in response to a 
discovery request or take the action necessary otherwise to make the 
records available shall result in the dismissal of the claim with 
prejudice. This subsection shall not affect the claimant's rights to 
refuse production on the basis of any privilege guaranteed by the 
Constitution or Federal laws of the United States.''

SEC. 207. ACCESS TO OTHER RECORDS.

    Section 6103(i)(1) of the Internal Revenue Code (26 U.S.C. 
6103(i)(1)) is amended--
            (1) in subparagraph (A)(i) by inserting ``or related civil 
        forfeiture'' after ``enforcement of a specifically designated 
        Federal criminal statute''; and
            (2) in subparagraph (B)(iii) by inserting ``or civil 
        forfeiture investigation or proceeding'' after ``Federal 
        criminal investigation or proceeding''.

SEC. 208. DISCLOSURE OF GRAND JURY INFORMATION TO FEDERAL PROSECUTORS.

    Section 3322(a) of title 18, United States Code, is amended--
            (1) by striking ``civil forfeiture under section 981 of 
        title 18, United States Code, of property described in section 
        981(a)(1)(C) of such title'' and inserting ``any civil 
        forfeiture provision of Federal law''; and
            (2) by striking ``concerning a banking law violation''.

SEC. 209. CURRENCY FORFEITURES.

    Section 511 of the Controlled Substances Act (21 U.S.C. 881) is 
amended by inserting the following new subsection:

                         ``currency forfeitures

    ``(m) At the trial of an action brought pursuant to subsection 
(a)(6), if the Government establishes by a preponderance of the 
evidence that the property subject to forfeiture--
            ``(1) is currency or other monetary instruments that was 
        found in close proximity to a measurable quantity of any 
        controlled substance; or
            ``(2) is currency or other monetary instruments in excess 
        of $10,000 that was being transported at an airport or other 
        port of entry, on an interstate highway, or on the coastal 
        waters of the United States, and the person in possession of 
        the property disclaims knowledge or ownership of the property, 
        or offers an explanation for his or her possession of the 
        property that is false,
there shall be a presumption, governed by rule 301 of the Federal Rules 
of Evidence, that the property is the proceeds of a violation of the 
Controlled Substances Act. As provided in rule 301 of the Federal Rules 
of Evidence, the burden of proof shall at all times be on the United 
States to establish that the property is subject to forfeiture.''

               TITLE III--PROPERTY SUBJECT TO FORFEITURE

SEC. 301. FORFEITURE OF PROCEEDS OF FEDERAL OFFENSES.

    (a) Civil Forfeiture.--Section 981(a)(1) of title 18, United States 
Code, is amended--
            (1) in subparagraph (C) by striking ``of section 215'' and 
        all that follows up to the period and inserting ``of any 
        offense in this title or a conspiracy to commit such offense''; 
        and
            (2) by striking subparagraphs (D), (E) and (F).
    (b) Criminal Forfeiture.--Section 982(a) of title 18, United States 
Code, is amended--
            (1) in paragraph (2), by striking ``violate--'' and 
        subparagraphs (A) and (B) and inserting ``violate any offense 
        in this title,''; and
            (2) by striking paragraphs (3), (4), (5) and the first 
        paragraph (6), enacted by Public Law 104-191.

SEC. 302. UNIFORM DEFINITION OF ``PROCEEDS''.

    (a) Civil Forfeiture.--Section 981(a) of title 18, United States 
Code, is amended--
            (1) in paragraph (1), by striking ``gross receipts'' and 
        ``gross proceeds'' wherever those terms appear and inserting 
        ``proceeds''; and
            (2) by adding the following after paragraph (2):
            ``(3) In this section, `proceeds' means any and all 
        property of any kind obtained, directly or indirectly, at any 
        time as the result of the commission of the offense giving rise 
        to forfeiture, and any property traceable thereto. `Proceeds' 
        is not limited to the net gain or profit realized from the 
        commission of the offense.''
    (b) Criminal Forfeiture.--Section 982 of title 18, United States 
Code, is amended--
            (1) in subsection (a), by striking ``gross receipts'' and 
        ``gross proceeds'' wherever those terms appear and inserting 
        ``proceeds''; and
            (2) by adding the following paragraph to the end of 
        subsection (b):
            ``(3) In this section, `proceeds' means any and all 
        property of any kind obtained, directly or indirectly, at any 
        time as the result of the commission of the offense giving rise 
        to forfeiture, and any property traceable thereto. Where the 
        offense involves a scheme, a conspiracy, or a pattern of 
        criminal activity, `proceeds' includes any and all property 
        obtained from the entire course of conduct constituting such 
        scheme, conspiracy, or pattern. `Proceeds' is not limited to 
        the net gain or profit realized from the commission of the 
        offense.''
    (c) Controlled Substances.--(1) Section 511 of the Controlled 
Substances Act (21 U.S.C. 881) is amended by adding the following new 
subsection:
    ``(k) In this section, `proceeds' means any and all property of any 
kind obtained, directly or indirectly, at any time as the result of the 
commission of the offense giving rise to forfeiture, and any property 
traceable thereto. `Proceeds' is not limited to the net gain or profit 
realized from the commission of the offense.''
    (2) Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding the following new subsection:

                        ``definition of proceeds

    ``(q) In this section, `proceeds' means any and all property of any 
kind obtained at any time, directly or indirectly, as the result of the 
commission of the offense giving rise to forfeiture, and any property 
traceable thereto. Where the offense involves a scheme, a conspiracy, 
or a pattern of criminal activity, `proceeds' includes any and all 
property obtained from the entire course of conduct constituting such 
scheme, conspiracy, or pattern. `Proceeds' is not limited to the net 
gain or profit realized from the commission of the offense.''
    (d) Rico.--Subsection 1963(a) of title 18, United States Code, is 
amended by adding the following at the end: ``In this section, 
`proceeds' means any and all property obtained from the entire pattern 
of racketeering activity or unlawful debt collection and is not limited 
to net profits.''

SEC. 303. FORFEITURE OF FIREARMS USED IN CRIMES OF VIOLENCE AND 
              FELONIES.

    (a) Civil Forfeiture.--Section 981(a)(1) of title 18, United States 
Code, is amended by inserting after subparagraph (C) the following:
                    ``(D) Any firearm (as defined in section 921(a)(3) 
                of this title) used or intended to be used to commit or 
                to facilitate the commission of any crime of violence 
                (as defined in section 16 of this title) or any felony 
                under Federal law.''
    (b) Criminal Forfeiture.--Section 982(a) of title 18, United States 
Code, is amended by inserting after subparagraph (2) the following:
            ``(3) The court, in imposing a sentence on a person 
        convicted of any crime of violence (as defined in section 16 of 
        this title) or any felony under Federal law, shall order that 
        the person forfeit to the United States any firearm (as defined 
        in section 921(a)(3) of this title) used or intended to be used 
        to commit or to facilitate the commission of the offense.''
    (c) Disposal of Forfeited Property.--Section 981(c) of title 18, 
United States Code, is amended by adding at the end the following 
sentence: ``Any firearm forfeited pursuant to subsection (a)(1)(D) or 
section 982(a)(3) of this title shall be disposed of by the seizing 
agency in accordance with law.''
    (d) Authority To Forfeit Property Under Section 924(d).--Section 
924(d) of title 18, United States Code, is amended by adding the 
following new paragraph:
            ``(4) Whenever any firearm is subject to forfeiture under 
        this section because it was involved in or used in a violation 
        of subsection (c), the Secretary of the Treasury shall have the 
        authority to seize and forfeit, in accordance with the 
        procedures of the applicable forfeiture statute, any property 
        otherwise forfeitable under the laws of the United States that 
        was involved in or derived from the crime of violence or drug 
        trafficking crime described in subsection (c) in which the 
        forfeited firearm was used or carried.''
    (e) 120-Day Rule for Administrative Forfeiture.--Section 924(d)(1) 
of title 18, United States Code, is amended by adding the following 
after the last sentence: ``If the Government institutes an 
administrative forfeiture action within the 120-day period, and a claim 
is then filed that requires that a judicial forfeiture action be filed 
in Federal court, the Government must file the judicial action within 
120 days of the filing of the claim. The time during which any related 
criminal indictment or information is pending shall not be counted in 
calculating either of the 120-day periods referred to in this 
subsection.''

SEC. 304. 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 subchapter'' the second time it appears.

SEC. 305. FORFEITURE FOR ALIEN SMUGGLING.

