[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1965 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1965

    To provide a more just and uniform procedure for Federal civil 
                  forfeitures, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 19, 1997

 Mr. Hyde (for himself and Mr. Conyers) introduced the following bill; 
 which was referred to the Committee on the Judiciary, and in addition 
 to the Committees on Ways and Means, and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    To provide a more just and uniform procedure for Federal civil 
                  forfeitures, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Civil Asset 
Forfeiture Reform Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Creation of general rules relating to civil forfeiture 
                            proceedings.
Sec. 3. Compensation for damage to seized property.
Sec. 4. Prejudgment and postjudgment interest.
Sec. 5. Seizure warrant requirement.
Sec. 6. Access to records in bank secrecy jurisdictions.
Sec. 7. Access to other records.
Sec. 8. Disclosure of grand jury information to Federal prosecutors.
Sec. 9. Use of forfeited funds to pay restitution to crime victims and 
                            regulatory agencies.
Sec. 10. Enforcement of foreign forfeiture judgment.
Sec. 11. Admissibility of foreign business records.
Sec. 12. Conforming amendments to title 28, to rules of procedure, and 
                            to the controlled substances act.
Sec. 13. Inapplicability of the customs laws.
Sec. 14. Applicability.
Sec. 15. Jurisdiction and venue in forfeiture cases.
Sec. 16. Minor and technical amendments relating to 1992 forfeiture 
                            amendments.
Sec. 17. Drug paraphernalia technical amendments.
Sec. 18. Certificate of reasonable cause.
Sec. 19. Authorization to share forfeited property with cooperating 
                            foreign governments.
Sec. 20. Forfeiture of property used to facilitate foreign drug crimes.
Sec. 21. Forfeiture of proceeds traceable to facilitating property in 
                            drug cases.
Sec. 22. Forfeiture of proceeds of certain foreign crimes.
Sec. 23. Civil forfeiture of coins and currency in confiscated gambling 
                            devices.
Sec. 24. Clarification of judicial review of forfeiture.
Sec. 25. Technical amendments relating to obliterated motor vehicles 
                            identification numbers.
Sec. 26. Statute of limitations for civil forfeiture actions.
Sec. 27. Destruction or removal of property to prevent seizure.
Sec. 28. In personam judgments.
Sec. 29. Uniform procedures for criminal forfeiture.
Sec. 30. Availability of criminal forfeiture.
Sec. 31. Discovery procedure for locating forfeited assets.
Sec. 32. Criminal forfeiture for money laundering conspiracies.
Sec. 33. Correction to criminal forfeiture provision for alien 
                            smuggling and other immigration offenses.
Sec. 34. Repatriation of property placed beyond the jurisdiction of the 
                            court.
Sec. 35. Right of third parties to contest forfeiture of substitute 
                            assets.
Sec. 36. Archeological Resources Protection Act.
Sec. 37. Forfeiture of instrumentalities of terrorism, telemarketing 
                            fraud, and other offenses.
Sec. 38. Forfeiture of criminal proceeds transported in interstate 
                            commerce.
Sec. 39. Forfeitures of proceeds of Federal Food, Drug, and Cosmetic 
                            Act violations.
Sec. 40. Forfeiture of counterfeit paraphernalia.
Sec. 41. Closing of loophole to defeat criminal forfeiture through 
                            bankruptcy.
Sec. 42. Collection of criminal forfeiture judgment.
Sec. 43. Criminal forfeiture of property in Government custody.
Sec. 44. Delivery of property to the Marshals Service.
Sec. 45. Forfeiture for odometer tampering offenses.
Sec. 46. Pre-trial restraint of substitute assets.

