As Introduced 131st General Assembly Regular Session H. B. No. 347 2015-2016 Representatives McColley, Brinkman Cosponsors: Representatives Antani, Becker, Brenner, Dever, Duffey, Hambley, Henne, Hood, LaTourette, Retherford, Roegner, Schuring, Terhar, Thompson, Vitale, Young, Zeltwanger A BILL To amend sections 2923.36, 2981.01, 2981.02, 1 2981.03, 2981.04, 2981.06, 2981.08, 2981.09, 2 2981.11, 2981.12, 2981.13, and 2981.14 and to 3 repeal section 2981.05 of the Revised Code to 4 eliminate civil asset forfeiture proceedings and 5 to modify the law governing criminal asset 6 forfeitures. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: Section 1. That sections 2923.36, 2981.01, 2981.02, 8 2981.03, 2981.04, 2981.06, 2981.08, 2981.09, 2981.11, 2981.12, 9 2981.13, and 2981.14 of the Revised Code be amended to read as 10 follows: 11 Sec. 2923.36. (A) Upon the institution of any criminal 12 proceeding charging a violation of section 2923.32 of the 13 Revised Code, the filing of any complaint, indictment, or 14 information in juvenile court alleging a violation of that 15 section as a delinquent act, or the institution of any civil 16 proceeding under section 2923.34 or 2981.05 of the Revised Code, 17 H. B. No. 347 As Introduced Page 2 the state, at any time during the pendency of the proceeding, 18 may file a corrupt activity lien notice with the county recorder 19 of any county in which property subject to forfeiture may be 20 located. No fee shall be required for filing the notice. The 21 recorder immediately shall record the notice pursuant to section 22 317.08 of the Revised Code. 23 (B) A corrupt activity lien notice shall be signed by the 24 prosecuting attorney who files the lien. The notice shall set 25 forth all of the following information: 26 (1) The name of the person against whom the proceeding has 27 been brought. The prosecuting attorney may specify in the notice 28 any aliases, names, or fictitious names under which the person 29 may be known. The prosecuting attorney also may specify any 30 corporation, partnership, or other entity in which the person 31 has an interest subject to forfeiture under Chapter 2981. of the 32 Revised Code and shall describe in the notice the person's 33 interest in the corporation, partnership, or other entity. 34 (2) If known to the prosecuting attorney, the present 35 residence and business addresses of the person or names set 36 forth in the notice; 37 (3) A statement that a criminal or delinquency proceeding 38 for a violation of section 2923.32 of the Revised Code or a 39 civil proceeding under section 2923.34 or 2981.05 of the Revised 40 Code has been brought against the person named in the notice, 41 the name of the county in which the proceeding has been brought, 42 and the case number of the proceeding; 43 (4) A statement that the notice is being filed pursuant to this section; (5) The name and address of the prosecuting attorney 44 45 46 H. B. No. 347 As Introduced filing the notice; (6) A description of the real or personal property subject Page 3 47 48 to the notice and of the interest in that property of the person 49 named in the notice, to the extent the property and the interest 50 of the person in it reasonably is known at the time the 51 proceeding is instituted or at the time the notice is filed. 52 (C) A corrupt activity lien notice shall apply only to one 53 person and, to the extent applicable, any aliases, fictitious 54 names, or other names, including names of corporations, 55 partnerships, or other entities, to the extent permitted in this 56 section. A separate corrupt activity lien notice is required to 57 be filed for any other person. 58 (D) Within seven days after the filing of each corrupt 59 activity lien notice, the prosecuting attorney who files the 60 notice shall furnish to the person named in the notice by 61 certified mail, return receipt requested, to the last known 62 business or residential address of the person, a copy of the 63 recorded notice with a notation on it of any county in which the 64 notice has been recorded. The failure of the prosecuting 65 attorney to furnish a copy of the notice under this section 66 shall not invalidate or otherwise affect the corrupt activity 67 lien notice when the prosecuting attorney did not know and could 68 not reasonably ascertain the address of the person entitled to 69 notice. 70 After receipt of a copy of the notice under this division, 71 the person named in the notice may petition the court to 72 authorize the person to post a surety bond in lieu of the lien 73 or to otherwise modify the lien as the interests of justice may 74 require. The bond shall be in an amount equal to the value of 75 the property reasonably known to be subject to the notice and 76 H. B. No. 347 As Introduced Page 4 conditioned on the payment of any judgment and costs ordered in 77 an action pursuant to Chapter 2981. of the Revised Code up to 78 the value of the bond. 79 (E) From the date of filing of a corrupt activity lien 80 notice, the notice creates a lien in favor of the state on any 81 personal or real property or any beneficial interest in the 82 property located in the county in which the notice is filed that 83 then or subsequently is owned by the person named in the notice 84 or under any of the names set forth in the notice. 85 The lien created in favor of the state is superior and 86 prior to the interest of any other person in the personal or 87 real property or beneficial interest in the property, if the 88 interest is acquired subsequent to the filing of the notice. 89 (F)(1) Notwithstanding any law or rule to the contrary, in 90 conjunction with any civil proceeding brought pursuant to 91 section 2981.05 of the Revised Code, the prosecuting attorney 92 may file in any county, without prior court order, a lis pendens 93 pursuant to sections 2703.26 and 2703.27 of the Revised Code. In 94 such a case, any person acquiring an interest in the subject 95 property or beneficial interest in the property, if the property 96 interest is acquired subsequent to the filing of the lis 97 pendens, shall take the property or interest subject to the 98 civil proceeding and any subsequent judgment. 99 (2) If a corrupt activity lien notice has been filed, the 100 prosecuting attorney may name as a defendant in the lis pendens, 101 in addition to the person named in the notice, any person 102 acquiring an interest in the personal or real property or 103 beneficial interest in the property subsequent to the filing of 104 the notice. If a judgment of forfeiture is entered in the 105 criminal or delinquency proceeding pursuant to section 2981.04 106 H. B. No. 347 As Introduced Page 5 of the Revised Code in favor of the state, the interest of any 107 person in the property that was acquired subsequent to the 108 filing of the notice shall be subject to the notice and judgment 109 of forfeiture. 110 (G) Upon a final judgment of forfeiture in favor of the 111 state pursuant to Chapter 2981. of the Revised Code, title of 112 the state to the forfeited property shall do either of the 113 following: 114 (1) In the case of real property, or a beneficial interest 115 in it, relate back to the date of filing of the corrupt activity 116 lien notice in the county where the property or interest is 117 located. If no corrupt activity lien notice was filed, title of 118 the state relates back to the date of the filing of any lis 119 pendens under division (F) of this section in the records of the 120 county recorder of the county in which the real property or 121 beneficial interest is located. If no corrupt activity lien 122 notice or lis pendens was filed, title of the state relates back 123 to the date of the recording of the final judgment of forfeiture 124 in the records of the county recorder of the county in which the 125 real property or beneficial interest is located. 126 (2) In the case of personal property or a beneficial 127 interest in it, relate back to the date on which the property or 128 interest was seized by the state, or the date of filing of a 129 corrupt activity lien notice in the county in which the property 130 or beneficial interest is located. If the property was not 131 seized and no corrupt activity lien notice was filed, title of 132 the state relates back to the date of the recording of the final 133 judgment of forfeiture in the county in which the personal 134 property or beneficial interest is located. 135 (H) If personal or real property, or a beneficial interest 136 H. B. No. 347 As Introduced Page 6 in it, that is subject to forfeiture pursuant to section 2923.32 137 of the Revised Code is conveyed, alienated, disposed of, or 138 otherwise rendered unavailable for forfeiture after the filing 139 of either a corrupt activity lien notice, or a criminal or 140 delinquency proceeding for a violation of section 2923.32 or a 141 civil proceeding under section 2981.05 of the Revised Code, 142 whichever is earlier, the state may bring an action in any court 143 of common pleas against the person named in the corrupt activity 144 lien notice or the defendant in the criminal, or delinquency, or 145 civil proceeding to recover the value of the property or 146 interest. The court shall enter final judgment against the 147 person named in the notice or the defendant for an amount equal 148 to the value of the property or interest together with 149 investigative costs and attorney's fees incurred by the state in 150 the action. If a civil proceeding is pending, an action pursuant 151 to this section shall be filed in the court in which the 152 proceeding is pending. 