246
(2) in paragraph (1), as designated by para-
graph (1), by striking ‘‘, to persons other than li-
censed importers, licensed manufacturers, licensed
dealers, or licensed collectors,’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) It shall be unlawful for a common or contract
carrier knowingly to deliver in interstate or foreign com-
merce a firearm to a licensed importer, licensed manufac-
turer, licensed dealer, or licensed collector unless the car-
rier or other person identifies the person to whom the fire-
arm is delivered and makes and maintains a record of the
identity of the person in such a manner as the Secretary
may prescribe by regulation.’’.
SEC. 952. SALE OF FIRARMS OR AMMUNITION HAVING REA-
SONABLE CAUSE TO BELIEVE THAT IT WILL
BE USED TO KILL A PERSON.
Section 922 of title 18, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(s) It shall be unlawful for a person to sell or other-
wise dispose of a firearm or ammunition to another person
if the person who sells or otherwise disposes of it has rea-
sonable cause to believe that the person is acquiring the
firearm or ammunition with the intent that it will be used
247
by that person or any other person to commit a crime of
violence (as defined in section 924(c)(3).’’.
SEC. 953. LICENSE APPLICATION FEES FOR DEALERS IN
FIREARMS.
Section 923(a)(3) of title 18, United States Code, is
amended—
(1) in subparagraph (B) by striking ‘‘$25’’ and
inserting ‘‘$750’’; and
(2) in subparagraph (C) by striking ‘‘$10’’ and
inserting ‘‘$750’’.
SEC. 954. ACTION ON APPLICATION FOR LICENSE.
Section 923(d) of title 18, United States Code, is
amended—
(1) by striking ‘‘(1)’’ after ‘‘(d)’’;
(2) by redesignating subparagraphs (A), (B),
(C), (D), and (E) as paragraphs (1), (2), (3), (4),
and (5), respectively; and
(3) by striking paragraph (2).
SEC. 955. COMPLIANCE WITH STATE AND LOCAL LAW AS
CONDITION TO LICENSE.
Section 923(d) of title 18, United States Code, as
amended by section 4, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4);
248
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6)(A) the business to be conducted under the li-
cense is not prohibited by State or local law in the place
where the licensed premises is located; and
‘‘(B) the applicant has complied with all requirements
of State and local law applicable to the conduct of such
a business.’’.
SEC. 956. INSPECTIONS OF FIREARMS LICENSEES.
Section 923(g)(1) of title 18, United States Code, is
amended—
(1) in subparagraph (B)(ii) by striking ‘‘not
more than once during any twelve-month period’’;
(2) in subparagraph (C)(i) by striking ‘‘not
more than once during any twelve-month period’’;
and
(3) in subparagraph (D) by striking ‘‘the an-
nual inspection of records and inventory permitted
under this paragraph’’ and inserting ‘‘an inspection
under subparagraph (C)(i)’’.
249
SEC. 957. REPORTS OF THEFT OR LOSS OF FIREARMS.
Section 923(g) of title 18, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(6) Each licensee shall report the theft or loss of
a firearm from the licensee’s inventory or collection, within
24 hours after the theft or loss is discovered, to the Sec-
retary and to appropriate local authorities.’’.
SEC. 958. RESPONSES TO REQUESTS FOR INFORMATION.
Section 923(g) of title 18, United States Code, as
amended by section 7, is amended by adding at the end
the following new paragraph:
‘‘(7) Each licensee shall respond immediately to, and
in no event later than 24 hours after receipt of, a request
by the Secretary for information contained in the records
required to be kept by this chapter as may be required
for determining the disposition of one or more firearms.
The requested information shall be provided orally or in
writing, as the Secretary may require.’’.
SEC. 959. REGISTRATION TO REQUIRE A PHOTOGRAPH AND
FINGERPRINTS.
Section 5802 of the Internal Revenue Code of 1986
is amended by inserting after the first sentence the follow-
ing: ‘‘An individual required to register under this section
shall include a photograph and fingerprints of the individ-
ual with the initial application.’’.
250
Subtitle G—Saturday Night
Specials
SEC. 961. PROHIBITION AGAINST POSSESSION OR TRANS-
FER OF NON-SPORTING HANDGUNS.
