H. R. 1658—13
in the manner provided in rule 43(e) of the Federal Rules of Civil
Procedure.
‘‘(B) 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 prob-
able cause for the seizure of the property under this subsection.’’.
(b) DRUG FORFEITURES.—Section 511(b) of the Controlled Sub-
stances Act (21 U.S.C. 881(b)) is amended to read as follows:
‘‘(b) SEIZURE PROCEDURES.—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. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME
VICTIMS.
Section 981(e) of title 18, United States Code, is amended
by striking paragraph (6) and inserting the following:
‘‘(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 unlaw-
ful activity; or’’.
SEC. 7. CIVIL FORFEITURE OF REAL PROPERTY.
(a) IN GENERAL.—Chapter 46 of title 18, United States Code,
is amended by inserting after section 984 the following:
‘‘§ 985. Civil forfeiture of real property
‘‘(a) Notwithstanding any other provision of law, all civil forfeit-
ures of real property and interests in real property shall proceed
as judicial forfeitures.
‘‘(b)(1) Except as provided in this section—
‘‘(A) real property that is the subject of a civil forfeiture
action shall not be seized before entry of an order of for-
feiture; and
‘‘(B) the owners or occupants of the real property shall
not be evicted from, or otherwise deprived of the use and
enjoyment of, real property that is the subject of a pending
forfeiture action.
‘‘(2) The filing of a lis pendens and the execution of a
writ of entry for the purpose of conducting an inspection and
inventory of the property shall not be considered a seizure
under this subsection.
‘‘(c)(1) The Government shall initiate a civil forfeiture action
against real property by—
‘‘(A) filing a complaint for forfeiture;
‘‘(B) posting a notice of the complaint on the property;
and
‘‘(C) serving notice on the property owner, along with a
copy of the complaint.
‘‘(2) If the property owner cannot be served with the notice
under paragraph (1) because the owner—
‘‘(A) is a fugitive;
H. R. 1658—14
‘‘(B) resides outside the United States and efforts at service
pursuant to rule 4 of the Federal Rules of Civil Procedure
are unavailing; or
‘‘(C) cannot be located despite the exercise of due diligence,
constructive service may be made in accordance with the laws
of the State in which the property is located.
‘‘(3) If real property has been posted in accordance with this
subsection, it shall not be necessary for the court to issue an
arrest warrant in rem, or to take any other action to establish
in rem jurisdiction over the property.
‘‘(d)(1) Real property may be seized prior to the entry of an
order of forfeiture if—
‘‘(A) the Government notifies the court that it intends to
seize the property before trial; and
‘‘(B) the court—
‘‘(i) issues a notice of application for warrant, causes
the notice to be served on the property owner and posted
on the property, and conducts a hearing in which the
property owner has a meaningful opportunity to be heard;
or
‘‘(ii) makes an ex parte determination that there is
probable cause for the forfeiture and that there are exigent
circumstances that permit the Government to seize the
property without prior notice and an opportunity for the
property owner to be heard.
‘‘(2) For purposes of paragraph (1)(B)(ii), to establish exigent
circumstances, the Government shall show that less restrictive
measures such as a lis pendens, restraining order, or bond would
not suffice to protect the Government’s interests in preventing
the sale, destruction, or continued unlawful use of the real property.
‘‘(e) If the court authorizes a seizure of real property under
subsection (d)(1)(B)(ii), it shall conduct a prompt post-seizure
hearing during which the property owner shall have an opportunity
to contest the basis for the seizure.
‘‘(f ) This section—
‘‘(1) applies only to civil forfeitures of real property and
interests in real property;
‘‘(2) does not apply to forfeitures of the proceeds of the
sale of such property or interests, or of money or other assets
intended to be used to acquire such property or interests;
and
‘‘(3) shall not affect the authority of the court to enter
a restraining order relating to real property.’’.
(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 984 the following:
‘‘985. Civil forfeiture of real property.’’.
SEC. 8. STAY OF CIVIL FORFEITURE CASE.
(a) IN GENERAL.—Section 981(g) of title 18, United States Code,
is amended to read as follows:
‘‘(g)(1) Upon the motion of the United States, the court shall
stay the civil forfeiture proceeding if the court determines that
civil discovery will adversely affect the ability of the Government
to conduct a related criminal investigation or the prosecution of
a related criminal case.
