Title: Disposition of Liens & Forfeited Property

Summary: Removes option of seizing agency to retain or profit from certain seized property; authorizes seizing agency to salvage, trade, or transfer property to certain governmental entities; authorizes seizing agency to purchase or bid on certain seized property offered for sale or auction; deletes provisions governing distribution of proceeds & use of property seized by local governmental agencies; requires governing body of municipality to expend or donate certain amounts of seized property to specified programs; provides requirements for application and approval of such donations; eliminates authority of law enforcement agencies to make determinations regarding funding of programs; eliminates exceptions for certain agencies relating to deposit of proceeds from seizures.

Full Text:
An act relating to the disposition of liens and forfeited property; amending s. 932.7055, F.S.; removing the option of a seizing agency to retain seized property for the agency's use; removing the option of a seizing agency to salvage, trade, or transfer property to a public or nonprofit organization; authorizing a seizing agency to salvage, trade, or transfer property to certain state or local governmental entities; authorizing a seizing agency to purchase or bid on certain seized property offered for sale or auction; deleting an obsolete provision; deleting provisions governing the distribution of proceeds from the sale of forfeited property and the purposes for which the proceeds may be used; deleting provisions governing the distribution and use of property seized by local governmental agencies; requiring the county commission or governing body of a municipality to expend or donate at least percent of proceeds in excess of $15,000 from the sale or auction of seized property to specified institutions or programs; adding support for public libraries to the list of permissible uses for forfeiture proceeds; requiring that funding requests be made in writing and include a certification that the expenditure meets certain requirements; specifying that such req uests HB 1125 2015 are public records and that they must be considered at a public meeting; authorizing the county commission or governing body to consult with the local law enforcement agency in determining whether to approve requests; eliminating the authority of law enforcement agencies to make determinations regarding the funding of programs; eliminating exceptions for certain agencies of the state relating to the deposit of proceeds from seizures; conforming a provision to changes made by the act; amending s. 895.0 9, F.S.; conforming provisions; reenacting ss. 322.34(9)(c), 381.0081(5)(b), and 932.703(6)(b), F.S., relating to the disposition of proceeds when the seizing agency obtains a final judgment granting forfeiture of a motor vehicle, the specified use of proc eeds involved in a seizure, and the preservation of a certain interest by the court, respectively, to incorporate the amendments made to s. 932.7055, F.S., in a reference thereto; providing an effective date. Be It Enacted by the Legislature of the St ate of Florida: Section 1. Section 932.7055, Florida Statutes, is amended to read: 932.7055 Disposition of liens and forfeited property.-(1) When a seizing agency obtains a final judgment HB 1125 2015 granting forfeiture of real property or personal property, it may elect to: (a) Retain the property for the agency's use; (a)(b) Sell the property at public auction or by sealed bid to the highest bidder, except for real property,which must should be sold in a commercially reasonable manner after appraisal by listing on the market; or (b)(c) Salvage, trade, or transfer the property to:1. The county commission, if the seizing agency is a county agency; 2. The governing body of the municipality, if the seizing agency is a municipal agency; or 3. The Di vision of Management Services, if the seizing agency is a state agency any public or nonprofit organization.(2) Notwithstanding subsection (1), a seizing agency must destroy any image and the medium on which the image is recorded, including, but not lim ited to, a photograph, video tape, diskette, compact disc, or fixed disk made in violation of s. 810.145 when the image and the medium on which it is recorded is no longer needed for an official purpose. The agency may not sell or retain any image. (3) If the forfeited property is subject to a lien preserved by the court as provided in s. 932.703(6)(b), the agency shall: (a) Sell the property with the proceeds being used towards satisfaction of any liens; or HB 1125 2015 (b) Have the lien satisfied prior to taking any action authorized by subsection (1). (4) The proceeds from the sale of forfeited property shall be disbursed in the