(a) IN GENERAL.—Section 922 of title 18, United
States Code, is amended by adding at the end the
following:
‘‘(s)(1) It shall be unlawful for any person to possess
or transfer a non-sporting handgun.
‘‘(2) Paragraph (1) shall not apply to the continuous
and otherwise lawful possession of a non-sporting handgun
by a person during any period that began before the effec-
tive date of this subsection.’’.
(b) NON-SPORTING HANDGUN DEFINED.—Section
921(a) of such title is amended by adding at the end the
following:
‘‘(29)(A) The term ‘non-sporting handgun’ means a
firearm which—
‘‘(i)(I) is designed to be fired by the use of a
single hand; and
‘‘(II) is not a sporting handgun; and
‘‘(ii) any combination of parts from which a
firearm described in clause (i) can be assembled.
‘‘(B) The term ‘sporting handgun’ means a firearm
which—
251
‘‘(i) is designed to be fired by the use of a sin-
gle hand; and
‘‘(ii) the Secretary has determined, using the
criteria applied in making determinations under sec-
tion 925(d)(3), to be of a type generally recognized
as particularly suitable for or readily adaptable to
sporting purposes.’’.
(c) PENALTY.—Section 924(a)(1)(B) of such title is
amended by striking ‘‘or (q)’’ and inserting ‘‘(r), or (s)’’.
TITLE X—ASSET FORFEITURE
SEC. 1001. SHORT TITLE.
This subtitle may be cited as the ‘‘Asset Forfeiture
Reform Act of 1993’’.
SEC. 1002. REQUIRE CONVICTION FIRST.
(a) TARIFF ACT OF 1930.—Section 604 of the Tariff
Act of 1930 (19 U.S.C. 1604) is amended by adding at
the end the following new sentence: ‘‘Proceedings for the
forfeiture of property, other than of merchandise upon
which the duties have not been paid or which has been
otherwise brought into the United States unlawfully, shall
be conducted only upon conviction of the owner of such
property for the crime upon which the forfeiture is
based.’’.
252
(b) TITLE 18, UNITED STATES CODE.—Subsection
(c) of section 1082 of title 18, United States Code, is
amended to read as follows:
‘‘(c) Whoever, being (1) the owner of an American
vessel, or (2) the owner of any vessel under or within the
jurisdiction of the United States, or (3) the owner of any
vessel and being an American citizen, uses, or knowingly
permits the use of, such vessel in violation of this section
shall upon conviction, in addition to any other penalties
provided by this chapter, forfeit such vessel, together with
her tackle, apparel, and furniture, to the United States.’’.
SEC. 1003. NOTICE REQUIREMENT.
Section 607(a) of the Tariff Act of 1930 (19 U.S.C.
1607(a)) is amended by adding at the end the following
new sentence: ‘‘Such notice shall be sent not later than
60 days after the seizure to any possessor, owner, or other
interested party (including any lienholder).’’.
SEC. 1004. RAISE STANDARD OF PROOF.
Section 615 of the Tariff Act of 1930 (19 U.S.C.
1615) is amended to read as follows:
‘‘SEC. 615. BURDEN OF PROOF IN FORFEITURE PROCEED-
INGS.
‘‘In—
‘‘(1) all suits or actions (other than those aris-
ing under section 592) brought for forfeiture of any
253
vessel, vehicle, aircraft, merchandise, or baggage
seized under the provisions of any law relating to the
collection of duties on imports or tonnage; and
‘‘(2) in all suits or actions brought for the re-
covery of the value of any vessel, vehicle, aircraft,
merchandise, or baggage, because of violation of any
such law;
the burden of proof is on the United States Government
to establish, by clear and convincing evidence, that the
property was subject to forfeiture.’’.
SEC. 1005. REQUIRE A PRELIMINARY HEARING PRIOR TO
SEIZURE.
(a) 
CONTROLLED
SUBSTANCES
ACT.—Section
511(b) of the Controlled Substances Act (21 U.S.C.