    (a) Criminal Forfeiture Authority.--Section 982(a) of title 18, 
United States Code, 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)(i), by striking ``subsection (a)'' 
        and inserting ``the offense''; and
            (4) in subparagraph (A)(ii) (I) and (II), by striking 
        ``subsection (a)'' through ``of this title'' and inserting 
        ``the offense''.
    (b) Civil Forfeiture.--Section 274(b) of the Immigration and 
Nationality Act of 1952 (8 U.S.C. 1324(b)) is amended--
            (1) by amending paragraphs (1) and (2) to read as follows:
    ``(b) Seizure and Forfeiture.--(1) The following property shall be 
subject to seizure and forfeiture:
            ``(A) any conveyance, including any vessel, vehicle, or 
        aircraft, which has been or is being used in the commission of 
        a violation of subsection (a); and
            ``(B) any property, real or personal, (i) that constitutes, 
        or is derived from or is traceable to the proceeds obtained 
        directly or indirectly from the commission of a violation of 
        subsection (a), or (ii) that is used to facilitate, or is 
        intended to be used to facilitate, the commission of a 
        violation of subparagraph (a)(1)(A).
    ``(2) Any property subject to forfeiture to the United States under 
this section may be seized by the Attorney General in the manner set 
forth in section 981(b) of title 18, United States Code.''; and
            (2) in paragraphs (4) and (5) by striking ``a conveyance'' 
        and ``conveyance'' each place the phrase or word appears and 
        inserting ``property''.

SEC. 306. 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 ``(ii) any other conduct described in section 
        1956(c)(7)(B),'' after ``(as such term is defined for purposes 
        of the Controlled Substances Act)''.

SEC. 307. 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 an offense described 
in subparagraph (i)'' at the end before the period.

SEC. 308. FORFEITURE FOR VIOLATIONS OF SECTION 6050I AND 1960.

    (a) Sections 981(a)(1)(A) and 982(a)(1) of title 18, United States 
Code, are amended by inserting ``, or of section 6050I of the Internal 
Revenue Code of 1986 (26 U.S.C. 6050I)'' after ``of title 31''.
    (b) Section 981(a)(1)(A) of title 18, United States Code, is 
amended by striking ``or 1957'' and inserting ``, 1957 or 1960''.

SEC. 309. 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. 310. ARCHAEOLOGICAL RESOURCES PROTECTION ACT.

    Section 8(b) of the Archaeological Resources Protection Act of 1979 
(16 U.S.C. 470gg(b)) is amended by--
            (1) inserting ``all proceeds derived directly or indirectly 
        from such violation or any property traceable thereto,'' before 
        ``and all vehicles'' in the unnumbered paragraph;
            (2) inserting ``proceeds,'' before ``vehicles'' in 
        paragraph (3); and
            (3) inserting the following at the end of the subsection: 
        ``If a forfeiture count is included within an indictment in 
        accordance with the Federal Rules of Criminal Procedure, and 
        the defendant is convicted of the offense giving rise to the 
        forfeiture, the forfeiture may be ordered as part of the 
        criminal sentence in accordance with the procedures for 
        criminal forfeitures in chapter 46 of title 18, United States 
        Code. Otherwise, the forfeiture shall be civil in nature in 
        accordance with the procedures for civil forfeiture in said 
        chapter 46 of title 18.''

SEC. 311. 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:
            ``(E)(i) Any computer, photostatic reproduction machine, 
        electronic communications device or other material, article, 
        apparatus, device or thing made, possessed, fitted, used or 
        intended to be used on a continuing basis to commit a violation 
        of sections 513, 514, 1028 through 1032, and 1341, 1343 and 
        1344 of this title, or a conspiracy to commit such offense, and 
        any property traceable to such property.
            ``(ii) Any conveyance used on two or more occasions to 
        transport the instrumentalities used in the commission of a 
        violation of sections 1028 and 1029 of this title, or a 
        conspiracy to commit such offense, and any property traceable 
        to such conveyance.
            ``(F) Any conveyance, chemicals, laboratory equipment, or 
        other material, article, apparatus, device or thing made, 
        possessed, fitted, used or intended to be used to commit--
                    ``(i) an offense punishable under Chapter 113B of 
                this title (relating to terrorism);
                    ``(ii) a violation of the National Firearms Act (26 
                U.S.C. chapter 53);
                    ``(iii) a violation of any of the following 
                sections of the federal explosives laws: subsections 
                (a) (1) and (3), (b) through (d), and (h)(1) of section 
                842, and subsections (d) through (m) of section 844; or
                    ``(iv) any other offense enumerated in section 
                2339A(a) of this title;
        or a conspiracy to commit any such offense, and any property 
        traceable to such property.''
    (b) Criminal Forfeiture.--Section 982(a) of title 18, United States 
Code, is amended by inserting the following new paragraph:
            ``(4)(A) The court, in imposing a sentence on a person 
        convicted of a violation of sections 513, 514, 1028 through 
        1032, and 1341, 1343 and 1344 of this title, or a conspiracy to 
        commit such offense, shall order the person to forfeit to the 
        United States any computer, photostatic reproduction machine, 
        electronic communications device or other material, article, 
        apparatus, device or thing made, possessed, fitted, used or 
        intended to be used to commit such offense, and any property 
        traceable to such property.
            ``(B) The court, in imposing a sentence on a person 
        convicted of a violation of section 1028 or 1029 of this title, 
        or a conspiracy to commit such offense, shall order the person 
        to forfeit to the United States any conveyance used on two or 
        more occasions to transport the instrumentalities used to 
        commit such offense, and any property traceable to such 
        conveyance.
            ``(5) The court, in imposing a sentence on a person 
        convicted of--
                    ``(A) an offense punishable under chapter 113B of 
                this title (relating to terrorism);
                    ``(B) a violation of the National Firearms Act (26 
                U.S.C. chapter 53);
                    ``(C) a violation of any of the following sections 
                of the Federal explosives laws: subsections (a) (1) and 
                (3), (b) through (d), and (h)(1) of section 842, and 
                subsections (d) through (m) of section 844; or
                    ``(D) any other offense enumerated in section 
                2339A(a) of this title;
        or a conspiracy to commit any such offense, shall order the 
        person to forfeit to the United States any conveyance, 
        chemicals, laboratory equipment, or other material, article, 
        apparatus, device or thing made, possessed, fitted, used or 
        intended to be used to commit such offense, and any property 
        traceable to such property.''

SEC. 312. FORFEITURE OF VEHICLES USED FOR GUN RUNNING.

    (a) Civil Forfeiture.--Section 981(a)(1) of title 18, United States 
Code, is amended by adding the following subparagraph:
            ``(G)(i) Any conveyance used or intended to be used to 
        commit a gun running offense, or conspiracy to commit such 
        offense, and any property traceable to such property.
            (ii) For the purposes of this section, a gun running 
        offense is a violation of any of the following sections of this 
        title involving five or more firearms: section 922(i) 
        (transporting stolen firearms); section 924(g) (travel with a 
        firearm in furtherance of racketeering); section 924(k) 
        (stealing a firearm); and section 924(m) (interstate travel to 
        promote firearms trafficking).
    (b) Criminal Forfeiture.--Section 982(a) of title 18, United States 
Code, is amended by inserting the following new paragraph:
            ``(6) The court, in imposing a sentence on a person 
        convicted of a gun running offense, as defined in section 
        981(a)(1)(G), or a conspiracy to commit such offense, shall 
        order the person to forfeit to the United States any conveyance 
        used or intended to be used to commit such offense, and any 
        property traceable to such conveyance.''

SEC. 313. FORFEITURE OF CRIMINAL PROCEEDS TRANSPORTED IN INTERSTATE 
              COMMERCE.

    Section 1952 of title 18, United States Code, is amended by adding 
the following subsection:
    ``(d)(1) Any proceeds distributed or intended to be distributed in 
violation of subsection (a)(1) or a conspiracy to commit such 
violation, or any property traceable to such property, is subject to 
forfeiture to the United States in accordance with the procedures set 
forth in section 981 of this title.
    ``(2) The court, in imposing sentence on a person convicted of an 
offense in violation of subsection (a)(1) or a conspiracy to commit 
such offense, shall order that the person forfeit to the United States 
any proceeds distributed or intended to be distributed in the 
commission of such offense, or any property traceable to such property, 
in accordance with the procedures set forth in section 982 of this 
title.''

SEC. 314. FORFEITURES OF PROCEEDS OF FEDERAL FOOD, DRUG, AND COSMETIC 
              ACT VIOLATIONS.