following priority: (a) Payment of the balance due on any lien preserved by the court in the forfeiture proceedings. (b) Payment of the cost incurred by the seizing agency in connection with the storage, maintenance, security, and forfeiture of such property. (c) Payment of court costs incurred in the forfeiture proceeding. (d) Notwithstanding any other provision of this subsection, and for the 2014-2015 fiscal year only, the funds in a special law enforcement trust fund established by the governing body of a municipality may be expended to reimburse the general fund of the municipality for moneys advanced from the general fund to the special law enforcement trust fund before October 1, 2001. This paragraph expires July 1, 2015. (5)(a) If the seizing agency is a county or municipal agency, the remaining proceeds shall be retained deposited in a special law enforcement tru st fund established by the board of county commissioners or the governing body of the municipality. Such proceeds and interest earned therefrom shall be used for school resource officer, crime prevention, safe neighborhood, drug abuse education and prevent ion programs, or for other law enforcement purposes, which include defraying the cost of HB 1125 2015 protracted or complex investigations, providing additional equipment or expertise, purchasing automated external defibrillators for use in law enforcement vehicles, an dproviding matching funds to obtain federal grants. The proceeds and interest may not be used to meet normal operating expenses of the law enforcement agency. (b) These funds may be expended upon request by the sheriff to the board of county commissione rs or by the chief of police to the governing body of the municipality, accompanied by a written certification that the request complies with the provisions of this subsection, and only upon appropriation to the sheriff's office or police department by the board of county commissioners or the governing body of the municipality. (c) An agency or organization, other than the seizing agency, that wishes to receive such funds shall apply to the sheriff or chief of police for an appropriation and its applicati on shall be accompanied by a written certification that the moneys will be used for an authorized purpose. Such requests for expenditures shall include a statement describing anticipated recurring costs for the agency for subsequent fiscal years. An agency or organization that receives money pursuant to this subsection shall provide an accounting for such moneys and shall furnish the same reports as an agency of the county or municipality that receives public funds. Such funds may be expended in accordance with the following procedures: 1. Such funds may be used only for school resource HB 1125 2015 officer, crime prevention, safe neighborhood, drug abuse education, or drug prevention programs or such other law enforcement purposes as the board of county commissioners or governing body of the municipality deems appropriate. 2. Such funds shall not be a source of revenue to meet normal operating needs of the law enforcement agency. (b)3. Each After July 1, 1992, and During every fiscal year, the county commission or municipal governing body shall thereafter, any local law enforcement agency that acquires at least $15,000 pursuant to the Florida Contraband Forfeiture Act within a fiscal year must expend or donate at least no less than percent of such proceeds in excess of $15,000 pursuant to the Florida Contraband Forfeiture Act for the support or operation of public libraries or any drug treatment, drug abuse education, drug prevention, crime prevention, safe neighborhood, or school resource officer programs program(s). 1. Funding requests by such institutions or programs must be made in writing, must detail how the funds will be used, and must certify that the expenditure meets the requirements of this paragraph. Such requests are public records as defined in chapter 119. 2. Funding requests shall be considered at a publicly noticed, official meeting of the county commission or governing body, as appropriate, which shall be open to the public and shall accept public comment. 3. The county commission or gover ning body, as HB 1125 2015 appropriate, may consult with local law enforcement agencies before making a final determination on funding requests The local law enforcement agency has the discretion to determine which program(s) will receive the designated proceeds.Notwithstanding the drug abuse education, drug treatment, drug prevention, crime prevention, safe neighborhood, or school resource officer minimum expenditures or donations, the sheriff and The board of county commissioners or the chief of police and the governing body,as appropriate, of the municipality may agree to expend or donate such funds over a period of years if the expenditure or donation of the such minimum amount in any given fiscal year would exceed the related needs of the county or municipali ty for such program(s).Nothing in this section precludes the expenditure or donation of forfeiture proceeds in excess of the required minimum amounts established herein.