881(b)) is amended to read as follows:
‘‘(b)(1) Any property subject to civil forfeiture to the
United States under this section may be seized by the At-
torney General upon order of the District Court of the
United States in which the property is located or the
owner of such property is found.
‘‘(2) The court may issue an order under subsection
(a)(1) if it determines, after notice to persons appearing
to have an interest in the property and opportunity for
hearing, that—
254
‘‘(A) 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 jurisdic-
tion of the court, or otherwise made unavailable for
forfeiture; and
‘‘(B) the need to preserve the availability of the
property through the entry of the requested order
outweighs the hardship to any party of interest.
‘‘(3) A seizure without such order may be made
when—
‘‘(A) the seizure is incident to an arrest or a
search under a search warrant or an inspection
under an administrative inspection warrant;
‘‘(B) the property subject to seizure has been
the subject of a prior judgment in favor of the Unit-
ed States in a criminal injunction or forfeiture pro-
ceeding under this subchapter;
‘‘(C) there is probable cause to believe that the
property is directly or indirectly dangerous to health
or safety; or
‘‘(D) there is probable cause to believe that the
delay occasioned by the need to secure an order will
frustrate the seizure. Any officer having made a sei-
zure under the authority of this subparagraph shall,
255
as practicable thereafter, apply for an order under
subsection (b)(1); the property must be released to
the owner of such property immediately if the order
is denied.’’.
(b) TITLE 18, UNITED STATES CODE.—Section 981
of title 18, United States Code, is amended to read as
follows:
‘‘(b)(1) Any property subject to civil forfeiture to the
United States under subsection (a)(2) may be seized by
the Attorney General upon order of the District Court of
the United States in which the property is located or the
owner of such property is found.
‘‘(2) The court may issue an order under subsection
(b)(1) if it determines, after notice to persons appearing
to have an interest in the property and opportunity for
hearing, that—
‘‘(A) 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 jurisdic-
tion of the court, or otherwise made unavailable for
forfeiture; and
‘‘(B) the need to preserve the availability of the
property through the entry of the requested order
outweighs the hardship to any party of interest.
256
‘‘(3) A seizure without such order may be made
when—
‘‘(A) the seizure is incident to an arrest or a
search under a search warrant or an inspection
under an administrative inspection warrant;
‘‘(B) the property subject to seizure has been
the subject of a prior judgment in favor of the Unit-
ed States in a criminal injunction or forfeiture pro-
ceeding under this subchapter;
‘‘(C) there is probable cause to believe that the
property is directly or indirectly dangerous to health
or safety; or
‘‘(D) there is probable cause to believe that the
delay occasioned by the need to secure an order will
frustrate the seizure. Any officer having made a sei-
zure under the authority of this subparagraph shall,
as practicable thereafter, apply for an order under
subsection (b)(1); the property must be released to
the owner of such property immediately if the order
is denied.’’.
(c) TARIFF ACT OF 1930.—(1) Section 603(a) of the
Tariff Act of 1930 (19 U.S.C. 1603(a)) is amended to
read as follows:
‘‘(a) PROCESS FOR SEIZURE.—
257
‘‘(1) IN GENERAL.—Any property which is sub-
ject to forfeiture to the United States for violations
of the customs law and which is not subject to
search and seizure in accordance with provisions of
section 595, may be seized by the appropriate officer
or person upon process issued under paragraph (2).
‘‘(2) PROCEDURES.—
‘‘(A) SEIZURE UNDER ORDER.—Any prop-
erty subject to forfeiture under the customs
laws of the United States may be seized by the
Attorney General upon order of the District
Court of the United States in which the prop-
erty is located or the owner of such property is
found.
‘‘(B) DETERMINATIONS.—The court may
issue an order under paragraph (1) if it deter-
mines, after notice to persons appearing to have
an interest in the property and opportunity for
hearing, 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
258
the court, or otherwise made unavailable
for forfeiture; and
‘‘(ii) the need to preserve the avail-
ability of the property through the entry of
the requested order outweighs the hardship
to any party of interest.
