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114th Congress }                                        {  Rept. 114-892
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                        {  Part 1

======================================================================
 
                        DUE PROCESS ACT OF 2016

                                _______
                                

December 23, 2016.--Committed to the Committee of the Full House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Goodlatte, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5283]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 5283) to amend title 18, United States Code, to 
reform certain forfeiture procedures, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page

The Amendment....................................................     1
Purpose and Summary..............................................     7
Background and Need for the Legislation..........................     7
Hearings.........................................................     8
Committee Consideration..........................................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
New Budget Authority and Tax Expenditures........................     8
Congressional Budget Office Cost Estimate........................     8
Duplication of Federal Programs..................................     9
Disclosure of Directed Rule Makings..............................     9
Performance Goals and Objectives.................................     9
Advisory on Earmarks.............................................     9
Section-by-Section Analysis......................................     9
Changes in Existing Law Made by the Bill, as Reported............    12

                             The Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``DUE PROCESS Act of 2016'' or the 
``Deterring Undue Enforcement by Protecting Rights of Citizens from 
Excessive Searches and Seizures Act of 2016''.

SEC. 2. GENERAL RULES FOR CIVIL FORFEITURE PROCEEDINGS.

  Section 983(a) of title 18, United States Code, is amended--
          (1) in the subsection heading, by striking ``Complaint'' and 
        inserting ``Complaint; Initial Hearing'';
          (2) in paragraph (1)--
                  (A) in subparagraph (A)--
                          (i) in clause (i), by striking ``60 days'' 
                        and inserting ``30 days'';
                          (ii) by striking clause (ii);
                          (iii) in clause (iii)--
                                  (I) in the matter preceding subclause 
                                (I)--
                                          (aa) by striking ``60-day'' 
                                        and inserting ``30-day''; and
                                          (bb) by striking ``does not 
                                        file'' and all that follows 
                                        through ``obtain'' and 
                                        inserting ``obtains''; and
                                  (II) in subclause (I), by striking 
                                ``60 days'' and inserting ``30 days'';
                          (iv) in clause (iv), by striking ``90 days'' 
                        and inserting ``60 days'';
                          (v) in clause (v), by striking ``60 days'' 
                        and inserting ``30 days''; and
                          (vi) by adding at the end the following:
          ``(vi) The notice under this subparagraph shall include an 
        address, which shall also be widely published, at which the 
        seizing agency can receive until 5 p.m. on any business day an 
        interested party's claim contesting a seizure or forfeiture. 
        The interested party may send such a claim to that address by 
        courier or overnight mail. For the purpose of determining 
        compliance with any deadlines in filing such a claim, an 
        interested party completes the filing by placing the 
        communication making the claim in the control of an independent 
        third party delivery service such as a courier company or the 
        United States mail. In determining whether any legal deadline 
        for the filing of such a claim has been met a court shall allow 
        for the equitable tolling of the deadline in appropriate cases.
          ``(vii) The seizing agency shall make publicly available for 
        each nonjudicial forfeiture, with respect to which a request 
        for mitigation or remission is made, a statement of the 
        agency's disposition of that request, redacted if necessary, 
        including the reasons for the decision.'';
                  (B) in subparagraph (C)--
                          (i) by striking ``60'' and inserting ``30''; 
                        and
                          (ii) by striking ``which period may'' and all 
                        that follows through ``as necessary,'';
                  (C) by adding at the end the following:
          ``(G) Any notice described in subparagraph (A) that is 
        provided to a party shall include notice of--
                  ``(i) the right of the party to request an initial 
                hearing in accordance with paragraph (5);
                  ``(ii) the right of the party to be represented by 
                counsel at the initial hearing described in clause (i) 
                and any civil forfeiture proceeding under a civil 
                forfeiture statute; and
                  ``(iii) the right of the party to request that the 
                party be represented by counsel at the initial hearing 
                described in clause (i) and any civil forfeiture 
                proceeding under a civil forfeiture statute if the 
                party meets the requirements described in subsection 
                (b).''; and
                  (D) by striking ``nonjudicial'' each place it 
                appears;
          (3) in paragraph (2)(A), by striking ``nonjudicial'';
          (4) in paragraph (2)(B)--
                  (A) by striking ``35 days'' and inserting ``65 
                days''; and
                  (B) by striking ``30 days'' and inserting ``60 
                days'';
          (5) so that subparagraph (A) of paragraph (3) reads as 
        follows:
          ``(A) Not later than 90 days after a claim has been filed, 
        the Government shall file a complaint for forfeiture in the 
        manner set forth in the Supplemental Rules for Certain 
        Admiralty and Maritime Claims or return the property pending 
        the filing of a complaint, except that a court in the district 
        in which the complaint has been filed may extend the period for 
        filing a complaint upon agreement of the parties.''; and
          (6) by adding at the end the following:
          ``(5)(A) A party claiming property seized in a civil 
        forfeiture proceeding under a civil forfeiture statute may 
        request, not later than 30 days after the date on which a 
        notice described in paragraph (1)(A) is received or if notice 
        is not received, not later than 30 days after the date of final 
        publication of notice of seizure, an initial hearing to take 
        place before a magistrate judge in the appropriate United 
        States district court not later than the date on which a civil 
        forfeiture proceeding under a civil forfeiture statute relating 
        to the seized property commences.
          ``(B) If a party makes a request under subparagraph (A), a 
        magistrate judge shall conduct an initial hearing not later 
        than 10 days after the date on which the request is made.
          ``(C) At the initial hearing--
                  ``(i) the magistrate judge shall--
                          ``(I) inform the party in easily understood 
                        terms of--
                                  ``(aa) the right of the party to be 
                                represented by counsel at the initial 
                                hearing and any civil forfeiture 
                                proceeding under a civil forfeiture 
                                statute;
                                  ``(bb) the right of the party to 
                                request that the party be represented 
                                by counsel at the initial hearing and 
                                any civil forfeiture proceeding under a 
                                civil forfeiture statute if the 
                                magistrate judge finds that the party 
                                meets the requirements described in 
                                subsection (b);
                                  ``(cc) sufficiently detailed facts 
                                regarding the seizure of the property 
                                if the property was seized pursuant to 
                                a warrant described in the matter 
                                preceding subparagraph (A) of section 
                                981(b)(2); and
                                  ``(dd) the right of the party to 
                                challenge the lawfulness of the seizure 
                                of the property, including on the 
                                grounds that at the time the property 
                                was seized--
                                          ``(AA) if the property was 
                                        seized pursuant to a warrant 
                                        described in the matter 
                                        preceding subparagraph (A) of 
                                        section 981(b)(2), the warrant 
                                        was not supported by probable 
                                        cause; or
                                          ``(BB) if the property was 
                                        seized without a warrant 
                                        described in subitem (AA), none 
                                        of the exceptions described in 
                                        subparagraphs (A) and (B) of 
                                        section 981(b)(2) apply to the 
                                        seizure of the property; and
                          ``(II) if the party meets the requirements 
                        described in subsection (b), authorize counsel 
                        to represent the party or insure that the party 
                        is represented by an attorney for the Legal 
                        Services Corporation, as applicable, in 
                        accordance with that subsection; and
                  ``(ii) the burden of proof is on the Government to 
                establish that at the time the property was seized--
                          ``(I) if the property was seized pursuant to 
                        a warrant described in the matter preceding 
                        subparagraph (A) of section 981(b)(2), the 
                        warrant was supported by probable cause; or
                          ``(II) if the property was seized without a 
                        warrant described in subclause (I)--
                                  ``(aa) sufficiently detailed facts 
                                regarding the seizure of the property; 
                                and
                                  ``(bb) an exception described in 
                                subparagraphs (A) and (B) of section 
                                981(b)(2) applies to the seizure of the 
                                property.
          ``(D) The magistrate judge shall enter an order for the 
        immediate release of the seized property with prejudice to the 
        right of the Government to commence a civil forfeiture 
        proceeding at a later time if the magistrate judge finds that--
                  ``(i) the requirements described in subparagraphs (A) 
                through (E) of subsection (f)(1) are met; and
                  ``(ii) the Government did not meet the burden of 
                proof described in subparagraph (C)(ii).''.

SEC. 3. REPRESENTATION.

  Section 983(b) of title 18, United States Code, is amended--
          (1) in paragraph (1)(A), by striking ``judicial''; and
          (2) in paragraph (2)(A), by striking ``judicial civil 
        forfeiture proceeding under a civil forfeiture statute is 
        financially unable to obtain representation by counsel, and the 
        property subject to forfeiture is real property that is being 
        used by the person as a primary residence'' and inserting 
        ``civil forfeiture proceeding under a civil forfeiture statute 
        is financially unable to obtain representation by counsel''.

SEC. 4. BURDEN OF PROOF.

  Section 983(c) of title 18, United States Code, is amended--
          (1) in paragraph (1), by striking ``a preponderance of the 
        evidence'' and inserting ``clear and convincing evidence''; and
          (2) in paragraph (2), by striking ``a preponderance of the 
        evidence'' and inserting ``clear and convincing evidence''.

SEC. 5. RIGHT TO REQUEST HEARING ON PRETRIAL RESTRAINT OF PROPERTY TO 
                    RETAIN COUNSEL OF CHOICE.

  (a) Title 18.--Section 1963(d) of title 18, United States Code, is 
amended--
          (1) by striking paragraph (1) and inserting the following:
  ``(1)(A) Upon application of the United States, the court may enter a 
restraining order or injunction, require the execution of a 
satisfactory performance bond, or take any other action to preserve the 
availability of property described in subsection (a) for forfeiture 
under this section--
          ``(i) upon the filing of an indictment or information 
        charging a violation of section 1962 and alleging that the 
        property with respect to which the order is sought would, in 
        the event of conviction, be subject to forfeiture under this 
        section; or
          ``(ii) prior to the filing of such an indictment or 
        information, if, after notice to persons appearing to have an 
        interest in the property and opportunity for a hearing, the 
        court determines 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 on any party against whom the 
                order is to be entered.
  ``(B)(i) Upon motion of a defendant charged with a violation of 
section 1962 for which criminal forfeiture is ordered under this 
section and against whom the order is entered, supported by an 
affidavit, the court shall hold a hearing to determine whether to 
modify or rescind, in whole or in part, an order entered under 
subparagraph (A) to allow the defendant to use the property subject to 
the order to retain counsel of choice.
  ``(ii) At the hearing, the court shall consider--
          ``(I) the weight of the evidence against the defendant with 
        respect to the violation of section 1962 for which criminal 
        forfeiture is ordered under this section;
          ``(II) the weight of the evidence with respect to whether the 
        property will be subject to forfeiture under this section;
          ``(III) the history and characteristics of the defendant; and
          ``(IV) the nature and circumstances of the case.
  ``(C) An order entered pursuant to subparagraph (A)(ii) shall be 
effective for not more than 90 days, unless--
          ``(i) extended by the court for good cause shown; or
          ``(ii) an indictment or information described in subparagraph 
        (A)(i) has been filed.''; and
          (2) in paragraph (2), by inserting ``that the defendant 
        committed a violation of section 1962 for which criminal 
        forfeiture may be ordered under this section and probable cause 
        to believe'' after ``believe''.
  (b) Controlled Substances Act.--Section 413(e) of the Controlled 
Substances Act (21 U.S.C. 853(e)) is amended--
          (1) by striking paragraph (1) and inserting the following:
  ``(1)(A) Upon application of the United States, the court may enter a 
restraining order or injunction, require the execution of a 
satisfactory performance bond, or take any other action to preserve the 
availability of property described in subsection (a) for forfeiture 
under this section--
          ``(i) upon the filing of an indictment or information 
        charging a violation of this title or title III for which 
        criminal forfeiture may be ordered under this section and 
        alleging that the property with respect to which the order is 
        sought would, in the event of conviction, be subject to 
        forfeiture under this section; or
          ``(ii) prior to the filing of such an indictment or 
        information, if, after notice to persons appearing to have an 
        interest in the property and opportunity for a hearing, the 
        court determines 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 on any party against whom the 
                order is to be entered.
  ``(B)(i) Upon motion of a defendant charged with a violation of 
section 1962 for which criminal forfeiture is ordered under this 
section and against whom the order is entered, supported by an 
affidavit sufficient to demonstrate a genuine need for the defendant to 
use the property subject to an order entered under subparagraph (A) to 
retain counsel of choice, the court shall hold a hearing to determine 
whether to modify or rescind, in whole or in part, the order to allow 
the defendant to use the property to retain counsel of choice.
  ``(ii) At the hearing, the court shall consider--
          ``(I) the weight of the evidence against the defendant with 
        respect to the violation of this title or title III for which 
        criminal forfeiture is be ordered under this section;
          ``(II) the weight of the evidence with respect to whether the 
        property will be subject to forfeiture under this section;
          ``(III) the history and characteristics of the defendant; and
          ``(IV) the nature and circumstances of the case.
  ``(C) An order entered pursuant to subparagraph (A)(ii) shall be 
effective for not more than 90 days, unless--
          ``(i) extended by the court for good cause shown; or
          ``(ii) an indictment or information described in subparagraph 
        (A)(i) has been filed.''; and
          (2) in paragraph (2), by inserting ``that the defendant 
        committed a violation of this title or title III for which 
        criminal forfeiture may be ordered under this section and 
        probable cause to believe'' after ``believe''.

