Text: H.R.3347 — 103rd Congress (1993-1994)All Information (Except Text)

There is one version of the bill.

Text available as:

  • TXT
  • PDF (PDF provides a complete and accurate display of this text.) Tip?

Shown Here:
Introduced in House (10/22/1993)

 
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 3347 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3347

              To reform the laws relating to forfeitures.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 22, 1993

 Mr. Conyers introduced the following bill; which was referred jointly 
  to the Committees on Ways and Means, the Judiciary, and Energy and 
                                Commerce

_______________________________________________________________________

                                 A BILL


 
              To reform the laws relating to forfeitures.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Asset Forfeiture Justice Act''.

SEC. 2. REQUIRE CONVICTION.

    (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.''.
    (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. 3. NOTICE.

    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. 4. BURDEN 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 PROCEEDINGS.

    ``In--
            ``(1) all suits or actions (other than those arising under 
        section 592) brought for forfeiture of any 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 recovery 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. 5. PRELIMINARY HEARING.

    (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 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 (a)(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 jurisdiction 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 United States in a criminal 
        injunction or forfeiture proceeding 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 seizure 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.''.
    (b) Title 18, United States Code.--Section 981(b) 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 jurisdiction 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 United States in a criminal 
        injunction or forfeiture proceeding 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 seizure 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.--
            ``(1) In general.--Any property which is subject 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 property 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 
                property is located or the owner of such property is 
                found.
                    ``(B) Determinations.--The court may issue an order 
                under paragraph (1) if it determines, 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 the 
                        court, or otherwise made unavailable for 
                        forfeiture; and
                            ``(ii) the need to preserve the 
                        availability of the property through the entry 
                        of the requested order outweighs the hardship 
                        to any party of interest.
                    ``(C) Seizure without order.--A seizure without 
                such order may be made when--
                            ``(i) the seizure is incident to an arrest 
                        or a search under a search warrant or an 
                        inspection under an administrative inspection 
                        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 practicable thereafter, 
                apply for an order under paragraph (1). Any property so 
                seized must be released to the owner of such property 
                immediately 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. 6. ELIMINATION OF BOND; ADEQUATE REPRESENTATION.

    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, aircraft, 
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 duplicate list and description of the articles seized, to 
the United States attorney for the district in which seizure was made, 
who shall proceed to a condemnation of the merchandise or other 
property in the manner prescribed by law.
    ``(b) If the person filing a claim under subsection (a), or a claim 
regarding seized property under any other provision 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 
represent 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-appointed 
        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, United States 
        Code.''.

SEC. 7. RIGHT TO JURY TRIALS.

    Section 610 of the Tariff Act of 1930 (19 U.S.C. 1610) 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 the case, with the names of available 
witnesses, to the United States Attorney for the district in which the 
seizure 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. 8. ATTORNEYS' FEES.

    (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 knowledge 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.''.
    (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) adding at the end the following: ``or that he received 
        or has been pledged the property as bona fide attorneys' 
        fees.''.
    (3) Section 1963(l)(6)(B) of title 18, United States Code, is 
amended by inserting before the semicolon at the end the following: 
``or the petitioner received or has been pledged the property as bona 
fide attorneys' fees''.
    (b) Controlled Substances Act.--
            (1) Section 413(n)(6)(B) of the Controlled Substances 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;''.
            (2) Section 511(a) of the Controlled Substances Act (21 
        U.S.C. 881(a)), as amended by section 13, is further amended by 
        adding at the end the following new paragraph:
            ``(12) No property received or pledged as bona fide 
        attorneys' fees shall be forfeited under this section.''.

SEC. 9. IN PERSONAM.

    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 knowingly permit the use of, such vessel in violation of 
any provision 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.''.

SEC. 10. FILING DEADLINE.

    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 amended by striking out ``10 days'' and 
inserting ``60 days''.

SEC. 11. PROPORTIONALITY.

    (a) Civil Forfeitures Under the Controlled Substances Act.--Section 
511(a) of the Controlled Substances Act (21 U.S.C. 881(a)), as amended 
by section 13, is further amended by striking ``The'' and inserting: 
``Except that the value of the property forfeited under this section 
may not exceed the pecuniary gain derived from the offense or the 
pecuniary loss caused by the offense, the''.
    (b) Criminal Forfeitures Under the Controlled Substances Act.--
Section 413(a) of the Controlled 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 offense or the pecuniary loss 
caused by the offense.''.

SEC. 12. ELIMINATION OF THE RELATION-BACK DOCTRINE.

    (a) General Title 18, Civil Forfeiture.--Section 981(f) of title 
18, United States Code, is amended to read as follows:
    ``(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 forfeiture.''.
    (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 subsection (a) 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 subsection (a) of this section shall 
vest in the United States upon administrative or judicial declaration 
of forfeiture.''.

SEC. 13. PROPERTY SUBJECT TO SEIZURE.