‘‘(C) SEIZURE
WITHOUT
ORDER.—A sei-
zure without such order may be made when—
‘‘(i) the seizure is incident to an ar-
rest or a search under a search warrant or
an inspection under an administrative in-
spection warrant;
‘‘(ii) the property subject to seizure
has been the subject of a prior judgment
in favor of the United States in a criminal
injunction or forfeiture proceeding under
this subchapter;
‘‘(iii) there is probable cause to believe
that the property is directly or indirectly
dangerous to health or safety; or
‘‘(iv) there is probable cause to believe
that the delay occasioned by the need to
secure an order will frustrate the seizure.
Any officer having made a seizure under the
authority of this subparagraph shall, as prac-
259
ticable thereafter, apply for an order under
paragraph (1). Any property so seized must be
released to the owner of such property imme-
diately if the order is denied.’’.
(2) Section 595(a)(1) of the Tariff Act of 1930 (19
U.S.C. 1595(a)(1)) is amended by adding at the end the
following: ‘‘Any seizure of property described in paragraph
(1)(B) of this section must be authorized under section
603(a).
SEC. 1006. ELIMINATE THE BOND REQUIREMENT.
Section 608 of the Tariff Act of 1930 (19 U.S.C.
1608) is amended to read as follows:
‘‘SEC. 608. SEIZURE; CLAIMS.
‘‘(a) Any person claiming such vessel, vehicle, air-
craft, merchandise, or baggage may at any time within
60 days from the date of the first publication of the notice
of seizure, file with the appropriate customs officer a claim
stating his interest therein. Upon the filing of such claim,
the customs officer shall transmit such claim, with a dupli-
cate list and description of the articles seized, to the Unit-
ed States attorney for the district in which seizure was
made, who shall proceed to a condemnation of the mer-
chandise or other property in the manner prescribed by
law.
260
‘‘(b) If the person filing a claim under subsection (a),
or a claim regarding seized property under any other pro-
vision of law that incorporates by reference the seizure,
forfeiture, and condemnation procedures of the customs
laws, is financially unable to obtain representation of
counsel, the court may appoint appropriate counsel to rep-
resent that person with respect to the claim. The court
shall set the compensation for that representation, which
shall—
‘‘(1) be equivalent to that provided for court-ap-
pointed representation under section 3006A of title
18, United State Code, and
‘‘(2) be paid from the Justice Assets Forfeiture
Fund established under section 524 of title 28, Unit-
ed States Code.’’.
SEC. 1007. ALLOW ADMINISTRATIVE SEIZURES ONLY IN
UNCONTESTED CASES.
Section 610 of the Tariff Act of 1930 (19 U.S.C.
1610(a)) is amended to read as follows:
‘‘SEC. 610. SEIZURE; JUDICIAL FORFEITURE PROCEEDINGS;
TIMELINESS; RIGHT TO JURY TRIALS.
‘‘(a) If any vessel, vehicle, aircraft, merchandise, or
baggage is not subject to section 607, or in any case upon
the filing of a claim pursuant to section 608 of this Act,
the appropriate customs officer shall transmit a report of
261
the case, with the names of available witnesses, to the
United States Attorney for the district in which the sei-
zure was made, or in which the property is located or the
owner of such property is found, for the institution of the
proper proceedings for the condemnation of such property.
‘‘(b) No action to forfeit property shall be brought
more than 1 year from the date of the offense that is the
basis for the forfeiture, or when a stay has been granted
during the pendency of criminal proceedings, from the
date of the completion of such proceedings.
‘‘(c) In the proceedings in such cases, either party
may demand trial by jury of any issue of fact joined in
the case.’’.
SEC. 1008. ALLOW FOR ADEQUATE REPRESENTATION.
(a) TITLE 18, UNITED STATES CODE.—(1) Section
981(a)(2) of title 18, United States Code, is amended to
read as follows:
‘‘(2) No property shall be forfeited under this section
to the extent of the interest of an owner or lienholder by
reason of any act or omission established by that owner
or lienholder to have been committed without the knowl-
edge of that owner or lienholder; nor shall any property
which has been paid or pledged as bona fide attorneys’
fees be forfeited under this section.’’.
262
(2) Section 1963(c) of title 18, United States Code,
is amended by—
(A) striking the period at the end and inserting
a comma; and
(B) add at the end the following: ‘‘or that he
received or has been pledged the property as bona
fide attorneys’ fees.’’