H. R. 1658—15
‘‘(2) Upon the motion of a claimant, the court shall stay the
civil forfeiture proceeding with respect to that claimant if the court
determines that—
‘‘(A) the claimant is the subject of a related criminal inves-
tigation or case;
‘‘(B) the claimant has standing to assert a claim in the
civil forfeiture proceeding; and
‘‘(C) continuation of the forfeiture proceeding will burden
the right of the claimant against self-incrimination in the
related investigation or case.
‘‘(3) With respect to the impact of civil discovery described
in paragraphs (1) and (2), the court may determine that a stay
is unnecessary if a protective order limiting discovery would protect
the interest of one party without unfairly limiting the ability of
the opposing party to pursue the civil case. In no case, however,
shall the court impose a protective order as an alternative to a
stay if the effect of such protective order would be to allow one
party to pursue discovery while the other party is substantially
unable to do so.
‘‘(4) In this subsection, the terms ‘related criminal case’ and
‘related criminal investigation’ mean an actual prosecution or inves-
tigation in progress at the time at which the request for the stay,
or any subsequent motion to lift the stay is made. In determining
whether a criminal case or investigation is ‘related’ to a civil for-
feiture proceeding, the court shall consider the degree of similarity
between the parties, witnesses, facts, and circumstances involved
in the two proceedings, without requiring an identity with respect
to any one or more factors.
‘‘(5) In requesting a stay under paragraph (1), the Government
may, in appropriate cases, submit evidence ex parte in order to
avoid disclosing any matter that may adversely affect an ongoing
criminal investigation or pending criminal trial.
‘‘(6) Whenever a civil forfeiture proceeding is stayed pursuant
to this subsection, the court shall enter any order necessary to
preserve the value of the property or to protect the rights of
lienholders or other persons with an interest in the property while
the stay is in effect.
‘‘(7) A determination by the court that the claimant has
standing to request a stay pursuant to paragraph (2) shall apply
only to this subsection and shall not preclude the Government
from objecting to the standing of the claimant by dispositive motion
or at the time of trial.’’.
(b) DRUG FORFEITURES.—Section 511(i) of the Controlled Sub-
stances Act (21 U.S.C. 881(i)) is amended to read as follows:
‘‘(i) The provisions of section 981(g) of title 18, United States
Code, regarding the stay of a civil forfeiture proceeding shall apply
to forfeitures under this section.’’.
SEC. 9. CIVIL RESTRAINING ORDERS.
Section 983 of title 18, United States Code, as added by this
Act, is amended by adding at the end the following:
‘‘( j) RESTRAINING ORDERS; PROTECTIVE ORDERS.—
‘‘(1) Upon application of the United States, the court may
enter a restraining order or injunction, require the execution
of satisfactory performance bonds, create receiverships, appoint
conservators, custodians, appraisers, accountants, or trustees,
H. R. 1658—16
or take any other action to seize, secure, maintain, or preserve
the availability of property subject to civil forfeiture—
‘‘(A) upon the filing of a civil forfeiture complaint
alleging that the property with respect to which the order
is sought is subject to civil forfeiture; or
‘‘(B) prior to the filing of such a complaint, if, after
notice to persons appearing to have an interest in the
property and opportunity for a hearing, the court deter-
mines that—
‘‘(i) there is a substantial probability that the
United States will prevail on the issue of forfeiture
and that failure to enter the order will result in the
property being destroyed, removed from the jurisdiction
of the court, or otherwise made unavailable for for-
feiture; and
‘‘(ii) the need to preserve the availability of the
property through the entry of the requested order out-
weighs the hardship on any party against whom the
order is to be entered.
‘‘(2) An order entered pursuant to paragraph (1)(B) shall
be effective for not more than 90 days, unless extended by
the court for good cause shown, or unless a complaint described
in paragraph (1)(A) has been filed.
‘‘(3) A temporary restraining order under this subsection
may be entered upon application of the United States without
notice or opportunity for a hearing when a complaint has not
yet been filed with respect to the property, if the United States
demonstrates that there is probable cause to believe that the
property with respect to which the order is sought is subject
to civil forfeiture and that provision of notice will jeopardize
the availability of the property for forfeiture. Such a temporary
order shall expire not more than 10 days after the date on
which it is entered, unless extended for good cause shown
or unless the party against whom it is entered consents to
an extension for a longer period. A hearing requested con-
cerning an order entered under this paragraph shall be held
at the earliest possible time and prior to the expiration of
the temporary order.
‘‘(4) The court may receive and consider, at a hearing
held pursuant to this subsection, evidence and information
that would be inadmissible under the Federal Rules of Evi-
dence.’’.
SEC. 10. COOPERATION AMONG 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. 11. 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’’.