BILL ANALYSIS                                                                                                                                                                                                    �



                                                                 AB 639
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         ASSEMBLY THIRD READING
         AB 639 (Norby)
         As Amended  May 27, 2011
         Majority vote 

          PUBLIC SAFETY       6-0         APPROPRIATIONS      17-1         
          
          ----------------------------------------------------------------- 
         |Ayes:|Ammiano, Knight, Cedillo, |Ayes:|Fuentes, Harkey,          |
         |     |Hagman, Hill, Mitchell    |     |Blumenfield, Bradford,    |
         |     |                          |     |Charles Calderon, Davis,  |
         |     |                          |     |Donnelly, Gatto, Hall,    |
         |     |                          |     |Hill, Lara, Mitchell,     |
         |     |                          |     |Nielsen, Norby, Solorio,  |
         |     |                          |     |Wagner                    |
         |     |                          |     |                          |
         |-----+--------------------------+-----+--------------------------|
         |     |                          |Nays:|Campos                    |
         |     |                          |     |                          |
          ----------------------------------------------------------------- 

          SUMMARY  :  Reforms drug asset forfeiture law to discourage federal 
         adoption of such cases.  Specifically,  this bill  :  

         1)Provides that property is "seized" as soon as the agency takes 
           control or possession of it.

         2)Prohibits state law enforcement, except by court order, from 
           turning over seized assets to the Federal Government, or seizing 
           them jointly with federal officers, thereby making seized 
           property subject to federal civil forfeiture law rather than 
           state law.

         3)Prohibits the court from entering an order authorizing a transfer 
           to federal authorities unless:

            a)   It reasonably appears the criminal conduct is interstate in 
              nature and sufficiently complex to justify transfer;

            b)   The seized property is only subject to forfeiture under 
              federal law; or,

            c)   The pursuit of state forfeiture would unduly burden state 
              prosecutors or law enforcement.








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         4)Requires the court to provide the owner of property a right to be 
           heard before a case is transferred to federal authorities.

         5)Provides that if assets are transferred in violation of these 
           provisions, the transferring agency shall be liable to the state 
           for a fine of up to 24% of the amount illegally transferred.

         6)Provides that the report to be generated by the Department of 
           Justice (DOJ) about forfeiture actions be published in book form 
           and also be made available to the public via electronic reports.

         7)Requires DOJ to include additional information in its annual 
           report, specifically:

            a)   The number of forfeiture actions initiated under federal 
              law in which a state or local agency had a role, and a 
              description of the role served in each federal forfeiture 
              action by each participating state or local agency, including, 
              but not be limited to, the following information:

              i)     The seizure date; the date state or local authorities 
                transferred to federal authorities, if applicable; and the 
                date on which forfeiture was ordered or declared;

              ii)    The case number assigned by federal authorities, if 
                known;

              iii)   Whether the state or local agency originated 
                information leading to a seizure or federal forfeiture 
                action;

              iv)    Whether the state or local agency supplied unique or 
                indispensable assistance to the federal forfeiture action, 
                and a description of the assistance;

              v)     The number of hours expended by the state or local 
                agency on the case; and, 

              vi)    Whether a federal agency has classified the federal 
                forfeiture case as a "joint" seizure and forfeiture action, 
                or as an "adoption" by federal authorities of a case 
                initiated by a state or local agency, if that classification 
                is known.








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            b)   The value of assets forfeited under federal law in each 
              case in which a state or local agency had a role;

            c)   The value of all shares of assets forfeited under federal 
              law that are returned to a state or local agency that had a 
              role in the federal forfeiture action, and the date of receipt 
              of the shares; and, 

            d)   A complete description by state and local agencies that 
              receive assets forfeited under federal law of the purposes for 
              which all the forfeited assets were designated or used, and 
              the dates of all disbursements for each purpose.

          FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
         unknown, potentially moderate asset forfeiture revenue reduction to 
         state and local law enforcement as a result of making it more 
         difficult to use more lenient federal forfeiture procedures.  Under 
         federal law, up to 80% of forfeiture proceeds go to seizing 
         agencies, with at least 20% to the federal government.  For 
         example, DOJ currently receives more than $2 million annually from 
         federal asset forfeitures.  As would be the case for local law 
         enforcement, some percentage of this amount would likely be lost. 

          COMMENTS  :  According to the author, "AB 639 reduces the financial 
         incentives in asset forfeiture laws for local law enforcement to 
         recommend the prosecution of Californians under federal law when 
         state law can be used.  The incentives exist because federal 
         programs return a greater percentage of forfeited proceeds to the 
         budgets of local law enforcement than the State.  In other words, 
         Californians are facing different types of enforcement actions 
         because different incentives in asset forfeiture programs 
         established by the state and federal governments encourage local 
         law enforcement to circumvent state law."

         Please see the policy committee for a full discussion of this bill.
          

         Analysis Prepared by :    Sandy Uribe / PUB. S. / (916) 319-3744 

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