Section 1963(l)(6)(B) of title 18, United States Code, is
amended by adding at the end the following: ‘‘or the peti-
tioner received or has been pledged the property as bona
fide attorneys’ fees;’’.
(b) CONTROLLED SUBSTANCES ACT.—
(1) Section 413(c) of the Controlled Substances
Act (21 U.S.C. 853(c)) is amended by—
(A) striking the period at the end and in-
serting a comma; and
(B) adding at the end the following: ‘‘or
that he received or has been pledged the prop-
erty as bona fide attorneys’ fees.’’
(2) Section 413(n)(6)(B) of the Controlled Sub-
stances Act (21 U.S.C. 853(n)(6)(B)) is amended by
adding at the end the following: ‘‘or the petitioner
received or has been pledged the property as bona
fide attorneys’ fees;’’.
263
(3) Section 511(a) of the Controlled Substances
Act (21 U.S.C. 881(a)) is amended by adding at the
end the following: ‘‘No property received or pledged
as bona fide attorneys’ fees shall be forfeited under
this section.’’.
SEC. 1009. MAKE CIVIL FORFEITURE PROCEEDINGS IN PER-
SONAM.
Section 1082(c) of title 18, United States Code, is
amended to read as follows:
‘‘(c) Whoever, being (1) the owner of an American
vessel, or (2) the owner of any vessel under or within the
jurisdiction of the United States, or (3) the owner of any
vessel and being an American citizen, shall use, or know-
ingly permit the use of, such vessel in violation of any pro-
vision of this section shall upon conviction, in addition to
any other penalties provided by this chapter, forfeit such
vessel, together with her tackle, apparel, and furniture, to
the United States. The Attorney General may institute
proceedings against the owner to recover such vessel and
her tackle, apparel, and furniture in the United States
District Court for the district in which the owner is or
in which the vessel is located.’’.
264
SEC. 1010. LENGTHEN THE FILING DEADLINES FOR CLAIM-
ANTS.
Paragraph (6) of Rule C of the Supplemental Rules
for Certain Admiralty and Maritime Claims to the Federal
Rules of Civil Procedures (28 U.S.C. Appendix) is amend-
ed by striking out ‘‘10 days’’ and inserting ‘‘60 days’’.
SEC. 1011. MAKE FORFEITURES PROPORTIONAL.
(a) CIVIL FORFEITURES UNDER THE CONTROLLED
SUBSTANCES ACT.—Section 511(a) of the Controlled Sub-
stances Act (21 U.S.C. 881(a)) is amended by striking
‘‘The’’ and inserting: ‘‘Except that the value of the prop-
erty forfeited under this section may not exceed the pecu-
niary gain derived from the offense or the pecuniary loss
caused by the offense, the’’.
(b) CRIMINAL FORFEITURES UNDER
THE CON-
TROLLED SUBSTANCES ACT.—Section 413(a) of the Con-
trolled Substance Act (21 U.S.C. 853(a)) is amended by
striking the last sentence and inserting the following:
‘‘The value of the property forfeited under this section
may not exceed the pecuniary gain derived from the of-
fense or the pecuniary loss caused by the offense.’’
SEC. 1012. ELIMINATE THE RELATION-BACK DOCTRINE OR
CREATE A STRICTER DEFINITION.
(a) GENERAL TITLE 18, CIVIL FORFEITURE.—Sec-
tion 981(f) of title 18, United States Code, is amended
to read as follows:
265
‘‘(f) All right, title, and interest in property described
in subsection (a) of this section shall vest in the United
States upon administrative or judicial declaration of for-
feiture.’’
(b) RICO FORFEITURES.—Section 1963(c) of title
18, United States Code, is amended to read as follows:
‘‘(c) All right, title, and interest in property described
in subsection (a) of this section shall vest in the United
States upon return of a special verdict of forfeiture.’’.
(c) CONTROLLED SUBSTANCES ACT.—(1) Section
413(c) of the Controlled Substances Act (21 U.S.C.
