House Study Bill 525 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON HIGHFILL) A BILL FOR An Act relating to asset forfeiture by eliminating state 1 civil forfeiture and limiting the transfer of seized cash 2 or property to federal law enforcement agencies or other 3 federal authorities for federal civil forfeiture. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5246YC (5) 87 asf/rj

H.F. _____ Section 1. Section 80.39, subsection 1, Code 2018, is 1 amended to read as follows: 2 1. Personal property, except for motor vehicles subject to 3 sale pursuant to section 321.89 , and seizable property subject 4 to disposition pursuant to chapter 809 or 809A , which personal 5 property is found or seized by, turned in to, or otherwise 6 lawfully comes into the possession of the department or a local 7 law enforcement agency and which the department or agency does 8 not own, shall be disposed of pursuant to this section . If by 9 examining the property the owner or lawful custodian of the 10 property is known or can be readily ascertained, the department 11 or agency shall notify the owner or custodian by certified mail 12 directed to the owner’s or custodian’s last known address, as 13 to the location of the property. If the identity or address of 14 the owner cannot be determined, notice by one publication in a 15 newspaper of general circulation in the area where the property 16 was found is sufficient notice. A published notice may contain 17 multiple items. 18 Sec. 2. Section 123.9, subsection 7, Code 2018, is amended 19 by striking the subsection. 20 Sec. 3. Section 321.232, subsection 3, Code 2018, is amended 21 to read as follows: 22 3. A speed detection jamming device sold, operated, or 23 possessed in violation of subsection 1 may be seized by a peace 24 officer and is subject to forfeiture as provided by chapter 809 25 or 809A . 26 Sec. 4. Section 321J.4B, subsections 6, 9, and 10, Code 27 2018, are amended to read as follows: 28 6. Upon conviction of the defendant for a second 29 or subsequent violation of subsection 2 , paragraph “a” , 30 subparagraph (2), the court shall order, if the convicted 31 person is the owner of the motor vehicle used in the commission 32 of the offense, that that motor vehicle be seized and forfeited 33 to the state pursuant to chapters chapter 809 and 809A . 34 9. Operating a motor vehicle on a street or highway in this 35 -1- LSB 5246YC (5) 87 asf/rj 1/ 7

H.F. _____ state in violation of an order of impoundment or immobilization 1 is a serious misdemeanor. A motor vehicle which is subject to 2 an order of impoundment or immobilization that is operated on a 3 street or highway in this state in violation of the order shall 4 be seized and forfeited to the state under chapters chapter 809 5 and 809A . 6 10. Once the period of impoundment or immobilization has 7 expired, the owner of the motor vehicle shall have thirty 8 days to claim the motor vehicle and pay all fees and charges 9 imposed under this section . If the owner or the owner’s 10 designee has not claimed the vehicle and paid all fees and 11 charges imposed under this section within seven days from the 12 date of expiration of the period, the clerk shall send written 13 notification to the motor vehicle owner, at the owner’s last 14 known address, notifying the owner of the date of expiration of 15 the period of impoundment or immobilization and of the period 16 in which the motor vehicle must be claimed. If the motor 17 vehicle owner fails to claim the motor vehicle and pay all fees 18 and charges imposed within the thirty-day period, the motor 19 vehicle shall be forfeited to the state under chapters chapter 20 809 and 809A . 21 Sec. 5. Section 321J.4B, subsection 12, paragraph a, 22 subparagraph (2), Code 2018, is amended to read as follows: 23 (2) The holder of a security interest in a vehicle which 24 is impounded or immobilized pursuant to this section or 25 forfeited in the manner provided in chapters chapter 809 and 26 809A shall be notified of the impoundment, immobilization, 27 or forfeiture within seventy-two hours of the seizure of the 28 vehicle and shall have the right to claim the motor vehicle 29 without payment of any fees or surcharges unless the value of 30 the vehicle exceeds the value of the security interest held by 31 the creditor. 32 Sec. 6. Section 321J.10, subsection 7, Code 2018, is amended 33 to read as follows: 34 7. Specimens obtained pursuant to warrants issued under 35 -2- LSB 5246YC (5) 87 asf/rj 2/ 7