SEC. 6. RECOVERY OF ATTORNEYS FEES.

  Section 2465(b) of title 28, United States Code, is amended--
          (1) in paragraph (1), by striking ``substantially''; and
          (2) by adding at the end the following:
  ``(3) If the claim is resolved by a settlement in which the claimant 
prevails, the claimant is entitled to attorneys fees under this 
subsection to the same extent that the claimant would be if a judgment 
were issued in the proceeding for the property recovered under the 
settlement. The payment of attorneys fees under this subsection may not 
be waived as a part of any settlement with the claimant. That payment 
is not subject to any offset or deduction by the United States in 
connection with any claim the United States may have against the 
claimant.
  ``(4) For the purposes of this subsection, a claimant prevails if the 
claimant recovers more than 50 percent, by value, of the money or other 
property that is claimed.''.

SEC. 7. ANNUAL AUDIT OF CIVIL FORFEITURES.

  The Inspector General shall annually conduct an audit of a 
representative sample of Federal civil forfeitures under statutes 
described in section 983(i) of title 18, United States Code, to ensure 
those forfeitures are constitutionally sound and consistent with the 
letter and spirit of the law. The Department of Justice Inspector 
General shall report the results of the audit to the Attorney General 
and to Congress. Such report shall also include the fiscal status of 
the Asset Forfeiture Fund and Treasury Forfeiture Fund, including any 
projected growth or shrinking of the Funds in future years, and the 
viability of the Funds.

SEC. 8. PUBLICLY AVAILABLE DATABASES.

  (a) Quarterly Updated Database on Details of Forfeitures.--The 
Attorney General shall establish and maintain, with updates on a 
quarterly basis, a publicly available database that describes with 
respect to seizures for all Federal civil forfeiture containing the 
following:
          (1) For each such seizure:
                  (A) Unit of an agency responsible for the seizure, 
                and the location, including at a minimum the State, 
                city, and judicial district where and date when the 
                seizure took place.
                  (B) The type of initial seizure (such as during a 
                stop based on probable cause, or pursuant to a Federal 
                warrant).
                  (C) The nature and value of the seized property.
                  (D) In what manner forfeiture of seized property was 
                conducted (whether by a civil or administrative 
                proceeding, through settlement, or otherwise).
                  (E) Whether a forfeiture of the seized property was 
                of the entire property, or only a part, and if partial, 
                the proportion of the whole that was forfeited.
                  (F) The disposition of the seized property, the date 
                of forfeiture, if any, and the date the disposition 
                took place.
                  (G) What type of criminal activity any forfeited 
                property relates to.
                  (H) Whether any forfeited money was returned to the 
                victim of a crime in connection with which the 
                forfeiture occurred, and the amount returned.
                  (I) The status of any concurrent or related criminal 
                proceeding against the owner of the property, any 
                pending case under title 11 in which the owner of 
                record of the property is the debtor, and any pending 
                civil case in which a receiver has been ordered to take 
                control of the property.
                  (J) Whether the forfeiture was contested.
                  (K) Whether the innocent owner made a claim on the 
                property.
                  (L) The total expenses associated with the 
                forfeiture.
                  (M) The total net proceeds of the forfeiture.
                  (N) Demographic information on the person or persons 
                subject to the seizure.
          (2) A statistical breakdown for each agency of the cases of 
        remission and mitigation, including--
                  (A) the numbers of requests for remission and 
                mitigation that were--
                          (i) fully granted;
                          (ii) partially granted; or
                          (iii) returned; and
                  (B) with respect to requests that were partially 
                granted--
                          (i) the average percentage of the value of 
                        seized property that was returned to the owner; 
                        and
                          (ii) what percentage of requests resulted in 
                        returned property in each of the following 
                        categories:
                                  (I) More than zero but less than 25 
                                percent of the property was returned.
                                  (II) 25 percent or more of the 
                                property was returned, but less than 50 
                                percent.
                                  (III) 50 percent or more of the 
                                property was returned, but less than 75 
                                percent.
                                  (IV) 75 percent or more of the 
                                property was returned, but less than 
                                100 percent.
          (3) Any money given from the Asset Forfeiture Fund or 
        Treasury Forfeiture Fund to State or local law enforcement for 
        Joint Law Enforcement Operations (commonly referred to as 
        ``JLEO'') funding, or for any other purpose, and the name of 
        the State or local entity receiving that funding.
  (b) Real-Time Database To Assist Persons Whose Property Is Seized.--
          (1) Establishment.--The Attorney General shall establish and 
        maintain, with updates on a real-time basis, a database, 
        organized by State and county, with respect to each Federal 
        seizure of real and personal property for Federal civil 
        forfeiture under statutes described in section 983(i) of title 
        18, United States Code.
          (2) Design.--The Attorney General shall design the database 
        to allow any interested party, including any owner, creditor, 
        or lienholder, to determine whether that party has an interest 
        in any such property and to inform that party, and the general 
        public, on the specifics of how to contest each seizure before 
        the forfeiture.
  (c) Heads of Agencies To Submit Information for Databases.--Not less 
frequently than quarterly, on a schedule determined by the Attorney 
General, the head of each Federal agency shall submit to the Attorney 
General a report that provides, in such form as the Attorney General 
may prescribe, the information the Attorney General is required to 
include in the databases established under this section.

SEC. 9. STANDARD OF PROOF RELATING TO POSSIBLY INNOCENT OWNERS.

  (a) Burden of Proof.--Paragraph (3) of section 983(c) of title 18, 
United States Code, is amended to read as follows:
          ``(3) if the Government's theory of forfeiture is that the 
        property was used to commit or facilitate the commission of a 
        criminal offense, or was involved in the commission of a 
        criminal offense, the Government shall establish by clear and 
        convincing evidence that--
                  ``(A) there was a substantial connection between the 
                property and the offense; and
                  ``(B) the owner of any interest in the seized 
                property--
                          ``(i) intentionally used the property in 
                        connection with the offense;
                          ``(ii) knowingly consented to the use of the 
                        property by another in connection with the 
                        offense; or
                          ``(iii) knew that the property was being used 
                        in connection with the offense.''.
  (b) Innocent Owner Defense.--
          (1) Section 983(d)(1).--Paragraph (1) of section 983(d) of 
        title 18, United States Code, is amended to read as follows:
          ``(1) An innocent owner's interest in property shall not be 
        forfeited under any civil forfeiture statute. The Government 
        shall have the burden of proving that the claimant is not an 
        innocent owner by clear and convincing evidence.''.
          (2) Section 983(d)(2)(a)(i).--Paragraph (2)(A)(i) of section 
        983(d) of title 18, United States Code, is amended by inserting 
        ``or consent to'' after ``did not know of''.

SEC. 10. PROPORTIONALITY.

  Section 983(g) of title 18, United States Code, is amended--
          (1) in paragraph (1), by inserting ``or otherwise 
        disproportional to the gravity of the offense'' before the 
        period at the end; and
          (2) by amending paragraph (2) to read as follows:
          ``(2) In making this determination, the court shall consider, 
        in addition to the analysis as to whether the forfeiture is 
        constitutionally excessive, the value of the property, the 
        seriousness of the offense, the level of the claimant's 
        culpability in the offense giving rise to forfeiture, the 
        claimant's prior record, the claimant's financial condition, 
        and whether the forfeiture statute is intended to address the 
        type of conduct alleged as the basis for forfeiture.''.

SEC. 11. SEARCH AND FORFEITURE OF MONETARY INSTRUMENTS.

  Section 5317(c) of title 31, United States Code, is amended by 
striking paragraph (2) and inserting the following:
          ``(2) Civil forfeiture.--
                  ``(A) In general.--Any property involved in a 
                violation of section 5313 or 5316, or any conspiracy to 
                commit any such violation, and any property traceable 
                to any such violation or conspiracy, may be seized and 
                forfeited to the United States in accordance with the 
                procedures governing civil forfeitures in money 
                laundering cases pursuant to section 981(a)(1)(A) of 
                title 18.
                  ``(B) Structuring.--Any property involved in a 
                violation of section 5324, or any conspiracy to commit 
                any such violation, and any property traceable to any 
                such violation or conspiracy, may be seized and 
                forfeited to the United States in accordance with the 
                procedures governing civil forfeitures in money 
                laundering cases pursuant to section 981(a)(1)(A) of 
                title 18 only if the property to be seized and 
                forfeited is derived from an illegal source or if the 
                structuring offense was used to conceal violations of 
                other criminal laws.''.

SEC. 12. EFFECTIVE DATE AND APPLICABILITY.

  This Act and the amendments made by this Act shall take effect on the 
date of the enactment of this Act and apply only with respect to 
seizures made on or after that date. Seizures made before that date 
shall continue to be governed by the law as it existed without regard 
to this Act or the amendments made by this Act.

                          Purpose and Summary

    H.R. 5283, the ``Deterring Undue Enforcement by Protecting 
Rights of Citizens from Excessive Searches and Seizures Act of 
2016,'' or ``DUE PROCESS Act,'' implements procedural reforms 
to ensure fairness and continued effectiveness of Federal 
forfeiture and adoptions. The bill seeks to build on changes 
and incorporate lessons learned from the Civil Action 
Forfeiture Reform Act (CAFRA) in 2000.