853(c)) is amended to read as follows:
‘‘(c) VESTING OF TITLE IN THE UNITED STATES.—
All right, title, and interest in property described in sub-
section (c) of this section vests in the United States upon
return of a special verdict of forfeiture.’’
(2) Section 511(h) of the Controlled Substances Act
(21 U.S.C. 881(h)) is amended to read as follows:
‘‘(h) VESTING OF TITLE IN THE UNITED STATES.—
All right, title, and interest in property described in sub-
section (a) of this section shall vest in the United States
upon administrative or judicial declaration of forfeiture.’’.
266
SEC. 1013. LIMIT KINDS OF PROPERTY THAT ARE SUBJECT
TO FORFEITURE.
(a) CRIMINAL FORFEITURE UNDER CONTROLLED
SUBSTANCES ACT.—Section 413(a)(2) of the Controlled
Substances Act (21 U.S.C. 853(a)(2)) is amended to read
as follows:
‘‘(2) any of the person’s property primarily
used to commit such violation;’’.
(b) CIVIL FORFEITURE UNDER CONTROLLED SUB-
STANCES ACT.—Section 511(a) of the Controlled Sub-
stance Act (21 U.S.C. 881(a)) is amended to read as fol-
lows:
‘‘(a) PROPERTY SUBJECT.—The following shall be
subject to forfeiture to the United States upon conviction
of the owner of such property of a violation of this title
and no property right shall exist in them:
‘‘(1) All controlled substances which have been
manufactured, distributed, dispensed, or acquired in
violation of this title.
‘‘(2) All raw materials, products, and equip-
ment of any kind which are used, or intended for
use, in manufacturing, compounding, processing, de-
livering, importing, or exporting any controlled sub-
stance in violation of this title.
267
‘‘(3) All property which is used, or intended for
use, as a container for property described in para-
graph (1).
‘‘(4) All conveyances, including aircraft, vehi-
cles, or vessels, which are used primarily to trans-
port or concealment of property described in para-
graph (1), except that—
‘‘(A) no conveyance used by any person as
a common carrier in the transaction of business
as a common carrier shall be forfeited under
the provisions of this section unless it shall ap-
pear that the owner or other person in charge
of such conveyance was a consenting party or
privy to a violation of this title or title II.
‘‘(B) no conveyance shall be forfeited
under the provisions of this section by reason of
any act or omission established by the owner
thereof to have been committed or omitted by
any person other than such owner while such
conveyance was unlawfully in the possession of
a person other than the owner in violation of
the criminal laws of the United States, or of
any State; and
‘‘(C) no conveyance shall be forfeited under
this paragraph to the extent of an interest of an
268
owner, by reason of any act or omission estab-
lished by that owner to have been committed or
omitted without the knowledge, consent, or will-
ful blindness of the owner.
‘‘(5) All books, records, and research, including
formulas, microfilm, tapes, and data which are used,
or intended for use, in violation of this title.
‘‘(6) All moneys, negotiable instruments, securi-
ties, or other things of value furnished or intended
to be furnished by any person in exchange for a con-
trolled substance in violation of this title, and all
proceeds traceable to such exchange, except that no
property shall be forfeited under this paragraph, to
the extent of the interest of an owner, by reason of
any act or omission established by that owner to
have been committed or omitted without the knowl-
edge or consent of that owner.
‘‘(7) All parts of real property used primarily to
commit a violation of this title punishable by more
than 1 year’s imprisonment, except that no property
shall be forfeited under this paragraph, to the extent
of an interest of an owner, by reason of any act or
omission established by that owner to have been
committed or omitted without the knowledge or con-
sent of that owner.
269
‘‘(8) All controlled substances which have been
possessed in violation of this title.
‘‘(9) All listed chemicals, all drug manufactur-
ing equipment, all tableting machines, all encap-
sulating machines, and all gelatin capsules, which
have been imported, exported, manufactured, pos-
sessed, distributed, or intended to be distributed, im-
ported, or exported, in violation of a felony provision
of this title or title II.
‘‘(10) Any drug paraphernalia (as defined in
section 1822 of the Anti-Drug Abuse Act of 1986
(21 U.S.C. 863)).
