AB 537

This bill changes the way property is forfeited after it is seized in relation to a

crime.

Under current law, the state or a local law enforcement agency may acquire

certain property involved in the commission of a crime or seized in relation to a

criminal investigation through a forfeiture proceeding. The forfeiture law applies to

all property directly or indirectly derived from the commission of a crime. Current

law allows an agency to keep certain property for its own use, to transfer the property

to another agency, or to sell the property.

Under current law, the agency that seized the property may retain a set

percentage of the proceeds of selling the property to cover administrative and other

costs; the remainder goes into the state school fund. Under current law, local law

enforcement agencies may enter into agreements with federal authorities wherein

property that is seized in relation to a federal crime is turned over to the federal

authorities for forfeiture under federal law. Proceeds from selling the property are

shared between the federal authorities and local law enforcement agencies.

This bill allows property to be subject to forfeiture only if a person is convicted

of the crime related to the action for forfeiture and only if a court finds that the

property seized is proportional to the crime committed. The bill requires seized

property to be returned to innocent owners of the property unless the owners were

involved with or knowledgeable about the crime related to the property. Further, the

bill allows the court, upon petition by a person whose property was seized but not yet

forfeited, to return the property to the person under certain circumstances. Under

the bill, the person may not sell, give away, or burden the property and, if the person

is found to have committed the crime related to the property, must surrender the

property for forfeiture. The bill requires all proceeds of the sale of property to be

turned in to the state school fund.

The bill prohibits local law enforcement agencies from transferring property to

federal agents for forfeiture under federal law unless the value of the property

exceeds $50,000, the property was seized in relation to an interstate crime, or the

property may only be forfeited under federal law.

The bill also requires law enforcement agencies and the Department of Justice

to create publicly accessible reports on the seizures and forfeitures for each year.