                Background and Need for the Legislation

    In early 2015, Chairman Goodlatte and Ranking Member 
Conyers created a Criminal Justice Reform Initiative at the 
Judiciary Committee to address the significant Congressional 
interest in criminal justice reform from Members who do and do 
not serve on the Judiciary Committee. The purpose of the 
Initiative was to develop bipartisan legislation to address 
several facets of the federal criminal justice system, 
including over-criminalization, sentencing reform, prison and 
reentry reform, protecting citizens through improved criminal 
procedures and policing strategies, and civil asset forfeiture 
reform. In addressing these issues, the Committee has relied on 
the work of the Over-Criminalization Task Force, which held 
nine hearings on a variety of criminal justice topics during 
the 113th Congress, as well as the information provided to the 
Committee by interested Members during the Committee's public 
listening session in June 2015.
    In recent years, there have been many reported incidents in 
which innocent Americans have had their property or money 
improperly seized by law enforcement. While asset forfeiture is 
a useful law enforcement tool, abuses of it clearly show that 
reform is needed to better protect innocent Americans' property 
swept up by forfeiture.
    In order to strengthen protections for Americans' property, 
the DUE PROCESS Act provides much needed reforms to Federal 
civil asset forfeiture programs, increases accountability and 
oversight of seizures and forfeitures, and strengthens 
protections for Americans whose property has been seized by law 
enforcement agencies.

                                Hearings

    The Committee on the Judiciary held no hearings on H.R. 
5283. However, on February 11, 2015, the Subcommittee on Crime, 
Terrorism, Homeland Security, and Investigations held a hearing 
to examine asset forfeiture procedures and practices, entitled 
``Federal Asset Forfeiture: Uses and Reforms.''

                        Committee Consideration

    On May 23, 2016, the Committee met in open session and 
ordered the bill H.R. 5283 favorably reported, with an 
amendment, by voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that there 
were no recorded votes during the Committee's consideration of 
H.R. 5283.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    With respect to clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives, an estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act of 1974 was 
not submitted to the Committee before the of filing of the 
report.

                    Duplication of Federal Programs

    No provision of H.R. 5283 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 5283 specifically directs 
to be completed no specific rule makings within the meaning of 
5 U.S.C. Sec. 551.

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
5283 will protect innocent citizens from unwittingly being 
ensnared in civil asset forfeiture, while at the same time 
protecting civil asset forfeiture as a tool for law enforcement 
to use against criminals and criminal organizations.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 5283 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of Rule XXI.

                      Section-by-Section Analysis

Section 1. Short Title.
    This section cites the short title of the bill as the ``DUE 
PROCESS Act (DPA) of 2016.''
Section 2. General Rules for Civil Forfeiture Proceedings.
    One of the most important changes in CAFRA was the creation 
of a timeline governing the process from seizure to forfeiture. 
The ability to force timely adjudication mitigates the hardship 
to innocent owners and expedites title transfer to the 
government in the event of a valid forfeiture.
    To that end, the DPA broadens the applicability of the 
CAFRA timelines, adjusts the timeframes in light of the past 
sixteen years of real world experience, and implements new 
protections to ensure property owners have the opportunity to 
contest seizures.
    Expanding the CAFRA Timelines. The CAFRA timelines 
currently apply only in nonjudicial (administrative) 
forfeitures. This was likely a typographical error, but the 
result is that property owners lose the benefits of CAFRA in 
some of the highest value forfeiture proceedings. The DPA 
ensures that the statutory timelines apply equally in all types 
of forfeiture proceedings.
    Deadline for Notice from the Government. Under current law, 
the government has 60 days to provide notice of a seizure to a 
property owner. The DPA reduces this to 30 days. When the 
Federal Government adopts a state seizure, the notice period is 
60 days. The Department of Justice (DOJ) can extend this period 
for an additional 30 days for good cause. A court can extend 
the period for an additional 30 days based on specified 
factors.
    Required Notice. DPA creates new notice requirements, which 
include an address where a property owner can contest a seizure 
and a duty to inform property owners of their rights--created 
in the DPA--to request an initial hearing, to be represented by 
counsel at that hearing, and to have counsel provided if the 
property owner is indigent.
    For purposes of deadlines, a property owner's notice is 
considered received when it is mailed and the law expressly 
allows for equitable tolling of deadlines when appropriate.
    Property Owner's Response. The DPA extends the period that 
property owners have to respond to a seizure. In the case of 
personal notice, the property owner has 65 days (increased from 
35 days), and in the case of publicized notice, 60 days 
(increased from 30).
    Filing of a Claim. The government has 90 days after an 
objection is filed to commence forfeiture proceedings. Under 
current law, a court can extend this time period upon motion of 
the government. Under the DPA, the period can be extended only 
upon agreement of both parties.
    Initial Hearing. Upon request, a property owner is entitled 
to an initial hearing. At the hearing, a magistrate judge shall 
inform the property owner of his right to be represented by 
counsel and the right to be provided counsel under specified 
circumstances for indigent property owners. The judge shall 
order the immediate release of property if the seizure was not 
made according to law or if the property owner meets the 
requirements of section 983(f)(1).
    Transparency on Administrative Forfeitures. A seizing 
agency must publicize its disposition of remission and 
mitigation requests.
Section 3. Representation.
    The right of indigent property owners to have counsel 
provided to them is extended to all civil forfeiture 
proceedings. Under current law, indigent property owners are 
only entitled to counsel at judicial proceedings despite the 
fact that a majority of forfeitures are resolved 
administratively.
Section 4. Burden of Proof.
    Recognizing the punitive nature of civil forfeiture 
proceedings, the DPA raises the government's burden of proof 
from ``preponderance of the evidence'' to ``clear and 
convincing evidence.'' This is still lower than the criminal 
standard of ``beyond a reasonable doubt.''
Section 5. The Right to Retain Counsel of Choice.
    Section 5 is the bill's only reform of criminal forfeiture. 
In Kaley v. United States, the Supreme Court ruled that a 
criminal defendant is not constitutionally entitled to an 
evidentiary hearing to contest the factual predicate of a 
pretrial restraint on assets even when that money is necessary 
to pay for his defense.
    The DPA reverses the Kaley decision and bolsters the Sixth 
Amendment right to counsel. If the government restrains assets 
pretrial, a defendant can move for a hearing to determine 
whether the seizure should be modified or rescinded to preserve 
the defendant's right to counsel. At the hearing, the court 
must consider (1) the weight of the evidence against the 
defendant, (2) the weight of the evidence with respect to the 
forfeiture, (3) the history and characteristics of the 
defendant, and (4) the nature and circumstances of the case.
Section 6. Recovery of Attorney's Fees.
    Allows for recovery of attorney's fees when civil 
forfeiture cases are resolved through settlement assuming the 
settlement amount is greater than 50% of the seized property's 
value.
Section 7. Annual Audit of Civil Forfeitures.
    The DPA requires the DOJ Inspector General to conduct an 
annual audit of a sample of Federal civil forfeitures to ensure 
that they are consistent with the Constitution and the law. The 
IG's report shall also include an assessment of the fiscal 
health of the Asset Forfeiture Fund, as well as a projection on 
any expected growth or reduction.
Section 8. Publicly Available Databases.
    The DPA requires the Attorney General to establish and 
maintain two forfeiture-related databases. One database is a 
real-time catalogue of Federal forfeitures to assist persons 
whose property has been seized.
    The second database provides broad details on forfeiture to 
inform Congress and the public of the types of forfeiture, the 
agencies involved, and the conduct that leads to forfeiture of 
property.
Section 9. Monetary Instruments and Structuring.
    This section codifies already implemented DOJ/IRS policy 
related to structuring and forfeiture. Structuring is a crime 
only if cash deposits or withdrawals are done with the intent 
of avoiding government reporting requirements.
    The IRS, however, had frequently used civil forfeiture to 
seize property when it identified patterns of deposits or 
withdrawals that were consistent with structuring even when it 
lacked sufficient evidence to file criminal charges or identify 
other criminal activity.
    Last year, DOJ and IRS announced that they would only 
charge people with structuring if the funds that were being 
structured were from illegal sources (e.g., drug trafficking) 
or the structuring was done to further or hide criminal 
activity (e.g., tax evasion).
    This section codifies that policy and only allows civil 
forfeiture in structuring cases when the property to be seized 
is derived from an illegal source or otherwise used to conceal 
illegal activity.
Section 10. Standard of Proof Relating to Innocent Owners.
    The DPA provides additional protection to innocent owners. 
If the government is attempting to forfeit property under a 
civil forfeiture statute because the property was used in the 
commission of a crime, the government must prove that (1) there 
was a substantial connection between the property and the 
offense; and (2) the owner of the seized property intentionally 
used the property in the offense, knowingly consented to its 
criminal use, or reasonably should have known that the property 
might be used in connection with the offense.
Section 11. Proportionality.
    Under current law, a judge may reduce the value of a 
forfeiture only when the forfeiture is so grossly 
disproportionate to the underlying wrongdoing that it rises to 
the level of a constitutional violation under the Eighth 
Amendment. The DPA gives judges greater latitude to reduce the 
size of a forfeiture penalty based on the following factors: 
the value of the property, the seriousness of the offense, the 
culpability of the claimant, the claimant's prior record, the 
claimant's financial condition and need to support a family, 
and the intent of the forfeiture statute in question.
Section 12. Effective Date.
    The DPA will be effective when adopted. Seizures made prior 
to enactment will be forfeited under current law.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