‘‘(11) Any firearm (as defined in section 921 of
title 18) used or intended to be used to facilitate the
transportation, sale, receipt, possession, or conceal-
ment of property described in paragraph (1) or (2)
and any proceeds traceable to such property.’’.
SEC. 1014. FORFEITURE PROCEEDS SHOULD GO DIRECTLY
TO STATE.
(a) TARIFF ACT OF 1930.—Section 616a(c)(1)(B)(ii)
of the Tariff Act of 1930 (19 U.S.C. 1616a(c)(1)(B)(ii)
is amended to read as follows:
‘‘(ii) any State or local law enforce-
ment agency that participated directly or
indirectly in the seizure or forfeiture of the
270
property for disposition according to State
law.’’.
(b) TITLE 18, UNITED STATES CODE.—Section
981(e)(2) of title 18, United States Code, is amended to
read as follows:
‘‘(2) to any State or local enforcement agency,
which participated directly in any of the acts which
lead to the seizure or forfeiture of the property, for
disposition according to State law.’’.
(c) 
CONTROLLED
SUBSTANCES
ACT.—Section
511(e)(1)(A) of the Controlled Substances Act (21 U.S.C.
881(e)(1)(A)) is amended to read as follows:
‘‘(A) retain the property for official use or,
in the manner provided with respect to trans-
fers under section 616a of the Tariff Act of
1930 (19 U.S.C. 1616a), transfer the property
to any Federal agency, or to any State or local
law enforcement agency which participated di-
rectly in the seizure or forfeiture of the prop-
erty for disposition according to State law.’’.
SEC. 1015. EXPAND USES OF FORFEITURE PROCEEDS.
Section 524(c) of title 28, United States Code, is
amended by adding at the end the following new para-
graph:
271
‘‘(12)(A) In addition to the purposes under
paragraph (1), the fund shall be available to the At-
torney General for community-based crime control
programs (including private, nonprofit programs) for
drug education, prevention, and treatment, with
amounts for such programs to be distributed, in ac-
cordance with criteria determined by the State, with
priority given to the communities in which the assets
involved are seized.
‘‘(B) Not less than 50 percent of the total of
the amounts disbursed for all purposes under this
section in a fiscal year shall be for programs re-
ferred to in subparagraph (A). Not more than 10
percent of the total disbursed for such programs
may be used for administrative costs.’’.
SEC. 1016. PAYMENT OF INFORMANTS.
(a) TARIFF ACT OF 1930.—(1) Section 619(c) of the
Tariff Act of 1930 (19 U.S.C. 1619(c)) is amended to
read as follows:
‘‘(c) DOLLAR
LIMITATION.—No person may be
awarded or paid more than $250,000 in any year under
this section.’’.
(2) Section 413(i)(3) of the Tariff Act of 1930 (21
U.S.C. 853(i)(3)), is amended by adding at the end the
272
following: ‘‘ except that, no person may be awarded or paid
more than $250,000 in any year under this section.’’.
(b) TITLE 18, UNITED STATES CODE.—Section
1963(g)(3) of title 18, United States Code, is amended
by inserting after ‘‘section’’ the following: ‘‘, except that
no person may be awarded or paid more than $250,000
in any year under this section, or any other law of the
United States providing for moieties or awards of com-
pensation to informers in cases involving forfeiture.’’.
(c) TITLE 28, UNITED STATES CODE.—Section
524(c)(2) of title 28, United States Code, is amended to
read as follows: ‘‘Any award paid from the Fund for infor-
mation, as provided in paragraph (1)(B) or (C), shall be
paid at the discretion of the Attorney General or his dele-
gate, under existing departmental delegation policies for
the payment of awards, except that no person may be
awarded or paid more than $250,000 in any year under
this section. The Attorney General shall publish data an-
nually regarding amounts of awards paid by the United
States.’’.
(d) TITLE 31, UNITED STATES CODE.—Section
9703(b) of title 31, United States Code, is amended by
adding following new subsection:
‘‘(6) No person may be awarded or paid more
than $250,000 in any year under subsection
273
(a)(1)(C) or (a)(2)(A), or any law of the United
States providing for moieties or awards of com-
pensation to informers in criminal cases.’’.