H.F. _____ this section are not subject to disposition under section 808.9 1 or chapter 809 or 809A . 2 Sec. 7. Section 455B.103, subsection 4, paragraph d, 3 subparagraph (2), Code 2018, is amended to read as follows: 4 (2) In a reasonable manner, and any property seized shall be 5 treated in accordance with the provisions of chapters 808 , and 6 809 , and 809A . 7 Sec. 8. Section 462A.14D, subsection 7, Code 2018, is 8 amended to read as follows: 9 7. Specimens obtained pursuant to warrants issued under 10 this section are not subject to disposition under section 808.9 11 or chapter 809 or 809A . 12 Sec. 9. Section 706A.3, subsection 3, paragraphs d and e, 13 Code 2018, are amended by striking the paragraphs. 14 Sec. 10. Section 706A.3, subsection 4, Code 2018, is amended 15 to read as follows: 16 4. Relief under subsection 3 , paragraphs “e” , “f” , and 17 “g” , shall not be granted in civil proceedings instituted 18 by an aggrieved person unless the prosecuting attorney has 19 instituted the proceedings or intervened. In any action under 20 this section brought by the state or in which the state has 21 intervened, the state may employ any of the powers of seizure 22 and restraint of property as are provided for forfeiture 23 actions under chapter 809A , or as are provided for the 24 collection of taxes payable and past due, and whose collection 25 has been determined to be in jeopardy. 26 Sec. 11. Section 706B.2, subsection 4, Code 2018, is amended 27 to read as follows: 28 4. A person who is found guilty of a violation under this 29 section also may be charged with violations of chapter 706A , 30 and property involved in a violation under this chapter is 31 subject to forfeiture under chapter 809A . 32 Sec. 12. Section 715A.8, subsection 6, Code 2018, is amended 33 by striking the subsection. 34 Sec. 13. Section 724.26, subsection 4, Code 2018, is amended 35 -3- LSB 5246YC (5) 87 asf/rj 3/ 7

H.F. _____ to read as follows: 1 4. Except as provided in section 809A.17, subsection 2 5 , paragraph “b” , a A court that issues an order or that 3 enters a judgment of conviction described in subsection 2 and 4 that finds the subject of the order or conviction to be in 5 possession of any firearm, offensive weapon, or ammunition 6 shall order that such firearm, offensive weapon, or ammunition 7 be sold or transferred by a date certain to the custody of a 8 qualified person in this state, as determined by the court. 9 The qualified person must be able to lawfully possess such 10 firearm, offensive weapon, or ammunition in this state. If 11 the court is unable to identify a qualified person to receive 12 such firearm, offensive weapon, or ammunition, the court 13 shall order that the firearm, offensive weapon, or ammunition 14 be transferred by a date certain to the county sheriff or 15 a local law enforcement agency designated by the court for 16 safekeeping until a qualified person is identified to receive 17 the firearm, offensive weapon, or ammunition, until such order 18 is no longer in effect, until such conviction is vacated, or 19 until the person’s rights have been restored in accordance 20 with section 724.27 . If the firearm, offensive weapon, or 21 ammunition is to be transferred to the sheriff’s office or a 22 local law enforcement agency, the court shall assess the person 23 the reasonable cost of storing the firearm, offensive weapon, 24 or ammunition, payable to the county sheriff or the local law 25 enforcement agency. 26 Sec. 14. Section 809.1, Code 2018, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 01. “Federal law enforcement agency or 29 authority” means an organizational unit or subunit of the 30 federal government that has as one of its principal functions 31 the prevention, detection, and investigation of crime and the 32 apprehension or prosecution of alleged offenders. 33 Sec. 15. Section 809.5, subsection 1, paragraph f, Code 34 2018, is amended to read as follows: 35 -4- LSB 5246YC (5) 87 asf/rj 4/ 7