TITLE 18, UNITED STATES CODE

           *       *       *       *       *       *       *


PART I--CRIMES

           *       *       *       *       *       *       *


CHAPTER 46--FORFEITURE

           *       *       *       *       *       *       *


Sec. 983. General rules for civil forfeiture proceedings

  (a) Notice; Claim; Complaint; Initial Hearing.--
          (1)(A)(i) Except as provided in clauses (ii) through 
        (v), in any [nonjudicial] civil forfeiture proceeding 
        under a civil forfeiture statute, with respect to which 
        the Government is required to send written notice to 
        interested parties, such notice shall be sent in a 
        manner to achieve proper notice as soon as practicable, 
        and in no case more than [60 days] 30 days after the 
        date of the seizure.
          [(ii) No notice is required if, before the 60-day 
        period expires, the Government files a civil judicial 
        forfeiture action against the property and provides 
        notice of that action as required by law.]
          (iii) If, before the [60-day] 30-day period expires, 
        the Government [does not file a civil judicial 
        forfeiture action, but does obtain] obtains a criminal 
        indictment containing an allegation that the property 
        is subject to forfeiture, the Government shall either--
                  (I) send notice within the [60 days] 30 days 
                and continue the [nonjudicial] civil forfeiture 
                proceeding under this section; or
                  (II) terminate the [nonjudicial] civil 
                forfeiture proceeding, and take the steps 
                necessary to preserve its right to maintain 
                custody of the property as provided in the 
                applicable criminal forfeiture statute.
          (iv) In a case in which the property is seized by a 
        State or local law enforcement agency and turned over 
        to a Federal law enforcement agency for the purpose of 
        forfeiture under Federal law, notice shall be sent not 
        more than [90 days] 60 days after the date of seizure 
        by the State or local law enforcement agency.
          (v) If the identity or interest of a party is not 
        determined until after the seizure or turnover but is 
        determined before a declaration of forfeiture is 
        entered, notice shall be sent to such interested party 
        not later than [60 days] 30 days after the 
        determination by the Government of the identity of the 
        party or the party's interest.
          (vi) The notice under this subparagraph shall include 
        an address, which shall also be widely published, at 
        which the seizing agency can receive until 5 p.m. on 
        any business day an interested party's claim contesting 
        a seizure or forfeiture. The interested party may send 
        such a claim to that address by courier or overnight 
        mail. For the purpose of determining compliance with 
        any deadlines in filing such a claim, an interested 
        party completes the filing by placing the communication 
        making the claim in the control of an independent third 
        party delivery service such as a courier company or the 
        United States mail. In determining whether any legal 
        deadline for the filing of such a claim has been met a 
        court shall allow for the equitable tolling of the 
        deadline in appropriate cases.
          (vii) The seizing agency shall make publicly 
        available for each nonjudicial forfeiture, with respect 
        to which a request for mitigation or remission is made, 
        a statement of the agency's disposition of that 
        request, redacted if necessary, including the reasons 
        for the decision.
          (B) A supervisory official in the headquarters office 
        of the seizing agency may extend the period for sending 
        notice under subparagraph (A) for a period not to 
        exceed 30 days (which period may not be further 
        extended except by a court), if the official determines 
        that the conditions in subparagraph (D) are present.
          (C) Upon motion by the Government, a court may extend 
        the period for sending notice under subparagraph (A) 
        for a period not to exceed [60] 30 days, [which period 
        may be further extended by the court for 60-day 
        periods, as necessary,] if the court determines, based 
        on a written certification of a supervisory official in 
        the headquarters office of the seizing agency, that the 
        conditions in subparagraph (D) are present.
          (D) The period for sending notice under this 
        paragraph may be extended only if there is reason to 
        believe that notice may have an adverse result, 
        including--
                  (i) endangering the life or physical safety 
                of an individual;
                  (ii) flight from prosecution;
                  (iii) destruction of or tampering with 
                evidence;
                  (iv) intimidation of potential witnesses; or
                  (v) otherwise seriously jeopardizing an 
                investigation or unduly delaying a trial.
          (E) Each of the Federal seizing agencies conducting 
        [nonjudicial] forfeitures under this section shall 
        report periodically to the Committees on the Judiciary 
        of the House of Representatives and the Senate the 
        number of occasions when an extension of time is 
        granted under subparagraph (B).
          (F) If the Government does not send notice of a 
        seizure of property in accordance with subparagraph (A) 
        to the person from whom the property was seized, and no 
        extension of time is granted, the Government shall 
        return the property to that person without prejudice to 
        the right of the Government to commence a forfeiture 
        proceeding at a later time. The Government shall not be 
        required to return contraband or other property that 
        the person from whom the property was seized may not 
        legally possess.
          (G) Any notice described in subparagraph (A) that is 
        provided to a party shall include notice of--
                  (i) the right of the party to request an 
                initial hearing in accordance with paragraph 
                (5);
                  (ii) the right of the party to be represented 
                by counsel at the initial hearing described in 
                clause (i) and any civil forfeiture proceeding 
                under a civil forfeiture statute; and
                  (iii) the right of the party to request that 
                the party be represented by counsel at the 
                initial hearing described in clause (i) and any 
                civil forfeiture proceeding under a civil 
                forfeiture statute if the party meets the 
                requirements described in subsection (b).
          (2)(A) Any person claiming property seized in a 
        [nonjudicial] civil forfeiture proceeding under a civil 
        forfeiture statute may file a claim with the 
        appropriate official after the seizure.
          (B) A claim under subparagraph (A) may be filed not 
        later than the deadline set forth in a personal notice 
        letter (which deadline may be not earlier than [35 
        days] 65 days after the date the letter is mailed), 
        except that if that letter is not received, then a 
        claim may be filed not later than [30 days] 60 days 
        after the date of final publication of notice of 
        seizure.
          (C) A claim shall--
                  (i) identify the specific property being 
                claimed;
                  (ii) state the claimant's interest in such 
                property; and
                  (iii) be made under oath, subject to penalty 
                of perjury.
          (D) A claim need not be made in any particular form. 
        Each Federal agency conducting nonjudicial forfeitures 
        under this section shall make claim forms generally 
        available on request, which forms shall be written in 
        easily understandable language.
          (E) Any person may make a claim under subparagraph 
        (A) without posting bond with respect to the property 
        which is the subject of the claim.
          (3)[(A) Not later than 90 days after a claim has been 
        filed, the Government shall file a complaint for 
        forfeiture in the manner set forth in the Supplemental 
        Rules for Certain Admiralty and Maritime Claims or 
        return the property pending the filing of a complaint, 
        except that a court in the district in which the 
        complaint will be filed may extend the period for 
        filing a complaint for good cause shown or upon 
        agreement of the parties.] (A) Not later than 90 days 
        after a claim has been filed, the Government shall file 
        a complaint for forfeiture in the manner set forth in 
        the Supplemental Rules for Certain Admiralty and 
        Maritime Claims or return the property pending the 
        filing of a complaint, except that a court in the 
        district in which the complaint has been filed may 
        extend the period for filing a complaint upon agreement 
        of the parties.
          (B) If the Government does not--
                  (i) file a complaint for forfeiture or return 
                the property, in accordance with subparagraph 
                (A); or
                  (ii) before the time for filing a complaint 
                has expired--
                          (I) obtain a criminal indictment 
                        containing an allegation that the 
                        property is subject to forfeiture; and
                          (II) take the steps necessary to 
                        preserve its right to maintain custody 
                        of the property as provided in the 
                        applicable criminal forfeiture statute,
        the Government shall promptly release the property 
        pursuant to regulations promulgated by the Attorney 
        General, and may not take any further action to effect 
        the civil forfeiture of such property in connection 
        with the underlying offense.
          (C) In lieu of, or in addition to, filing a civil 
        forfeiture complaint, the Government may include a 
        forfeiture allegation in a criminal indictment. If 
        criminal forfeiture is the only forfeiture proceeding 
        commenced by the Government, the Government's right to 
        continued possession of the property shall be governed 
        by the applicable criminal forfeiture statute.
          (D) No complaint may be dismissed on the ground that 
        the Government did not have adequate evidence at the 
        time the complaint was filed to establish the 
        forfeitability of the property.
          (4)(A) In any case in which the Government files in 
        the appropriate United States district court a 
        complaint for forfeiture of property, any person 
        claiming an interest in the seized property may file a 
        claim asserting such person's interest in the property 
        in the manner set forth in the Supplemental Rules for 
        Certain Admiralty and Maritime Claims, except that such 
        claim may be filed not later than 30 days after the 
        date of service of the Government's complaint or, as 
        applicable, not later than 30 days after the date of 
        final publication of notice of the filing of the 
        complaint.
          (B) A person asserting an interest in seized 
        property, in accordance with subparagraph (A), shall 
        file an answer to the Government's complaint for 
        forfeiture not later than 20 days after the date of the 
        filing of the claim.
          (5)(A) A party claiming property seized in a civil 
        forfeiture proceeding under a civil forfeiture statute 
        may request, not later than 30 days after the date on 
        which a notice described in paragraph (1)(A) is 
        received or if notice is not received, not later than 
        30 days after the date of final publication of notice 
        of seizure, an initial hearing to take place before a 
        magistrate judge in the appropriate United States 
        district court not later than the date on which a civil 
        forfeiture proceeding under a civil forfeiture statute 
        relating to the seized property commences.
          (B) If a party makes a request under subparagraph 
        (A), a magistrate judge shall conduct an initial 
        hearing not later than 10 days after the date on which 
        the request is made.
          (C) At the initial hearing--
                  (i) the magistrate judge shall--
                          (I) inform the party in easily 
                        understood terms of--
                                  (aa) the right of the party 
                                to be represented by counsel at 
                                the initial hearing and any 
                                civil forfeiture proceeding 
                                under a civil forfeiture 
                                statute;
                                  (bb) the right of the party 
                                to request that the party be 
                                represented by counsel at the 
                                initial hearing and any civil 
                                forfeiture proceeding under a 
                                civil forfeiture statute if the 
                                magistrate judge finds that the 
                                party meets the requirements 
                                described in subsection (b);
                                  (cc) sufficiently detailed 
                                facts regarding the seizure of 
                                the property if the property 
                                was seized pursuant to a 
                                warrant described in the matter 
                                preceding subparagraph (A) of 
                                section 981(b)(2); and
                                  (dd) the right of the party 
                                to challenge the lawfulness of 
                                the seizure of the property, 
                                including on the grounds that 
                                at the time the property was 
                                seized--
                                          (AA) if the property 
                                        was seized pursuant to 
                                        a warrant described in 
                                        the matter preceding 
                                        subparagraph (A) of 
                                        section 981(b)(2), the 
                                        warrant was not 
                                        supported by probable 
                                        cause; or
                                          (BB) if the property 
                                        was seized without a 
                                        warrant described in 
                                        subitem (AA), none of 
                                        the exceptions 
                                        described in 
                                        subparagraphs (A) and 
                                        (B) of section 
                                        981(b)(2) apply to the 
                                        seizure of the 
                                        property; and
                          (II) if the party meets the 
                        requirements described in subsection 
                        (b), authorize counsel to represent the 
                        party or insure that the party is 
                        represented by an attorney for the 
                        Legal Services Corporation, as 
                        applicable, in accordance with that 
                        subsection; and
                  (ii) the burden of proof is on the Government 
                to establish that at the time the property was 
                seized--
                          (I) if the property was seized 
                        pursuant to a warrant described in the 
                        matter preceding subparagraph (A) of 
                        section 981(b)(2), the warrant was 
                        supported by probable cause; or
                          (II) if the property was seized 
                        without a warrant described in 
                        subclause (I)--
                                  (aa) sufficiently detailed 
                                facts regarding the seizure of 
                                the property; and
                                  (bb) an exception described 
                                in subparagraphs (A) and (B) of 
                                section 981(b)(2) applies to 
                                the seizure of the property.
          (D) The magistrate judge shall enter an order for the 
        immediate release of the seized property with prejudice 
        to the right of the Government to commence a civil 
        forfeiture proceeding at a later time if the magistrate 
        judge finds that--
                  (i) the requirements described in 
                subparagraphs (A) through (E) of subsection 
                (f)(1) are met; and
                  (ii) the Government did not meet the burden 
                of proof described in subparagraph (C)(ii).
  (b) Representation.--
          (1)(A) If a person with standing to contest the 
        forfeiture of property in a [judicial] civil forfeiture 
        proceeding under a civil forfeiture statute is 
        financially unable to obtain representation by counsel, 
        and the person is represented by counsel appointed 
        under section 3006A of this title in connection with a 
        related criminal case, the court may authorize counsel 
        to represent that person with respect to the claim.
          (B) In determining whether to authorize counsel to 
        represent a person under subparagraph (A), the court 
        shall take into account such factors as--
                  (i) the person's standing to contest the 
                forfeiture; and
                  (ii) whether the claim appears to be made in 
                good faith.
          (2)(A) If a person with standing to contest the 