SEC. 1017. CHANGE ADOPTIVE SEIZURE REGULATIONS.
(a) 
CONTROLLED
SUBSTANCES
ACT.—Section
511(e)(3) of the Controlled Substances Act (21 U.S.C
881(e)(3)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking the period and inserting a semi-
colon at the end of subparagraph (B);
(3) by inserting at the end of subparagraph (B)
the following:
‘‘(C) is not so transferred to circumvent
any requirement of State law that prohibits for-
feiture or limits use or disposal of property for-
feited to State or local agencies.’’.
(b) TITLE 31, UNITED STATES CODE.—Subsection
9703(b)(4) of title 31, United States Code, is amended—
(1) 
by 
striking 
‘‘and’’ 
at 
the 
end 
of
subpargraph (A);
(2) by striking the period and inserting a semi-
colon at the end of subparagraph (B);
(3) by inserting at the end of subparagraph (B)
the following:
274
‘‘(C) is not so transferred to circumvent
any requirement of State law that prohibits for-
feiture or limits use or disposal or property for-
feited to State or local agencies.’’.
SEC. 1018. REPORTING REQUIREMENTS.
Section 616a(c) of the Tariff Act of 1930 (19 U.S.C.
1616a(c)) is amended by adding at the end of section
616a(c) the following:
‘‘(4) The Secretary shall maintain individual records
concerning 
property 
transferred 
under 
paragraph
(1)(B)(ii) demonstrating, with particularity—
‘‘(A) the circumstances of the investigation and
seizure of the forfeiture, including the race, national
origin, gender, and age of those with an interest in
the property prior to seizure; and
‘‘(B) the disposition of the property after trans-
fer by each State.’’.
SEC. 1019. PROVIDE FOR MAINTENANCE OF SEIZED PROP-
ERTY.
(a) IN GENERAL.—Section 2465 of title 28, United
States Code, is amended to read as follows:
‘‘§ 2465. Return of property to claimant
‘‘Upon the entry of judgment for the claimant in any
proceeding to condemn or forfeit property seized under
this Act of Congress or one year after the seizure of such
275
property if no such proceeding has been initiated, such
property shall be returned forthwith to the claimant or
his agent. At such time, interest shall be paid on any
seized coins, currency or negotiable obligations at a rate
equal to the greater of 6 percent or the prevailing market
rate. Compensation for any other injury to property,
caused by or occurring subsequent to its seizure, shall also
be paid.’’.
(b) CLERICAL AMENDMENT.—The item relating to
section 2465 in the table of sections at the beginning of
chapter 163 of title 28, United States Code, is amended
to read as follows:
‘‘2465. Return of property to claimant.’’.
SEC. 1020. LIMITATION ON ADMINISTRATIVE AND CON-
TRACTING EXPENSES.
Section 524(c) of title 28, United States Code, as
amended in section 1, is further amended by adding at
the end the following:
‘‘(13) The total of amounts paid from the Fund
with respect to a fiscal year for administrative and
contracting expenses under paragraph (1)(A) may
not exceed 10 percent of the total of amounts paid
from the Fund for all purposes with respect to such
fiscal year.’’.
276
SEC. 1021. REPORT TO CONGRESS ON ADMINISTRATIVE
AND CONTRACTING EXPENSES.
Section 524(c)(6) of title 28, United States Code, is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) a report for such fiscal year contain-
ing a description of the administrative and con-
tracting expenses paid from the Fund under
paragraph (1)(A).’’.
SEC. 1022. NOMINAL CONSIDERATION SALES OF LOW
VALUE REAL PROPERTY TO CERTAIN TAX-EX-
EMPT ORGANIZATIONS.
Section 511(e) of the Controlled Substances Act (21
U.S.C. 881(e)) is amended—
(1) by striking ‘‘(4)’’ and inserting ‘‘(4) or
(5)’’; and
(2) by adding at the end the following:
‘‘(5)(A) If any property referred to in para-
graph (1)(B) is low value real property located in a
metropolitan statistical area, the Attorney General
shall offer such property for sale, for nominal con-
sideration to tax-exempt organizations that provide