    Chapter 9 of title 21, United States Code, is amended by adding the 
following two new sections:
``Sec. 311. Civil forfeiture of proceeds of Federal Food, Drug, and 
              Cosmetic Act Violations
    ``(a) Any property, real or personal, that constitutes, or is 
derived from or is traceable to the proceeds obtained directly or 
indirectly from a criminal violation of, or a conspiracy to commit a 
criminal violation of, a provision of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 301-395) shall be subject to judicial 
forfeiture to the United States.
    ``(b) The provisions of chapter 46 of title 18, United States Code, 
relating to civil forfeitures shall extend to a seizure or forfeiture 
under this section, insofar as applicable and not inconsistent with the 
provisions hereof, except that such duties as are imposed upon the 
Secretary of the Treasury under chapter 46 shall be performed with 
respect to seizures and forfeitures under this section by such 
officers, agents, or other persons as may be authorized or designated 
for that purpose by the Secretary of Health and Human Services.
``Sec. 312. Criminal forfeiture of proceeds of Federal Food, Drug, and 
              Cosmetic Act violations
    ``(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. 315. FORFEITURE FOR FOOD STAMP FRAUD.

    Section 15 of the Food Stamp Act of 1977 (7 U.S.C. 2024) is amended 
by adding at the end the following new subsection:
    ``(i) Civil Forfeiture.--
            ``(1) Any property, real or personal--
                    ``(A) used in a transaction or attempted 
                transaction, to commit or to facilitate the commission 
                of a violation (other than a misdemeanor) of subsection 
                (b) or (c), or
                    ``(B) constituting, derived from, or traceable to 
                proceeds of a violation of subsection (b) or (c), shall 
                be subject to forfeiture to the United States.
            ``(2) The provisions of chapter 46 of title 18, relating to 
        civil forfeitures shall extend to a seizure or forfeiture under 
        this subsection, insofar as applicable and not inconsistent 
        with the provisions of this subsection, except that such duties 
        as are imposed upon the Secretary of the Treasury under chapter 
        46 shall be performed with respect to seizures and forfeitures 
        under this section by such officers, agents, and other persons 
        as may be designated for that purpose by the Secretary of 
        Agriculture.''

SEC. 316. 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 
        sub-paragraph (E);
            (3) by inserting the following after sub-paragraph (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: ``If the 
        conviction was for a violation described in subparagraph (F), 
        the court shall also order the forfeiture of any vehicles or 
        other property involved in the commission of the offense.''
    (b) Civil Forfeiture.--Section 981(a)(1)(F) of title 18, United 
States Code, is amended--
            (1) by striking ``or'' at the end of clause (iv);
            (2) by striking the period at the end of clause (v) and 
        inserting ``; or'';
            (3) by inserting the following after clause (v), as 
        amended:
                    ``(vi) section 32703 of title 49, United States 
                Code (motor vehicle odometer tampering).''; and
            (4) by adding the following after the last period: ``In the 
        case of a violation described in clause (vi), any vehicles or 
        other property involved in the commission of the offense shall 
        also be subject to forfeiture.''

             TITLE IV--MISCELLANEOUS FORFEITURE AMENDMENTS

SEC. 401. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME VICTIMS 
              AND REGULATORY AGENCIES.

    Section 981 of title 18, United States Code, is amended--
            (1) by amending subsection (e)(6) to read as follows:
            ``(6) as restoration to any victim of the offense giving 
        rise to the forfeiture, including, in the case of a money 
        laundering offense, any offense constituting the underlying 
        specified unlawful activity; or'';
            (2) in subsections (e) (3), (4) and (5), by striking ``in 
        the case of property referred to in subsection (a)(1)(C)'' and 
        inserting ``in the case of property forfeited in connection 
with an offense resulting in a pecuniary loss to a financial 
institution or regulatory agency''; and
            (3) in subsection (e)(7), by striking ``in the case of 
        property referred to in subsection (a)(1)(D)'' and inserting 
        ``in the case of property forfeited in connection with an 
        offense relating to the sale of assets acquired or held by any 
        Federal financial institution or regulatory agency, or person 
        appointed by such agency, as receiver, conservator or 
        liquidating agent for a financial institution''.

SEC. 402. ENFORCEMENT OF FOREIGN FORFEITURE JUDGMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by inserting the following new section:
``Sec. 2466. Enforcement of foreign forfeiture judgment
    ``(a) Definitions.--As used in this section--
            ``(1) `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) `Value based confiscation judgment' shall mean a 
        final order of a foreign nation compelling a defendant, as a 
        consequence of his or her 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 his or her 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 him or her 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 his or her designee.
The Attorney General or his or her designee, in consultation with the 
Secretary of State or his or her designee, shall determine whether to 
certify the request, and such decision shall be final and not subject 
to either judicial review or review under the Administrative Procedures 
Act, 5 U.S.C. 551 et seq.
    ``(c) Jurisdiction and Venue.--Where the Attorney General or his or 
her designee certifies a request under subsection (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 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.--(1) Except as provided in 
paragraph (2), the 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:
                    ``(A) 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;
                    ``(B) the foreign court had personal jurisdiction 
                over the defendant;
                    ``(C) the foreign court had jurisdiction over the 
                subject matter;
                    ``(D) the defendant in the proceedings in the 
                foreign court received notice of the proceedings in 
                sufficient time to enable him or her to defend; and
                    ``(E) 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 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.''
    (b) Conforming Amendment.--The chapter analysis for chapter 163, 
title 28, United States Code, is amended by inserting the following at 
the end:

``2466. Enforcement of foreign forfeiture judgment''

SEC. 403. 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) Fungible Property.--Section 984 of title 18, United States 
Code, is amended--
            (1) by striking subsection (a) and redesignating the 
        remaining subsections as (a), (b), and (c), respectively;
            (2) by amending subsection (b) (as redesignated) to read as 
        follows:
    ``(b) The provisions of this section may be invoked only if the 
action for forfeiture was commenced by a seizure or an arrest in rem 
within two years of the offense that is the basis for the 
forfeiture.'';
            (3) by amending subsection (c)(1) (as redesignated) to read 
        as follows:
    ``(c)(1) Subsection (a) shall not apply to an action against funds 
held by a financial institution in an interbank account unless the 
account holder knowingly engaged in the offense that is the basis for 
the forfeiture.'';
            (4) by adding the following new paragraph to subsection (c) 
        (as redesignated):
            ``(3) As used in this subsection, a `financial institution' 
        includes a foreign bank, as defined in paragraph 7 of section 
        1(b) of the International Banking Act of 1978.''; and
            (5) by adding the following new subsection:
    ``(d) Nothing in this section is intended to limit the ability of 
the Government to forfeit property under any statute where the property 
involved in the offense giving rise to the forfeiture or property 
traceable thereto is available for forfeiture.''
    (c) 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''; and
            (2) striking the last sentence.
    (d) Civil Money Laundering Enforcement.--Section 1956(b) of title 
18, United States Code, is amended--
            (1) by redesignating the present matter as paragraph (1), 
        and the present paragraphs (1) and (2) as subparagraphs (A) and 
        (B), respectively; and
            (2) by inserting the following new paragraphs:
            ``(2) For purposes of adjudicating an action filed or 
        enforcing a penalty ordered under this section, the district 
        courts shall have jurisdiction over any foreign person, 
        including any financial institution registered in a foreign 
        country, that commits an offense under subsection (a) involving 
        a financial transaction that occurs in whole or in part in the 
        United States; Provided, That service of process upon such 
        foreign person is made under the Federal Rules of Civil 
        Procedure or the laws of the country where the foreign person 
        is found.
            ``(3) The court may issue a pretrial restraining order or 
        take any other action necessary to ensure that any bank account 
        or other property held by the defendant in the United States is 
        available to satisfy a judgment under this section.''
    (e) Definition of Financial Institution.--Section 5312(a)(2) of 
title 31, United States Code, is amended by redesignating subparagraphs 
(Y) and (Z) as (Z) and (AA), respectively, and by inserting the 
following new subparagraph after subparagraph (X):
                    ``(Y) a bail bondsman;''.
    (f) Section 981(d) of title 18, United States Code, is amended by 
striking ``sale of this section'' and inserting ``sale of such 
property.''

SEC. 404. 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. 405. 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 ``857 of this title'' and inserting 
``422 of this subchapter (21 U.S.C. 863)''.
    (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. 406. 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 is amended by striking ``; or'' and all of subparagraph 
(E) and inserting a period.

SEC. 407. FORFEITURE OF COUNTERFEIT PARAPHERNALIA.