SEC. 2. CREATION OF GENERAL RULES RELATING TO CIVIL FORFEITURE 
              PROCEEDINGS.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting the following new section after section 982:
``Sec. 983. Civil forfeiture procedures
    ``(a) Administrative Forfeitures.--(1)(A) In any nonjudicial civil 
forfeiture proceeding under a civil forfeiture statute, with respect to 
which the agency conducting a seizure of property must send written 
notice of the seizure under section 607(a) of the Tariff Act of 1930 
(19 U.S.C. 1607(a)), such notice together with information on the 
applicable procedures shall be sent not later than 60 days after the 
seizure to each party known to the seizing agency at the time of the 
seizure to have an ownership or possessory interest, including a 
lienholder's interest, in the seized article. If a party's identity or 
interest is not determined until after the seizure but is determined 
before a declaration of forfeiture is entered, such written notice and 
information shall be sent to such interested party not later than 60 
days after the seizing agency's determination of the identity of the 
party or the party's interest.
    ``(B) If the Government does not provide notice of a seizure of 
property in accordance with subparagraph (A), it shall return the 
property pending the giving of such notice.
    ``(2) The Government may apply to a Federal magistrate judge (as 
defined in the Federal Rules of Criminal Procedure) in any district 
where venue for a forfeiture action would lie under section 1355(b) of 
title 28 for an extension of time in which to comply with paragraph 
(1)(A). Such an extension shall be granted based on a showing of good 
cause.
    ``(3) A person with an ownership or possessory interest in the 
seized article who failed to file a claim within the time period 
prescribed in subsection (b) may, on motion made not later than 2 years 
after the date of final publication of notice of seizure of the 
property, move to set aside a declaration of forfeiture entered 
pursuant to section 609 of the Tariff Act of 1930 (19 U.S.C. 1609). 
Such motion shall be granted if--
            ``(A) the Government failed to take reasonable steps to 
        provide the claimant with notice of the forfeiture; and
            ``(B) the person otherwise had no actual notice of the 
        seizure within sufficient time to enable the person to file a 
        timely claim under subsection (b).
    ``(4) If the court grants a motion made under paragraph (3), it 
shall set aside the declaration of forfeiture as to the moving party's 
interest pending forfeiture proceedings in accordance with section 602 
et seq. of the Tariff Act of 1930 (19 U.S.C. 1602 et seq.), which 
proceedings shall be instituted within 60 days of the entry of the 
order granting the motion.
    ``(5) If, at the time a motion under this subsection is granted, 
the forfeited property has been disposed of by the Government in 
accordance with law, the Government shall institute forfeiture 
proceedings under paragraph (4). The property which will be the subject 
of the forfeiture proceedings instituted under paragraph (4) shall be a 
sum of money equal to the value of the forfeited property at the time 
it was disposed of plus interest.
    ``(6) The institution of forfeiture proceedings under paragraph (4) 
shall not be barred by the expiration of the statute of limitations 
under section 621 of the Tariff Act of 1930 (19 U.S.C. 1621) if the 
original publication of notice was completed before the expiration of 
such limitations period.
    ``(7) A motion made under this subsection shall be the exclusive 
means of obtaining judicial review of a declaration of forfeiture 
entered by a seizing agency.
    ``(b) Filing a Claim.--(1) Any person claiming such seized property 
may file a claim with the appropriate official after the seizure.
    ``(2) A claim under paragraph (1) may not be filed later than 30 
days after--
            ``(A) the date of final publication of notice of seizure; 
        or
            ``(B) in the case of a person receiving written notice, the 
        date that such notice is received.
    ``(3) The claim shall set forth the nature and extent of the 
claimant's interest in the property.
    ``(c) Filing a Complaint.--(1) In cases where property has been 
seized or restrained by the Government and a claim has been filed, the 
Attorney General shall file a complaint for forfeiture in the 
appropriate court in the manner set forth in the Supplemental Rules for 
Certain Admiralty and Maritime Claims, or shall include a forfeiture 
count in a criminal indictment or information, or both, not later than 
90 days after the claim was filed, or return the property pending the 
filing of a complaint or indictment. By mutual agreement between the 
Government and the claimants, the 90-day filing requirement may be 
waived.
    ``(2) The Government may apply to a Federal magistrate judge (as 
defined in the Federal Rules of Criminal Procedure) in any district 
where venue for a forfeiture action would lie under section 1355(b) of 
title 28 for an extension of time in which to comply with paragraph 
(1). Such an extension shall be granted based on a showing of good 
cause. If the reason for the extension is that the filing required by 
paragraph (1) would jeopardize an ongoing criminal investigation or 
prosecution or court-authorized electronic surveillance, the 
application may be made ex parte.
    ``(3) Upon the filing of a civil complaint, the claimant shall file 
a claim and answer in accordance with the Supplemental Rules for 
Certain Admiralty and Maritime Claims.
    ``(d) Appointment of Counsel.--(1) If the person filing a claim is 
financially unable to obtain representation by counsel and requests 
that counsel be appointed, the court may appoint counsel to represent 
that person with respect to the claim. In determining whether to 
appoint counsel to represent the person filing the claim, the court 
shall take into account--
            ``(A) the nature and value of the property subject to 
        forfeiture, including the hardship to the claimant from the 
        loss of the property seized, compared to the expense of 
        appointing counsel;
            ``(B) the claimant's standing to contest the forfeiture; 
        and
            ``(C) whether the claim appears to be made in good faith or 
        to be frivolous.
    ``(2) The court shall set the compensation for that representation, 
which shall be the equivalent to that provided for court-appointed 
representation under section 3006A of this title, and to pay such cost, 
there are authorized to be appropriated such sums as are necessary as 
an addition to the funds otherwise appropriated for the appointment of 
counsel under such section.
    ``(3) The determination of whether to appoint counsel under this 
subsection shall be made following a hearing at which the Government 
shall have an opportunity to present evidence and examine the claimant. 
The testimony of the claimant at such hearing shall not be admitted in 
any other proceeding except in accordance with the rules which govern 
the admissibility of testimony adduced in a hearing on a motion to 
suppress evidence. Nothing in this paragraph shall be construed to 
prohibit the admission of any evidence that may be obtained in the 
course of civil discovery in the forfeiture proceeding or through any 
other lawful investigative means.
    ``(e) Burden of Proof.--In all suits or actions brought for the 
civil forfeiture of any property, the burden of proof at trial is on 
the United States to establish, by a preponderance of the evidence, 
that the property is subject to forfeiture. If the Government proves 
that the property is subject to forfeiture, the claimant shall have the 
burden of establishing any affirmative defense by a preponderance of 
the evidence.
    ``(f) Innocent Owners.--(1) An innocent owner's interest in 
property shall not be forfeited in any civil forfeiture action.
    ``(2) With respect to a property interest in existence at the time 
the illegal conduct giving rise to the forfeiture took place, the term 
`innocent owner' means an owner who--
            ``(A) did not know of the conduct giving rise to the 
        forfeiture; or
            ``(B) upon learning of the conduct giving rise to the 
        forfeiture, did all that reasonably could be expected under the 
        circumstances to terminate such use of the property.
    ``(3)(A) With respect to a property interest acquired after the 
conduct giving rise to the forfeiture has taken place, the term 
`innocent owner' means a person who, at the time that person acquired 
the interest in the property, was a bona fide purchaser for value and 
was at the time of the purchase reasonably without cause to believe 
that the property was subject to forfeiture.
    ``(B) Except as provided in paragraph (4), where the property 
subject to forfeiture is real property, and the claimant uses the 
property as his or her primary residence and is the spouse or minor 
child of the person who committed the offense giving rise to the 
forfeiture, an otherwise valid innocent owner claim shall not be denied 
on the ground that the claimant acquired the interest in the property--
            ``(i) in the case of a spouse, through dissolution of 
        marriage or by operation of law, or
            ``(ii) in the case of a minor child, as an inheritance upon 
        the death of a parent,
and not through a purchase. However, the claimant must establish, in 
accordance with subparagraph (A), that at the time of the acquisition 
of the property interest, the claimant was reasonably without cause to 
believe that the property was subject to forfeiture, and was an owner 
of the property, as defined in paragraph (6).
    ``(4) Notwithstanding any provision of this section, no person may 
assert an ownership interest under this section--
            ``(A) in contraband or other property that it is illegal to 
        possess; or
            ``(B) in the illegal proceeds of a criminal act unless such 
        person was a bona fide purchaser for value who was reasonably 
        without cause to believe that the property was subject to 
        forfeiture.
    ``(5) For the purposes of paragraph (2) of this subsection a person 
does all that reasonably can be expected if the person takes all steps 
that a reasonable person would take in the circumstances to prevent or 
terminate the illegal use of the person's property. There is a 
rebuttable presumption that a property owner took all the steps that a 
reasonable person would take if the property owner--
            ``(A) gave timely notice to an appropriate law enforcement 
        agency of information that led to the claimant to know the 
        conduct giving rise to a forfeiture would occur or has 
        occurred; and
            ``(B) in a timely fashion, revoked permission for those 
        engaging in such conduct to use the property or took reasonable 
        steps in consultation with a law enforcement agency to 
        discourage or prevent the illegal use of the property.
The person is not required to take extraordinary steps that the person 
reasonably believes would be likely to subject the person to physical 
danger.
    ``(6) As used in this subsection--
            ``(A) the term `civil forfeiture statute' means any 
        provision of Federal law providing for the forfeiture of 
        property other than as a sentence imposed upon conviction of a 
        criminal offense;
            ``(B) the term `owner' means a person with an ownership 
        interest in the specific property sought to be forfeited, 
        including a lien, mortgage, recorded security device, or valid 
        assignment of an ownership interest. Such term does not 
        include--
                    ``(i) a person with only a general unsecured 
                interest in, or claim against, the property or estate 
                of another;