153 (I) If personal or real property, or a beneficial interest 154 in it, that is subject to forfeiture pursuant to Chapter 2981. 155 of the Revised Code is alienated or otherwise transferred or 156 disposed of after either the filing of a corrupt activity lien 157 notice, or the filing of a criminal or delinquency proceeding 158 for a violation of section 2923.32 or a civil proceeding under 159 section 2981.05 of the Revised Code, whichever is earlier, the 160 transfer or disposal is fraudulent as to the state and the state 161 shall have all the rights granted a creditor under Chapter 1336. 162 of the Revised Code. 163 (J) No trustee, who acquires actual knowledge that a 164 corrupt activity lien notice, or a criminal or delinquency 165 proceeding for a violation of section 2923.32 or a civil 166 proceeding under section 2981.05 of the Revised Code has been 167 H. B. No. 347 As Introduced Page 7 filed against any person for whom the trustee holds legal or 168 record title to personal or real property, shall recklessly fail 169 to furnish promptly to the prosecuting attorney all of the 170 following: 171 (1) The name and address of the person, as known to the trustee; 172 173 (2) The name and address, as known to the trustee, of all 174 other persons for whose benefit the trustee holds title to the 175 property; 176 (3) If requested by the prosecuting attorney, a copy of 177 the trust agreement or other instrument under which the trustee 178 holds title to the property. 179 Any trustee who fails to comply with this division is 180 guilty of failure to provide corrupt activity lien information, 181 a misdemeanor of the first degree. 182 (K) If a trustee transfers title to personal or real 183 property after a corrupt activity lien notice is filed against 184 the property, the lien is filed in the county in which the 185 property is located, and the lien names a person who holds a 186 beneficial interest in the property, the trustee, if the trustee 187 has actual notice of the notice, shall be liable to the state 188 for the greater of the following: 189 (1) The proceeds received directly by the person named in the notice as a result of the transfer; (2) The proceeds received by the trustee as a result of the transfer and distributed to the person named in the notice; (3) The fair market value of the interest of the person named in the notice in the property transferred. 190 191 192 193 194 195 H. B. No. 347 As Introduced However, if the trustee transfers property for at least Page 8 196 its fair market value and holds the proceeds that otherwise 197 would be paid or distributed to the beneficiary, or at the 198 direction of the beneficiary or the beneficiary's designee, the 199 liability of the trustee shall not exceed the amount of the 200 proceeds held by the trustee. 201 (L) The filing of a corrupt activity lien notice does not 202 constitute a lien on the record title to personal or real 203 property owned by the trustee, except to the extent the trustee 204 is named in the notice. 205 The prosecuting attorney for the county may bring a civil 206 action in any court of common pleas to recover from the trustee 207 the amounts set forth in division (H) of this section. The 208 county may recover investigative costs and attorney's fees 209 incurred by the prosecuting attorney. 210 (M)(1) This section does not apply to any transfer by a 211 trustee under a court order, unless the order is entered in an 212 action between the trustee and the beneficiary. 213 (2) Unless the trustee has actual knowledge that a person 214 owning a beneficial interest in the trust is named in a corrupt 215 activity lien notice or otherwise is a defendant in a civil 216 proceeding brought pursuant to section 2923.34 or 2981.05 of the 217 Revised Code, this section does not apply to either of the 218 following: 219 (a) Any transfer by a trustee required under the terms of 220 any trust agreement, if the agreement is a matter of public 221 record before the filing of any corrupt activity lien notice; 222 (b) Any transfer by a trustee to all of the persons who own a beneficial interest in the trust. 223 224 H. B. No. 347 As Introduced (N) The filing of a corrupt activity lien notice does not Page 9 225 affect the use to which personal or real property, or a 226 beneficial interest in it, that is owned by the person named in 227 the notice may be put or the right of the person to receive any 228 proceeds resulting from the use and ownership, but not the sale, 229 of the property, until a judgment of forfeiture is entered. 230 (O) The term of a corrupt activity lien notice is five 231 years from the date the notice is filed, unless a renewal notice 232 has been filed by the prosecuting attorney of the county in 233 which the property or interest is located. The term of any 234 renewal of a corrupt activity lien notice granted by the court 235 is five years from the date of its filing. A corrupt activity 236 lien notice may be renewed any number of times while a criminal 237 or civil proceeding under section 2923.34, or 2981.04, or 238 2981.05 of the Revised Code, or an appeal from either type of 239 proceeding, is pending. 240 (P) The prosecuting attorney who files the corrupt 241 activity lien notice may terminate, in whole or part, any 242 corrupt activity lien notice or release any personal or real 243 property or beneficial interest in the property upon any terms 244 that the prosecuting attorney determines are appropriate. Any 245 termination or release shall be filed by the prosecuting 246 attorney with each county recorder with whom the notice was 247 filed. No fee shall be imposed for the filing. 248 (Q)(1) If no civil proceeding has been brought by the 249 prosecuting attorney pursuant to section 2923.34 of the Revised 250 Code against the person named in the corrupt activity lien 251 notice, the acquittal in a criminal or delinquency proceeding 252 for a violation of section 2923.32 of the Revised Code of the 253 person named in the notice or the dismissal of a criminal or 254 H. B. No. 347 As Introduced Page 10 delinquency proceeding for such a violation against the person 255 named in the notice terminates the notice. In such a case, the 256 filing of the notice has no effect. 257 (2) If a civil proceeding has been brought pursuant to 258 section 2923.34 or 2981.05 of the Revised Code with respect to 259 any property that is the subject of a corrupt activity lien 260 notice and if the criminal or delinquency proceeding brought 261 against the person named in the notice for a violation of 262 section 2923.32 of the Revised Code has been dismissed or the 263 person named in the notice has been acquitted in the criminal or 264 delinquency proceeding for such a violation, the notice shall 265 continue for the duration of the civil proceeding and any 266 appeals from the civil proceeding, except that it shall not 267 continue any longer than the term of the notice as determined 268 pursuant to division (O) of this section. 269 (3) If no civil proceeding brought pursuant to section 270 2981.05 of the Revised Code then is pending against the Any 271 person named in a corrupt activity lien notice, any person so 272 named may bring an action against the prosecuting attorney who 273 filed the notice, in the county where it was filed, seeking a 274 release of the property subject to the notice or termination of 275 the notice. In such a case, the court of common pleas promptly 276 shall set a date for hearing, which shall be not less than five 277 nor more than ten days after the action is filed. The order and 278 a copy of the complaint shall be served on the prosecuting 279 attorney within three days after the action is filed. At the 280 hearing, the court shall take evidence as to whether any 281 personal or real property, or beneficial interest in it, that is 282 owned by the person bringing the action is covered by the notice 283 or otherwise is subject to forfeiture. If the person bringing 284 the action shows by a preponderance of the evidence that the 285 H. B. No. 347 As Introduced Page 11 notice does not apply to the person or that any personal or real 286 property, or beneficial interest in it, that is owned by the 287 person is not subject to forfeiture, the court shall enter a 288 judgment terminating the notice or releasing the personal or 289 real property or beneficial interest from the notice. 290 At a hearing, the court may release from the notice any 291 property or beneficial interest upon the posting of security, by 292 the person against whom the notice was filed, in an amount equal 293 to the value of the property or beneficial interest owned by the 294 person. 