H. R. 1658—9
of the evidence at a hearing conducted by the court without
a jury.
‘‘(4) If the court finds that the forfeiture is grossly dis-
proportional to the offense it shall reduce or eliminate the
forfeiture as necessary to avoid a violation of the Excessive
Fines Clause of the Eighth Amendment of the Constitution.
‘‘(h) CIVIL FINE.—
‘‘(1) In any civil forfeiture proceeding under a civil forfeiture
statute in which the Government prevails, if the court finds
that the claimant’s assertion of an interest in the property
was frivolous, the court may impose a civil fine on the claimant
of an amount equal to 10 percent of the value of the forfeited
property, but in no event shall the fine be less than $250
or greater than $5,000.
‘‘(2) Any civil fine imposed under this subsection shall
not preclude the court from imposing sanctions under rule
11 of the Federal Rules of Civil Procedure.
‘‘(3) In addition to the limitations of section 1915 of title
28, United States Code, in no event shall a prisoner file a
claim under a civil forfeiture statute or appeal a judgment
in a civil action or proceeding based on a civil forfeiture statute
if the prisoner has, on three or more prior occasions, while
incarcerated or detained in any facility, brought an action or
appeal in a court of the United States that was dismissed
on the grounds that it is frivolous or malicious, unless the
prisoner shows extraordinary and exceptional circumstances.
‘‘(i) CIVIL FORFEITURE STATUTE DEFINED.—In this section, the
term ‘civil forfeiture statute’—
‘‘(1) means any provision of Federal law providing for the
forfeiture of property other than as a sentence imposed upon
conviction of a criminal offense; and
‘‘(2) does not include—
‘‘(A) the Tariff Act of 1930 or any other provision
of law codified in title 19;
‘‘(B) the Internal Revenue Code of 1986;
‘‘(C) the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 301 et seq.);
‘‘(D) the Trading with the Enemy Act (50 U.S.C. App.
1 et seq.); or
‘‘(E) section 1 of title VI of the Act of June 15, 1917
(40 Stat. 233; 22 U.S.C. 401).’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The analysis
for chapter 46 of title 18, United States Code, is amended by
inserting after the item relating to section 982 the following:
‘‘983. General rules for civil forfeiture proceedings.’’.
(c) STRIKING SUPERSEDED PROVISIONS.—
(1) CIVIL FORFEITURE.—Section 981(a) of title 18, United
States Code, is amended—
(A) in paragraph (1), by striking ‘‘Except as provided
in paragraph (2), the’’ and inserting ‘‘The’’; and
(B) by striking paragraph (2).
(2) DRUG
FORFEITURES.—Paragraphs (4), (6), and (7) of
section 511(a) of the Controlled Substances Act (21 U.S.C.
881(a)(4), (6), and (7)) are each amended by striking ‘‘, except
that’’ and all that follows before the period at the end.
(3) AUTOMOBILES.—Section 518 of the Controlled Sub-
stances Act (21 U.S.C. 888) is repealed.
H. R. 1658—10
(4) FORFEITURES
IN
CONNECTION
WITH
SEXUAL
EXPLOI-
TATION OF CHILDREN.—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 before the period at the
end.
(d) LEGAL SERVICES CORPORATION REPRESENTATION.—Section
1007(a) of the Legal Services Corporation Act (42 U.S.C. 2996f(a))
is amended—
(1) in paragraph (9), by striking ‘‘and’’ after the semicolon;
(2) in paragraph (10), by striking the period and inserting
‘‘; and’’; and
(3) by adding at the end the following:
‘‘(11) ensure that an indigent individual whose primary
residence is subject to civil forfeiture is represented by an
attorney for the Corporation in such civil action.’’.
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 ‘‘any goods or merchandise’’ and inserting
‘‘any goods, merchandise, or other property’’;
(2) by striking ‘‘law-enforcement’’ and inserting ‘‘law
enforcement’’; and
(3) by inserting before the period at the end the following:
‘‘, except that the provisions of this chapter and section 1346(b)
of this title apply to any claim based on 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—
‘‘(1) the property was seized for the purpose of forfeiture
under any provision of Federal law providing for the forfeiture
of property other than as a sentence imposed upon conviction
of a criminal offense;
‘‘(2) the interest of the claimant was not forfeited;
‘‘(3) the interest of the claimant was not remitted or miti-
gated (if the property was subject to forfeiture); and
‘‘(4) the claimant was not convicted of a crime for which
the interest of the claimant in the property was subject to
forfeiture under a Federal criminal forfeiture law.’’.