                    ``(ii) a bailee unless the bailor is identified and 
                the bailee shows a colorable legitimate interest in the 
                property seized; or
                    ``(iii) a nominee who exercises no dominion or 
                control over the property;
            ``(C) a person shall be considered to have known that the 
        person's property was being used or was likely to be used in 
        the commission of an illegal act if the person was willfully 
        blind.
    ``(7) If the court determines, in accordance with this subsection, 
that an innocent owner had a partial interest in property otherwise 
subject to forfeiture, or a joint tenancy or tenancy by the entirety in 
such property, the court shall enter an appropriate order--
            ``(A) severing the property;
            ``(B) transferring the property to the Government with a 
        provision that the Government compensate the innocent owner to 
        the extent of his or her ownership interest once a final order 
        of forfeiture has been entered and the property has been 
        reduced to liquid assets; or
            ``(C) permitting the innocent owner to retain the property 
        subject to a lien in favor of the Government, to the extent of 
        the forfeitable interest in the property, that will permit the 
        Government to realize its forfeitable interest if the property 
        is transferred to another person.
To effectuate the purposes of this subsection, a joint tenancy or 
tenancy by the entireties shall be converted to a tenancy in common by 
order of the court, irrespective of state law.
    ``(8) An innocent owner defense under this subsection is an 
affirmative defense.
    ``(g) Motion To Suppress Seized Evidence.--At any time after a 
claim and answer are filed in a judicial forfeiture proceeding, a 
claimant with standing to contest the seizure of the property may move 
to suppress the fruits of the seizure in accordance with the normal 
rules regarding the suppression of illegally seized evidence. If the 
claimant prevails on such motion, the fruits of the seizure shall not 
be admitted into evidence as to that claimant at the forfeiture trial. 
However, a finding that evidence should be suppressed shall not bar the 
forfeiture of the property based on evidence obtained independently 
before or after the seizure.
    ``(h) Use of Hearsay at Pre-Trial Hearings.--At any pre-trial 
hearing under this section in which the governing standard is probable 
cause, the court may accept and consider hearsay otherwise inadmissible 
under the Federal Rules of Evidence.
    ``(i) Stipulations.--Notwithstanding the claimant's offer to 
stipulate to the forfeitability of the property, the Government shall 
be entitled to present evidence to the finder of fact on that issue 
before the claimant presents any evidence in support of any affirmative 
defense.
    ``(j) Preservation of Property Subject to Forfeiture.--The court, 
before or after the filing of a forfeiture complaint and on the 
application of the Government, may--
            ``(1) enter any restraining order or injunction in the 
        manner set forth in section 413(e) of the Controlled Substances 
        Act (21 U.S.C. 853(e));
            ``(2) require the execution of satisfactory performance 
        bonds;
            ``(3) create receiverships;
            ``(4) appoint conservators, custodians, appraisers, 
        accountants or trustees; or
            ``(5) take any other action to seize, secure, maintain, or 
        preserve the availability of property subject to forfeiture 
        under this section.
    ``(k) Excessive Fines.--(1) At the conclusion of the trial and 
following the entry of a verdict of forfeiture, or upon the entry of 
summary judgment for the Government as to the forfeitability of the 
property, the claimant may petition the court to determine whether the 
excessive fines clause of the Eighth Amendment applies, and if so, 
whether forfeiture is excessive. The claimant shall have the burden of 
establishing that a forfeiture is excessive by a preponderance of the 
evidence at a hearing conducted in the manner provided in Rule 43(e), 
Federal Rules of Civil Procedure, by the Court without a jury. If the 
court determines that the forfeiture is excessive, it shall adjust the 
forfeiture to the extent necessary to avoid the Constitutional 
violation.
    ``(2) The claimant may not object to the forfeiture on Eighth 
Amendment grounds other than as set forth in paragraph (1), except that 
a claimant may, at any time, file a motion for summary judgment 
asserting that even if the property is subject to forfeiture, the 
forfeiture would be excessive. The court shall rule on such motion for 
summary judgment only after the Government has had an opportunity--
            ``(A) to conduct full discovery on the Eighth Amendment 
        issue; and
            ``(B) to place such evidence as may be relevant to the 
        excessive fines determination before the court in affidavits or 
        at an evidentiary hearing.
    ``(l) Pre-Discovery Standard.--In a judicial proceeding on the 
forfeiture of property, the Government shall not be required to 
establish the forfeitability of the property before the completion of 
discovery pursuant to the Federal Rules of Civil Procedure, 
particularly Rule 56(f) as may be ordered by the court or if no 
discovery is ordered before trial.
    ``(m) Applicability.--The procedures set forth in this section 
apply to any civil forfeiture action brought under any provision of 
this title, the Controlled Substances Act, or the Immigration and 
Naturalization Act.''.
    (b) 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 after and below subparagraph (C) the 
        following:
``The procedures set forth in chapter 46 of title 18, United States 
Code, shall govern judicial forfeiture actions under this section.''
    (c) Striking Superseded Provisions.--(1) Section 981(a) of title 
18, United States Code, is amended by--
            (A) striking paragraph (2); and
            (B) striking ``Except as provided in paragraph (2), the'' 
        and inserting ``The''.
    (2) Paragraphs (4), (6), and (7) of section 511(a) of the 
Controlled Substances Act (21 U.S.C. 881(a)) are each amended by 
striking ``, except that'' and all that follows, each time it appears 
and inserting a period.
    (3) Paragraphs (2) and (3) of section 2254(a) of title 18, United 
States Code, are each amended by striking ``, except that'' and all 
that follows, each time it appears and inserting a period.
    (4) Section 274(b)(1) of the Immigration and Naturalization Act (8 
U.S.C. 1324(b)(1)) is amended by striking ``, except that'' and all 
that follows and inserting a period.
    (d) Release of Property.--Chapter 46 of title 18, United States 
Code, is amended to add the following section after section 984:
``Sec. 985. Release of property to avoid hardship
    ``(a) A person who has filed a claim under section 983 is entitled 
to release pursuant to subsection (b) of seized property pending trial 
if--
            ``(1) the claimant has a possessory interest in the 
        property sufficient to establish standing to contest forfeiture 
        and has filed a nonfrivolous claim on the merits of the 
        forfeiture action;
            ``(2) the claimant has sufficient ties to the community to 
        provide assurance that the property will be available at the 
        time of the trial;
            ``(3) the continued possession by the United States 
        Government pending the final disposition of forfeiture 
        proceedings will cause substantial hardship to the claimant, 
        such as preventing the claimant from working, leaving the 
        claimant homeless, or preventing the functioning of a business;
            ``(4) the claimant's hardship outweighs the risk that the 
        property will be destroyed, damaged, lost, concealed, 
        diminished in value or transferred if it is returned to the 
        claimant during the pendency of the proceeding; and
            ``(5) none of the conditions set forth in subsection (c) 
        applies;
    ``(b)(1) The claimant may make a request for the release of 
property under this subsection at any time after the claim is filed. 
If, at the time the request is made, the seizing agency has not yet 
referred the claim to a United States Attorney pursuant to section 608 
of the Tariff Act of 1930 (19 U.S.C. 1608), the request may be filed 
with the seizing agency; otherwise the request must be filed with the 
United States Attorney to whom the claim was referred. In either case, 
the request must set forth the basis on which the requirements of 
subsection (a)(1) are met.
    ``(2) If the seizing agency, or the United States Attorney, as the 
case may be, denies the request or fails to act on the request within 
20 days, the claimant may file the request as a motion for the return 
of seized property in the district court for the district represented 
by the United States Attorney to whom the claim was referred, or if the 
claim has not yet been referred, in the district court that issued the 
seizure warrant for the property, or if no warrant was issued, in any 
district court that would have jurisdiction to consider a motion for 
the return of seized property under Rule 41(e), Federal Rules of 
Criminal Procedure. The motion must set forth the basis on which the 
requirements of subsection (a) have been met and the steps the claimant 
has taken to secure the release of the property from the appropriate 
official.
    ``(3) The district court must act on a motion made pursuant to this 
subsection within 30 days or as soon thereafter as practicable, and 
must grant the motion if the claimant establishes that the requirements 
of subsection (a) have been met. If the court grants the motion, the 
court must enter any order necessary to ensure that the value of the 
property is maintained while the forfeiture action is pending, 
including permitting the inspection, photographing and inventory of the 
property, and the court may take action in accordance with Rule E of 
the Supplemental Rules for Certain Admiralty and Maritime Cases. The 
Government is authorized to place a lien against the property or to 
file a lis pendens to ensure that it is not transferred to another 
person. The Government, in responding to a motion under this 
subsection, may, in appropriate cases, submit evidence ex parte in 
order to avoid disclosing any matter relating to an ongoing criminal 
investigation or pending trial.
    ``(4) If property returned to the claimant under this section is 
lost, stolen, or diminished in value, any insurance proceeds shall be 
paid to the United States and such proceeds shall be subject to 
forfeiture in place of the property originally seized.
    ``(c) This section shall not apply if the seized property--
            ``(1) is contraband, currency or other monetary instrument, 
        or electronic funds unless such currency or other monetary 
        instrument or electronic funds constitutes the assets of a 
        business which has been seized,
            ``(2) is evidence of a violation of the law,
            ``(3) by reason of design or other characteristic, is 
        particularly suited for use in illegal activities; or
            ``(4) is likely to be used to commit additional criminal 
        acts if returned to the claimant.''
    ``(d) Once a motion for the release of property under this section 
is filed, the person filing the motion may request that the motion be 
transferred to another district where venue for the forfeiture action 
would lie under section 1355(b) of title 28 pursuant to the change of 
venue provisions in section 1404 of title 28.''.
    (e) Chapter Analysis.--The chapter analysis for chapter 46 of title 
18, United States Code, is amended--
            (1) by inserting after the item relating to section 982 the 
        following:

``983. Civil forfeiture procedures''; and
            (2) by inserting after the item relating to section 984 the 
        following:

``985. Release of property to avoid hardship''.
    (f) Civil Forfeiture of Proceeds.--Section 981(a)(1) of title 18, 
United States Code, is amended--
            (1) in subparagraph (C) by inserting before the period the 
        following: ``or any offense constituting `specified unlawful 
        activity' as defined in section 1956(c)(7) of this title or a 
        conspiracy to commit such offense''; and
            (2) by striking subparagraph (E).
    (g) Criminal Forfeiture of Proceeds.--Section 982(a)(2) of title 
18, United States Code, is amended by--
            (1) striking ``or'' at the end of subparagraph (A);
            (2) inserting ``or'' after the comma at the end of 
        subparagraph (B); and
            (3) inserting the following after subparagraph (B):
            ``(C) any offense constituting `specified unlawful 
        activity' as defined in section 1956(c)(7) of this title,''.
    (h) Uniform Definition of Proceeds.--(1) Section 981(a) of title 
18, United States Code, as amended by subsection (c), is amended--
            (A) in paragraph (1), by striking ``gross receipts'' and 
        ``gross proceeds'' wherever those terms appear and inserting 
        ``proceeds''; and
            (B) by adding the following after paragraph (1):
    ``(2) For purposes of paragraph (1), the term `proceeds' means 
property of any kind obtained, directly or indirectly, as the result of 
the commission of the offense giving rise to forfeiture, and any 
property traceable thereto, and is not limited to the net gain or 
profit realized from the commission of the offense. In a case involving 
the forfeiture of proceeds of a fraud or false claim under paragraph 
(1)(C) involving billing for goods or services part of which are 
legitimate and part of which are not legitimate, the court shall allow 
the claimant a deduction from the forfeiture for the amount obtained in 
exchange for the legitimate goods or services. In a case involving 
goods or services provided by a health care provider, such goods or 
services are not `legitimate' if they were unnecessary.
    ``(3) For purposes of the provisions of subparagraphs (B) through 
(H) of paragraph (1) which provide for the forfeiture of proceeds of an 
offense or property traceable thereto, where the proceeds have been 
commingled with or invested in real or personal property, only the 
portion of such property derived from the proceeds shall be regarded as 
property traceable to the forfeitable proceeds. Where the proceeds of 
the offense have been invested in real or personal property that has 
appreciated in value, whether the relationship of the property to the 
proceeds is too attenuated to support the forfeiture of such property 
shall be determined in accordance with the excessive fines clause of 
the Eighth Amendment.''
    (2) Section 982 of title 18, United States Code, is amended--
            (A) in subsection (a), by striking ``gross receipts'' and 
        ``gross proceeds'' wherever those terms appear and inserting 
        ``proceeds''; and
            (B) in subsection (b), by adding at the end the following:
    ``(3) For purposes of subsection (a), the term `proceeds' has the 
meaning set forth in section 981(a)(2).''

SEC. 3. COMPENSATION FOR DAMAGE TO SEIZED PROPERTY.

    (a) Tort Claims Act.--Section 2680(c) of title 28, United States 
Code, is amended--
            (1) by striking ``law-enforcement'' and inserting ``law 
        enforcement''; and
            (2) by inserting before the period the following: ``, 
        except that the provisions of this chapter and section 1346(b) 
        of this title do apply to any claim based on the negligent 
        destruction, injury, or loss of goods, merchandise, or other 
        property, while in the possession of any officer of customs or 
        excise or any other law enforcement officer, if the property 
        was seized for the purpose of forfeiture but the interest of 
        the claimant is not forfeited''.
    (b) Department of Justice.--
            (1) In general.--With respect to a claim that cannot be 
        settled under chapter 171 of title 28, United States Code, the 
        Attorney General may settle, for not more than $50,000 in any 
        case, a claim for damage to, or loss of, privately owned 
        property caused by an investigative or law enforcement officer 
        (as defined in section 2680(h) of title 28, United States Code) 
        who is employed by the Department of Justice acting within the 
        scope of his or her employment.
            (2) Limitations.--The Attorney General may not pay a claim 
        under paragraph (1) that--
                    (A) is presented to the Attorney General more than 
                1 year after it occurs; or
                    (B) is presented by an officer or employee of the 
                United States Government and arose within the scope of 
                employment.

SEC. 4. PREJUDGMENT AND POSTJUDGMENT INTEREST.