    Section 492 of title 18, United States Code, is amended--
            (1) by striking the third and fourth undesignated 
        paragraphs;
            (2) by designating the remaining paragraphs as subsections 
        (a) and (b);
            (3) by adding the following new subsections:
    ``(c) For the purposes of this section, the provisions of the 
customs laws relating to the seizure, summary and judicial forfeiture, 
condemnation of property for violation of the customs laws, the 
disposition of such property or the proceeds from the sale of such 
property, the remission or mitigation of such forfeitures, and the 
compromise of claims (19 U.S.C. 1602 et seq.), insofar as they are 
applicable and not inconsistent with the provisions of this section, 
shall apply to seizures and forfeitures incurred, or alleged to have 
been incurred, under this section, except that the duties as are 
imposed upon the customs officer or any other person with respect to 
the seizure and forfeiture of property under the customs laws shall be 
performed with respect to seizures and forfeitures of property under 
this section by such officers, agents, or other persons as may be 
authorized or designated for that purpose by the Secretary of the 
Treasury.
    ``(d) All seizures and civil judicial forfeitures pursuant to 
subsection (a) shall be governed by the procedures set forth in chapter 
46 of this title pertaining to civil forfeitures. The Attorney General 
shall have sole responsibility for disposing of petitions for remission 
or mitigation with respect to property involved in a judicial 
forfeiture proceeding.
    ``(e) A court in sentencing a person for a violation of this 
chapter or of sections 331-33, 335, 336, 642, or 1720 of this title, 
shall order the person to forfeit the property described in subsection 
(a) in accordance with the procedures set forth in section 982 of this 
title.''; and
            (4) in subsection (b), as so designated by this section, by 
        striking ``fined not more than $100'' and inserting ``fined 
        under this title''.

SEC. 408. CLOSING OF LOOPHOLE TO DEFEAT CRIMINAL FORFEITURE THROUGH 
              BANKRUPTCY.

    Section 413(a) of the Controlled Substances Act (21 U.S.C. 853(a)) 
is amended by inserting ``, or of any bankruptcy proceeding instituted 
after or in contemplation of a prosecution of such violation'' after 
``shall forfeit to the United States, irrespective of any provision of 
State law''.

SEC. 409. STATUTE OF LIMITATIONS FOR CIVIL FORFEITURE ACTIONS.

    (a) In General.--Section 621 of the Tariff Act of 1930 (19 U.S.C. 
1621) is amended by inserting ``, or in the case of forfeiture, within 
five years after the time when the involvement of the property in the 
alleged offense was discovered'' after ``within five years after the 
time when the alleged offense was discovered''.
    (b) FIRREA Cases.--Section 981(a) of title 18, United States Code, 
is amended by adding at the end a new paragraph, as follows:
            ``(3) An action seeking the forfeiture of property 
        described in subparagraph (a)(1)(C) arising out of an offense 
        affecting a financial institution or the conservator or 
        receiver of a financial institution may be commenced not later 
        than ten years after the discovery of the involvement of the 
        property in the act giving rise to the forfeiture. This 
        paragraph shall apply to any forfeiture action not barred by 
        the expiration of the limitation period provided by section 621 
        of the Tariff Act of 1930 (19 U.S.C. 1621) at the time this 
        paragraph became effective.''

SEC. 410. ASSETS FORFEITURE FUND AND PROPERTY DISPOSITION.

    (a) Technical Amendments.--Section 524 of title 28, United States 
Code, is amended--
            (1) in paragraph (c)(1) by striking ``and'' at the end of 
        subparagraph (H), by striking the second subparagraph (I) that 
        begins with ``after all reimbursements'' and ends with 
        ``correctional institutions'', and by inserting ``and'' 
        following the semicolon at the end of the remaining 
        subparagraph (I);
            (2) in paragraph (c)(3), by deleting ``(F)'' and inserting 
        ``(G)'';
            (3) in subparagraph (c)(4)(C) by deleting 
        ``(g)(4)(A)(ii)'';
            (4) in subparagraph (c)(8)(A), by striking ``(A)(iv), (B), 
        (F), (G), and (H)'' and inserting ``(A)(ii), (B), (F), and 
        (G)''; and
            (5) by repealing paragraph (c)(6), and renumbering 
        paragraphs (c)(7) through (c)(11) as paragraphs (c)(6) through 
        (c)(10).
    (b) Disposal of Forfeited Property.--Section 524(c)(8) of title 28, 
United States Code, as redesignated by this section, is amended to read 
as follows:
            ``(8) Following the completion of procedures for the 
        forfeiture of property pursuant to any law enforced or 
        administered by the Department, the Attorney General, under 
        such terms and conditions as the Attorney General shall 
        specify, is authorized to:
                    ``(A) destroy the property if it is unsuitable for 
                public use or sale, or uneconomical to market;
                    ``(B) transfer the property to any lienholder 
                (including taxing authorities) or mortgagee in lieu of 
                the compromise and payment of a valid lien or mortgage 
                against the property;
                    ``(C) disburse all or part of an amount forfeited 
                as restoration to any victim of the offense giving rise 
                to the forfeiture, or any other offense that was part 
                of the same scheme, conspiracy, or pattern of criminal 
                activity, including, in the case of a money laundering 
                offense, any offense constituting the underlying 
                specified unlawful activity, in accordance with the 
                relevant forfeiture statute;
                    ``(D) dispose of the property by public sale or any 
                other commercially feasible means; or request the 
                General Services Administration to take custody of the 
                property and to dispose of it in accordance with law;
                     ``(E) place the property into official use or 
                transfer the property to any other federal agency for 
                official use;
                    ``(F) transfer the property to foreign governments 
                pursuant to section 981(i) of title 18, United States 
                Code;
                    ``(G) transfer the property, or the net proceeds of 
                sale of the property, to State or local law enforcement 
                agencies that participated directly in any of the acts 
                that led to the seizure or forfeiture of the property, 
                in accordance with section 981(e) of title 18, United 
                States Code; section 511(e)(3) of the Controlled 
                Substances Act (21 U.S.C. 881(e)(3)); or any other 
                provision of law pertaining to the equitable sharing of 
                forfeited property;
                    ``(H) transfer real or personal property that is 
                uneconomical to store, maintain, or market to a State 
                or local government agency for use to support drug 
                abuse treatment, drug and crime prevention and 
                education, housing, job skills, and other community-
                based public health and safety programs, upon agreement 
                by the recipient government to accept liability for the 
                compromise or settlement of any mortgages, liens, 
                petitions or other claims against the property;
                    ``(I) make any other disposition authorized by law; 
                and
                    ``(J) warrant clear title to any subsequent 
                purchaser or transferee of such property.
        The Attorney General shall make due provision for the property 
        rights of innocent persons in disposing of forfeited property. 
        Election of the method of disposition is solely within the 
        discretion of the Attorney General. Final orders of judgment 
        for damages arising from any warranty of title by the Attorney 
        General shall be satisfied pursuant to section 1304 of title 
        31, United States Code, in the same manner and to the same 
        extent as other judgments for damages. A decision by the 
        Attorney General pursuant to this subsection shall not be 
        subject to review.''
    (c) Deposit From Settlement in Lieu of Forfeiture.--Section 
524(c)(4)(A) of title 28, United States Code, is amended by inserting 
``, or from any settlement in lieu of forfeiture,'' before ``under any 
law''.
    (d) Deposits Into the Fund.--Section 524(c)(4)(B) of title 28, 
United States Code, is amended by inserting ``, and all amounts 
representing reimbursement or recovery of costs paid by the Fund'' 
immediately prior to the semicolon.
    (e) Payment of Foreign Judgments.--Section 524(c)(1) of title 28, 
United States Code, is amended by inserting the following new 
subparagraph (J) immediately following subparagraph (I):
                    ``(J) at the discretion of the Attorney General, 
                payments to return forfeited property repatriated to 
                the United States by a foreign government or others 
                acting at the direction of a foreign government, and 
                interest earned on such property, subject to the 
                following conditions:
                            ``(i) a final foreign judgment entered 
                        against a foreign government or those acting at 
                        its direction, which foreign judgment was based 
                        on the measures, such as seizure and 
                        repatriation of property, that resulted in 
                        deposit of the funds into the Fund;
                            ``(ii) such foreign judgment was entered 
                        and presented to the Attorney General within 
                        five years of the date that the property was 
                        repatriated to the United States;
                            ``(iii) the foreign government or those 
                        acting at its direction vigorously defended its 
                        actions under its own laws; and
                            ``(iv) the amount of the disbursement does 
                        not exceed the amount of funds deposited to the 
                        Fund, plus interest earned on such funds 
                        pursuant to section 524(c)(5) of title 28 
                        United States Code, less any awards and 
                        equitable shares paid by the Fund to the 
                        foreign government or those acting at its 
                        direction in connection with a particular 
                        case.''.
    (f) Excess Surplus Funds.--Section 524(c)(7) of title 28, United 
States Code, as redesignated by this section, is amended by deleting 
all versions of subparagraph ``(E)'' and inserting the following in 
place thereof:
    ``(E) Subject to the notification procedures contained in section 
605 of Public Law 103-317, and after satisfying the transfer 
requirement in subparagraph (B) of this paragraph, any excess 
unobligated balance remaining in the Fund on September 30, 1996, and on 
September 30 of each fiscal year thereafter, shall be available to the 
Attorney General, without fiscal year limitation, for any Federal law 
enforcement, litigative/prosecutive, and correctional activities, or 
any other authorized purpose of the Department of Justice. Any Amounts 
provided pursuant to this subparagraph may be used under authorities 
available to the organization receiving the funds.''
    (g) Remission and Mitigation.--Section 524(c)(1)(E) of title 28, 
United States Code, is amended to read as follows:
                    ``(E) disbursements authorized in connection with 
                remission or mitigation procedures or other actions 
                pursuant to the Attorney General's statutory authority 
                relating to property forfeited under any law enforced 
                or administered by the Department of Justice;''