295 (4) The court promptly shall enter an order terminating a 296 corrupt activity lien notice or releasing any personal or real 297 property or beneficial interest in the property, if a sale of 298 the property or beneficial interest is pending and the filing of 299 the notice prevents the sale. However, the proceeds of the sale 300 shall be deposited with the clerk of the court, subject to the 301 further order of the court. 302 (R) Notwithstanding any provision of this section, any 303 person who has perfected a security interest in personal or real 304 property or a beneficial interest in the property for the 305 payment of an enforceable debt or other similar obligation prior 306 to the filing of a corrupt activity lien notice or a lis pendens 307 in reference to the property or interest may foreclose on the 308 property or interest as otherwise provided by law. The 309 foreclosure, insofar as practical, shall be made so that it 310 otherwise will not interfere with a forfeiture under Chapter 311 2981. of the Revised Code. 312 Sec. 2981.01. (A) Forfeitures under this chapter shall be governed by all of the following purposes: 313 314 H. B. No. 347 As Introduced Page 12 (1) To provide economic disincentives and remedies to 315 deter and offset the economic effect of offenses by seizing and 316 forfeiting contraband, proceeds, and certain instrumentalities; 317 (2) To ensure that seizures and forfeitures of 318 instrumentalities are proportionate to the offense committed; 319 (3) To protect third parties from wrongful forfeiture of 320 their property; 321 (4) To prioritize restitution for victims of offenses; 322 (5) To prohibit the forfeiture of a person's property 323 unless the person has been convicted of an offense or 324 adjudicated a delinquent child for committing an act that would 325 be an offense if committed by an adult. 326 (B) As used in this chapter: 327 (1) "Aircraft" has the same meaning as in section 4561.01 328 of the Revised Code. (2) "Computers," "computer networks," "computer systems," 329 330 "computer software," and "telecommunications device" have the 331 same meanings as in section 2913.01 of the Revised Code. 332 (3) "Financial institution" means a bank, credit union, 333 savings and loan association, or a licensee or registrant under 334 Chapter 1321. of the Revised Code. 335 (4) "Firearm" and "dangerous ordnance" have the same meanings as in section 2923.11 of the Revised Code. (5) "Innocent person" includes any bona fide purchaser of 336 337 338 property that is subject to forfeiture, including any person who 339 establishes a valid claim to or interest in the property in 340 accordance with section 2923.04 2981.04 of the Revised Code, and 341 H. B. No. 347 As Introduced any victim of an alleged offense. (6) "Instrumentality" means property otherwise lawful to Page 13 342 343 possess that is used in or intended to be used in an offense. An 344 "instrumentality" may include, but is not limited to, a firearm, 345 a mobile instrumentality, a computer, a computer network, a 346 computer system, computer software, a telecommunications device, 347 money, and any other means of exchange. 348 (7) "Law enforcement agency" includes, but is not limited 349 to, the state board of pharmacy, the enforcement division of the 350 department of taxation, the Ohio casino control commission, and 351 the office of the prosecutor. 352 (8) "Mobile instrumentality" means an instrumentality that 353 is inherently mobile and used in the routine transport of 354 persons. "Mobile instrumentality" includes, but is not limited 355 to, any vehicle, any watercraft, and any aircraft. 356 (9) "Money" has the same meaning as in section 1301.201 of the Revised Code. (10) "Offense" means any act or omission that could be 357 358 359 charged as a criminal offense or a delinquent act, whether or 360 not a formal criminal prosecution or delinquent child proceeding 361 began at the time the forfeiture is initiated. Except as 362 otherwise specified, an offense for which property may be 363 forfeited includes any felony and any misdemeanor. The 364 commission of an "offense" includes the commission of a 365 delinquent act. 366 (11) "Proceeds" means both of the following: 367 (a) In cases involving unlawful goods, services, or 368 activities, "proceeds" means any property derived directly or 369 indirectly from an offense. "Proceeds" may include, but is not 370 H. B. No. 347 As Introduced Page 14 limited to, money or any other means of exchange. "Proceeds" is 371 not limited to the net gain or profit realized from the offense. 372 (b) In cases involving lawful goods or services that are 373 sold or provided in an unlawful manner, "proceeds" means the 374 amount of money or other means of exchange acquired through the 375 illegal transactions resulting in the forfeiture, less the 376 direct costs lawfully incurred in providing the goods or 377 services. The lawful costs deduction does not include any part 378 of the overhead expenses of, or income taxes paid by, the entity 379 providing the goods or services. The alleged offender or 380 delinquent child has the burden to prove that any costs are 381 lawfully incurred. 382 (12) "Property" means "property" as defined in section 383 2901.01 of the Revised Code and any benefit, privilege, claim, 384 position, interest in an enterprise, or right derived, directly 385 or indirectly, from the offense. 386 (13) "Property subject to forfeiture" includes contraband 387 and proceeds and may include instrumentalities as provided in 388 this chapter. 389 (14) "Prosecutor" has the same meaning as in section 390 2935.01 of the Revised Code. When relevant, "prosecutor" also 391 includes the attorney general. 392 (15) "Vehicle" has the same meaning as in section 4501.01 of the Revised Code. (16) "Watercraft" has the same meaning as in section 1547.01 of the Revised Code. (C) The penalties and procedures under Chapters 2923., 393 394 395 396 397 2925., 2933., and 3772. of the Revised Code remain in effect to 398 the extent that they do not conflict with this chapter. 399 H. B. No. 347 As Introduced Sec. 2981.02. (A) The following property is subject to Page 15 400 forfeiture to the state or a political subdivision under either 401 the criminal or delinquency process in section 2981.04 of the 402 Revised Code or the civil process in section 2981.05 of the 403 Revised Code: 404 (1) Contraband involved in an offense; 405 (2) Proceeds derived from or acquired through the 406 commission of an offense; (3) An instrumentality that is used in or intended to be 407 408 used in the commission or facilitation of any of the following 409 offenses when the use or intended use, consistent with division 410 (B) of this section, is sufficient to warrant forfeiture under 411 this chapter: 412 (a) A felony; 413 (b) A misdemeanor, when forfeiture is specifically 414 authorized by a section of the Revised Code or by a municipal 415 ordinance that creates the offense or sets forth its penalties; 416 (c) An attempt to commit, complicity in committing, or a 417 conspiracy to commit an offense of the type described in 418 divisions (A)(3)(a) and (b) of this section. 419 (B) In determining whether an alleged instrumentality was 420 used in or was intended to be used in the commission or 421 facilitation of an offense or an attempt, complicity, or 422 conspiracy to commit an offense in a manner sufficient to 423 warrant its forfeiture, the trier of fact shall consider the 424 following factors the trier of fact determines are relevant: 425 (1) Whether the offense could not have been committed or attempted but for the presence of the instrumentality; 426 427 H. B. No. 347 As Introduced (2) Whether the primary purpose in using the instrumentality was to commit or attempt to commit the offense; (3) The extent to which the instrumentality furthered the commission of, or attempt to commit, the offense. (C) This chapter does not apply to or limit forfeitures Page 16 428 429 430 431 432 under Title XLV of the Revised Code, including forfeitures 433 relating to section 2903.06 or 2903.08 of the Revised Code. 434 Sec. 2981.03. (A)(1) The state or political subdivision 435 acquires provisional title to property subject to forfeiture 436 under this chapter upon a person's commission of an offense 437 giving rise to forfeiture, subject to third party claims and a 438 final adjudication under section 2981.04 or 2981.05 of the 439 Revised Code. Provisional title authorizes the state or 440 political subdivision to seize and hold the property, and to act 441 to protect the property, under this section before any 442 proceeding under this chapter. Title to the property vests with 443 the state or political subdivision when the trier of fact 444 renders a final forfeiture verdict or order under section 445 2981.04 or 2981.05 of the Revised Code, but that title is 446 subject to third party claims adjudicated under those sections. 