    Section 2465 of title 28, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``Upon''; and
            (2) adding at the end the following:
    ``(b) Interest.--
            ``(1) Post-judgment.--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.
            ``(2) Pre-judgment.--The United States shall not be liable 
        for prejudgment interest, except that in cases involving 
        currency, proceeds of an interlocutory sale, or other 
        negotiable instruments, the United States shall disgorge to the 
        claimant any funds representing--
                    ``(A) 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; and
                    ``(B) for any period during which no interest is 
                actually paid, an imputed amount of interest that such 
                currency, proceeds, or instruments would have earned.
        The United States shall provide the court with an accounting of 
        the amount actually earned or the amount that would have been 
        earned had the funds been invested in obligations of, or 
        guaranteed by, the United States.
            ``(3) Limitation on other payments.--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.''.

SEC. 5. 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 subsection (a) 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 
        United States 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) 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 subsection (a) 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) of the 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.
    ``(5) Once a motion for the return of seized property under Rule 
41(e) is filed, the person filing the motion may request that the 
motion be transferred to another district where venue for the 
forfeiture action would lie under section 1355(b) of title 28 pursuant 
to the change of venue provisions in section 1404 of title 28.''.
    (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.''.

SEC. 6. ACCESS TO RECORDS IN BANK SECRECY JURISDICTIONS.

    Section 986 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(d) Access to Records Located Abroad.--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 
        the claimant's rights under such secrecy laws or to obtain the 
        records, 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. 7. ACCESS TO OTHER RECORDS.

    Section 6103(i)(1) of the Internal Revenue Code of 1986 (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. 8. 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. 9. 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. 10. ENFORCEMENT OF FOREIGN FORFEITURE JUDGMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by inserting the following new section:
``Sec. 2466. Enforcement of foreign forfeiture judgment
    ``(a) Definitions.--As used in this section:
            ``(1) The term `foreign nation' shall mean a country that 
        has become a party to the United Nations Convention Against 
        Illicit Traffic in Narcotic Drugs and Psychotropic Substances 
        (hereafter `the United Nations Convention') or a foreign 
        jurisdiction with which the United States has a treaty or other 
        formal international agreement in effect providing for mutual 
        forfeiture assistance.
            ``(2) The term `value-based confiscation judgment' shall 
        mean a final order of a foreign nation compelling a defendant, 
        as a consequence of the defendant's criminal conviction for an 
        offense described in Article 3, Paragraph 1, of the United 
        Nations Convention, to pay a sum of money representing the 
        proceeds of such offense or property the value of which 
        corresponds to such proceeds.
    ``(b) Review by Attorney General.--A foreign nation seeking to have 
its value-based confiscation judgment registered and enforced by a 
United States district court under this section must first submit a 
request to the Attorney General or the Attorney General's designee. 
Such request shall include--
            ``(1) a summary of the facts of the case and a description 
        of the criminal proceeding which resulted in the value-based 
        confiscation judgment;
            ``(2) certified copies of the judgment of conviction and 
        value-based confiscation judgment;
            ``(3) an affidavit or sworn declaration establishing that 
        the defendant received notice of the proceedings in sufficient 
        time to enable the defendant to defend against the charges that 
        the value-based confiscation judgment rendered is in force and 
        is not subject to appeal;
            ``(4) an affidavit or sworn declaration that all reasonable 
        efforts have been undertaken to enforce the value-based 
        confiscation judgment against the defendant's property, if any, 
in the foreign country; and
            ``(5) such additional information and evidence as may be 
        required by the Attorney General or the Attorney General's 
        designee.
The Attorney General or the Attorney General's designee, in 
consultation with the Secretary of State or the Secretary of State's 
designee, shall determine whether to certify the request, and such 
decision shall be final and not subject to either judicial review or 
review under chapter 7 of title 5, United States Code.
    ``(c) Jurisdiction and Venue.--Where the Attorney General or the 
Attorney General's designee certifies a request under paragraph (b), 
the foreign nation may file a civil proceeding in United States 
district court seeking to enforce the foreign value-based confiscation 
judgment as if the judgment had been entered by a court in the United 
States. In such a proceeding, the foreign nation shall be the plaintiff 
and the person against whom the value-based confiscation judgment was 
entered shall be the defendant. Venue shall lie in the district court 
for the District of Columbia or in any other district in which the 
defendant or the property that may be the basis for satisfaction of a 
judgment under this section may be found. The United States district 
court shall have personal jurisdiction over a defendant residing 
outside of the United States if the defendant is served with process in 
accordance with Rule 4 of the Federal Rules of Civil Procedure.
    ``(d) Entry and Enforcement of Judgment.--The United States 
district court shall enter such orders as may be necessary to enforce 
the value-based confiscation judgment on behalf of the foreign nation 
where it finds that all of the following requirements have been met:
            ``(1) The value-based confiscation judgment was rendered 
        under a system which provides impartial tribunals or procedures 
        compatible with the requirements of due process of law.
            ``(2) The foreign court had personal jurisdiction over the 
        defendant.
            ``(3) The foreign court had jurisdiction over the subject 
        matter.
            ``(4) The defendant in the proceedings in the foreign court 
        received notice of the proceedings in sufficient time to enable 
        the defendant to defend.
            ``(5) The judgment was not obtained by fraud.
Process to enforce a judgment under this section will be in accordance 
with Rule 69(a) of the Federal Rules of Civil Procedure.
    ``(e) Finality of Foreign Findings.--Upon a finding by the United 
States district court that the conditions set forth in subsection (d) 
have been satisfied, the court shall be bound by the findings of facts 
insofar as they are stated in the foreign judgment of conviction and 
value-based confiscation judgment.
    ``(f) Currency Conversion.--Insofar as a value-based confiscation 
judgment requires the payment of a sum of money, the rate of exchange 
in effect at time when the suit to enforce is filed by the foreign 
nation shall be used in calculating the amount stated in the judgment 
submitted for registration.''.
    (b) Conforming Amendment.-- The table of sections for chapter 163, 
title 28, United States Code, is amended by inserting the following at 
the end:

``2466. Enforcement of foreign forfeiture judgment.''.

SEC. 11. 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. 2467. 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 if 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 date 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 table of sections for chapter 163 of 
title 28, United States Code, is amended by inserting the following at 
the end:

``2467. Foreign records.''.

SEC. 12. CONFORMING AMENDMENTS TO TITLE 28, TO RULES OF PROCEDURE, AND 
              TO THE CONTROLLED SUBSTANCES ACT.