SEC. 411. CLARIFICATION OF SECTION 877 OF TITLE 21, UNITED STATES CODE.

    Section 507 of the Controlled Substances Act (21 U.S.C. 877) is 
amended to add at the end the following sentence: ``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. 412. 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. 413. CONFORMING TREASURY AND JUSTICE FUNDS.

    (a) Section 9703(c0 of title 31, United States Code, is amended by 
striking ``subsection (g)(2)'' and inserting ``subsection (g)(1)'' and 
by deleting ``in excess of $10,000,000 for a fiscal year.''
    (b) Section 9703(g) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking ``subsection (a)(1)'' and 
        inserting ``subsections (a)(1) and (c)''; and
            (2) in paragraph (2), by striking ``subsections (a)(2) and 
        (c)'' and inserting ``subsection (a)(2)''.
    (c) Deposit From Settlement in Lieu of Forfeiture.--Section 9703(d) 
of title 31, United States Code, is amended by inserting ``or from any 
settlement in lieu of forfeiture,'' before ``under any law'' each time 
it appears.
    (d) Subsection 524(c)(6) of title 28, United States Code, is 
amended by adding the following sentence to the end thereof: ``Amounts 
transferred by the Secretary of Treasury pursuant to section 9703 of 
title 31, or by the Postmaster General pursuant to section 2003 of 
title 39, shall be available to the Attorney General for Federal law 
enforcement and criminal prosecution purposes of the Department of 
Justice.''

SEC. 414. DISPOSITION OF PROPERTY FORFEITED UNDER CUSTOMS LAWS.

    Section 616A of the Tariff Act of 1930 (19 U.S.C. 1616a) is 
amended--
            (1) by adding the following new paragraph to subsection 
        (c):
            ``(4) Whenever property is civilly or criminally forfeited 
        by or for the United States Customs Service, including 
        administrative forfeiture under the provisions of this title, 
        the Secretary of the Treasury may dispose of the property in 
        accordance with law, including--
                    ``(A) by selling the property through any 
                commercially feasible means, provided that the property 
                is not required to be destroyed by law and is not 
                harmful to the public; or
                    ``(B) by requesting the General Services 
                Administration to take custody of the property and to 
                dispose of it in accordance with law.''; and
            (2) by amending the title of the section to read as 
        follows: ``retention, transfer, or disposition of forfeited 
        property''.

SEC. 415. 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. 416. FUGITIVE DISENTITLEMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by inserting the following new section:
Sec. 2467. Fugitive disentitlement
    ``Any person who, in order to avoid criminal prosecution, purposely 
leaves the jurisdiction of the United States, declines to enter or 
reenter the United States to submit to its jurisdiction, or otherwise 
evades the jurisdiction of the court where a criminal case is pending 
against the person, may not use the resources of the courts of the 
United States in furtherance of a claim in any related civil forfeiture 
action or a claim in third-party proceedings in any related criminal 
forfeiture action.''
    (b) Conforming Amendment.--The chapter analysis for chapter 163 of 
title 28, United States Code, is amended by inserting the following at 
the end:

``2467. Fugitive disentitlement.''

SEC. 417. ADMISSIBILITY OF FOREIGN BUSINESS RECORDS.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following new section:
Sec. 2468. Foreign records
    ``(a) In a civil proceeding in a court of the United States, 
including civil forfeiture proceedings and proceedings in the United 
States Claims Court and the United States Tax Court, a foreign record 
of regularly conducted activity, or copy of such record, obtained 
pursuant to an official request, shall not be excluded as evidence by 
the hearsay rule of a foreign certification, also obtained pursuant to 
the same official request or subsequent official request that 
adequately identifies such foreign record, attests that--
            ``(1) such record was made, at or near the time of the 
        occurrence of the matters set forth, by (or from information 
        transmitted by) a person with knowledge of those matters;
            ``(2) such record was kept in the course of a regularly 
        conducted business activity;
            ``(3) the business activity made such a record as a regular 
        practice; and
            ``(4) if such record is not the original, such record is a 
        duplicate of the original;
unless the source of information or the method or circumstances of 
preparation indicate lack of trustworthiness.
    ``(b) A foreign certification under this section shall authenticate 
such record or duplicate.
    ``(c) As soon as practicable after a responsive pleading has been 
filed, a party intending to offer in evidence under this section a 
foreign record of regularly conducted activity shall provide written 
notice of that intention to each other party. A motion opposing 
admission in evidence of such record shall be made by the opposing 
party and determined by the court before trial. Failure by a party to 
file such motion before trial shall constitute a waiver of objection to 
such record or duplicate, but the court for cause shown may grant 
relief from the waiver.
    ``(d) As used in this section, the term--
            ``(1) `foreign record of regularly conducted activity' 
        means a memorandum, report, record, or data compilation, in any 
        form, of acts, events, conditions, opinions, or diagnoses, 
        maintained in a foreign country;
            ``(2) `foreign certification' means a written declaration 
        made and signed in a foreign country by the custodian of a 
        record of regularly conducted activity or another qualified 
        person, that if falsely made, would subject the maker to 
        criminal penalty under the law of that country;
            ``(3) `business' includes business, institution, 
        association, profession, occupation, and calling of every kind 
        whether or not conducted for profit; and
            ``(4) `official request' means a letter rogatory, a request 
        under an agreement, treaty or convention, or any other request 
        for information or evidence made by a court of the United 
        States or an authority of the United States having law 
        enforcement responsibility, to a court or other authority of a 
        foreign country.''
    (b) Conforming Amendment.--The chapter analysis for chapter 163 of 
title 28, United States Code, is amended by inserting the following at 
the end:

``2468. Foreign records.''

SEC. 418. 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. 419. PROSPECTIVE APPLICATION

    (a) In General.--Unless otherwise specified in this section or in 
another provision of this Act, all amendments in this Act shall apply 
to forfeiture proceedings commenced on or after the effective date of 
this Act.
    (b) Administrative Forfeitures.--All amendments in this Act 
relating to seizures and administrative forfeitures shall apply to 
seizures and forfeitures occurring on or after the sixtieth day after 
the effective date of this Act.
    (c) Civil Judicial Forfeitures.--All amendments in this Act 
relating to the 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 sixtieth day after 
the effective date of this Act.
    (d) Criminal Forfeiture.--All amendments in this Act relating to 
the procedures applicable in criminal forfeiture cases shall apply to 
cases in which the indictment or information is filed on or after the 
effective date of this Act.
    (e) Substantive Law.--All amendments in this Act expanding 
substantive forfeiture law to make property subject to civil or 
criminal forfeiture which was not previously subject to forfeiture 
shall apply to offenses occurring on or after the effective date of 
this Act.