        forfeiture of property in a [judicial civil forfeiture 
        proceeding under a civil forfeiture statute is 
        financially unable to obtain representation by counsel, 
        and the property subject to forfeiture is real property 
        that is being used by the person as a primary 
        residence] civil forfeiture proceeding under a civil 
        forfeiture statute is financially unable to obtain 
        representation by counsel, the court, at the request of 
        the person, shall insure that the person is represented 
        by an attorney for the Legal Services Corporation with 
        respect to the claim.
          (B)(i) At appropriate times during a representation 
        under subparagraph (A), the Legal Services Corporation 
        shall submit a statement of reasonable attorney fees 
        and costs to the court.
          (ii) The court shall enter a judgment in favor of the 
        Legal Services Corporation for reasonable attorney fees 
        and costs submitted pursuant to clause (i) and treat 
        such judgment as payable under section 2465 of title 
        28, United States Code, regardless of the outcome of 
        the case.
          (3) The court shall set the compensation for 
        representation under this subsection, which shall be 
        equivalent to that provided for court-appointed 
        representation under section 3006A of this title.
  (c) Burden of Proof.--In a suit or action brought under any 
civil forfeiture statute for the civil forfeiture of any 
property--
          (1) the burden of proof is on the Government to 
        establish, by [a preponderance of the evidence] clear 
        and convincing evidence, that the property is subject 
        to forfeiture;
          (2) the Government may use evidence gathered after 
        the filing of a complaint for forfeiture to establish, 
        by [a preponderance of the evidence] clear and 
        convincing evidence, that property is subject to 
        forfeiture; and
          [(3) if the Government's theory of forfeiture is that 
        the property was used to commit or facilitate the 
        commission of a criminal offense, or was involved in 
        the commission of a criminal offense, the Government 
        shall establish that there was a substantial connection 
        between the property and the offense.]
          (3) if the Government's theory of forfeiture is that 
        the property was used to commit or facilitate the 
        commission of a criminal offense, or was involved in 
        the commission of a criminal offense, the Government 
        shall establish by clear and convincing evidence that--
                  (A) there was a substantial connection 
                between the property and the offense; and
                  (B) the owner of any interest in the seized 
                property--
                          (i) intentionally used the property 
                        in connection with the offense;
                          (ii) knowingly consented to the use 
                        of the property by another in 
                        connection with the offense; or
                          (iii) knew that the property was 
                        being used in connection with the 
                        offense.
  (d) Innocent Owner Defense.--
          [(1) An innocent owner's interest in property shall 
        not be forfeited under any civil forfeiture statute. 
        The claimant shall have the burden of proving that the 
        claimant is an innocent owner by a preponderance of the 
        evidence.]
          (1) An innocent owner's interest in property shall 
        not be forfeited under any civil forfeiture statute. 
        The Government shall have the burden of proving that 
        the claimant is not an innocent owner by clear and 
        convincing evidence.
          (2)(A) With respect to a property interest in 
        existence at the time the illegal conduct giving rise 
        to forfeiture took place, the term ``innocent owner'' 
        means an owner who--
                  (i) did not know of or consent to the conduct 
                giving rise to forfeiture; or
                  (ii) upon learning of the conduct giving rise 
                to the forfeiture, did all that reasonably 
                could be expected under the circumstances to 
                terminate such use of the property.
          (B)(i) For the purposes of this paragraph, ways in 
        which a person may show that such person did all that 
        reasonably could be expected may include demonstrating 
        that such person, to the extent permitted by law--
                  (I) gave timely notice to an appropriate law 
                enforcement agency of information that led the 
                person to know the conduct giving rise to a 
                forfeiture would occur or has occurred; and
                  (II) in a timely fashion revoked or made a 
                good faith attempt to revoke permission for 
                those engaging in such conduct to use the 
                property or took reasonable actions in 
                consultation with a law enforcement agency to 
                discourage or prevent the illegal use of the 
                property.
          (ii) A person is not required by this subparagraph to 
        take steps that the person reasonably believes would be 
        likely to subject any person (other than the person 
        whose conduct gave rise to the forfeiture) to physical 
        danger.
          (3)(A) With respect to a property interest acquired 
        after the conduct giving rise to the forfeiture has 
        taken place, the term ``innocent owner'' means a person 
        who, at the time that person acquired the interest in 
        the property--
                  (i) was a bona fide purchaser or seller for 
                value (including a purchaser or seller of goods 
                or services for value); and
                  (ii) did not know and was reasonably without 
                cause to believe that the property was subject 
                to forfeiture.
          (B) An otherwise valid claim under subparagraph (A) 
        shall not be denied on the ground that the claimant 
        gave nothing of value in exchange for the property if--
                  (i) the property is the primary residence of 
                the claimant;
                  (ii) depriving the claimant of the property 
                would deprive the claimant of the means to 
                maintain reasonable shelter in the community 
                for the claimant and all dependents residing 
                with the claimant;
                  (iii) the property is not, and is not 
                traceable to, the proceeds of any criminal 
                offense; and
                  (iv) the claimant acquired his or her 
                interest in the property through marriage, 
                divorce, or legal separation, or the claimant 
                was the spouse or legal dependent of a person 
                whose death resulted in the transfer of the 
                property to the claimant through inheritance or 
                probate,
        except that the court shall limit the value of any real 
        property interest for which innocent ownership is 
        recognized under this subparagraph to the value 
        necessary to maintain reasonable shelter in the 
        community for such claimant and all dependents residing 
        with the claimant.
          (4) Notwithstanding any provision of this subsection, 
        no person may assert an ownership interest under this 
        subsection in contraband or other property that it is 
        illegal to possess.
          (5) If the court determines, in accordance with this 
        section, that an innocent owner has a partial interest 
        in property otherwise subject to forfeiture, or a joint 
        tenancy or tenancy by the entirety in such property, 
        the court may enter an appropriate order--
                  (A) severing the property;
                  (B) transferring the property to the 
                Government with a provision that the Government 
                compensate the innocent owner to the extent of 
                his or her ownership interest once a final 
                order of forfeiture has been entered and the 
                property has been reduced to liquid assets; or
                  (C) permitting the innocent owner to retain 
                the property subject to a lien in favor of the 
                Government to the extent of the forfeitable 
                interest in the property.
          (6) In this subsection, the term ``owner''--
                  (A) means a person with an ownership interest 
                in the specific property sought to be 
                forfeited, including a leasehold, lien, 
                mortgage, recorded security interest, or valid 
                assignment of an ownership interest; and
                  (B) does not include--
                          (i) a person with only a general 
                        unsecured interest in, or claim 
                        against, the property or estate of 
                        another;
                          (ii) a bailee unless the bailor is 
                        identified and the bailee shows a 
                        colorable legitimate interest in the 
                        property seized; or
                          (iii) a nominee who exercises no 
                        dominion or control over the property.
  (e) Motion To Set Aside Forfeiture.--
          (1) Any person entitled to written notice in any 
        nonjudicial civil forfeiture proceeding under a civil 
        forfeiture statute who does not receive such notice may 
        file a motion to set aside a declaration of forfeiture 
        with respect to that person's interest in the property, 
        which motion shall be granted if--
                  (A) the Government knew, or reasonably should 
                have known, of the moving party's interest and 
                failed to take reasonable steps to provide such 
                party with notice; and
                  (B) the moving party did not know or have 
                reason to know of the seizure within sufficient 
                time to file a timely claim.
          (2)(A) Notwithstanding the expiration of any 
        applicable statute of limitations, if the court grants 
        a motion under paragraph (1), the court shall set aside 
        the declaration of forfeiture as to the interest of the 
        moving party without prejudice to the right of the 
        Government to commence a subsequent forfeiture 
        proceeding as to the interest of the moving party.
          (B) Any proceeding described in subparagraph (A) 
        shall be commenced--
                  (i) if nonjudicial, within 60 days of the 
                entry of the order granting the motion; or
                  (ii) if judicial, within 6 months of the 
                entry of the order granting the motion.
          (3) A motion under paragraph (1) may be filed not 
        later than 5 years after the date of final publication 
        of notice of seizure of the property.
          (4) If, at the time a motion made under paragraph (1) 
        is granted, the forfeited property has been disposed of 
        by the Government in accordance with law, the 
        Government may institute proceedings against a 
        substitute sum of money equal to the value of the 
        moving party's interest in the property at the time the 
        property was disposed of.
          (5) A motion filed under this subsection shall be the 
        exclusive remedy for seeking to set aside a declaration 
        of forfeiture under a civil forfeiture statute.
  (f) Release Of Seized Property.--
          (1) A claimant under subsection (a) is entitled to 
        immediate release of seized property if--
                  (A) the claimant has a possessory interest in 
                the property;
                  (B) the claimant has sufficient ties to the 
                community to provide assurance that the 
                property will be available at the time of the 
                trial;
                  (C) the continued possession by the 
                Government pending the final disposition of 
                forfeiture proceedings will cause substantial 
                hardship to the claimant, such as preventing 
                the functioning of a business, preventing an 
                individual from working, or leaving an 
                individual homeless;
                  (D) the claimant's likely hardship from the 
                continued possession by the Government of the 
                seized property outweighs the risk that the 
                property will be destroyed, damaged, lost, 
                concealed, or transferred if it is returned to 
                the claimant during the pendency of the 
                proceeding; and
                  (E) none of the conditions set forth in 
                paragraph (8) applies.
          (2) A claimant seeking release of property under this 
        subsection must request possession of the property from 
        the appropriate official, and the request must set 
        forth the basis on which the requirements of paragraph 
        (1) are met.
          (3)(A) If not later than 15 days after the date of a 
        request under paragraph (2) the property has not been 
        released, the claimant may file a petition in the 
        district court in which the complaint has been filed 
        or, if no complaint has been 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.
          (B) The petition described in subparagraph (A) shall 
        set forth--
                  (i) the basis on which the requirements of 
                paragraph (1) are met; and
                  (ii) the steps the claimant has taken to 
                secure release of the property from the 
                appropriate official.
          (4) If the Government establishes that the claimant's 
        claim is frivolous, the court shall deny the petition. 
        In responding to a petition under this subsection on 
        other grounds, 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.
          (5) The court shall render a decision on a petition 
        filed under paragraph (3) not later than 30 days after 
        the date of the filing, unless such 30-day limitation 
        is extended by consent of the parties or by the court 
        for good cause shown.
          (6) If--
                  (A) a petition is filed under paragraph (3); 
                and
                  (B) the claimant demonstrates that the 
                requirements of paragraph (1) have been met,
        the district court shall order that the property be 
        returned to the claimant, pending completion of 
        proceedings by the Government to obtain forfeiture of 
        the property.
          (7) If the court grants a petition under paragraph 
        (3)--
                  (A) the court may enter any order necessary 
                to ensure that the value of the property is 
                maintained while the forfeiture action is 
                pending, including--
                          (i) permitting the inspection, 
                        photographing, and inventory of the 
                        property;
                          (ii) fixing a bond in accordance with 
                        rule E(5) of the Supplemental Rules for 
                        Certain Admiralty and Maritime Claims; 
                        and
                          (iii) requiring the claimant to 
                        obtain or maintain insurance on the 
                        subject property; and
                  (B) the Government may place a lien against 
                the property or file a lis pendens to ensure 
                that the property is not transferred to another 
                person.
          (8) This subsection shall not apply if the seized 
        property--
                  (A) is contraband, currency, or other 
                monetary instrument, or electronic funds unless 
                such currency or other monetary instrument or 
                electronic funds constitutes the assets of a 
                legitimate business which has been seized;
                  (B) is to be used as evidence of a violation 
                of the law;
                  (C) by reason of design or other 
                characteristic, is particularly suited for use 
                in illegal activities; or
                  (D) is likely to be used to commit additional 
                criminal acts if returned to the claimant.
  (g) Proportionality.--
          (1) The claimant under subsection (a)(4) may petition 
        the court to determine whether the forfeiture was 
        constitutionally excessive or otherwise disproportional 
        to the gravity of the offense.
          [(2) In making this determination, the court shall 
        compare the forfeiture to the gravity of the offense 
        giving rise to the forfeiture.]
          (2) In making this determination, the court shall 
        consider, in addition to the analysis as to whether the 
        forfeiture is constitutionally excessive, the value of 
        the property, the seriousness of the offense, the level 
        of the claimant's culpability in the offense giving 
        rise to forfeiture, the claimant's prior record, the 
        claimant's financial condition, and whether the 
        forfeiture statute is intended to address the type of 
        conduct alleged as the basis for forfeiture.
          (3) The claimant shall have the burden of 
        establishing that the forfeiture is grossly 
        disproportional by a preponderance of the evidence at a 
        hearing conducted by the court without a jury.
          (4) If the court finds that the forfeiture is grossly 
        disproportional 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. 
                4301 et seq.), the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.), 
                or the North Korea Sanctions Enforcement Act of 
                2016; or
                  (E) section 1 of title VI of the Act of June 
                15, 1917 (40 Stat. 233; 22 U.S.C. 401).
  (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, 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 determines 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 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 14 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 concerning 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 Evidence.