    (a) In General.--Section 524(c) of title 28, United States Code, is 
amended--
            (1) by striking out ``law enforcement purposes--'' in the 
        matter preceding subparagraph (A) of paragraph (1) and 
        inserting ``purposes--'';
            (2) by striking out ``(H)'' in the first sentence after the 
        last subparagraph in paragraph (1) and in subparagraph (A) of 
        paragraph (8) and inserting ``(I)''; and
            (3) by striking the last subparagraph (I) in paragraph (1) 
        and inserting after and below subparagraph (I) the following: 
        ``After all reimbursements and program related expenses have 
        been met at the end of fiscal year 1989, the Attorney General 
        may transfer deposits from the Fund to the building and 
        facilities account of the Federal prison system for the 
        construction of correctional institutions.''.
    (b) In Rem Proceedings.--Paragraph (6) of Rule C of the 
Supplemental Rules for Certain Admiralty and Maritime Claims to the 
Federal Rules of Civil Procedure (28 U.S.C. Appendix) is amended by 
striking ``10 days'' and inserting ``20 days''.
    (c) Controlled Substances Act.--Section 518 and the item relating 
to section 518 in the table of contents of the Controlled Substances 
Act (21 U.S.C. 888) are repealed.

SEC. 13. INAPPLICABILITY OF THE CUSTOMS LAWS.

    (a) Title 18, United States Code.--Section 981(d) of title 18, 
United States Code, is amended by inserting after the first sentence 
the following: ``However, the cost bond provision of section 608 of the 
Tariff Act of 1930 (19 U.S.C. 1608) and the burden of proof provision 
of section 615 of the Tariff Act of 1930 (19 U.S.C. 1615) shall not 
apply to any forfeiture governed by the procedures set forth in this 
chapter.''.
    (b) Controlled Substances Act.--Section 511(d) of the Controlled 
Substances Act (21 U.S.C. 881(d)) is amended by inserting after the 
first sentence the following: ``However, the cost bond provision of 
section 608 of the Tariff Act of 1930 (19 U.S.C. 1608) and the burden 
of proof provision of section 615 of the Tariff Act of 1930 (19 U.S.C. 
1615) shall not apply to any forfeiture governed by the procedures set 
forth in chapter 46 of title 18, United States Code.''.
    (c) Libel in Admiralty.--Section 2461(b) of title 28, United States 
Code, is amended--
            (1) by striking ``may be enforced by libel in admiralty'' 
        and inserting ``may be enforced under the procedures set forth 
        in chapter 46 of title 18 and libel in admiralty if not in 
        conflict with such procedures, except that only the libel in 
        admiralty procedures shall apply to forfeitures under the 
        customs laws''; and
            (2) by striking ``may be enforced by a proceeding by libel 
        which shall conform as near as may be to proceedings in 
        admiralty'' and inserting ``may be enforced under the 
        procedures set forth in chapter 46 of title 18 and by a 
        proceeding by libel, if not in conflict with such procedures, 
        which shall conform as near as may be to proceedings in 
        admiralty, except that only such proceeding by libel shall 
        apply to forfeitures under the customs laws''.

SEC. 14. APPLICABILITY.

    (a) In General.--Unless otherwise specified in this Act, the 
amendments made by this Act apply to forfeiture proceedings commenced 
on or after the date of the enactment of this Act.
    (b) Administrative Forfeitures.--The amendments in this Act 
relating to seizures and administrative forfeitures shall apply to 
seizures and forfeitures occurring on or after the 60th day after the 
date of the enactment of this Act.
    (c) Civil Judicial Forfeitures.--The amendments in this Act 
relating to judicial procedures applicable once a civil forfeiture 
complaint is filed by the Government shall apply to all cases in which 
the forfeiture complaint is filed on or after the date of the enactment 
of this Act.
    (d) Substantive Law.--The amendments in this Act expanding 
substantive forfeiture law to make property subject to civil or 
criminal forfeiture which was not previously subject to civil or 
criminal forfeiture shall apply to offenses occurring after the date of 
the enactment of this Act.

SEC. 15. JURISDICTION AND VENUE IN FORFEITURE CASES.

    (a) Administrative Forfeitures.--Section 608 of the Tariff Act of 
1930 (19 U.S.C. 1608) is amended by striking ``to the United States 
Attorney for the district in which seizure was made'' and inserting 
``to the United States attorney for a district in which a forfeiture 
action could be filed pursuant to title 28, United States Code, section 
1355(b)''.
    (b) Judicial Forfeitures.--Section 610 of the Tariff Act of 1930 
(19 U.S.C. 1610) is amended by striking ``to the United States attorney 
for the district in which the seizure was made'' and inserting ``to the 
United States attorney for a district in which a forfeiture action 
could be filed pursuant to title 28, United States Code, Section 
1355(b)''.
    (c) Admiralty Rules.--The Supplemental Rules for Certain Admiralty 
and Maritime Claims are amended--
            (1) in Rule E(3), by inserting the following at the end of 
        paragraph (a): ``This provision shall not apply in forfeiture 
        cases governed by section 1355 of title 28 or any other statute 
        providing for service of process outside of the district.''; 
        and
            (2) in Rule C(2), by inserting the following after ``that 
        it is within the district or will be during the pendency of the 
        action.'': ``If the property is located outside of the 
        district, the complaint shall state the statutory basis for the 
        court's exercise of jurisdiction over the property''.

 SEC. 16. MINOR AND TECHNICAL AMENDMENTS RELATING TO 1992 FORFEITURE 
              AMENDMENTS.

    (a) Criminal Forfeiture.--Section 982(b) of title 18, United States 
Code, is amended in subsection (b)(2), by striking ``The substitution'' 
and inserting ``With respect to a forfeiture under subsection (a)(1), 
the substitution''.
    (b) Subpoenas for Bank Records.--Section 986(a) of title 18, United 
States Code, is amended by--
            (1) striking ``section 1956, 1957 or 1960 of this title, 
        section 5322 or 5324 of title 31, United States Code'' and 
        inserting ``section 981 of this title'';
            (2) striking ``after'' and inserting ``before or after''; 
        and
            (3) striking the last sentence.
    (c) Section 981(d) of title 18, United States Code, is amended by 
striking ``sale of this section'' and inserting ``sale of such 
property''.

 SEC. 17. DRUG PARAPHERNALIA TECHNICAL AMENDMENTS.

    (a) Section 511(a)(10) of the Controlled Substances Act (21 U.S.C. 
881(a)(10)) is amended by striking ``section 1822 of the Mail Order 
Drug Paraphernalia Control Act'' and inserting ``section 422''.
    (b) Section 422 of the Controlled Substances Act (21 U.S.C. 863) is 
amended--
            (1) by deleting subsection (c); and
            (2) by redesignating subsections (d), (e), and (f) to be 
        subsections (c), (d), and (e).

 SEC. 18. CERTIFICATE OF REASONABLE CAUSE.

    Section 2465 of title 28, United States Code, is amended--
            (1) by striking ``property seized'' and inserting 
        ``property seized or arrested'' and
            (2) by striking ``seizure'' each time it appears and 
        inserting ``seizure or arrest''.

 SEC. 19. AUTHORIZATION TO SHARE FORFEITED PROPERTY WITH COOPERATING 
              FOREIGN GOVERNMENTS.