447 (2) A Except as otherwise provided in division (A)(3) of 448 this section, a law enforcement officer may seize property that 449 the officer has probable cause to believe is property subject to 450 forfeiture. If a law enforcement officer seizes property that is 451 titled or registered under law, the officer or the law 452 enforcement agency that employs the officer shall notify the 453 property owner of the seizure. The agency shall give notice to 454 the property owner at the owner's last known address as soon as 455 practical after the seizure and may give the notice by certified 456 mail or orally by any means, including telephone. If the officer 457 H. B. No. 347 As Introduced Page 17 or agency is unable to provide the notice required by this 458 division despite reasonable, good faith efforts, those efforts 459 constitute fulfillment of the notice requirement. 460 (3) In If a civil forfeiture case under this chapter in 461 which the state or political subdivision seeks to seize real 462 property, the property owner may request the prosecutor shall 463 file a motion in the appropriate court to request a hearing 464 before the seizure, and in shall notify the property owner of 465 the motion. The court shall hold the hearing not sooner than 466 fourteen days after the motion is filed. At the hearing, the 467 court shall grant the motion if the state or political 468 subdivision shall show probable cause demonstrates by a 469 preponderance of the evidence that the real property is subject 470 to forfeiture. 471 (4) A person aggrieved by an alleged unlawful seizure of 472 property may seek relief from the seizure by filing a motion in 473 the appropriate court that shows the person's interest in the 474 property, states why the seizure was unlawful, and requests the 475 property's return. If the motion is filed before an indictment, 476 information, or a complaint seeking forfeiture of the property 477 is filed, the court shall promptly schedule a hearing on the 478 motion, and at not later than fourteen days after it is filed. 479 At the hearing, the person state or political subdivision shall 480 demonstrate by a preponderance of the evidence that the seizure 481 was unlawful lawful and that the person is not entitled to the 482 property. If the motion is filed by a defendant after an 483 indictment, information, or a complaint seeking forfeiture of 484 the property has been filed, the court shall treat the motion as 485 a motion to suppress evidence. If the motion is filed by a third 486 party after an indictment, information, or complaint seeking 487 forfeiture of the property has been filed, the court shall treat 488 H. B. No. 347 As Introduced Page 18 the motion as a petition of a person with an alleged interest in 489 the subject property, pursuant to divisions (E) and (F) of 490 section 2981.04 of the Revised Code. 491 (5)(a) In any action under section 2981.04 or 2981.05 of 492 the Revised Code, if a property owner or third party claims 493 lawful interest in the subject property alleged to be proceeds, 494 the state or political subdivision has provisional title and a 495 right to hold property if it proves both of the following by a 496 preponderance of the evidence: 497 (i) The interest in the property was acquired by the 498 alleged offender or delinquent child during the commission of 499 the offense or within a reasonable time after that period. 500 (ii) There is no likely source for the interest in the 501 property other than as proceeds derived from or acquired through 502 the commission of the offense. 503 (b) The alleged offender or delinquent child shall have 504 the burden to prove the amount of any direct costs lawfully 505 incurred. 506 (B)(1) Upon application by the prosecutor who prosecutes 507 or brings an action that allows forfeiture under this chapter, 508 the court in which the action is prosecuted or filed may issue 509 an order taking any reasonable action necessary to preserve the 510 reachability of the property including, but not limited to, a 511 restraining order or injunction, an order requiring execution of 512 a satisfactory bond or insurance policy, an order to inspect, 513 photograph, or inventory the property, an order placing a lien 514 or lis pendens against the property, or an order appointing a 515 receiver or trustee. The court may issue an order of this nature 516 at any of the following times: 517 H. B. No. 347 As Introduced Page 19 (a) Upon the filing of a complaint, indictment, or 518 information alleging the property to be subject to forfeiture 519 under section 2981.02 of the Revised Code; 520 (b) Prior to the filing of a complaint, an indictment, or 521 information alleging the property to be subject to forfeiture 522 under section 2981.02 of the Revised Code, if, after giving 523 notice to all persons known to have a an interest in the 524 property and giving those persons an opportunity to be heard, 525 the court determines that all of the following apply: 526 (i) There is a substantial probability the state or political subdivision will prevail on the forfeiture issue. 527 528 (ii) There is a substantial probability that failure to 529 enter the order will result in the property being destroyed, 530 being removed from the court's jurisdiction, or otherwise being 531 made unavailable for forfeiture. 532 (iii) The need to preserve the availability of the 533 property outweighs the hardship on the person against whom the 534 order is to be entered. 535 (c) As a condition of releasing the property based on a 536 determination of substantial hardship under division (D) of this 537 section. 538 (2) Except as otherwise provided in division (B)(3) of 539 this section, the court shall make an order under division (B) 540 (1)(b) of this section effective for not more than ninety days, 541 but the court may extend the order if the prosecutor 542 demonstrates that the need to preserve the reachability of the 543 property still exists or for other good cause shown and shall 544 extend the order if an indictment, information, or a complaint 545 is filed alleging that the property is subject to forfeiture. 546 H. B. No. 347 As Introduced (3) A court may issue an order under division (B)(1) of Page 20 547 this section without giving notice or a hearing to a person 548 known to have a interest in the property if the prosecutor 549 demonstrates that the property is subject to forfeiture and that 550 giving notice and a hearing will jeopardize the availability of 551 the property for forfeiture. Notwithstanding the ninety-day 552 limit described in division (B)(2) of this section, the court 553 shall make an order under division (B)(3) of this section 554 effective for not more than ten days, but the court may extend 555 the order if the prosecutor again demonstrates that the property 556 is subject to forfeiture and that a hearing will jeopardize the 557 availability of the property or for other good cause shown or if 558 the person subject to the order consents to a longer period. If 559 a party requests a hearing on the order, the court shall hold 560 the hearing at the earliest possible time before the order 561 expires. 562 (4) At any hearing under division (B) of this section, the 563 court may receive and consider evidence and information that is 564 inadmissible under the Rules of Evidence. The court shall cause 565 the hearing to be recorded and shall cause a transcript to be 566 made. If property is to be seized as a result of the hearing, 567 the recording and transcript shall not be a public record for 568 purposes of section 149.43 of the Revised Code until the 569 property is seized. This section does not authorize making 570 available for inspection any confidential law enforcement 571 investigatory record or trial preparation record, as defined in 572 section 149.43 of the Revised Code. 573 (C) Except as otherwise provided in division (E) of this 574 section, any replevin, conversion, or other civil action brought 575 concerning property subject to a criminal or civil forfeiture 576 action under this chapter shall be stayed until the forfeiture 577 H. B. No. 347 As Introduced action is resolved. Page 21 578 (D)(1) A person with an interest in property that is 579 subject to forfeiture and that is seized under this chapter may 580 seek conditional release of the property by requesting 581 possession from the person with custody of the property. The 582 request shall demonstrate how the person meets the requirements 583 specified in divisions (D)(3)(a), (b), and (c) of this section. 584 (2) If the person with custody of the property does not 585 release the property within fifteen days after a person makes a 586 request under division (D)(1) of this section, or within seven 587 days after a person makes the request if the property was seized 588 as a mobile instrumentality or if the request is to copy 589 records, the person who made the request may file a petition for 590 conditional release with the court in which the complaint, 591 indictment, or information is filed or, if no complaint, 592 indictment, or information is filed, the court that issued the 593 seizure warrant for the property. The petition shall demonstrate 594 how the person meets the requirements specified in divisions (D) 595 (3)(a), (b), and (c) of this section and the steps the person 596 has taken to secure release of the property from the official. 