                      TITLE V--CRIMINAL FORFEITURE

SEC. 501. UNIFORM PROCEDURES FOR CRIMINAL FORFEITURE

    (a) In General.--Section 982(b)(1) of title 18, United States Code, 
is amended to read as follows:
    ``(b)(1) The forfeiture of property under this section, including 
any seizure and disposition of the property and any related 
administrative or judicial proceeding, 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.''
    (b) Rico.--Section 1963 of title 18, United States Code, is amended 
by repealing subsections (b) through (m) and inserting the following 
after subsection (a):
    ``(b) The forfeiture of property under this section, including any 
seizure and disposition of the property and any related administrative 
or judicial proceeding, 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.''
    (c) Obscenity.--Section 1466 of title 18, United States Code, is 
amended by repealing subsections (b) through (n) and inserting the 
following after subsection (a):
    (b) The forfeiture of property under this section, including any 
seizure and disposition of the property and any related administrative 
or judicial proceeding, 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.''
    (d) Child Pornography.--Section 2253 of title 18, United States 
Code, is amended by repealing subsections (b) through (o) and inserting 
the following after subsection (a):
    ``(b) The forfeiture of property under this section, including any 
seizure and disposition of the property and any related administrative 
or judicial proceeding, 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.''
    (e) Espionage.--Section 794(d)(3) of title 18, United States Code, 
is amended to read as follows:
    ``(3) The forfeiture of property under this section, including any 
seizure and disposition of the property and any related administrative 
or judicial proceeding, 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.''
    (f) Firearms.--Section 3665 of title 18, United States Code, is 
amended by--
            (1) redesignating the first unnumbered paragraph as 
        subsection (a)(1) and the second unnumbered paragraph as 
        subsection (a)(2); and
            (2) by adding the following subsection at the end:
    ``(b) The forfeiture of property under this section, including any 
seizure and disposition of the property and any related administrative 
or judicial proceeding, 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.''
    (g) Food Stamp Fraud.--15(h) of the Food Stamp Act of 1977 (7 
U.S.C. 2024(h)) is amended--
            (1) by striking paragraphs (1), (2) and (3) and inserting 
        the following:
            ``(1) The court, in imposing sentence on any person 
        convicted of a violation of subsection (b) or (c), shall order, 
        in addition to any other sentence imposed under this section 
        and irrespective of any provision of State law, that the person 
        forfeit to the United States--
                    ``(A) any of such person's property used in a 
                transaction or attempted transaction, to commit or to 
                facilitate the commission of such violation (other than 
                a misdemeanor); and
                    (B) any property, real or personal, constituting, 
                derived from, or traceable to any proceeds such person 
                obtained directly or indirectly as a result of such 
                violation.
            ``(2) All property subject to forfeiture under this 
        subsection, any seizure and disposition thereof, and any 
        proceeding relating thereto, shall be governed by section 413 
        of the Comprehensive Drug Abuse Prevention and Control Act of 
        1970 (21 U.S.C. 853, with the exception of subsection (d) which 
        shall not apply to forfeitures under this section.''; and
            (2) by redesignating paragraph (4) as paragraph (3).
    (h) Immigration Offenses.--The second paragraph (6) of subsection 
982(a) of title 18, United States Code, is amended by striking ``(A)'' 
and all of subparagraph (B).

SEC. 502. USE OF CRIMINAL FORFEITURE AS AN ALTERNATIVE TO CIVIL 
              FORFEITURE.

    Section 2461 of title 28, United States Code, is amended by adding 
the following subsection:
    ``(c) Whenever a forfeiture of property is authorized in connection 
with a violation of an Act of Congress, and any person is charged in an 
indictment or information with such violation but no specific statutory 
provision is made for criminal forfeiture upon conviction, the 
government may include the forfeiture in the indictment or information 
in accordance with the Federal Rules of Criminal Procedure, and upon 
conviction, the court shall order the forfeiture of the property in 
accordance with the procedures set forth in section 413 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
853).''

SEC. 503. FEDERAL RULES OF CRIMINAL PROCEDURE.

    (a) In General.--The Federal Rules of Criminal Procedure are 
amended by inserting the following new rule after rule 32.1:
Sec. 32.2 Criminal forfeiture
    ``(a) Indictment and Information.--No judgment of forfeiture may be 
entered in a criminal proceeding unless the indictment or the 
information alleges that the defendant or defendants have an interest 
in property that is subject to forfeiture in accordance with the 
applicable statute.
    ``(b) Hearing and Entry of Preliminary Order of Forfeiture After 
Verdict.--Within 10 days of entering a verdict of guilty or accepting a 
plea of guilty or nolo contendere on any count in the indictment or 
information for which criminal forfeiture is alleged, the court must 
determine what property is subject to forfeiture because of its 
relationship to the offense. The determination may be based on evidence 
already in the record, including any written plea agreement, or on 
evidence adduced at a post-trial hearing. If the court finds that 
property is subject to forfeiture, it must enter a preliminary order 
directing the forfeiture of whatever interest each defendant may have 
in the property, without determining what that interest may be. A 
determination of the extent of each defendant's interest in 
the property will be deferred until any third party claiming an 
interest in the property has petitioned the court pursuant to statute 
for consideration of the claim. If no such petition is timely filed, 
the property is presumed to be the property of the defendant or 
defendants and is forfeited in its entirety.
    ``(c) Preliminary Order of Forfeiture.--The entry of a preliminary 
order of forfeiture will authorize the Attorney General to seize the 
property subject to forfeiture, to conduct such discovery as the court 
may deem proper to facilitate the identification, location or 
disposition of the property, and to commence proceedings consistent 
with any statutory requirements pertaining to third-party rights. At 
the time of sentencing (or at any time before sentencing if the 
defendant consents), the order of forfeiture becomes final as to the 
defendant, and must be made a part of the sentence and included in the 
judgment. The court may include in the order of forfeiture whatever 
conditions are reasonably necessary to preserve the property value 
pending any appeal.
    ``(d) Ancillary Proceedings.--(1) If, as prescribed by statute, a 
third party files a petition asserting an interest in the forfeited 
property, the court must conduct an ancillary proceeding. In that 
proceeding, the court may entertain a motion to dismiss the petition 
for lack of standing, for failure to state a claim upon which relief 
could be granted, or for any other ground. For purposes of the motion, 
all facts set forth in the petition must be assumed to be true.
    ``(2) If a motion referred to in paragraph (1) is denied, or if no 
such motion is made, the court may permit the parties to conduct 
discovery in accordance with the Federal Rules of Civil Procedures to 
the extent that the court determines such discovery to be necessary or 
desirable to resolve factual issues before conducting an evidentiary 
hearing. At the conclusion of this discovery, either party may seek to 
have the court dispose of the petition on a motion for summary judgment 
in the manner described in rule 56 of the Federal Rules of Civil 
Procedure.
    ``(3) At the conclusion of the ancillary proceeding, the court must 
enter a final order of forfeiture amending the preliminary order as 
necessary to take into account the disposition of any third-party 
petition.
    ``(4) If multiple petitions are filed in the same case, an order 
dismissing or granting fewer than all of the petitions is not 
appealable until all petitions are resolved, unless the court 
determines that there is no just reason for delay and directs the entry 
of final judgment with respect to one or more but fewer than all of the 
petitions.
    ``(e) Stay of Forfeiture Pending Appeal.--If the defendant appeals 
from the conviction or order of forfeiture, the court may stay the 
order of forfeiture upon such terms as the court finds appropriate to 
ensure that the property remains available in case the conviction or 
order of forfeiture is vacated. But the stay will not delay the conduct 
of the ancillary proceeding or the determination of the rights or 
interests of any third party. If the defendant's appeal is still 
pending when the court determines that the order of forfeiture must be 
amended to recognize third party's interest in the property, the court 
must amend the order of forfeiture but must refrain from directing the 
transfer of any property or interest to the third party until the 
defendant's appeal is final, unless the defendant, in writing, consents 
to the transfer of the property or interest to the third party.
    ``(f) Substitute Property.--If the applicable forfeiture statute 
authorizes the forfeiture of substitute property, the court may at any 
time entertain a motion by the Government to order forfeiture of 
substitute property. If the Government makes the requisite showing, the 
court must enter an order forfeiting the substitute property, or must 
amend an existing preliminary or final order to include that 
property.''
    (b) Conforming Amendments.--(1) Rules 7(c)(2), 31(e), and 32(d)(2), 
Federal Rules of Criminal Procedure, are repealed.
    (2) Rule 38(e), Federal Rules of Criminal Procedure, is amended by 
striking ``3554,'' and by striking ``Criminal Forfeiture'' in the 
heading.
    (c) Order of Forfeiture.--Section 3554 of title 18, United States 
Code, is amended--
            (1) by striking ``an offense described in section 1962 of 
        this title or in title II or III of the Comprehensive Drug 
        Abuse Prevention and Control Act of 1970'' and inserting ``an 
        offense for which criminal forfeiture is authorized''; and
            (2) by inserting ``pursuant to the Federal Rules of 
        Criminal Procedure,'' after ``shall order,''.