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CHAPTER 96--RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS

           *       *       *       *       *       *       *


Sec. 1963. Criminal penalties

  (a) Whoever violates any provision of section 1962 of this 
chapter shall be fined under this title or imprisoned not more 
than 20 years (or for life if the violation is based on a 
racketeering activity for which the maximum penalty includes 
life imprisonment), or both, and shall forfeit to the United 
States, irrespective of any provision of State law--
          (1) any interest the person has acquired or 
        maintained in violation of section 1962;
          (2) any--
                  (A) interest in;
                  (B) security of;
                  (C) claim against; or
                  (D) property or contractual right of any kind 
                affording a source of influence over;
        any enterprise which the person has established, 
        operated, controlled, conducted, or participated in the 
        conduct of, in violation of section 1962; and
          (3) any property constituting, or derived from, any 
        proceeds which the person obtained, directly or 
        indirectly, from racketeering activity or unlawful debt 
        collection in violation of section 1962.
The court, in imposing sentence on such person shall order, in 
addition to any other sentence imposed pursuant to this 
section, that the person forfeit to the United States all 
property described in this subsection. In lieu of a fine 
otherwise authorized by this section, a defendant who derives 
profits or other proceeds from an offense may be fined not more 
than twice the gross profits or other proceeds.
  (b) Property subject to criminal forfeiture under this 
section includes--
          (1) real property, including things growing on, 
        affixed to, and found in land; and
          (2) tangible and intangible personal property, 
        including rights, privileges, interests, claims, and 
        securities.
  (c) All right, title, and interest in property described in 
subsection (a) vests in the United States upon the commission 
of the act giving rise to forfeiture under this section. Any 
such property that is subsequently transferred to a person 
other than the defendant may be the subject of a special 
verdict of forfeiture and thereafter shall be ordered forfeited 
to the United States, unless the transferee establishes in a 
hearing pursuant to subsection (l) that he is a bona fide 
purchaser for value of such property who at the time of 
purchase was reasonably without cause to believe that the 
property was subject to forfeiture under this section.
  (d)[(1) Upon application of the United States, the court may 
enter a restraining order or injunction, require the execution 
of a satisfactory performance bond, or take any other action to 
preserve the availability of property described in subsection 
(a) for forfeiture under this section--
          [(A) upon the filing of an indictment or information 
        charging a violation of section 1962 of this chapter 
        and alleging that the property with respect to which 
        the order is sought would, in the event of conviction, 
        be subject to forfeiture under this section; or
          [(B) prior to the filing of such an indictment or 
        information, if, after notice to persons appearing to 
        have an interest in the property and opportunity for a 
        hearing, the court determines 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 on any 
                party against whom the order is to be entered:
Provided, however, That an order entered pursuant to 
subparagraph (B) shall be effective for not more than ninety 
days, unless extended by the court for good cause shown or 
unless an indictment or information described in subparagraph 
(A) has been filed.]
   (1)(A) Upon application of the United States, the court may 
enter a restraining order or injunction, require the execution 
of a satisfactory performance bond, or take any other action to 
preserve the availability of property described in subsection 
(a) for forfeiture under this section--
          (i) upon the filing of an indictment or information 
        charging a violation of section 1962 and alleging that 
        the property with respect to which the order is sought 
        would, in the event of conviction, be subject to 
        forfeiture under this section; or
          (ii) prior to the filing of such an indictment or 
        information, if, after notice to persons appearing to 
        have an interest in the property and opportunity for a 
        hearing, the court determines 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 on any party 
                against whom the order is to be entered.
  (B)(i) Upon motion of a defendant charged with a violation of 
section 1962 for which criminal forfeiture is ordered under 
this section and against whom the order is entered, supported 
by an affidavit, the court shall hold a hearing to determine 
whether to modify or rescind, in whole or in part, an order 
entered under subparagraph (A) to allow the defendant to use 
the property subject to the order to retain counsel of choice.
  (ii) At the hearing, the court shall consider--
          (I) the weight of the evidence against the defendant 
        with respect to the violation of section 1962 for which 
        criminal forfeiture is ordered under this section;
          (II) the weight of the evidence with respect to 
        whether the property will be subject to forfeiture 
        under this section;
          (III) the history and characteristics of the 
        defendant; and
          (IV) the nature and circumstances of the case.
  (C) An order entered pursuant to subparagraph (A)(ii) shall 
be effective for not more than 90 days, unless--
          (i) extended by the court for good cause shown; or
          (ii) an indictment or information described in 
        subparagraph (A)(i) has been filed.
  (2) A temporary restraining order under this subsection may 
be entered upon application of the United States without notice 
or opportunity for a hearing when an information or indictment 
has not yet been filed with respect to the property, if the 
United States demonstrates that there is probable cause to 
believe that the defendant committed a violation of section 
1962 for which criminal forfeiture may be ordered under this 
section and probable cause to believe that the property with 
respect to which the order is sought would, in the event of 
conviction, be subject to forfeiture under this section and 
that provision of notice will jeopardize the availability of 
the property for forfeiture. Such a temporary order shall 
expire not more than fourteen 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 concerning an order entered 
under this paragraph shall be held at the earliest possible 
time, and prior to the expiration of the temporary order.
  (3) 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 Evidence.
  (e) Upon conviction of a person under this section, the court 
shall enter a judgment of forfeiture of the property to the 
United States and shall also authorize the Attorney General to 
seize all property ordered forfeited upon such terms and 
conditions as the court shall deem proper. Following the entry 
of an order declaring the property forfeited, the court may, 
upon application of the United States, enter such appropriate 
restraining orders or injunctions, require the execution of 
satisfactory performance bonds, appoint receivers, 
conservators, appraisers, accountants, or trustees, or take any 
other action to protect the interest of the United States in 
the property ordered forfeited. Any income accruing to, or 
derived from, an enterprise or an interest in an enterprise 
which has been ordered forfeited under this section may be used 
to offset ordinary and necessary expenses to the enterprise 
which are required by law, or which are necessary to protect 
the interests of the United States or third parties.
  (f) Following the seizure of property ordered forfeited under 
this section, the Attorney General shall direct the disposition 
of the property by sale or any other commercially feasible 
means, making due provision for the rights of any innocent 
persons. Any property right or interest not exercisable by, or 
transferable for value to, the United States shall expire and 
shall not revert to the defendant, nor shall the defendant or 
any person acting in concert with or on behalf of the defendant 
be eligible to purchase forfeited property at any sale held by 
the United States. Upon application of a person, other than the 
defendant or a person acting in concert with or on behalf of 
the defendant, the court may restrain or stay the sale or 
disposition of the property pending the conclusion of any 
appeal of the criminal case giving rise to the forfeiture, if 
the applicant demonstrates that proceeding with the sale or 
disposition of the property will result in irreparable injury, 
harm or loss to him. Notwithstanding 31 U.S.C. 3302(b), the 
proceeds of any sale or other disposition of property forfeited 
under this section and any moneys forfeited shall be used to 
pay all proper expenses for the forfeiture and the sale, 
including expenses of seizure, maintenance and custody of the 
property pending its disposition, advertising and court costs. 
The Attorney General shall deposit in the Treasury any amounts 
of such proceeds or moneys remaining after the payment of such 
expenses.
  (g) With respect to property ordered forfeited under this 
section, the Attorney General is authorized to--
          (1) grant petitions for mitigation or remission of 
        forfeiture, restore forfeited property to victims of a 
        violation of this chapter, or take any other action to 
        protect the rights of innocent persons which is in the 
        interest of justice and which is not inconsistent with 
        the provisions of this chapter;
          (2) compromise claims arising under this section;
          (3) award compensation to persons providing 
        information resulting in a forfeiture under this 
        section;
          (4) direct the disposition by the United States of 
        all property ordered forfeited under this section by 
        public sale or any other commercially feasible means, 
        making due provision for the rights of innocent 
        persons; and
          (5) take appropriate measures necessary to safeguard 
        and maintain property ordered forfeited under this 
        section pending its disposition.
  (h) The Attorney General may promulgate regulations with 
respect to--
          (1) making reasonable efforts to provide notice to 
        persons who may have an interest in property ordered 
        forfeited under this section;
          (2) granting petitions for remission or mitigation of 
        forfeiture;
          (3) the restitution of property to victims of an 
        offense petitioning for remission or mitigation of 
        forfeiture under this chapter;
          (4) the disposition by the United States of forfeited 
        property by public sale or other commercially feasible 
        means;
          (5) the maintenance and safekeeping of any property 
        forfeited under this section pending its disposition; 
        and
          (6) the compromise of claims arising under this 
        chapter.
Pending the promulgation of such regulations, all provisions of 
law relating to the disposition of property, or the proceeds 
from the sale thereof, or the remission or mitigation of 
forfeitures for violation of the customs laws, and the 
compromise of claims and the award of compensation to informers 
in respect of such forfeitures shall apply to forfeitures 
incurred, or alleged to have been incurred, under the 
provisions of this section, insofar as applicable and not 
inconsistent with the provisions hereof. Such duties as are 
imposed upon the Customs Service or any person with respect to 
the disposition of property under the customs law shall be 
performed under this chapter by the Attorney General.
  (i) Except as provided in subsection (l), no party claiming 
an interest in property subject to forfeiture under this 
section may--
          (1) intervene in a trial or appeal of a criminal case 
        involving the forfeiture of such property under this 
        section; or
          (2) commence an action at law or equity against the 
        United States concerning the validity of his alleged 
        interest in the property subsequent to the filing of an 
        indictment or information alleging that the property is 
        subject to forfeiture under this section.
  (j) The district courts of the United States shall have 
jurisdiction to enter orders as provided in this section 
without regard to the location of any property which may be 
subject to forfeiture under this section or which has been 
ordered forfeited under this section.
  (k) In order to facilitate the identification or location of 
property declared forfeited and to facilitate the disposition 
of petitions for remission or mitigation of forfeiture, after 
the entry of an order declaring property forfeited to the 
United States the court may, upon application of the United 
States, order that the testimony of any witness relating to the 
property forfeited be taken by deposition and that any 
designated book, paper, document, record, recording, or other 
material not privileged be produced at the same time and place, 
in the same manner as provided for the taking of depositions 
under Rule 15 of the Federal Rules of Criminal Procedure.
  (l)(1) Following the entry of an order of forfeiture under 
this section, the United States shall publish notice of the 
order and of its intent to dispose of the property in such 
manner as the Attorney General may direct. The Government may 
also, to the extent practicable, provide direct written notice 
to any person known to have alleged an interest in the property 
that is the subject of the order of forfeiture as a substitute 
for published notice as to those persons so notified.
  (2) Any person, other than the defendant, asserting a legal 
interest in property which has been ordered forfeited to the 
United States pursuant to this section may, within thirty days 
of the final publication of notice or his receipt of notice 
under paragraph (1), whichever is earlier, petition the court 
for a hearing to adjudicate the validity of his alleged 
interest in the property. The hearing shall be held before the 
court alone, without a jury.
  (3) The petition shall be signed by the petitioner under 
penalty of perjury and shall set forth the nature and extent of 
the petitioner's right, title, or interest in the property, the 
time and circumstances of the petitioner's acquisition of the 
right, title, or interest in the property, any additional facts 
supporting the petitioner's claim, and the relief sought.
  (4) The hearing on the petition shall, to the extent 
practicable and consistent with the interests of justice, be 
held within thirty days of the filing of the petition. The 
court may consolidate the hearing on the petition with a 
hearing on any other petition filed by a person other than the 
defendant under this subsection.
  (5) At the hearing, the petitioner may testify and present 
evidence and witnesses on his own behalf, and cross-examine 
witnesses who appear at the hearing. The United States may 
present evidence and witnesses in rebuttal and in defense of 
its claim to the property and cross-examine witnesses who 
appear at the hearing. In addition to testimony and evidence 
presented at the hearing, the court shall consider the relevant 
portions of the record of the criminal case which resulted in 
the order of forfeiture.
  (6) If, after the hearing, the court determines that the 
petitioner has established by a preponderance of the evidence 
that--
          (A) the petitioner has a legal right, title, or 
        interest in the property, and such right, title, or 
        interest renders the order of forfeiture invalid in 
        whole or in part because the right, title, or interest 
        was vested in the petitioner rather than the defendant 
        or was superior to any right, title, or interest of the 
        defendant at the time of the commission of the acts 
        which gave rise to the forfeiture of the property under 
        this section; or
          (B) the petitioner is a bona fide purchaser for value 
        of the right, title, or interest in the property and 
        was at the time of purchase reasonably without cause to 
        believe that the property was subject to forfeiture 
        under this section;
the court shall amend the order of forfeiture in accordance 
with its determination.
  (7) Following the court's disposition of all petitions filed 
under this subsection, or if no such petitions are filed 
following the expiration of the period provided in paragraph 
(2) for the filing of such petitions, the United States shall 
have clear title to property that is the subject of the order 
of forfeiture and may warrant good title to any subsequent 
purchaser or transferee.
  (m) If any of the property described in subsection (a), as a 
result of any act or omission of the defendant--
          (1) cannot be located upon the exercise of due 
        diligence;
          (2) has been transferred or sold to, or deposited 
        with, a third party;
          (3) has been placed beyond the jurisdiction of the 
        court;
          (4) has been substantially diminished in value; or
          (5) has been commingled with other property which 
        cannot be divided without difficulty;
the court shall order the forfeiture of any other property of 
the defendant up to the value of any property described in 
paragraphs (1) through (5).