597 Unless extended for good cause shown, the petition shall be 598 filed either within thirty days of the filing of a complaint, an 599 indictment, or information in the forfeiture action or, if no 600 complaint, indictment, or information is filed, within thirty 601 days of the issuance of the seizure warrant of the property. 602 If the court finds that the person meets the criteria 603 specified in divisions (D)(3)(a), (b), and (c) of this section, 604 the court shall order the property's conditional return to the 605 person pending completion of the forfeiture action. In issuing 606 this order, the court shall notify the person of the 607 H. B. No. 347 As Introduced Page 22 prohibitions against interfering with or diminishing property in 608 section 2981.07 of the Revised Code and may make any order 609 necessary to ensure that the value of the property is 610 maintained. 611 If personal, business, or governmental records are seized, 612 including those contained in computer files, a person may 613 petition the court for a prompt opportunity to copy, at the 614 person's expense, any records that are not contraband. The court 615 may grant the petition if the person demonstrates how the person 616 meets the requirements specified in divisions (D)(3)(a) and (c) 617 of this section. The court shall order a competent person to 618 supervise the copying. 619 (3) Except when there is probable cause that the property 620 is contraband, property that must be held for a reasonable time 621 as evidence related to an offense, or property that is likely to 622 be used in additional offenses or except when the state or 623 political subdivision meets the burden imposed under division 624 (A)(5) of this section regarding alleged proceeds, a court may 625 conditionally release property subject to forfeiture to a person 626 who demonstrates all of the following: 627 (a) A possessory interest in the property; 628 (b) Sufficient ties to the community to provide assurance 629 that the property will be available at the time of trial; (c) That failure to conditionally release the property will cause a substantial hardship to the claimant. (4) In determining whether a substantial hardship exists, 630 631 632 633 the court shall weigh the claimant's likely hardship from the 634 state's or political subdivision's continued possession of the 635 property against the risk that the property will be destroyed, 636 H. B. No. 347 As Introduced Page 23 damaged, lost, concealed, or transferred if returned to the 637 claimant. The court shall consider in favor of release the 638 possibility that withholding the property would prevent a 639 legitimate business from functioning, prevent the claimant's or 640 an innocent person from maintaining employment, or leave the 641 claimant or an innocent person homeless. 642 (5) If the state or political subdivision shows that the 643 claimant's petition is frivolous, the court shall deny the 644 petition. Otherwise, the state or political subdivision may 645 respond to the petition by submitting evidence ex parte to avoid 646 disclosing any matter that may adversely affect an ongoing 647 criminal investigation or pending trial. 648 (6) The court shall decide on the petition not more than 649 thirty fourteen days after it is filed. If the property seized 650 is alleged to be a mobile instrumentality, the court shall 651 decide on the petition as soon as practicable within the thirty- 652 day period not more than seven days after it is filed. If 653 personal, business, or governmental records were seized and a 654 person files a petition to copy the records, the court shall 655 decide on the petition as soon as practicable, but not later 656 than thirty days after it is filed. In any case, the court may 657 extend the time for deciding on the petition by consent of the 658 parties or for good cause shown. In any case, the court may 659 extend the time for deciding on the petition up to thirty days 660 for good cause shown. 661 (E) Nothing in this section precludes a financial 662 institution that has or purports to have a security interest in 663 or lien on property described in section 2981.02 of the Revised 664 Code from filing an action in connection with the property, 665 prior to its disposition under this chapter, to obtain 666 H. B. No. 347 As Introduced Page 24 possession of the property in order to foreclose or otherwise 667 enforce the security interest or lien. 668 If a financial institution commences a civil action or 669 takes any other appropriate legal action to sell the property 670 prior to its seizure or prior to its disposition under this 671 chapter, if the person who is responsible for conducting the 672 sale has actual knowledge of the commencement of a forfeiture 673 action under either section 2981.04 or 2981.05 of the Revised 674 Code, and if the property is sold, then the person shall dispose 675 of the proceeds of the sale in the following order: 676 (1) First, to the payment of the costs of the sale, 677 excluding any associated attorney's fees, and to the payment of 678 the costs incurred by law enforcement agencies and financial 679 institutions in connection with the seizure, storage, and 680 maintenance of, and provision of security for, the property; 681 (2) Second, in the order of priority of the security 682 interests and liens, to the payment of valid security interests 683 and liens pertaining to the property that, at the time at which 684 the state or political subdivision gains provisional title, are 685 held by known secured parties and lienholders; 686 (3) Third, to the court that has or would have 687 jurisdiction in a case or proceeding under section 2981.04 or 688 section 2981.05 of the Revised Code for disposition under this 689 chapter. 690 (F) A prosecutor may file a forfeiture action under 691 section 2981.04 or 2981.05 of the Revised Code, or both. If 692 property is seized pursuant to this section and a criminal 693 forfeiture has not begun under section 2981.04 of the Revised 694 Code, the prosecutor of the county in which the seizure occurred 695 H. B. No. 347 As Introduced Page 25 shall commence a civil action to forfeit that property under 696 section 2981.05 of the Revised Code. 697 If the property seized includes property alleged to be a 698 mobile instrumentality or includes personal, business, or 699 governmental records, the civil forfeiture action shall be 700 brought within thirty days of seizure. Otherwise, the action 701 shall be brought within sixty days of seizure. In either case, 702 the period within which the action shall be brought may be 703 extended by agreement of the parties or by the court for good 704 cause shown. 705 A prosecutor may file an appropriate charging instrument 706 under section 2981.04 of the Revised Code to seek a criminal 707 forfeiture after a civil forfeiture action begins. Filing a 708 charging instrument for an offense that is also the basis of a 709 civil forfeiture action shall stay the civil action. 710 A civil action to obtain civil forfeiture may be commenced 711 as described in section 2981.05 of the Revised Code regardless 712 of whether the offender or delinquent child has pleaded guilty 713 to, been convicted of, or been adjudicated a delinquent child 714 for the act that is the basis of the order. 715 (G) The prosecutor shall maintain an accurate record of 716 each item disposed of under section 2981.04 or 2981.05 of the 717 Revised Code. The record shall not identify or enable the 718 identification of the officer who seized the property. The 719 record is a public record open for inspection under section 720 149.43 of the Revised Code. 721 Sec. 2981.04. (A)(1) Property described in division (A) of 722 section 2981.02 of the Revised Code may be forfeited under this 723 section only if the defendant is convicted of an offense or the 724 H. B. No. 347 As Introduced Page 26 juvenile is adjudicated a delinquent child for committing an act 725 that would be an offense if committed by an adult and the 726 complaint, indictment, or information charging the offense or 727 municipal violation, or the complaint charging the delinquent 728 act, contains a specification of the type described in section 729 2941.1417 of the Revised Code that sets forth all of the 730 following to the extent it is reasonably known at the time of 731 the filing: 732 (a) The nature and extent of the alleged offender's or 733 delinquent child's interest in the property; 734 (b) A description of the property; 735 (c) If the property is alleged to be an instrumentality, 736 the alleged use or intended use of the property in the 737 commission or facilitation of the offense. 