H.F. _____ f. In the event that the owner is unable to be located or 1 the property is deemed abandoned the following shall apply: 2 (1) If the aggregate fair market value of the property is 3 greater than five hundred dollars, forfeiture proceedings shall 4 be initiated pursuant to the provisions of chapter 809A . If the 5 court does not order the property forfeited to the state in the 6 forfeiture proceedings pursuant to chapter 809A , the seizing 7 agency shall become the owner of the property and may dispose 8 of it in any reasonable manner. 9 (2) (1) If the aggregate fair market value of the property 10 is equal to or less than five hundred dollars, the seizing 11 agency shall become the owner of the property and may dispose 12 of it in any reasonable manner. 13 (3) (2) Notwithstanding subparagraphs subparagraph (1) 14 and (2) , firearms or ammunition shall be deposited with the 15 department of public safety. The firearms or ammunition may 16 be held by the department of public safety and be used for law 17 enforcement, testing, or comparisons by the criminalistics 18 laboratory, or may be destroyed or disposed of by the 19 department of public safety in accordance with section 809.21 . 20 Sec. 16. NEW SECTION . 809.6 Limitation on transfer 21 of seized property to federal law enforcement agencies or 22 authorities. 23 1. A law enforcement agency, seizing agency, or prosecuting 24 attorney shall not directly or indirectly transfer any cash 25 or property to a federal law enforcement agency or authority 26 for purposes of forfeiture under federal law unless any of the 27 following are applicable: 28 a. The cash or property is being transferred for federal 29 criminal forfeiture proceedings. 30 b. The person from whom the cash or property was seized 31 is the subject of a federal prosecution or the circumstances 32 surrounding the cash or property seized are the subject of a 33 federal prosecution. 34 2. This section shall not be construed to prohibit any of 35 -5- LSB 5246YC (5) 87 asf/rj 5/ 7

H.F. _____ the following: 1 a. A federal law enforcement agency or authority from 2 seizing cash or property or seeking forfeiture under federal 3 law. 4 b. A state or local law enforcement agency from 5 participating in a joint law enforcement operation with a 6 federal law enforcement agency or authority. 7 Sec. 17. Section 809.12A, Code 2018, is amended to read as 8 follows: 9 809.12A Appeals. 10 An appeal from a denial of an application for the return 11 of seized property or from an order for the return of seized 12 property shall be made within thirty days after the entry of 13 a judgment order. The appellant, other than the state, shall 14 post a bond of a reasonable amount as the court may fix and 15 approve, conditioned to pay all costs of the proceedings if the 16 appellant is unsuccessful on appeal. The appellant, other than 17 the state, may be required to post a supersedeas bond or other 18 security, as the court finds to be reasonable, in order to stay 19 the operation of a forfeiture order under section 809A.16 . 20 Sec. 18. REPEAL. Sections 716A.7 and 809.15, Code 2018, 21 are repealed. 22 Sec. 19. REPEAL. Chapter 809A, Code 2018, is repealed. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to asset forfeiture. First, it eliminates 27 state civil forfeiture. Second, it limits the transfer of 28 seized cash or property to federal law enforcement agencies or 29 other federal authorities for federal civil forfeiture. 30 The bill eliminates civil forfeiture under Iowa law by 31 repealing Code chapter 809A, the forfeiture reform Act, and 32 removing provisions in Code chapter 809 that rely on the 33 existence of Code chapter 809A. The bill makes corresponding 34 changes to several Code chapters that currently refer to the 35 -6- LSB 5246YC (5) 87 asf/rj 6/ 7

H.F. _____ provisions of Code chapter 809A. Under current law, assets 1 may be seized and forfeited through a civil process which may 2 identify the owner of the property or solely the property 3 itself as the defendant. In either an in rem or in personam 4 civil forfeiture process, property may be forfeited without a 5 criminal conviction. 6 By repealing Code chapter 809A, in order to forfeit property 7 a prosecuting attorney must engage in a criminal forfeiture 8 process wherein the action is brought as part of the criminal 9 prosecution of a defendant. 10 Under current law, there is no limitation on a state or local 11 law enforcement agency or prosecuting attorney with regard to 12 the transfer of seized property to a federal law enforcement 13 agency or authority. For purposes of asset forfeiture under 14 federal law, this process is referred to as equitable sharing. 15 Under equitable sharing, if the property seized by state 16 authorities and transferred to federal authorities results 17 in a forfeiture, the state and federal authorities share any 18 proceeds. 19 The bill provides that state and local law enforcement 20 agencies and authorities shall not participate in equitable 21 sharing unless the property is being transferred for federal 22 criminal forfeiture proceedings or for federal investigation of 23 the person or the person’s property. 24 The bill provides that the prohibition on transferring 25 property to a federal law enforcement agency or authority, as 26 defined in the bill, shall not be construed to affect a federal 27 law enforcement agency’s or authority’s ability to seize 28 property or seek forfeiture under federal law, or to prohibit 29 state or local law enforcement agencies or authorities from 30 participating in joint law enforcement operations with federal 31 law enforcement agencies or authorities. 32 -7- LSB 5246YC (5) 87 asf/rj 7/ 7