(6) If the seizing agency is a state agency, all remaining proceeds shall be deposi ted into the General Revenue Fund. However, if the seizing agency is: (a) The Department of Law Enforcement, the proceeds accrued pursuant to the provisions of the Florida Contraband Forfeiture Act shall be deposited into the Forfeiture and Investigative Support Trust Fund as provided in s. 943.362 or into the department's Federal Law Enforcement Trust Fund as provided in s. 943.365, as applicable. (b) The Division of Alcoholic Beverages and Tobacco, the HB 1125 2015 proceeds accrued pursuant to the Florida Contraba nd Forfeiture Act shall be deposited into the Alcoholic Beverage and Tobacco Trust Fund or into the department's Federal Law Enforcement Trust Fund as provided in s. 561.027, as applicable. (c) The Department of Highway Safety and Motor Vehicles, the proceeds accrued pursuant to the Florida Contraband Forfeiture Act shall be deposited into the Department of Highway Safety and Motor Vehicles Law Enforcement Trust Fund as provided in s. 932.705(1)(a) or into the department's Federal Law Enforcement Trust Fu nd as provided in s. 932.705(1)(b), as applicable. (d) The Fish and Wildlife Conservation Commission, the proceeds accrued pursuant to the provisions of the Florida Contraband Forfeiture Act shall be deposited into the State Game Trust Fund as provided i nss. 379.338, 379.339, and 379.3395 or into the Marine Resources Conservation Trust Fund as provided in s. 379.337. (e) A state attorney's office acting within its judicial circuit, the proceeds accrued pursuant to the provisions of the Florida Contraba nd Forfeiture Act shall be deposited into the State Attorney's Forfeiture and Investigative Support Trust Fund to be used for the investigation of crime and prosecution of criminals within the judicial circuit. (f) A school board security agency employin glaw enforcement officers, the proceeds accrued pursuant to the provisions of the Florida Contraband Forfeiture Act shall be HB 1125 2015 deposited into the School Board Law Enforcement Trust Fund. (g) One of the State University System police departments acting wit hin the jurisdiction of its employing state university, the proceeds accrued pursuant to the provisions of the Florida Contraband Forfeiture Act shall be deposited into that state university's special law enforcement trust fund. (h) The Department of Agr iculture and Consumer Services, the proceeds accrued pursuant to the Florida Contraband Forfeiture Act shall be deposited into the General Inspection Trust Fund or into the department's Federal Law Enforcement Trust Fund as provided in s. 570.205, as appli cable. (i) The Department of Military Affairs, the proceeds accrued from federal forfeiture sharing pursuant to U.S.C. ss. 881(e)(1)(A) and (3), U.S.C. s. 981(e)(2), and U.S.C. s. 1616a shall be deposited into the Armory Board Trust Fund and used for purposes authorized by such federal provisions based on the department's budgetary authority or into the department's Federal Law Enforcement Trust Fund as provided in s. 250.175, as applicable. (j) The Medicaid Fraud Control Unit of the Department of Legal Affairs, the proceeds accrued pursuant to the provisions of the Florida Contraband Forfeiture Act shall be deposited into the Department of Legal Affairs Grants and Donations Trust Fund to be used for investigation and prosecution of Medicaid fra ud, abuse, neglect, and other related cases by the Medicaid Fraud Control Unit. HB 1125 2015 (k) The Division of State Fire Marshal in the Department of Financial Services, the proceeds accrued under the Florida Contraband Forfeiture Act shall be deposited into the I nsurance Regulatory Trust Fund to be used for the purposes of arson suppression, arson investigation, and the funding of anti-arson rewards. (l) The Division of Insurance Fraud of the Department of Financial Services, the proceeds accrued pursuant to the provisions of the Florida Contraband Forfeiture Act shall be deposited into the Insurance Regulatory Trust Fund as provided in s. 626.9893 or into the Department of Financial Services' Federal Law Enforcement Trust Fund as provided in s. 17.43, as applicable. (7) If more than one law enforcement agency is acting substantially to effect the forfeiture, the court having jurisdiction over the forfeiture proceedings shall, upon motion, equitably distribute all proceeds and other property among the seizing ag encies. (7)(8) Upon the