738 (2) If any property is not reasonably foreseen to be 739 subject to forfeiture at the time of filing the indictment, 740 information, or complaint, the trier of fact still may return a 741 verdict of forfeiture concerning that property in the hearing 742 described in division (B) of this section if the prosecutor, 743 upon discovering the property to be subject to forfeiture, gave 744 prompt notice of this fact to the alleged offender or delinquent 745 child under Criminal Rule 7(E) or Juvenile Rule 10(B). 746 (3) For good cause shown, the court may consider issues of 747 the guilt of the alleged offender or the delinquency of the 748 alleged delinquent child separate from whether property 749 specified as subject to forfeiture should be forfeited. 750 (B) If a person pleads guilty to or is convicted of an 751 offense or is adjudicated a delinquent child for committing a 752 delinquent act and the complaint, indictment, or information 753 H. B. No. 347 As Introduced Page 27 charging the offense or act contains a specification covering 754 property subject to forfeiture under section 2981.02 of the 755 Revised Code, the trier of fact shall determine whether the 756 person's property shall be forfeited. If the state or political 757 subdivision proves by a preponderance of the clear and 758 convincing evidence that the property is in whole or part 759 subject to forfeiture under section 2981.02 of the Revised Code, 760 after a proportionality review under section 2981.09 of the 761 Revised Code when relevant, the trier of fact shall return a 762 verdict of forfeiture that specifically describes the extent of 763 the property subject to forfeiture. If the trier of fact is a 764 jury, on the offender's or delinquent child's motion, the court 765 shall make the determination of whether the property shall be 766 forfeited. 767 (C) If the court enters a verdict of forfeiture under this 768 section, the court imposing sentence or disposition, in addition 769 to any other sentence authorized by Chapter 2929. of the Revised 770 Code or any disposition authorized by Chapter 2152. of the 771 Revised Code, shall order that the offender or delinquent child 772 forfeit to the state or political subdivision the offender's or 773 delinquent child's interest in the property. The property vests 774 with the state or political subdivision subject to the claims of 775 third parties. The court may issue any additional order to 776 affect the forfeiture, including, but not limited to, an order 777 under section 2981.06 of the Revised Code. 778 (D) After the entry of a forfeiture order under this 779 section, the prosecutor shall attempt to identify any person 780 with an interest in the property subject to forfeiture by 781 searching appropriate public records and making reasonably 782 diligent inquiries. The prosecutor shall give notice of the 783 forfeiture that remains subject to the claims of third parties 784 H. B. No. 347 As Introduced Page 28 and proposed disposal of the forfeited property to any person 785 known to have an interest in the property. The prosecutor also 786 shall publish notice of the forfeiture that remains subject to 787 the claims of third parties and proposed disposal of the 788 forfeited property once each week for two consecutive weeks in a 789 newspaper of general circulation in the county in which the 790 property was seized. 791 (E)(1) Any person, other than the offender or delinquent 792 child whose conviction or plea of guilty or delinquency 793 adjudication is the basis of the forfeiture order, who asserts a 794 legal interest in the property that is the subject of the order 795 may petition the court that issued the order for a hearing under 796 division (E)(3) of this section to adjudicate the validity of 797 the person's alleged interest in the property. All of the 798 following apply to the petition: 799 (a) It shall be filed within thirty days after the final 800 publication of notice or the person's receipt of notice under 801 division (D) of this section. 802 (b) It shall be signed by the petitioner under the 803 penalties for falsification specified in section 2921.13 of the 804 Revised Code. 805 (c) It shall describe the nature and extent of the 806 petitioner's interest in the property, the time and 807 circumstances of the petitioner's acquisition of that interest, 808 any additional facts supporting the petitioner's claim, and the 809 relief sought. 810 (d) It shall state that one of the following conditions applies to the petitioner: (i) The petitioner has a legal interest in the property 811 812 813 H. B. No. 347 As Introduced Page 29 that is subject to the forfeiture order that renders the order 814 completely or partially invalid because the legal interest in 815 the property was vested in the petitioner, rather than the 816 offender or delinquent child whose conviction or plea of guilty 817 or delinquency adjudication is the basis of the order, or was 818 superior to any interest of that offender or delinquent child, 819 at the time of the commission of the offense or delinquent act 820 that is the basis of the order. 821 (ii) The petitioner is a bona fide purchaser for value of 822 the interest in the property that is subject to the forfeiture 823 order and was, at the time of the purchase, reasonably without 824 cause to believe that it was subject to forfeiture. 825 (2)(a) In lieu of filing a petition as described in 826 division (E)(1) of this section, a person, other than the 827 offender or delinquent child whose conviction or plea of guilty 828 or delinquency adjudication is the basis of the forfeiture 829 order, may file an affidavit as described in this division to 830 establish the validity of the alleged right, title, or interest 831 in the property that is the subject of the forfeiture order if 832 the person is a secured party or other lienholder of record that 833 asserts a legal interest in the property, including, but not 834 limited to, a mortgage, security interest, or other type of 835 lien. The affidavit shall contain averments that the secured 836 party or other lienholder acquired its alleged right, title, or 837 interest in the property in the regular course of its business, 838 for a specified valuable consideration, without actual knowledge 839 of any facts pertaining to the offense that was the basis of the 840 forfeiture order, in good faith, and without the intent to 841 prevent or otherwise impede the state or political subdivision 842 from seizing or obtaining a forfeiture of the property. The 843 person shall file the affidavit within thirty days after the 844 H. B. No. 347 As Introduced Page 30 earlier of the final publication of notice or the receipt of 845 notice under division (D) of this section. 846 (b) Except as otherwise provided in this section, the 847 affidavit shall constitute prima-facie evidence of the validity 848 of the affiant's alleged interest in the property. 849 (c) Unless the prosecutor files a motion challenging the 850 affidavit within ten days after its filing and unless the 851 prosecutor establishes by a preponderance of the clear and 852 convincing evidence at the hearing held under division (E)(3) of 853 this section that the affiant does not possess the alleged 854 interest in the property or that the affiant had actual 855 knowledge of facts pertaining to the offense or delinquent act 856 that was the basis of the forfeiture order, the affidavit shall 857 constitute conclusive evidence of the validity of the affiant's 858 interest in the property. 859 (d) Any subsequent purchaser or other transferee of 860 property pursuant to forfeiture under this section shall take 861 the property subject to the continued validity of the interest 862 of the affiant. 863 (3) Upon receipt of a petition or affidavit filed under 864 division (E)(1) or (2) of this section, the court shall hold a 865 hearing to determine the validity of the petitioner's interest 866 in the property that is the subject of the forfeiture order or, 867 if the affidavit was challenged, to determine the validity of 868 the affiant's interest in the property. To the extent 869 practicable and consistent with the interests of justice, the 870 court shall hold the hearing within thirty days after the filing 871 of the petition or within thirty days after the prosecutor files 872 the motion challenging the affidavit. The court may consolidate 873 the hearing with a hearing on any other petition or affidavit 874 H. B. No. 347 As Introduced Page 31 that is filed by a person other than the offender or delinquent 875 child whose conviction or plea of guilty or delinquency 876 adjudication is the basis of the forfeiture order and that 877 relates to the property that is the subject of the forfeiture 878 order. 879 At the hearing, the petitioner or affiant may testify, 880 present evidence and witnesses on the petitioner's or affiant's 881 behalf, and cross-examine witnesses for the state or political 882 subdivision. In regards to a petition, the state or political 883 subdivision may present evidence and witnesses in rebuttal and 884 in defense of its claim to the property and may cross-examine 885 witnesses for the petitioner. In regards to an affidavit, the 886 prosecutor may present evidence and witnesses and cross-examine 887 witnesses for the affiant. 