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                              ----------                              


                       CONTROLLED SUBSTANCES ACT

TITLE II--CONTROL AND ENFORCEMENT

           *       *       *       *       *       *       *


Part D--Offenses and Penalties

           *       *       *       *       *       *       *


                          Criminal Forfeitures

                property subject to criminal forfeiture

  Sec. 413. (a) Any person convicted of a violation of this 
title or title III punishable by imprisonment for more than one 
year shall forfeit to the United States, irrespective of any 
provision of State law--
          (1) any property constituting, or derived from, any 
        proceeds the person obtained, directly or indirectly, 
        as the result of such violation;
          (2) any of the person's property used, or intended to 
        be used, in any manner or part, to commit, or to 
        facilitate the commission of, such violation; and
          (3) in the case of a person convicted of engaging in 
        a continuing criminal enterprise in violation of 
        section 408 of this title (21 U.S.C. 848), the person 
        shall forfeit, in addition to any property described in 
        paragraph (1) or (2), any of his interest in, claims 
        against, and property or contractual rights affording a 
        source of control over, the continuing criminal 
        enterprise.
The court, in imposing sentence on such person, shall order, in 
addition to any other sentence imposed pursuant to this title 
or title III, that the person forfeit to the United States all 
property described in this subsection. In lieu of a fine 
otherwise authorized by this part, a defendant who derives 
profits or other proceeds from an offense may be fined not more 
than twice the gross profits or other proceeds.

                      MEANING OF TERM ``PROPERTY''

  (b) Property subject to criminal forfeiture under this 
section includes--
          (1) real property, including things growing on, 
        affixed to, and found in land; and
          (2) tangible and intangible personal property, 
        including rights, privileges, interests, claims, and 
        securities.

                         THIRD PARTY TRANSFERS

  (c) All right, title, and interest in property described in 
subsection (a) vests in the United States upon the commission 
of the act giving rise to forfeiture under this section. Any 
such property that is subsequently transferred to a person 
other than the defendant may be the subject of a special 
verdict of forfeiture and thereafter shall be ordered forfeited 
to the United States, unless the transferee establishes in a 
hearing pursuant to subsection (n) that he is a bona fide 
purchaser for value of such property who at the time of 
purchase was reasonably without cause to believe that the 
property was subject to forfeiture under this section.

                         REBUTTABLE PRESUMPTION

  (d) There is a rebuttable presumption at trial that any 
property of a person convicted of a felony under this title or 
title III is subject to forfeiture under this section if the 
United States establishes by a preponderance of the evidence 
that--
          (1) such property was acquired by such person during 
        the period of the violation of this title or title III 
        or within a reasonable time after such period; and
          (2) there was no likely source for such property 
        other than the violation of this title or title III.

                           PROTECTIVE ORDERS

  (e)[(1) Upon application of the United States, the court may 
enter a restraining order or injunction, require the execution 
of a satisfactory performance bond, or take any other action to 
preserve the availability of property described in subsection 
(a) for forfeiture under this section--
          [(A) upon the filing of an indictment or information 
        charging a violation of this title or title III for 
        which criminal forfeiture may be ordered under this 
        section and alleging that the property with respect to 
        which the order is sought would, in the event of 
        conviction, be subject to forfeiture under this 
        section; or
          [(B) prior to the filing of such an indictment or 
        information, if, after notice to persons appearing to 
        have an interest in the property and opportunity for a 
        hearing, the court determines 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 on any 
                party against whom the order is to be entered:
 Provided, however, That an order entered pursuant to 
subparagraph (B) shall be effective for not more than ninety 
days, unless extended by the court for good cause shown or 
unless an indictment or information described in subparagraph 
(A) has been filed.]
   (1)(A) Upon application of the United States, the court may 
enter a restraining order or injunction, require the execution 
of a satisfactory performance bond, or take any other action to 
preserve the availability of property described in subsection 
(a) for forfeiture under this section--
          (i) upon the filing of an indictment or information 
        charging a violation of this title or title III for 
        which criminal forfeiture may be ordered under this 
        section and alleging that the property with respect to 
        which the order is sought would, in the event of 
        conviction, be subject to forfeiture under this 
        section; or
          (ii) prior to the filing of such an indictment or 
        information, if, after notice to persons appearing to 
        have an interest in the property and opportunity for a 
        hearing, the court determines 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 on any party 
                against whom the order is to be entered.
  (B)(i) Upon motion of a defendant charged with a violation of 
section 1962 for which criminal forfeiture is ordered under 
this section and against whom the order is entered, supported 
by an affidavit sufficient to demonstrate a genuine need for 
the defendant to use the property subject to an order entered 
under subparagraph (A) to retain counsel of choice, the court 
shall hold a hearing to determine whether to modify or rescind, 
in whole or in part, the order to allow the defendant to use 
the property to retain counsel of choice.
  (ii) At the hearing, the court shall consider--
          (I) the weight of the evidence against the defendant 
        with respect to the violation of this title or title 
        III for which criminal forfeiture is be ordered under 
        this section;
          (II) the weight of the evidence with respect to 
        whether the property will be subject to forfeiture 
        under this section;
          (III) the history and characteristics of the 
        defendant; and
          (IV) the nature and circumstances of the case.
  (C) An order entered pursuant to subparagraph (A)(ii) shall 
be effective for not more than 90 days, unless--
          (i) extended by the court for good cause shown; or
          (ii) an indictment or information described in 
        subparagraph (A)(i) has been filed.
  (2) A temporary restraining order under this subsection may 
be entered upon application of the United States without notice 
or opportunity for a hearing when an information or indictment 
has not yet been filed with respect to the property, if the 
United States demonstrates that there is probable cause to 
believe that the defendant committed a violation of this title 
or title III for which criminal forfeiture may be ordered under 
this section and probable cause to believe that the property 
with respect to which the order is sought would, in the event 
of conviction, be subject to forfeiture under this section and 
that provision of notice will jeopardize the availability of 
the property for forfeiture. Such a temporary order shall 
expire not more than fourteen 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 concerning an order entered 
under this paragraph shall be held at the earliest possible 
time and prior to the expiration of the temporary order.
  (3) 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 Evidence.
          (4) Order to repatriate and deposit.--
                  (A) In general.--Pursuant to its authority to 
                enter a pretrial restraining order under this 
                section, the court may order a defendant to 
                repatriate any property that may be seized and 
                forfeited, and to deposit that property pending 
                trial in the registry of the court, or with the 
                United States Marshals Service or the Secretary 
                of the Treasury, in an interest-bearing 
                account, if appropriate.
                  (B) Failure to comply.--Failure to comply 
                with an order under this subsection, or an 
                order to repatriate property under subsection 
                (p), shall be punishable as a civil or criminal 
                contempt of court, and may also result in an 
                enhancement of the sentence of the defendant 
                under the obstruction of justice provision of 
                the Federal Sentencing Guidelines.

                           WARRANT OF SEIZURE

  (f) The Government may request the issuance of a warrant 
authorizing the seizure of property subject to forfeiture under 
this section in the same manner as provided for a search 
warrant. If the court determines that there is probable cause 
to believe that the property to be seized would, in the event 
of conviction, be subject to forfeiture and that an order under 
subsection (e) may not be sufficient to assure the availability 
of the property for forfeiture, the court shall issue a warrant 
authorizing the seizure of such property.

                               EXECUTION

  (g) Upon entry of an order of forfeiture under this section, 
the court shall authorize the Attorney General to seize all 
property ordered forfeited upon such terms and conditions as 
the court shall deem proper. Following entry of an order 
declaring the property forfeited, the court may, upon 
application of the United States, enter such appropriate 
restraining orders or injunctions, require the execution of 
satisfactory performance bonds, appoint receivers, 
conservators, appraisers, accountants, or trustees, or take any 
other action to protect the interest of the United States in 
the property ordered forfeited. Any income accuring to or 
derived from property ordered forfeited under this section may 
be used to offset ordinary and necessary expenses to the 
property which are required by law, or which are necessary to 
protect the interests of the United States or third parties.