SEC. 504. PRE-TRIAL RESTRAINT OF SUBSTITUTE ASSETS.

    Section 413(e)(1) of the Controlled Substances Act (21 U.S.C. 
853(e)(1)) is amended by striking ``(a)'' and inserting ``(a) or (p)''.

SEC. 505. REPATRIATION OF PROPERTY PLACED BEYOND THE JURISDICTION OF 
              THE COURT.

    (A) Order of Forfeiture.--Section 413(p) of the Controlled 
Substance 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 
Substance Act (21 U.S.C. 853(e)) is amended by adding the following 
after paragraph (3):
    ``(4) Pursuant to its authority to enter a pre-trial restraining 
order under this section, including its authority to restrain any 
property forfeitable as substitute assets, the court may also order the 
defendant to repatriate any property subject to forfeiture pending 
trial, and to deposit that property in the registry of the court, or 
with the United States Marshals Service or the Secretary of the 
Treasury, in an interest-bearing account. Failure to comply with an 
order under this subsection, or an order to repatriate property under 
subsection (p), shall be punishable as a civil or criminal contempt of 
court, and may also result in an enhancement of the sentence for the 
offense giving rise to the forfeiture under the obstruction of justice 
provision of section 3C1.1 of the United States Sentencing 
Guidelines.''.

SEC. 506. 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--
            (1) in paragraph (3), by adding the following after the 
        period: ``The court shall issue any protective order necessary 
        to prevent the premature disclosure of any ongoing law 
        enforcement operation or investigation or the identity of any 
        witness at the hearing. In addition, in any case involving an 
        ongoing investigation, the court shall permit the presentation 
        of evidence in camera or under seal. Rule 65, Federal Rules of 
        Civil Procedure, shall not apply to restraining orders issued 
        under this subsection.''; and
            (2) by adding the following new paragraph:
            ``(5)(A) When property is restrained pre-trial subject to 
        paragraph (1)(A), the court may, at the request of the 
        defendant, hold a pre-trial hearing to determine whether the 
        restraining order should be vacated or modified with respect to 
        some or all of the restrained property because--
                    ``(i) it restrains property that would not be 
                subject to forfeiture even if all of the facts set 
                forth in the indictment were established as true;
                    ``(ii) it causes a substantial hardship to the 
                moving party and less intrusive means exist to preserve 
                the subject property for forfeiture; or
                    ``(iii) the defendant establishes that he or she 
                has no assets, other than the restrained property, 
                available to exercise his or her constitutional right 
                to retain counsel, and there is no probable cause to 
                believe that the restrained property is subject to 
                forfeiture.
            ``(B) If the defendant files a motion under subparagraph 
        (A)(iii), the court shall require the defendant to establish 
        that he has no access to other assets adequate for the payment 
        of criminal defense counsel before conducting any probable 
        cause inquiry. The Government shall have an opportunity to 
        cross-examine the defendant and any witnesses he or she may 
        present on this issue. If the court determines that the 
        defendant has established that he has no access to other 
        assets, it shall hold a hearing to determine whether there is 
        probable cause for the forfeiture of the defendant's property. 
        If the court determines that no probable cause exists for the 
        forfeiture of an asset, it shall modify the restraining order 
        to the extent necessary to permit the defendant to use that 
        asset to retain counsel.
            ``(C) In any hearing under this paragraph where probable 
        cause is at issue, the court shall limit its inquiry to the 
        existence of probable cause for the forfeiture, and shall 
        neither entertain challenges to the validity of the indictment, 
        nor require the Government to produce additional evidence 
        regarding the facts of the case to support the grand jury's 
        finding of probable cause regarding the criminal offense giving 
        rise to the forfeiture. In all cases, the party requesting the 
        modification of the restraining order shall bear the burden of 
        proof.
            ``(D) A person other than the defendant who has a legal 
        interest in the restrained property may move to modify or 
        vacate the restraining order for the reasons stated in 
        subparagraph (A)(ii). In accordance with subsection (k), 
        however, such person may not object to a restraining order on 
        grounds that may be asserted only in the ancillary hearing 
        pursuant to subsection (n).
            ``(E) If the property restrained is subject to forfeiture 
        as substitute assets, the court shall exempt from the 
        restraining order assets needed to pay attorneys fees, other 
        necessary cost-of-living expenses, and expenses of maintaining 
        the restrained assets.''.

SEC. 507. CRIMINAL SEIZURE WARRANTS.

    Section 413(f) of the Controlled Substances Act (21 U.S.C. 853(f)) 
is amended to read as follows:
    ``(f) Property subject to forfeiture under this section may be 
seized pursuant to section 981(b) of title 18, United States Code. If 
property subject to criminal forfeiture under this section is already 
in the custody of the United States or any agency thereof, it shall not 
be necessary to seize or restrain the property for the purpose of 
criminal forfeiture.''.

SEC. 508. STANDARD OF PROOF FOR CRIMINAL FORFEITURE.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding the following new subsection after subsection (p):
    ``(q) Standard of Proof.--In any forfeiture action under this 
section, the party bearing the burden of proof shall be required to 
prove the matter at issue by a preponderance of the evidence.''.

SEC. 509. DISCOVERY PROCEDURE FOR LOCATING FORFEITED ASSETS.

    (a) Post-Conviction Discovery.--Section 413(m) of the Controlled 
Substances Act (21 U.S.C. 853(m)) is 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: ``Because 
        this subsection applies only to matters occurring after the 
        defendant has been convicted and his property has been declared 
        forfeited, the provisions of rule 15 requiring the consent of 
the defendant and the presence of the defendant at the deposition shall 
not apply.''
    (b) Bank Records.--Section 986 of title 18, United States Code, is 
amended--
            (1) in subsection (a) by striking ``in rem''; and
            (2) in subsection (c) by inserting ``or Criminal'' after 
        ``Civil''.

SEC. 510. COLLECTION OF CRIMINAL FORFEITURE JUDGMENT.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding the following subsection after subsection (q):
    ``(r) Collection of Criminal Forfeiture Judgment.--In addition to 
the authority otherwise provided in this section, an order of 
forfeiture may be enforced--
            ``(1) in the manner provided for the collection and payment 
        of fines in subchapter B of chapter 229 of title 18, United 
        States Code; or
            ``(2) in the same manner as a judgment in a civil action.''

SEC. 511. APPEALS IN CRIMINAL FORFEITURE CASES.

    (a) Pre-Trial Dismissal of Forfeiture Count.--Section 3731 of title 
18, United States Code, is amended in the first unnumbered paragraph by 
inserting ``, or dismissing a forfeiture count in whole or in part,'' 
after ``order of a district court dismissing an indictment or 
information''.
    (b) Review of a Sentence.--Section 3742 of title 18, United States 
Code, is amended by inserting the following new subsection:
    ``(i) Forfeiture Orders.--The Government may file a notice of 
appeal in the district court of any decision, judgment, or order of a 
district court denying a forfeiture in whole or in part, or mitigating 
a forfeiture for constitutional reasons, except that no appeal shall 
lie where the double jeopardy clause of the United States Constitution 
prohibits further prosecution.''

SEC. 512. NON-ABATEMENT OF FORFEITURE WHEN DEFENDANT DIES PENDING 
              APPEAL.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding at the end the following new subsection:
    ``(s) Nonabatement of Forfeiture Order.--An order of forfeiture 
under this section shall not abate by reason of the death thereafter of 
any or all of the defendants or petitioners or potential petitioners.''

SEC. 513. STANDING OF THIRD PARTIES TO CONTEST CRIMINAL FORFEITURE 
              ORDERS.

    Section 413(n)(2) of the Controlled Substances Act (21 U.S.C. 
853(n)(2)), is amended by designating the present matter as 
subparagraph (A) and by adding the following paragraphs at the end:
    ``(B) Notwithstanding any provision of this section, no person may 
assert a legal right, title or interest under this section in 
contraband or other property that it is illegal to possess. In 
addition, except as set forth in subsection (n)(6)(B), no person may 
assert an ownership interest under this section in the illegal proceeds 
of a criminal act, irrespective of State property law.
    ``(C) For the purposes of this section, a `legal interest' 
includes, but is not limited to, a lien, mortgage, recorded security 
device or valid assignment of an ownership interest. A `legal interest' 
does not include: (i) a general unsecured interest in, or claim 
against, the property or estate of the defendant; (ii) a bailment; 
(iii) a possessory interest or title held by a nominee who exercises no 
dominion or control over the property; or (iv) a constructive trust.''