    (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; and''.
    (b) Civil Forfeiture Under Controlled Substances Act.--Section 
511(a) of the Controlled Substance Act (21 U.S.C. 881(a)) is amended to 
read as follows:
    ``(a) Property Subject to Seizure.--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 equipment of any 
        kind which are used, or intended for use, in manufacturing, 
        compounding, processing, delivering, importing, or exporting 
        any controlled substance in violation of this title.
            ``(3) All property which is used, or intended for use, as a 
        container for property described in paragraph (1).
            ``(4) All conveyances, including aircraft, vehicles, or 
        vessels, which are used primarily to transport or concealment 
        of property described in paragraph (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 appear 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 owner, by 
                reason of any act or omission established by that owner 
                to have been committed or omitted without the 
                knowledge, consent, or willful 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, securities, or 
        other things of value furnished or intended to be furnished by 
        any person in exchange for a controlled 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 knowledge 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 consent of 
        that owner.
            ``(8) All controlled substances which have been possessed 
        in violation of this title.
            ``(9) All listed chemicals, all drug manufacturing 
        equipment, all tableting machines, all encapsulating machines, 
        and all gelatin capsules, which have been imported, exported, 
        manufactured, possessed, distributed, or intended to be 
        distributed, imported, 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 concealment of property described 
        in paragraph (1) or (2) and any proceeds traceable to such 
        property.''.

SEC. 14. FORFEITURE PROCEEDS TO STATE TREASURIES.

    (a) Tariff Act of 1930.--Section 616(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 enforcement 
                        agency that participated directly or indirectly 
                        in the seizure or forfeiture of the 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 transfers under 
                section 616 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 directly in the seizure or forfeiture of 
                the property for disposition according to State law;''.

SEC. 15. EXPANDED USES OF FORFEITURE PROCEEDS.

    Section 524(c) of title 28, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(13)(A) In addition to the purposes under paragraph (1), the fund 
shall be available to the Attorney 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 accordance 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 referred to in subparagraph (A). Not more than 10 percent 
of the total disbursed for such programs may be used for administrative 
costs.''.

SEC. 16. 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 Controlled Substances Act (21 U.S.C. 
853(i)(3)), is amended by inserting before the semicolon at the end the 
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 compensation 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:
            ``(2) Any award paid from the Fund for information, as 
        provided in paragraph (1)(B) or (C), shall be paid at the 
        discretion of the Attorney General or his delegate, 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 annually 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 (a)(1)(C) or (a)(2)(A), or any law 
        of the United States providing for moieties or awards of 
        compensation to informers in criminal cases.''.

SEC. 17. ADOPTIVE SEIZURE.

    (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 subparagraph (A);
            (2) by striking the period and inserting ``; and'' at the 
        end of subparagraph (B); and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) is not so transferred to circumvent any 
                requirement of State law that prohibits forfeiture or 
                limits use or disposal of property forfeited to State 
                or local agencies.''.
    (b) Title 31, United States Code.--Section 9703(b)(4) of title 31, 
United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period and inserting ``; and'' at the 
        end of subparagraph (B); and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) is not so transferred to circumvent any 
                requirement of State law that prohibits forfeiture or 
                limits use or disposal or property forfeited to State 
                or local agencies.''.

SEC. 18. REPORTING REQUIREMENTS.

    Section 616(c) of the Tariff Act of 1930 (19 U.S.C. 1616a(c)) is 
amended by adding at the end 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 transfer by 
        each State.''.

SEC. 19. MAINTENANCE OF SEIZED PROPERTY.

    (a) In General.--Section 2465 of title 28, United States Code, is 
amended to read as follows:
``Sec. 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 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. 20. ADMINISTRATIVE AND CONTRACTING EXPENSES.

    Section 524(c) of title 28, United States Code, as amended by 
section 15, is further amended by adding at the end the following:
    ``(14) 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.''.

SEC. 21. REPORT TO CONGRESS.

    Section 524(c)(6) of title 28, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(D) a report for such fiscal year containing a 
        description of the administrative and contracting expenses paid 
        from the Fund under paragraph (1)(A).''.

SEC. 22. NOMINAL CONSIDERATION SALES OF LOW VALUE REAL PROPERTY.

    Section 511(e) of the Controlled Substances Act (21 U.S.C. 881(e)) 
is amended--
            (1) in paragraph (1)(B), 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 paragraph (1)(B) is 
        low value real property located in a metropolitan statistical 
        area, the Attorney General shall offer such property for sale, 
        for nominal consideration to tax-exempt organizations that 
        provide direct services furthering community-based crime 
        control, housing, or education efforts in such area.
            ``(B) As used in this paragraph--
                    ``(i) the term `low value real property' means, 
                with respect to a metropolitan statistical area, real 
                property that is appraised at less than 40 percent of 
                the median value of comparable real property in the 
                metropolitan statistical area;
                    ``(ii) the term `tax-exempt organization' means an 
                organization described in section 501(c)(3) of the 
                Internal Revenue Code of 1986, and exempt from tax 
                under section 501(a) of such Code; and
                    ``(iii) the term `nominal consideration' means 
                minimal recompense not to exceed 1.5 percent of the 
                value of the property, and shall not include, directly 
                or indirectly, equitable sharing or any other cost, 
                expense or payment associated with the seizure, 
                forfeiture, care or maintenance of the property, or 
                with the administration of any fund or program, other 
                than the costs of the sale to the extent that such 
                sales costs do not exceed 1.5 percent of the value of 
                the property.''.

SEC. 23. ACTIONS UNDER THE TORT CLAIMS ACT.

    Section 2680(c) of title 28, United States Code, is amended by 
inserting before the period the following: ``except that this chapter 
and section 1346(b) of this title shall apply to any claim based--
                    ``(1) on the negligent destruction, injury, or loss 
                of goods or merchandise (including real property) while 
                in the possession of any officer of customs or excise 
                or any other law enforcement officer, or
                    ``(2) on the destruction, injury, or loss of goods 
                or merchandise (including real property) caused by the 
                misfeasance, malfeasance, or nonfeasance of any customs 
                or excise or any other law enforcement officer while in 
                the possession of such officer''.

                                 <all>

HR 3347 IH----2