                        DISPOSITION OF PROPERTY

  (h) Following the seizure of property ordered forfeited under 
this section, the Attorney General shall direct the disposition 
of the property by sale of any other any other commercially 
feasible means, making due provision for the rights of any 
innocent persons. Any property right or interest not 
exercisable by, or transferable for value to, the United States 
shall expire and shall not revert to the defendant, nor shall 
the defendant or any person acting in concert with him or on 
his behalf be eligible to purchase forfeited property at any 
sale held by the United States. Upon application of a person, 
other than the defendant or a person acting in concert with him 
or on his behalf, the court may restrain or stay the sale or 
disposition of the property pending the conclusion of any 
appeal of the criminal case giving rise to the forefeiture, if 
the applicant demonstrates that proceeding with the sale or 
disposition of the property will result in irreparable injury, 
harm, or loss to him.

                   AUTHORITY OF THE ATTORNEY GENERAL

  (i) With respect to property ordered forfeited under this 
section, the Attorney General is authorized to--
          (1) grant petitions for mitigation or remission of 
        forfeiture, restore forfeited property to victims of a 
        violation of this title, or take any other action to 
        protect the rights of innocent persons which is in the 
        interest of justice and which is not inconsistent with 
        the provisions of this section;
          (2) compromise claims arising under this section;
          (3) award compensation to persons providing 
        information resulting in a forfeiture under this 
        section;
          (4) direct the disposition by the United States, in 
        accordance with the provisions of section 511(e) of 
        this title (21 U.S.C. 881(e)), of all property ordered 
        forfeited under this section by public sale or any 
        other commerically feasible means, making due provision 
        for the rights of innocent persons; and
          (5) take appropriate measures necessary to safeguard 
        and maintain property ordered forfeited under this 
        section pending its disposition.

              APPLICABILITY OF CIVIL FORFEITURE PROVISIONS

  (j) Except to the extent that they are inconsistent with the 
provisions of this section, the provisions of section 511(d) of 
this title (21 U.S.C. 881(d)) shall apply to a criminal 
forfeiture under this section.

                          BAR ON INTERVENTION

  (k) Except as provided in subsection (n), no party claiming 
an interest in property subject to forfeiture under this 
section may--
          (1) intervene in a trial or appeal of a criminal case 
        involving the forfeiture of such property under this 
        section; or
          (2) commence an action at law or equity against the 
        United States concerning the validity of his alleged 
        interest in the property subsequent to the filing of an 
        indictment or information alleging that the property in 
        subject to forfeiture under this section.

                      JURISDICTION TO ENTER ORDERS

  (l) The district courts of the United States shall have 
jurisdiction to enter orders as provided in this section 
without regard to the location of any property which may be 
subject to forfeiture under this section or which has been 
ordered forfeited under this section.

                              DEPOSITIONS

  (m) In order to facilitate the identification and location of 
property declared forfeited and to facilitate the disposition 
of petitions for remission or mitigation of forfeiture, after 
the entry of an order declaring property forfeited to the 
United States, the court may, upon application of the United 
States, order that the testimony of any witness relating to the 
property forfeited be taken by deposition and that any 
designated book, paper, document, record, recording, or other 
material not privileged be produced at the same time any place, 
in the same manner as provided for the taking of depositions 
under Rule 15 of the Federal Rules of Criminal Procedure.

                         THIRD PARTY INTERESTS

  (n)(1) Following the entry of an order of forfeiture under 
this section, the United States shall publish notice of the 
order and of its intent to dispose of the property in such 
manner as the Attorney General may direct. The Government may 
also, to the extent practicable, provide direct written notice 
to any person known to have alleged an interest in the property 
that is the subject of the order of forfeiture as a substitute 
for published notice as to those persons so notified.
  (2) Any person, other than the defendant, asserting a legal 
interest in property which has been ordered forfeited to the 
United States pursuant to this section may, within thirty days 
of the final publication of notice or his receipt of notice 
under paragraph (1), whichever is earlier, petition the court 
for a hearing to adjudicate the validity of his alleged 
interest in the property. The hearing shall be held before the 
court alone, without a jury.
  (3) The petition shall be signed by the petitioner under 
penalty of perjury and shall set forth the nature and extent of 
the petitioner's right, title, or interest in the property, the 
time and circumstances of the petitioner's acquisition of the 
right, title, or interest in the property, and additional facts 
supporting the petitioner's claim, and the relief sought.
  (4) The hearing on the petition shall, to the extent 
practicable and consistent with the interests of justice, be 
held within thirty days of the filing of the petition. The 
court may consolidate the hearing on the petition with a 
hearing on any other petition filed by a person other than the 
defendant under this subsection.
  (5) At the hearing, the petitioner may testify and present 
evidence and witnesses on his own behalf, and cross-examine 
witnesses who appear at the hearing. The United States may 
present evidence and witnesses in rebuttal and in defense of 
this claim to the property and cross-examine witnesses who 
appear at the hearing, the court shall consider the relevant 
portions of the record of the criminal case which resulted in 
the order of forfeiture.
  (6) If, after the hearing, the court determines that the 
petitioner has established by a preponderance of the evidence 
that--
          (A) the petitioner has a legal right, title, or 
        interest in the property, and such right, title, or 
        interest renders the order of forfeiture invalid in 
        whole or in part because the right, title, or interest 
        was vested in the petitioner rather than the defendant 
        or was superior to any right, title, or interest of the 
        defendant at the time of the commission of the acts 
        which gave rise to the forfeiture of the property under 
        the section; or
          (B) the petitioner is a bona fide purchaser for value 
        of the right, title, or interest in the property and 
        was at the time of purchase reasonably without cause to 
        believe that the property was subject to forfeiture 
        under this section;
the court shall amend the order of forfeiture in accordance 
with its determination.
  (7) Following the court's disposition of all petitions filed 
under this subsection, or if no such petitions are filed 
following the expiration of the period provided in paragraph 
(2) for the filing of such petitions, the United States shall 
have clear title to property that is the subject of the order 
of forfeiture and may warrant good title to any subsequent 
purchaser or transferee.
  (o) The provisions of this section shall be liberally 
construed to effectuate its remedial purposes.
  (p) Forfeiture of Substitute Property.--
          (1) In general.--Paragraph (2) of this subsection 
        shall apply, if any property described in subsection 
        (a), as a result of any act or omission of the 
        defendant--
                  (A) cannot be located upon the exercise of 
                due diligence;
                  (B) has been transferred or sold to, or 
                deposited with, a third party;
                  (C) has been placed beyond the jurisdiction 
                of the court;
                  (D) has been substantially diminished in 
                value; or
                  (E) has been commingled with other property 
                which cannot be divided without difficulty.
          (2) Substitute property.--In any case described in 
        any of subparagraphs (A) through (E) of paragraph (1), 
        the court shall order the forfeiture of any other 
        property of the defendant, up to the value of any 
        property described in subparagraphs (A) through (E) of 
        paragraph (1), as applicable.
          (3) Return of property to jurisdiction.--In the case 
        of property described in paragraph (1)(C), the court 
        may, in addition to any other action authorized by this 
        subsection, order the defendant to return the property 
        to the jurisdiction of the court so that the property 
        may be seized and forfeited.
  (q) The court, when sentencing a defendant convicted of an 
offense under this title or title III involving the 
manufacture, the possession, or the possession with intent to 
distribute, of amphetamine or methamphetamine, shall--
          (1) order restitution as provided in sections 3612 
        and 3664 of title 18, United States Code;
          (2) order the defendant to reimburse the United 
        States, the State or local government concerned, or 
        both the United States and the State or local 
        government concerned for the costs incurred by the 
        United States or the State or local government 
        concerned, as the case may be, for the cleanup 
        associated with the manufacture of amphetamine or 
        methamphetamine by the defendant, or on premises or in 
        property that the defendant owns, resides, or does 
        business in; and
          (3) order restitution to any person injured as a 
        result of the offense as provided in section 3663A of 
        title 18, United States Code.

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TITLE 28, UNITED STATES CODE

           *       *       *       *       *       *       *


PART VI--PARTICULAR PROCEEDINGS

           *       *       *       *       *       *       *


CHAPTER 163--FINES, PENALTIES AND FORFEITURES

           *       *       *       *       *       *       *


Sec. 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 
        claimant 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 
proceeding 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 
payments to the claimant not specifically authorized by this 
subsection.
  (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
          (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.
  (3) If the claim is resolved by a settlement in which the 
claimant prevails, the claimant is entitled to attorneys fees 
under this subsection to the same extent that the claimant 
would be if a judgment were issued in the proceeding for the 
property recovered under the settlement. The payment of 
attorneys fees under this subsection may not be waived as a 
part of any settlement with the claimant. That payment is not 
subject to any offset or deduction by the United States in 
connection with any claim the United States may have against 
the claimant.
  (4) For the purposes of this subsection, a claimant prevails 
if the claimant recovers more than 50 percent, by value, of the 
money or other property that is claimed.

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TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE IV--MONEY

           *       *       *       *       *       *       *


CHAPTER 53--MONETARY TRANSACTIONS

           *       *       *       *       *       *       *


SUBCHAPTER II--RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS

           *       *       *       *       *       *       *


Sec. 5317. Search and forfeiture of monetary instruments

  (a) The Secretary of the Treasury may apply to a court of 
competent jurisdiction for a search warrant when the Secretary 
reasonably believes a monetary instrument is being transported 
and a report on the instrument under section 5316 of this title 
has not been filed or contains a material omission or 
misstatement. The Secretary shall include a statement of 
information in support of the warrant. On a showing of probable 
cause, the court may issue a search warrant for a designated 
person or a designated or described place or physical object. 
This subsection does not affect the authority of the Secretary 
under another law.
  (b) Searches at Border.--For purposes of ensuring compliance 
with the requirements of section 5316, a customs officer may 
stop and search, at the border and without a search warrant, 
any vehicle, vessel, aircraft, or other conveyance, any 
envelope or other container, and any person entering or 
departing from the United States.
  (c) Forfeiture.--
          (1) Criminal forfeiture.--
                  (A) In general.--The court in imposing 
                sentence for any violation of section 5313, 
                5316, or 5324 of this title, or any conspiracy 
                to commit such violation, shall order the 
                defendant to forfeit all property, real or 
                personal, involved in the offense and any 
                property traceable thereto.
                  (B) Procedure.--Forfeitures under this 
                paragraph shall be governed by the procedures 
                established in section 413 of the Controlled 
                Substances Act.
          [(2) Civil forfeiture.--Any property involved in a 
        violation of section 5313, 5316, or 5324 of this title, 
        or any conspiracy to commit any such violation, and any 
        property traceable to any such violation or conspiracy, 
        may be seized and forfeited to the United States in 
        accordance with the procedures governing civil 
        forfeitures in money laundering cases pursuant to 
        section 981(a)(1)(A) of title 18, United States Code.]
          (2) Civil forfeiture.--
                  (A) In general.--Any property involved in a 
                violation of section 5313 or 5316, or any 
                conspiracy to commit any such violation, and 
                any property traceable to any such violation or 
                conspiracy, may be seized and forfeited to the 
                United States in accordance with the procedures 
                governing civil forfeitures in money laundering 
                cases pursuant to section 981(a)(1)(A) of title 
                18.
                  (B) Structuring.--Any property involved in a 
                violation of section 5324, or any conspiracy to 
                commit any such violation, and any property 
                traceable to any such violation or conspiracy, 
                may be seized and forfeited to the United 
                States in accordance with the procedures 
                governing civil forfeitures in money laundering 
                cases pursuant to section 981(a)(1)(A) of title 
                18 only if the property to be seized and 
                forfeited is derived from an illegal source or 
                if the structuring offense was used to conceal 
                violations of other criminal laws.

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