888 In addition to the evidence and testimony presented at the 889 hearing, the court also shall consider the relevant portions of 890 the record in the criminal or delinquent child case that 891 resulted in the forfeiture order. 892 (F)(1) If the hearing involves a petition, the court shall 893 amend its forfeiture order if in favor of the petitioner unless 894 it determines at the hearing held pursuant to division (E)(3) of 895 this section that the petitioner prosecutor has established 896 either of the following by a preponderance of the clear and 897 convincing evidence: 898 (a) The petitioner has a legal interest in the property 899 that is subject to the forfeiture order that renders the order 900 completely or partially invalid because the legal interest in 901 the property was vested in the petitioner, rather than the 902 offender or delinquent child whose conviction or plea of guilty 903 or delinquency adjudication is the basis of the order, or was 904 H. B. No. 347 As Introduced Page 32 superior to any interest of that offender or delinquent child, 905 at the time of the commission of the offense or delinquent act 906 that is the basis of the order. 907 (b) The petitioner is a bona fide purchaser for value of 908 the interest in the property that is subject to the forfeiture 909 order and was, at the time of the purchase, reasonably without 910 cause to believe that it was subject that the applicable 911 condition alleged by the petitioner under division (E)(1)(d) of 912 this section does not apply to forfeiturethe petitioner. 913 (2) The court also shall amend its forfeiture order to 914 reflect any interest of a secured party or other lienholder of 915 record in the property subject to forfeiture who prevails at a 916 hearing on the petition or affidavit filed pursuant to division 917 (E)(1) or (2) of this section. 918 (G) If the court disposes of all petitions or affidavits 919 timely filed under this section in favor of the state or 920 political subdivision, the state or political subdivision shall 921 have clear title to the property that is the subject of a 922 forfeiture order issued under this section, but only to the 923 extent that other parties' lawful interests in the property are 924 not infringed. To the extent that the state or political 925 subdivision has clear title to the property, the state or 926 political subdivision may warrant good title to any subsequent 927 purchaser or other transferee. 928 Sec. 2981.06. (A) Upon the entry of a forfeiture order 929 under section 2981.04 or 2981.05 of the Revised Code, if 930 necessary, the court shall order an appropriate law enforcement 931 officer to seize the forfeited property on conditions that the 932 court considers proper. If necessary, the court shall order the 933 person in possession of the property to deliver the property by 934 H. B. No. 347 As Introduced Page 33 a specific date to the law enforcement agency involved in the 935 initial seizure of the property. The court shall deliver the 936 order by personal service or certified mail. 937 (B) With respect to property that is the subject of a 938 forfeiture order issued under section 2981.04 or 2981.05 of the 939 Revised Code, the court that issued the order, upon petition of 940 the prosecutor who prosecuted the underlying offense or act or 941 brought the civil forfeiture action, may do any of the 942 following: 943 (1) Enter any appropriate restraining orders or 944 injunctions; require execution of satisfactory performance 945 bonds; appoint receivers, conservators, appraisers, accountants, 946 or trustees; or take any other action necessary to safeguard and 947 maintain the forfeited property; 948 (2) Authorize the payment of rewards to persons who 949 provide information resulting in forfeiture of the property 950 under this chapter from funds provided under division (F) of 951 section 2981.12 of the Revised Code; 952 (3) Authorize the prosecutor to settle claims; 953 (4) Restore forfeited property to victims and grant 954 petitions for mitigation or remission of forfeiture; 955 (5) Authorize a stay of the forfeiture order pending 956 appeal or resolution of any claim to the property if requested 957 by a person other than the defendant or a person acting in 958 concert with, or on behalf of, the defendant. 959 (C) To facilitate the identification and location of 960 property that is the subject of a forfeiture order and to 961 facilitate the disposition of petitions for remission or 962 mitigation issued under this section, after the issuance of a 963 H. B. No. 347 As Introduced Page 34 forfeiture order and upon application by the prosecutor, the 964 court, consistent with the Civil Rules, may order that the 965 testimony of any witness relating to the forfeited property be 966 taken by deposition and that any designated material that is not 967 privileged be produced at the same time and place as the 968 testimony. 969 (D)(1) The court shall order forfeiture of any other 970 property of the offender or delinquent child up to the value of 971 the unreachable property if the state or political subdivision 972 demonstrates by clear and convincing evidence that any of the 973 following describe any property subject to a forfeiture order 974 under section 2981.04 or 2981.05 of the Revised Code: 975 (1) (a) It cannot be located through due diligence. 976 (2) It (b) Subject to division (D)(2) of this section, it 977 has been transferred, sold, or deposited with a third party. (3) (c) It has been placed beyond the jurisdiction of the court. 978 979 980 (4) (d) It has been substantially diminished in value or 981 has been commingled with other property and cannot be divided 982 without difficulty or undue injury to innocent persons. 983 (2) If property that is subject to a forfeiture order 984 under section 2981.04 of the Revised Code has been transferred, 985 sold, or deposited with a third party, the court shall order 986 forfeiture of the transferred, sold, or deposited property 987 instead of ordering the forfeiture of other property under 988 division (D)(1) of this section if the state or political 989 subdivision demonstrates by clear and convincing evidence that 990 the transferred, sold, or deposited property was transferred, 991 sold, or deposited in violation of section 2981.07 of the 992 H. B. No. 347 As Introduced Revised Code. (3) The requirements of divisions (D), (E), and (F) of Page 35 993 994 section 2981.04 of the Revised Code apply to property forfeited 995 under division (D)(1) or (2) of this section. 996 (E) After the state or political subdivision is granted 997 clear title under section 2981.04 or 2981.05 of the Revised 998 Code, the prosecutor shall direct disposition of the property 999 pursuant to this chapter, making due provisions for the rights 1000 of innocent persons. 1001 (F) Any interest in property not exercisable by, or 1002 transferable for value to, the state or political subdivision 1003 shall expire and shall not revert to the offender or delinquent 1004 child who forfeited the property. The offender or delinquent 1005 child is not eligible to purchase the property at a sale under 1006 this chapter. 1007 (G) Any income accruing to or derived from forfeited 1008 property may be used to offset ordinary and necessary expenses 1009 related to the property that are required by law or necessary to 1010 protect the interest of the state, political subdivision, or 1011 third parties. 1012 Sec. 2981.08. Parties to The defendant in a forfeiture 1013 action under this chapter have has a right to trial by jury as 1014 follows: 1015 (A) In a criminal forfeiture action, the defendant has the right to trial by jury. (B) In a civil forfeiture action, the defendant, the state 1016 1017 1018 or political subdivision, and third party claimants have the 1019 right to trial by jury. 1020 H. B. No. 347 As Introduced Page 36 Sec. 2981.09. (A) Property may not be forfeited as an 1021 instrumentality under this chapter to the extent that the amount 1022 or value of the property is disproportionate to the severity of 1023 the offense. The owner of the property state or political 1024 subdivision shall have the burden of going forward with the 1025 evidence and the burden to prove by a preponderance of the clear 1026 and convincing evidence that the amount or value of the property 1027 subject to forfeiture is disproportionate proportionate to the 1028 severity of the offense. 1029 (B) Contraband and any proceeds obtained from the offense 1030 are not subject to proportionality review under this section. 1031 (C) In determining the severity of the offense for 1032 purposes of forfeiture of an instrumentality, the court shall 1033 consider all relevant factors including, but not limited to, the 1034 following: 1035 (1) The seriousness of the offense and its impact on the 1036 community, including the duration of the activity and the harm 1037 caused or intended by the person whose property is subject to 1038 forfeiture; 1039 (2) The extent to which the person whose property is subject to forfeiture participated in the offense; 1040 1041 (3) Whether the offense was completed or attempted; 1042 (4) The extent to which the property was used in 1043 committing the offense; (5) The sentence imposed for committing the offense that is the basis of the forfeiture. 