I

104TH CONGRESS

1ST SESSION H. R. 320

To amend title 18, United States Code, to provide civil and criminal

forfeitures for certain offenses.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. MCCOLLUM introduced the following bill; which was referred to the

Committee on the Judiciary

A BILL

To amend title 18, United States Code, to provide civil

and criminal forfeitures for certain offenses.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Asset Forfeiture Act

5 of 1995’’.

6 SEC. 2. CHAPTER 63 AMENDMENTS.

7 (a) IN GENERAL.—Chapter 63 of title 18, United

8 States Code, is amended by adding at the end the follow9 ing:
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1 ‘‘§ 1347. Criminal forfeiture

2 ‘‘(a) IN GENERAL.—A person convicted of a violation

3 of section 1341 or 1343 of this title shall, notwithstanding

4 any provision of State law, forfeit to the United States

5 any property constituting or derived from any proceeds

6 which the person obtained directly or indirectly from a

7 scheme in violation of either of such sections.

8 ‘‘(b) PROCEDURES OF CONTROLLED SUBSTANCES

9 ACT APPLICABLE.—With respect to a forfeiture under

10 this section for a violation of this chapter, the provisions

11 of subsections (b), (c), (e), (f), (g), (i), (k), (l), (m), (n),

12 and (o) of section 413 of the Controlled Substances Act

13 apply as they would to a forfeiture under that section for

14 a violation of the Controlled Substances Act.

15 ‘‘(c) DISPOSITION OF PROPERTY.—After a seizure of

16 property ordered forfeited under this section, the Attorney

17 General shall dispose of the property under section 1349

18 of this title. The Postal Service shall turn any such seized

19 property over to the Attorney General for disposal under

20 such section.

21 ‘‘(d) SUBSTITUTE ASSETS.—If any of the property

22 subject to forfeiture under this section, as a result of con23 duct of the defendant—

24 ‘‘(1) cannot be located upon the exercise of due

25 diligence;
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1 ‘‘(2) has been transferred or sold to, or depos2 ited with, a third party;

3 ‘‘(3) has been placed beyond the jurisdiction of

4 the court;

5 ‘‘(4) has been substantially diminished in value;

6 or

7 ‘‘(5) has been commingled with other property

8 which cannot be divided without difficulty;

9 the court shall order the forfeiture of any other property

10 of the defendant up to the value of any property described

11 in paragraphs (1) through (5) of this subsection.

12 ‘‘§ 1348. Civil forfeiture

13 ‘‘(a) PROPERTY SUBJECT TO CIVIL FORFEITURE.—

14 Any property, as defined by subsection (b) of section 413

15 of the Controlled Substances Act, constituting or derived

16 from any proceeds of a scheme in violation of section 1341

17 or 1343 of this title shall be subject to forfeiture to the

18 United States.

19 ‘‘(b) SEIZURE.—(1) Except as provided in paragraph

20 (2), any property subject to forfeiture to the United States

21 under this section may be seized by the Attorney General

22 or the Postal Service upon process issued pursuant to the

23 Supplemental Rules for Certain Admiralty and Maritime

24 Claims by any district court of the United States having

25 jurisdiction over the property.
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1 ‘‘(2) The Attorney General or the Postal Service may

2 seize such property without such process when—

3 ‘‘(A) the seizure is incident to a lawful arrest

4 or search; or

5 ‘‘(B) such property has been the subject of a

6 prior judgment in favor of the United States in a

7 criminal injunction or forfeiture proceeding under

8 section 1347 of this title.

9 ‘‘(3) The Government may seek the issuance of a

10 warrant authorizing the seizure of property subject to for11 feiture under this section in the same manner as provided

12 for a search warrant under the Federal Rules of Criminal

13 Procedure.

14 ‘‘(c) PROCEDURAL MATTERS.—(1) With respect to a

15 forfeiture of property under this section, the provisions of

16 subsections (c), (d), (h), and (j) of section 511 of the Con17 trolled Substances Act apply as they would to a forfeiture

18 of property under that section, and the Postal Service may

19 also perform any of the functions the Attorney General

20 may perform under such subsections.

21 ‘‘(2) The filing of an indictment or information alleg22 ing a violation of section 1341 or 1343 of this title which

23 is also related to a civil forfeiture proceeding under either

24 section shall, upon motion of the United States and for

25 good cause shown, stay the civil forfeiture proceeding.
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1 ‘‘(d) DISPOSITION OF PROPERTY.—After a seizure of

2 property ordered forfeited under this section, the Attorney

3 General or the Postal Service shall dispose of the property

4 under section 1349 of this title.

5 ‘‘§ 1349. Disposition of forfeited property

6 ‘‘(a) IN GENERAL.—After making due provision for

7 the rights of any innocent persons, the Attorney General,

8 after deducting the costs incurred by the United States

9 in conducting the seizure, forfeiture, and identification of

10 victims, shall deposit the property forfeited or the proceeds

11 from the sale of property forfeited under section 1347 or

12 1348 of this title in the Department of Justice Assets For13 feiture Fund established by section 524(c) of title 28. The

14 Postal Service may exercise the authority of the Attorney

15 General in conducting administrative forfeitures and shall

16 deposit the property forfeited or the proceeds of the prop17 erty forfeited in the Postal Service Fund under section

18 2003(b)(7) of title 39. Any property right or interest not

19 exercisable by, or transferable for value to, the United

20 States shall expire and shall not revert to the defendant.

21 Neither the defendant nor any person acting in concert

22 with the defendant or on the defendant’s behalf is eligible

23 to purchase forfeited property sold by the United States.

24 ‘‘(b) RESTRAINT PENDING APPEAL.—Upon applica25 tion of a person other than the defendant or a person act-
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1 ing in concert with the defendant or on the defendant’s

2 behalf, the court may restrain or stay the sale or disposi3 tion of the property pending the conclusion of any appeal

4 in the case giving rise to the forfeiture, if the applicant

5 demonstrates that proceeding with the sale or disposition

6 will result in irreparable harm to the applicant.

7 ‘‘(c) RULES FOR DISPOSITION.—The Attorney Gen8 eral and the Postal Service shall make rules providing for

9 the disposition of such property and proceeds. Such rules

10 shall provide that the Attorney General or the Postal Serv11 ice may—

12 ‘‘(1) retain the property for official use;

13 ‘‘(2) transfer the property to Federal, State, or

14 local law enforcement agencies so as to reflect gen15 erally the contribution of such agencies to the sei16 zure or forfeiture of such property;

17 ‘‘(3) sell any forfeited property which is not re18 quired to be destroyed by law and which is not

19 harmful to the public;

20 ‘‘(4) require that the General Services Adminis21 tration take custody of the property and dispose of

22 it in accordance with law;

23 ‘‘(5) restore forfeited property to victims of an

24 offense described in subsection (a);
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1 ‘‘(6) destroy the property if it is harmful to the

2 public or the expense of sale would exceed the

3 amount realized from the sale; or

4 ‘‘(7) dispose of such funds or property as other5 wise provided by law.’’.

6 (b) CLERICAL AMENDMENT.—The table of sections

7 at the beginning of chapter 63 of title 18, United States

8 Code, is amended by adding at the end the following new

9 items:

‘‘1347. Criminal forfeiture.

‘‘1348. Civil forfeiture.

‘‘1349. Disposition of forfeited property.’’.

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