    (a) In General.--Section 981(i)(1) of title 18, United States Code, 
is amended by striking ``this chapter'' and inserting ``any provision 
of Federal law''.
    (b) Conforming Amendment.--Section 511(e)(1) of the Controlled 
Substances Act (21 U.S.C. 881(e)(1) ) is amended by inserting ``or'' at 
the end of subparagraph (c), by striking ``; or'' at the end of 
subparagraph (D) and inserting a period, and by striking subparagraph 
(E).

SEC. 20. FORFEITURE OF PROPERTY USED TO FACILITATE FOREIGN DRUG CRIMES.

    Section 981(a)(1)(B) of title 18, United States Code, is amended by 
inserting ``, or any property used to facilitate such offense'' at the 
end before the period.

 SEC. 21. FORFEITURE OF PROCEEDS TRACEABLE TO FACILITATING PROPERTY IN 
              DRUG CASES.

    (a) Conveyances.--Section 511(a)(4) of the Controlled Substances 
Act (21 U.S.C. 881(a)(4)) is amended--
            (1) by inserting ``, and any property traceable to such 
        conveyances'' after ``property described in paragraph (1), (2), 
        or (9)'';
            (2) in subparagraph (A) by inserting ``, and no property 
        traceable to such conveyance,'' before ``shall be forfeited''; 
        and
            (3) in subparagraphs (B) and (C) by inserting ``and no 
        property traceable to such conveyance'' before ``shall be 
        forfeited''.
    (b) Real Property.--Section 511(a)(7) of the Controlled Substances 
Act (21 U.S.C. 881(a)(7)) is amended by inserting ``, and any property 
traceable to such property'' after ``one year's imprisonment''.
    (c) Negotiable Instruments and Securities.--Section 511(a)(6) of 
the Controlled Substances Act (21 U.S.C. 881(a)(6)) is amended by 
inserting ``, and any property traceable to such property'' after 
``this title'' the second time it appears.

 SEC. 22. FORFEITURE OF PROCEEDS OF CERTAIN FOREIGN CRIMES.

    Section 981(a)(1)(B) of title 18, United States Code, is amended 
by--
            (1) inserting ``(i)'' after ``against a foreign nation 
        involving''; and
            (2) inserting ``or (ii) any other conduct described in 
        section 1956(c)(7)(B),'' after ``(as such term is defined for 
        the purposes of the Controlled Substances Act)''.

 SEC. 23. CIVIL FORFEITURE OF COINS AND CURRENCY IN CONFISCATED 
              GAMBLING DEVICES.

    Section 7 of Public Law 81-906 (15 U.S.C. 1177) is amended--
            (1) by inserting ``Any coin or currency contained in any 
        gambling device at the time of its seizure pursuant to the 
        preceding sentence shall also be seized and forfeited to the 
        United States.'' after the first sentence; and
            (2) in the last sentence, by inserting ``, coins, or 
        currency'' after ``gambling devices''.

SEC. 24. CLARIFICATION OF JUDICIAL REVIEW OF FORFEITURE.

    Section 507 of the Controlled Substances Act (21 U.S.C. 877) is 
amended by adding at the end the following: ``This section does not 
apply to any findings, conclusions, rulings, decisions, or declarations 
of the Attorney General, or any designee of the Attorney General, 
relating to the seizure, forfeiture, or disposition of forfeited 
property brought under this subchapter.''.

SEC. 25. TECHNICAL AMENDMENTS RELATING TO OBLITERATED MOTOR VEHICLES 
              IDENTIFICATION NUMBERS.

    Section 512 of title 18, United States Code, is amended--
            (1) in subsection (b), by inserting ``and the provisions of 
        chapter 46 of this title relating to civil judicial 
        forfeitures'' before ``shall apply''; and
            (2) in subsection (a)(1), by striking ``does not know'' and 
        all that follows up to the semicolon and inserting ``is an 
        innocent owner as defined in section 983 of this title''.

SEC. 26. STATUTE OF LIMITATIONS FOR CIVIL FORFEITURE ACTIONS.

    Section 621 of the Tariff Act of 1930 (19 U.S.C. 1621) is amended 
by inserting ``, or in the case of forfeiture, within 2 years after the 
time when the involvement of the property in the alleged offense was 
discovered, whichever was later'' after ``within five years after the 
time when the alleged offense was discovered''.

SEC. 27. DESTRUCTION OR REMOVAL OF PROPERTY TO PREVENT SEIZURE.

    (a) Section 2232(a) of title 18, United States Code, is amended 
by--
            (1) inserting ``or Seizure'' after ``Physical Interference 
        With Search'';
            (2) inserting ``, including seizure for forfeiture,'' after 
        ``after seizure'';
            (3) striking ``searches and seizures'' after ``authorized 
        to make'' and inserting ``searches or seizures'';
            (4) striking ``or'' after ``wares,''; and
            (5) inserting ``, or other property, real or personal,'' 
        after ``merchandise.''
    (b) Section 2232(b) of title 18, United States Code, is amended 
by--
            (1) inserting ``or Seizure'' after ``Notice of Search'';
            (2) striking ``searches and seizures'' after ``authorized 
        to make'' and inserting ``searches or seizures'';
            (3) inserting ``, including seizure for forfeiture'' after 
        ``likely to make a search or seizure''; and
            (4) inserting ``real or personal,'' after ``merchandise or 
        other property,''.

SEC. 28. IN PERSONAM JUDGMENTS.

    Section 1963(l)(1) of title 18, United States Code, and section 
413(n)(1) of the Controlled Substances Act (21 U.S.C. 853(n)(1)) are 
each amended by adding the following sentence at the end: ``To the 
extent that the order of forfeiture includes only an in personam money 
judgment against the defendant, no proceeding under this subsection 
shall be necessary.''

 SEC. 29. UNIFORM PROCEDURES FOR CRIMINAL FORFEITURE.

    (a) In General.--Section 982(b)(1) of title 18, United States Code, 
is amended to read as follows:
    ``(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) Conforming Amendment.--The second paragraph (6) of section 
982(a), of title 18, United States Code, is amended by striking 
``(A)'', by redesignating clauses (i) and (ii) as subparagraphs (A) and 
(B), respectively, by redesignating subclauses (I) and (II) as clauses 
(i) and (ii), respectively, by striking out ``this subparagraph'' and 
inserting ``this subsection'', and by striking all of subparagraph (B).

 SEC. 30. AVAILABILITY OF CRIMINAL FORFEITURE.

    (a) In General.--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 but no specific statutory 
provision is made for criminal forfeiture upon conviction or the 
criminal forfeiture provisions contain no procedural provisions, the 
government may include the forfeiture in the indictment or information 
in accordance with the Federal Rules of Criminal Procedure and the 
procedures set forth in section 982 of title 18, United States Code, 
and upon conviction, the court shall order the forfeiture of the 
property.''.
    (b) 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. 31. DISCOVERY PROCEDURE FOR LOCATING FORFEITED ASSETS.