sale of any motor vehicle, vessel, aircraft, real property, or other property requiring a title, the appropriate agency shall issue a title certificate to the purchaser. Upon the request of any law enforcement agency which elects to retain titled property after forfeiture, the appropriate state agency shall issue a title certificate for such property to said law enforcement agency. (8)(9) A Neither the law enforcement agency,or nor the HB 1125 2015 entity having budgetary control over the la wenforcement agency,may not shall anticipate future forfeitures or the proceeds from those forfeitures therefrom in the adoption and approval of the agency's budget for the law enforcement agency.Section 2. Paragraph (c) of subsection (2) of section 895.09, Florida Statutes, is amended to read: 895.09 Disposition of funds obtained through forfeiture proceedings.-(2) (c) Any funds to be distributed to an investigating law enforcement agency under paragraph (a) shall be deposited into the General Revenue Fund in the applicable law enforcement trust fund established for that agency pursuant to s. 932.7055 and expended for the purposes and in the manner authorized in that section. In addition, any funds distributed to an investigating law enforcement agency pursuant to this section may be used to pay the costs of investigations of violations of this chapter and the criminal prosecutions and civil actions related thereto, pursuant to s. 932.7055. Such costs may include all taxable costs; costs of protecting, maintaining, and forfeiting the property; employees' base salaries and compensation for overtime; and such other costs directly attributa ble to the investigation, prosecution, or civil action. Section 3. For the purpose of incorporating the amendment made by this act to section 932.7055, Florida Statutes, in a reference thereto, paragraph (c) of subsection (9) of section HB 1125 2015 322.34, Florida Statutes, is reenacted to read: 322.34 Driving while license suspended, revoked, canceled, or disqualified.-(9) (c) Notwithstanding s. 932.703(1)(c) or s. 932.7055, when the seizing agency obtains a final judgment granting forfeiture of the motor ve hicle under this section, percent of the net proceeds from the sale of the motor vehicle shall be retained by the seizing law enforcement agency and percent shall be deposited in the General Revenue Fund for use by regional workforce boards in provid ing transportation services for participants of the welfare transition program. In a forfeiture proceeding under this section, the court may consider the extent that the family of the owner has other public or private means of transportation. Section 4. For the purpose of incorporating the amendment made by this act to section 932.7055, Florida Statutes, in a reference thereto, paragraph (b) of subsection (5) of section 381.0081, Florida Statutes, is reenacted to read: 381.0081 Permit required to oper ate a migrant labor camp or residential migrant housing; penalties for unlawful establishment or operation; allocation of proceeds.-(5) SEIZURE.-(b) After satisfying any liens on the property, the remaining proceeds from the sale of the property seiz ed under this section shall be allocated as follows if the department HB 1125 2015 participated in the inspection or investigation leading to seizure and forfeiture under this section: 1. One-third of the proceeds shall be allocated to the law enforcement agency invo lved in the seizure, to be used as provided in s. 932.7055. 2. One-third of the proceeds shall be allocated to the department, to be used for purposes of enforcing the provisions of this section. 3. One-third of the proceeds shall be deposited in the State Apartment Incentive Loan Fund, to be used for the purpose of providing funds to sponsors who provide housing for farmworkers. Section 5. For the purpose of incorporating the amendment made by this act to section 932.7055, Florida Statutes, in a reference thereto, paragraph (b) of subsection (6) of section 932.703, Florida Statutes, is reenacted to read: 932.703 Forfeiture of contraband article; exceptions.-(6) (b) A bona fide lienholder's interest that has been perfected in the manner prescri bed by law prior to the seizure may not be forfeited under the Florida Contraband Forfeiture Act unless the seizing agency establishes by a preponderance of the evidence that the lienholder had actual knowledge, at the time the lien was made, that the prop erty was being employed or was likely to be employed in criminal activity. If a lienholder's interest is not subject to forfeiture under the requirements of HB 1125 2015 this section, such interest shall be preserved by the court by ordering the lienholder's interest to be paid as provided in s. 932.7055. Section 6. This act shall take effect July 1, 2015.