I 

114TH CONGRESS 

1ST SESSION H. R. 540 

To restore the integrity of the Fifth Amendment to the Constitution of 

the United States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 27, 2015 

Mr. WALBERG (for himself, Mr. CA ́RDENAS, Mr. ELLISON, Mr. GARRETT, and 

Mr. MCCLINTOCK) introduced the following bill; which was referred to the 

Committee on the Judiciary, and in addition to the Committees on Energy and Commerce, Ways and Means, and Financial Services, 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 restore the integrity of the Fifth Amendment to the 

Constitution of the United States, and for other purposes. 

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 ‘‘Fifth Amendment In5 tegrity Restoration Act of 2015’’ or the ‘‘FAIR Act’’. 

6 SEC. 2. CIVIL FORFEITURE PROCEEDINGS. 

7 Section 983 of title 18, United States Code, is 

8 amended— 


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1 (1) in subsection (b)(2)(A)— 

2 (A) by striking ‘‘, and the property subject 

3 to forfeiture is real property that is being used 

4 by the person as a primary residence,’’; and 

5 (B) by striking ‘‘, at the request of the 

6 person, shall insure’’ and insert ‘‘shall ensure’’; 

7 (2) in subsection (c)— 

8 (A) in paragraph (1), by striking ‘‘a pre9 ponderance of the evidence’’ and inserting 

10 ‘‘clear and convincing evidence’’; 

11 (B) in paragraph (2), by striking ‘‘a pre12 ponderance of the evidence’’ and inserting 

13 ‘‘clear and convincing evidence’’; and 

14 (C) by striking paragraph (3) and insert15 ing the following: 

16 ‘‘(3) if the Government’s theory of forfeiture is 

17 that the property was used to commit or facilitate 

18 the commission of a criminal offense, or was in19 volved in the commission of a criminal offense, the 

20 Government shall establish, by clear and convincing 

21 evidence, that— 

22 ‘‘(A) there was a substantial connection 

23 between the property and the offense; and 

24 ‘‘(B) the owner of any interest in the 

25 seized property— 


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1 ‘‘(i) used the property with intent to 

2 facilitate the offense; or 

3 ‘‘(ii) knowingly consented or was will4 fully blind to the use of the property by 

5 another in connection with the offense.’’; 

6 and 

7 (3) in subsection (d)(2)(A), by striking ‘‘an 

8 owner who’’ and all that follows through ‘‘upon 

9 learning’’ and inserting ‘‘an owner who, upon learn10 ing’’. 

11 SEC. 3. DISPOSITION OF FORFEITED PROPERTY. 

12 (a) REVISIONS TO CONTROLLED SUBSTANCES

13 ACT.—Section 511(e) of the Controlled Substances Act 

14 (21 U.S.C. 881(e)) is amended— 

15 (1) in paragraph (1)— 

16 (A) in the matter preceding subparagraph 

17 (A), by striking ‘‘civilly or’’; 

18 (B) by striking subparagraph (A); and 

19 (C) by redesignating subparagraphs (B) 

20 through (E) as subparagraphs (A) through (D), 

21 respectively; 

22 (2) in paragraph (2)— 

23 (A) in subparagraph (A), in the matter 

24 preceding clause (i), by striking ‘‘subparagraph 


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1 (B) of paragraph (1)’’ and inserting ‘‘para2 graph (1)(A)’’; and 

3 (B) in subparagraph (B), by striking ‘‘ac4 cordance with section 524(c) of title 28,’’ and 

5 inserting ‘‘the General Fund of the Treasury of 

6 the United States’’; 

7 (3) by striking paragraph (3); 

8 (4) by redesignating paragraph (4) as para9 graph (3); and 

10 (5) in paragraph (3), as redesignated— 

11 (A) in subparagraph (A), by striking 

12 ‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph 

13 (1)(A)’’; and 

14 (B) in subparagraph (B), in the matter 

15 preceding clause (i), by striking ‘‘paragraph 

16 (1)(B) that is civilly or’’ and inserting para17 graph ‘‘(1)(A) that is’’. 

18 (b) REVISIONS TO TITLE 18.—Chapter 46 of title 18, 

19 United States Code, is amended— 

20 (1) in section 981(e)— 

21 (A) by striking ‘‘is authorized’’ and all that 

22 follows through ‘‘or forfeiture of the property;’’ 

23 and inserting ‘‘shall forward to the Treasurer of 

24 the United States any proceeds of property for25 feited pursuant to this section for deposit in the 


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1 General Fund of the Treasury or transfer such 

2 property on such terms and conditions as such 

3 officer may determine—’’; 

4 (B) by redesignating paragraphs (3), (4), 

5 (5), (6), and (7) as paragraphs (1), (2), (3), 

6 (4), and (5), respectively; and 

7 (C) in the matter following paragraph (5), 

8 as so redesignated— 

9 (i) by striking the first, second, third, 

10 sixth, and eighth sentences; and 

11 (ii) by striking ‘‘paragraphs (3), (4), 

12 and (5)’’ and inserting ‘‘paragraphs (1), 

13 (2), and (3)’’; and 

14 (2) in section 983(g)— 

15 (A) in paragraph (3), by striking ‘‘gross16 ly’’; and 

17 (B) in paragraph (4), by striking ‘‘gross18 ly’’. 