    (a) In General.--Section 1963(k) of title 18, United States Code, 
and section 413(m) of the Controlled Substances Act (21 U.S.C. 853(m)) 
are each amended by--
            (1) adding the following at the end before the period: ``to 
        the extent that the provisions of the Rule are consistent with 
        the purposes for which discovery is conducted under this 
        subsection''; and
            (2) adding the following additional sentence: ``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. 32. CRIMINAL FORFEITURE FOR MONEY LAUNDERING CONSPIRACIES.

    Section 982(a)(1) of title 18, United States Code, is amended by 
inserting ``, or a conspiracy to commit any such offense'' after ``of 
this title''.

 SEC. 33. CORRECTION TO CRIMINAL FORFEITURE PROVISION FOR ALIEN 
              SMUGGLING AND OTHER IMMIGRATION OFFENSES.

    Section 982(a) of title 18, United States Code, as amended by 
section 29(b) is amended--
            (1) by redesignating the second paragraph (6) as paragraph 
        (7);
            (2) by inserting ``sections 274(a), 274A(a)(1), or 
        274A(a)(2) of the Immigration and Nationality Act of 1952 (8 
        U.S.C. 1324(a), 1324A(a)(1), and 1324A(a)(2)),'' before 
        ``section 1425'' the first time it appears;
            (3) in subparagraph (A), by striking ``a violation of, or a 
        conspiracy to violate, subsection (a)'' and inserting ``the 
        offense of which the person is convicted''; and
            (4) in subparagraph (B)(i) and (ii), by striking ``a 
        violation of, or a conspiracy to violate, subsection (a)'' 
        through ``of this title'' and inserting ``the offense of which 
        the person is convicted''.

SEC. 34. REPATRIATION OF PROPERTY PLACED BEYOND THE JURISDICTION OF THE 
              COURT.

    (a) Order of Forfeiture.--Section 413(p) of the Controlled 
Substances Act (21 U.S.C. 853(p)) is amended by inserting the following 
at the end: ``In the case of property described in paragraph (3), the 
court may, in addition, order the defendant to return the property to 
the jurisdiction of the court so that it may be seized and 
forfeited.''.
    (b) Pre-Trial Restraining Order.--Section 413(e) of the Controlled 
Substances Act (21 U.S.C. 853(e)) is amended by adding the following 
after paragraph (3):
    ``(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. 35. 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)), is amended by--
            (1) inserting the following after the first sentence:
``All right, title and interest in property described in subsection (p) 
of this section vests in the United States at the time an indictment, 
information or bill of particulars specifically describing the property 
as substitute assets is filed.''; and
            (2) by striking ``Any such property that is subsequently 
        transferred to a person other than the defendant'' and 
        inserting ``Any property that is transferred to a person other 
        than the defendant after the United States' interest in the 
        property has vested pursuant to this subsection''.
    (b) Conforming Amendment.--Section 413(n)(6) of the Controlled 
Substances Act (21 U.S.C. 853(n)(6)) is amended by adding at the end 
the following sentence: ``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. 36. ARCHEOLOGICAL RESOURCES PROTECTION ACT.

    Section 8(b) of the Archeological 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. 37. FORFEITURE OF INSTRUMENTALITIES OF TERRORISM, TELEMARKETING 
              FRAUD, AND OTHER OFFENSES.

    (a) Civil Forfeiture.--Section 981(a)(1) of title 18, United States 
Code is amended by adding the following subparagraphs:
            ``(G)(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.
            ``(H) 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 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
                    ``(iii) 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 redesignating the second paragraph (6) as paragraph 
(7) and by adding at the end the following:
    ``(8)(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 sections 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.
    ``(9) 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 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
            ``(C) 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. 38. 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 chapter 46 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. 39. FORFEITURES OF PROCEEDS OF FEDERAL FOOD, DRUG, AND COSMETIC 
              ACT VIOLATIONS.

    Chapter III of the Federal Food, Drug, and Cosmetic Act is amended 
by adding at the end the following:

``civil forfeiture of proceeds of federal food, drug, and cosmetic act 
                               violations

    ``Sec. 311. (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.

 ``criminal forfeiture of proceeds of federal food, drug, and cosmetic 
                             act violations

    ``Sec. 312. (a) Any person convicted of a violation of, or a 
conspiracy to violate, a provision of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 301-395) shall forfeit to the United States, 
irrespective of any provision of State law, any property constituting, 
or derived from, any proceeds the person obtained, directly or 
indirectly, as the result of such violation. The court, in imposing 
sentence on such person, shall order that the person forfeit to the 
United States all property described in this subsection.
    ``(b) Property subject to forfeiture under this section, any 
seizure and disposition thereof, and any administrative or judicial 
proceeding in relation thereto, shall be governed by the provisions of 
section 413 of the Comprehensive Drug Abuse Prevention and Control Act 
of 1970 (21 U.S.C. 853), except for subsection 413(d) which shall not 
apply to forfeitures under this section.''.

 SEC. 40. 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. 41. 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. 42. COLLECTION OF CRIMINAL FORFEITURE JUDGMENT.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by redesignating subsection (q) as subsection (r) and by adding 
after subsection (p) the following:
    ``(q) 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. 43. CRIMINAL FORFEITURE OF PROPERTY IN GOVERNMENT CUSTODY.

    Section 413(f) of the Controlled Substances Act (21 U.S.C. 853(f)) 
is amended by adding the following at the end: ``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. 44. 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''.

SEC. 45. FORFEITURE FOR ODOMETER TAMPERING OFFENSES.

    (a) Criminal Forfeiture.--Section 982(a)(5) of title 18, United 
States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (D);
            (2) by inserting ``or'' after the semicolon at the end of 
        subparagraph (E);
            (3) by inserting the following after subparagraph (E), as 
        amended:
            ``(F) section 32703 of title 49, United States Code (motor 
        vehicle odometer tampering);''; and
            (4) by adding the following after the last period: ``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.''

 SEC. 46. PRE-TRIAL RESTRAINT OF SUBSTITUTE ASSETS.

    Section 413(e)(1) of the Controlled Substances Act (21 U.S.C. 
853(e)(1)) is amended--
            (1) by striking ``(a)'' and inserting ``(a) or (p)''; and
            (2) by adding at the end the following:
``To the extent that property forfeitable only pursuant to subsection 
(p) is restrained under this paragraph, the court shall afford the 
defendant a prompt post-restraint hearing and shall exempt from such 
restraint such property as may reasonably be needed by the defendant to 
pay attorney's fees, other necessary cost-of-living expenses, and 
expenses of maintaining restrained assets pending the entry of judgment 
in the criminal case.''.

SEC. 47. HEARINGS ON PRE-TRIAL RESTRAINING ORDERS; ASSETS NEEDED TO PAY 
              ATTORNEY'S FEES.

    Section 413(e) of the Controlled Substances Act (21 U.S.C. 853(e)) 
is amended by adding the following new paragraph:
            ``(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) 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.''.
                                 <all>