(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 accrues; or
(B) is presented by an officer or employee of the Federal
Government and arose within the scope of employment.
SEC. 4. ATTORNEY FEES, COSTS, AND INTEREST.
(a) IN GENERAL.—Section 2465 of title 28, United States Code,
is amended to read as follows:
H. R. 1658—11
‘‘§ 2465. Return of property to claimant; liability for wrongful
seizure; attorney fees, costs, and interest
‘‘(a) Upon the entry of a judgment for the claimant in any
proceeding to condemn or forfeit property seized or arrested under
any provision of Federal law—
‘‘(1) such property shall be returned forthwith to the claim-
ant or his agent; and
‘‘(2) if it appears that there was reasonable cause for the
seizure or arrest, the court shall cause a proper certificate
thereof to be entered and, in such case, neither the person
who made the seizure or arrest nor the prosecutor shall be
liable to suit or judgment on account of such suit or prosecution,
nor shall the claimant be entitled to costs, except as provided
in subsection (b).
‘‘(b)(1) Except as provided in paragraph (2), in any civil pro-
ceeding to forfeit property under any provision of Federal law
in which the claimant substantially prevails, the United States
shall be liable for—
‘‘(A) reasonable attorney fees and other litigation costs
reasonably incurred by the claimant;
‘‘(B) post-judgment interest, as set forth in section 1961
of this title; and
‘‘(C) 
in 
cases 
involving 
currency, 
other 
negotiable
instruments, or the proceeds of an interlocutory sale—
‘‘(i) 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
‘‘(ii) an imputed amount of interest that such currency,
instruments, or proceeds would have earned at the rate
applicable to the 30-day Treasury Bill, for any period
during which no interest was paid (not including any period
when the property reasonably was in use as evidence in
an official proceeding or in conducting scientific tests for
the purpose of collecting evidence), commencing 15 days
after the property was seized by a Federal law enforcement
agency, or was turned over to a Federal law enforcement
agency by a State or local law enforcement agency.
‘‘(2)(A) The United States shall not be required to disgorge
the value of any intangible benefits nor make any other pay-
ments to the claimant not specifically authorized by this sub-
section.
‘‘(B) The provisions of paragraph (1) shall not apply if
the claimant is convicted of a crime for which the interest
of the claimant in the property was subject to forfeiture under
a Federal criminal forfeiture law.
‘‘(C) If there are multiple claims to the same property,
the United States shall not be liable for costs and attorneys
fees associated with any such claim if the United States—
‘‘(i) promptly recognizes such claim;
‘‘(ii) promptly returns the interest of the claimant in
the property to the claimant, if the property can be divided
without difficulty and there are no competing claims to
that portion of the property;
‘‘(iii) does not cause the claimant to incur additional,
reasonable costs or fees; and
H. R. 1658—12
‘‘(iv) prevails in obtaining forfeiture with respect to
one or more of the other claims.
‘‘(D) If the court enters judgment in part for the claimant
and in part for the Government, the court shall reduce the
award of costs and attorney fees accordingly.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The analysis
for chapter 163 of title 28, United States Code, is amended by
striking the item relating to section 2465 and inserting the fol-
lowing:
‘‘2465. Return of property to claimant; liability for wrongful seizure; attorney fees,
costs, and interest.’’.
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) Except as provided in section 985, any property subject
to forfeiture to the United States under subsection (a) may be
seized by the Attorney General and, 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 issued an arrest warrant
in rem pursuant to the Supplemental Rules for Certain
Admiralty and Maritime Claims;
‘‘(B) there is probable cause to believe that the property
is subject to forfeiture and—
‘‘(i) the seizure is made pursuant to a lawful arrest
or search; or
‘‘(ii) another exception to the Fourth Amendment war-
rant requirement would apply; or
‘‘(C) the property was lawfully seized by a State or local
law enforcement agency and transferred to a Federal agency.
‘‘(3) Notwithstanding the provisions of rule 41(a) of the 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, and may be executed in any
district in which the property is found, or transmitted to the central
authority of any foreign state for service in accordance with any
treaty or other international agreement. Any motion for the return
of property seized under this section shall be filed in the district
court in which the seizure warrant was issued or in the district
court for the district in which the property was seized.
‘‘(4)(A) If any person is arrested or charged in a foreign country
in connection with an offense that would give rise to the forfeiture
of property in the United States under this section or under the
Controlled Substances Act, the Attorney General may apply to
any Federal judge or magistrate judge in the district in which
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