19 (c) TARIFF ACT OF 1930.—The Tariff Act of 1930 

20 (19 U.S.C. 1304 et seq.) is amended— 

21 (1) in section 613A(a) (19 U.S.C. 1613b(a))— 

22 (A) in paragraph (1)— 

23 (i) in subparagraph (D), by inserting 

24 ‘‘and’’ after the semicolon; 


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1 (ii) in subparagraph (E), by striking 

2 ‘‘; and’’ and inserting a period; and 

3 (iii) by striking subparagraph (F); 

4 and 

5 (B) in paragraph (2)— 

6 (i) by striking ‘‘(A) Any payment’’ 

7 and inserting ‘‘Any payment’’; and 

8 (ii) by striking subparagraph (B); and 

9 (2) in section 616 (19 U.S.C. 1616a)— 

10 (A) in the section heading, by striking 

11 ‘‘TRANSFER OF FORFEITED PROPERTY’’ 

12 and inserting ‘‘DISMISSAL IN FAVOR OF

13 FORFEITURE UNDER STATE LAW’’; 

14 (B) in subsection (a), by striking ‘‘(a) The 

15 Secretary’’ and inserting ‘‘The Secretary’’; and 

16 (C) by striking subsections (b) through 

17 (d). 

18 (d) TITLE 31.—Section 9703 of title 31, United 

19 States Code, is amended— 

20 (1) in subsection (a)(1)— 

21 (A) by striking subparagraph (G); and 

22 (B) by redesignating subparagraphs (H) 

23 through (J) as subparagraphs (G) through (I), 

24 respectively; and 

25 (2) in subsection (b)— 


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1 (A) by striking paragraphs (2) and (4); 

2 and 

3 (B) by redesignating paragraphs (3) and 

4 (5) as paragraphs (2) and (3), respectively. 

5 SEC. 4. DEPARTMENT OF JUSTICE ASSETS FORFEITURE 

6 FUND DEPOSITS. 

7 Section 524(c)(4) of title 28, United States Code, is 

8 amended— 

9 (1) by striking subparagraphs (A) and (B); and 

10 (2) by redesignating subparagraphs (C) and 

11 (D) as subparagraphs (A) and (B), respectively. 

12 SEC. 5. STRUCTURING TRANSACTIONS TO EVADE REPORT13 ING REQUIREMENT PROHIBITED. 

14 (a) AMENDMENTS TO TITLE 31.—Section 5324 of 

15 title 31, United States Code, is amended— 

16 (1) in subsection (a)— 

17 (A) in the matter preceding paragraph (1), 

18 by inserting ‘‘knowingly’’ after ‘‘Public Law 

19 91–508’’; and 

20 (B) in paragraph (3), by inserting ‘‘of 

21 funds not derived from a legitimate source’’ 

22 after ‘‘any transaction’’; 

23 (2) in subsection (b), in the matter preceding 

24 paragraph (1), by inserting ‘‘knowingly’’ after ‘‘such 

25 section’’; and 


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1 (3) in subsection (c), in the matter preceding 

2 paragraph (1), by inserting ‘‘knowingly’’ after ‘‘sec3 tion 5316’’. 

4 (b) PROBABLE CAUSE HEARING IN CONNECTION

5 WITH PROPERTY SEIZURES RELATING TO CERTAIN MON6 ETARY INSTRUMENTS TRANSACTIONS.— 

7 (1) AMENDMENT.—Section 5317 of title 31, 

8 United States Code, is amended by adding at the 

9 end the following: 

10 ‘‘(d) PROBABLE CAUSE HEARING IN CONNECTION

11 WITH PROPERTY SEIZURES RELATING TO CERTAIN MON12 ETARY INSTRUMENTS TRANSACTIONS.— 

13 ‘‘(1) IN GENERAL.—Not later than 14 days 

14 after the date on which notice is provided under 

15 paragraph (2)— 

16 ‘‘(A) a court of competent jurisdiction shall 

17 conduct a hearing on any property seized or re18 strained under subsection (c)(2) with respect to 

19 an alleged violation of section 5324; and 

20 ‘‘(B) any property described in subpara21 graph (A) shall be returned unless the court 

22 finds that there is probable cause to believe that 

23 there is a violation of section 5324 involving the 

24 property. 


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1 ‘‘(2) NOTICE.—Each person from whom prop2 erty is seized or restrained under subsection (c)(2) 

3 with respect to an alleged violation of section 5324 

4 shall be notified of the right of the person to a hear5 ing under paragraph (1).’’. 

6 (2) APPLICABILITY.—The amendment made by 

7 paragraph (1) shall apply to property seized or re8 strained after the date of enactment of this Act. 

9 SEC. 6. PROPORTIONALITY. 

10 Section 983(g)(2) of title 18, United States Code, is 

11 amended to read as follows: 

12 ‘‘(2) In making this determination, the court 

13 shall consider such factors as— 

14 ‘‘(A) the seriousness of the offense; 

15 ‘‘(B) the extent of the nexus of the prop16 erty to the offense; 

17 ‘‘(C) the range of sentences available for 

18 the offense giving rise to forfeiture; 

19 ‘‘(D) the fair market value of the property; 

20 and 

21 ‘‘(E) the hardship to the property owner 

22 and dependents.’’. 

23 SEC. 7. REPORTING REQUIREMENTS. 

24 Section 524(c)(6)(i) of title 28, United States Code, 

25 is amended by inserting ‘‘from each type of forfeiture, and 


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1 specifically identifying which funds were obtained from in2 cluding criminal forfeitures and which were obtained from 

3 civil forfeitures,’’ after ‘‘deposits’’. 

4 SEC. 8. APPLICABILITY. 

5 The amendments made by this Act shall apply to— 

6 (1) any civil forfeiture proceeding pending on or 

7 filed on or after the date of enactment of this Act; 

8 and 

9 (2) any amounts received from the forfeiture of 

10 property on or after the date of enactment of this 

11 Act. 

Æ 


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