SEC. 514. MOTION AND DISCOVERY PROCEDURES FOR ANCILLARY HEARINGS.

    Section 413(n)(4) of the Controlled Substances Act (21 U.S.C. 
853(n)(4)) is amended by designating the present matter as subparagraph 
(A), and by inserting the following new subparagraphs:
            ``(B) Before conducting a hearing, the court may entertain 
        a motion to dismiss the petition for lack of standing, for 
        failure to state a claim upon which relief could be granted 
        under this section, or for any other ground. For the purposes 
        of such motion, all facts set forth in the petition shall be 
        assumed to be true.
            ``(C) If a motion referred to in subparagraph (B) is 
        denied, or if no such motion is made, the court may, in its 
        discretion, permit the parties to conduct discovery in 
        accordance with the Federal Rules of Civil Procedure to the 
        extent that the court determines such discovery to be necessary 
        or desirable to resolve factual issues before the hearing. At 
        the conclusion of such discovery, either party may seek to have 
        the court dispose of the petition on a motion for summary 
        judgment in the manner described in rule 56 of the Federal 
        Rules of Civil Procedure.
            ``(D) Any order disposing of a petition pursuant to a 
        motion or pursuant to a hearing on the merits of the claim 
        shall be appealable in accordance with the Federal Rules of 
        Appellate Procedure applicable to civil cases. However, where 
        multiple petitions are filed in the same case, an order 
        dismissing or granting fewer than all of the petitions shall 
        not be appealable until all petitions are resolved, unless the 
        court expressly determines that there is no just reason for 
        delay and directs the entry of final judgment with respect to 
        one or more but fewer than all of the petitions.
            ``(E) The district court shall retain jurisdiction over a 
        petition filed pursuant to this subsection notwithstanding any 
        appeal filed by the defendant in the criminal case.''

SEC. 515. INTERVENTION BY THE DEFENDANT IN THE ANCILLARY PROCEEDING.

    Section 413(n) of the Controlled Substances Act (21 U.S.C. 853(n)) 
is amended by adding the following after paragraph (7):
            ``(8) If the defendant has filed a timely appeal from a 
        conviction under this section and the appeal is pending, any 
        person filing a petition under this subsection shall serve a 
        copy of the petition upon the defendant, and the defendant 
        shall have a right to intervene in the ancillary proceeding 
        with respect to the petition in accordance with rule 24 of the 
        Federal Rules of Civil Procedure solely for the purpose of 
        contesting the petitioner's alleged interest in the property 
        ordered forfeited. The defendant shall have 20 days from the 
        date of service of the petition to intervene. If the defendant 
        does not intervene within such time period, he or she shall 
        have waived the right to challenge in any forum any 
        adjudication of the petitioner's interest in the property 
        pursuant to this subsection, regardless of the outcome of the 
        appeal.
            ``(9) A hearing provided for in this subsection shall be 
        limited to an adjudication of the validity of the petitioner's 
        legal right, title or interest in the property ordered 
        forfeited, and shall not provide a forum to relitigate the 
        forefeitability of the property.''

SEC. 516. IN PERSONAM JUDGMENTS.

    Section 413(n)(1) of the Controlled Substances Act (21 U.S.C. 
853(n)(1)) is 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, or includes only property 
constituting contraband, no proceeding under this subsection shall be 
necessary.''

SEC. 517. RIGHT OF THIRD PARTIES TO CONTEST FORFEITURE OF SUBSTITUTE 
              ASSETS.

    (a) In General.--Section 413(c) of the Controlled Substances Act 
(21 U.S.C. 853(c)), as amended by this Act, is further 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: ``In the case of substitute assets, the 
petitioner must show that his interest in the property existed at the 
time the property vested in the United States pursuant to subsection 
(c), or that he subsequently acquired his interest in the property as a 
bona fide purchaser for value as provided in this subsection.''

SEC. 518. FORFEITABLE PROPERTY TRANSFERRED TO THIRD PARTIES.

    Section 413(c) of the Controlled Substances Act (21 U.S.C. 853(c)), 
as amended by this Act, is further amended by designating the present 
matter as paragraph (1) and adding the following new paragraph:
            ``(2) If, as provided in paragraph (1), property 
        transferred to a transferee is ordered forfeited and the 
        transferee fails to establish that he is a bona fide purchaser, 
        but the transferee is unable, due to the transferee's act or 
        omission, to turn the property over to the United States, the 
        transferee shall owe the United States a sum of money up to the 
        value of the property transferred by the defendant, plus 
        interest from the time of the transfer. Once the ancillary 
        proceedings regarding the transferee's claim to be a bona fide 
        purchaser are concluded, the district court that issued the 
        order of forfeiture shall issue a judgment in favor of the 
        United States and against the transferee for the amount of 
        money to which the United States is entitled.''

SEC. 519. FORFEITURE THIRD PARTY INTERESTS IN CRIMINAL CASES.

    (a) In General.--Section 413 of the Controlled Substances Act (21 
U.S.C. 853) is amended by adding the following after subsection (s):
    ``(t) Forfeiture of Third Party Interests.--In lieu of filing a 
parallel civil forfeiture action, the government may seek the 
forfeiture of a third party's interest in property subject to 
forfeiture under this section at the conclusion of the ancillary 
proceeding described in subsection (n). Such proceeding shall be an in 
rem proceeding in which the third party shall first have the burden of 
establishing a legal interest in the property pursuant to subsection 
(n), after which the government shall have the burden of establishing 
the forfeitability of the third party's interest in the manner provided 
for civil forfeitures in chapter 46, title 18, United States Code, and 
the third party shall have the burden of establishing an innocent owner 
defense pursuant to such chapter.''
    (b) Conforming Amendment.--Section 413(n)(6) of the Controlled 
Substances Act (21 U.S.C. 853(n)(6)) is amended by adding ``, unless 
the government notifies the court that it will seek to forfeit the 
petitioner's interest pursuant to subsection (t)'' after ``in 
accordance with its determination''.

SEC. 520. SEVERANCE OF JOINTLY HELD PROPERTY.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding the following after subsection (t):
    ``(u) Severance of Jointly Held Property.--If the court determines, 
pursuant to subsection (n) or (t), that a third party 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 (1) severing the property; (2) transferring 
the property to the government with a provision that the government 
compensate the third party 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 (3) permitting the 
third party to retain the property subject to a lien in favor of the 
Government to the extent of the forfeitable interest in the property. 
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.''

SEC. 521. VICTIM RESTITUTION.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding at the end the following new subsection:
    ``(v) Victims and Restitution.--
            ``(1) The defendant may not use property subject to 
        forfeiture under this section to satisfy an order of 
        restitution. However, if there are identifiable victims 
        entitled to restitution from the defendant, and the defendant 
        has no assets other than the property subject to forfeiture 
        with which to pay restitution to the victims, the Government 
        may move to dismiss the forfeiture allegations before entry of 
        a judgment of forfeiture to allow the property to be used by 
        the defendant to pay restitution in whatever manner the court 
        determines to be appropriate if it grants the Government's 
        motion.
            ``(2) If an order of forfeiture is entered pursuant to this 
        section and the defendant has no assets other than the 
        forfeited property to pay restitution to identifiable victims 
        who are entitled to restitution, the Government shall restore 
        the forfeited property to the victims pursuant to subsection 
        (i)(1) once the ancillary proceeding under subsection (n) has 
        been completed and the costs of the forfeiture action have been 
        deducted. On the motion of the Government, the court may enter 
        any order necessary to facilitate the distribution of the 
        property under this subsection.
            ``(3) For purposes of this subsection, a `victim' is a 
        person other than a person with a legal right, title, or 
        interest in the forfeited property sufficient to satisfy the 
        standing requirements of subsection (n)(2) who may nevertheless 
        be entitled to restitution from the forfeited funds pursuant to 
        28 CFR part 9.8. A person shall be considered a `victim' if the 
        person is the victim of the offense giving rise to the 
        forfeiture, or of any offense that was part of the same scheme, 
        conspiracy, or pattern of criminal activity, including in the 
        case of a money laundering offense, any offense constituting 
        the underlying specified unlawful activity.''.

SEC. 522. DELIVERY OF PROPERTY TO THE MARSHALS SERVICE.

    Section 413(j) of the Controlled Substances Act (21 U.S.C. 853(j)) 
is amended by inserting ``, and rule C(5) of the Supplemental Rules for 
Certain Admiralty and Maritime Claims,'' before ``shall apply to a 
criminal forfeiture''.
                                 <all>