1044 1045 1046 (D) In determining the value of the property that is an 1047 instrumentality and that is subject to forfeiture, the court 1048 H. B. No. 347 As Introduced Page 37 shall consider relevant factors including, but not limited to, 1049 the following: 1050 (1) The fair market value of the property; 1051 (2) The value of the property to the person whose property 1052 is subject to forfeiture, including hardship to the person or to 1053 innocent persons if the property were forfeited. 1054 Sec. 2981.11. (A)(1) Any property that has been lost, 1055 abandoned, stolen, seized pursuant to a search warrant, or 1056 otherwise lawfully seized or forfeited and that is in the 1057 custody of a law enforcement agency shall be kept safely by the 1058 agency, pending the time it no longer is needed as evidence or 1059 for another lawful purpose, and shall be disposed of pursuant to 1060 sections 2981.12 and 2981.13 of the Revised Code. 1061 (2) This chapter does not apply to the custody and disposal of any of the following: 1062 1063 (a) Vehicles subject to forfeiture under Title XLV of the 1064 Revised Code, except as provided in division (A)(6) of section 1065 2981.12 of the Revised Code; 1066 (b) Abandoned junk motor vehicles or other property of negligible value; (c) Property held by a department of rehabilitation and 1067 1068 1069 correction institution that is unclaimed, that does not have an 1070 identified owner, that the owner agrees to dispose of, or that 1071 is identified by the department as having little value; 1072 (d) Animals taken, and devices used in unlawfully taking animals, under section 1531.20 of the Revised Code; (e) Controlled substances sold by a peace officer in the performance of the officer's official duties under section 1073 1074 1075 1076 H. B. No. 347 As Introduced 3719.141 of the Revised Code; (f) Property recovered by a township law enforcement agency under sections 505.105 to 505.109 of the Revised Code; (g) Property held and disposed of under an ordinance of Page 38 1077 1078 1079 1080 the municipal corporation or under sections 737.29 to 737.33 of 1081 the Revised Code, except that a municipal corporation that has 1082 received notice of a citizens' reward program as provided in 1083 division (F) of section 2981.12 of the Revised Code and disposes 1084 of property under an ordinance shall pay twenty-five per cent of 1085 any moneys acquired from any sale or auction to the citizens' 1086 reward program. 1087 (B)(1) Each law enforcement agency that has custody of any 1088 property that is subject to this section shall adopt and comply 1089 with a written internal control policy that does all of the 1090 following: 1091 (a) Provides for keeping detailed records as to the amount 1092 of property acquired by the agency and the date property was 1093 acquired; 1094 (b) Provides for keeping detailed records of the 1095 disposition of the property, which shall include, but not be 1096 limited to, both of the following: 1097 (i) The manner in which it was disposed, the date of 1098 disposition, detailed financial records concerning any property 1099 sold, and the name of any person who received the property. The 1100 record shall not identify or enable identification of the 1101 individual officer who seized any item of property. 1102 (ii) The general types An itemized list of the specific 1103 expenditures made with amounts that are gained from the sale of 1104 the property and that are retained by the agency, including the 1105 H. B. No. 347 As Introduced Page 39 specific amount expended on each general type of expenditure, 1106 except that the policy shall not provide for or permit the 1107 identification of any specific expenditure that is made in an 1108 ongoing investigation. 1109 (c) Complies with section 2981.13 of the Revised Code if 1110 the agency has a law enforcement trust fund or similar fund 1111 created under that section. 1112 (2) The records kept under the internal control policy 1113 shall be open to public inspection during the agency's regular 1114 business hours. The policy adopted under this section is a 1115 public record open for inspection under section 149.43 of the 1116 Revised Code. 1117 (C) A law enforcement agency with custody of property to 1118 be disposed of under section 2981.12 or 2981.13 of the Revised 1119 Code shall make a reasonable effort to locate persons entitled 1120 to possession of the property, to notify them of when and where 1121 it may be claimed, and to return the property to them at the 1122 earliest possible time. In the absence of evidence identifying 1123 persons entitled to possession, it is sufficient notice to 1124 advertise in a newspaper of general circulation in the county 1125 and to briefly describe the nature of the property in custody 1126 and inviting persons to view and establish their right to it. 1127 (D) As used in sections 2981.11 to 2981.13 of the Revised Code: 1128 1129 (1) "Citizens' reward program" has the same meaning as in section 9.92 of the Revised Code. (2) "Law enforcement agency" includes correctional institutions. (3) "Township law enforcement agency" means an organized 1130 1131 1132 1133 1134 H. B. No. 347 As Introduced Page 40 police department of a township, a township police district, a 1135 joint police district, or the office of a township constable. 1136 Sec. 2981.12. (A) Unclaimed or forfeited property in the 1137 custody of a law enforcement agency, other than property 1138 described in division (A)(2) of section 2981.11 of the Revised 1139 Code, shall be disposed of by order of any court of record that 1140 has territorial jurisdiction over the political subdivision that 1141 employs the law enforcement agency, as follows: 1142 (1) Drugs shall be disposed of pursuant to section 3719.11 1143 of the Revised Code or placed in the custody of the secretary of 1144 the treasury of the United States for disposal or use for 1145 medical or scientific purposes under applicable federal law. 1146 (2) Firearms and dangerous ordnance suitable for police 1147 work may be given to a law enforcement agency for that purpose. 1148 Firearms suitable for sporting use or as museum pieces or 1149 collectors' items may be sold at public auction pursuant to 1150 division (B) of this section. The agency may sell other firearms 1151 and dangerous ordnance to a federally licensed firearms dealer 1152 in a manner that the court considers proper. The agency shall 1153 destroy any firearms or dangerous ordnance not given to a law 1154 enforcement agency or sold or shall send them to the bureau of 1155 criminal identification and investigation for destruction by the 1156 bureau. 1157 (3) Obscene materials shall be destroyed. 1158 (4) Beer, intoxicating liquor, or alcohol seized from a 1159 person who does not hold a permit issued under Chapters 4301. 1160 and 4303. of the Revised Code or otherwise forfeited to the 1161 state for an offense under section 4301.45 or 4301.53 of the 1162 Revised Code shall be sold by the division of liquor control if 1163 H. B. No. 347 As Introduced Page 41 the division determines that it is fit for sale or shall be 1164 placed in the custody of the investigations unit in the 1165 department of public safety and be used for training relating to 1166 law enforcement activities. The department, with the assistance 1167 of the division of liquor control, shall adopt rules in 1168 accordance with Chapter 119. of the Revised Code to provide for 1169 the distribution to state or local law enforcement agencies upon 1170 their request. If any tax imposed under Title XLIII of the 1171 Revised Code has not been paid in relation to the beer, 1172 intoxicating liquor, or alcohol, any moneys acquired from the 1173 sale shall first be used to pay the tax. All other money 1174 collected under this division shall be paid into the state 1175 treasury. Any beer, intoxicating liquor, or alcohol that the 1176 division determines to be unfit for sale shall be destroyed. 1177 (5) Money received by an inmate of a correctional 1178 institution from an unauthorized source or in an unauthorized 1179 manner shall be returned to the sender, if known, or deposited 1180 in the inmates' industrial and entertainment fund of the 1181 institution if the sender is not known. 1182 (6)(a) Any mobile instrumentality forfeited under this 1183 chapter may be given to the law enforcement agency that 1184 initially seized the mobile instrumentality for use in 1185 performing its duties, if the agency wants the mobile 1186 instrumentality. The agency shall take the mobile 1187 instrumentality subject to any security interest or lien on the 1188 mobile instrumentality. 1189 (b) Vehicles and vehicle parts forfeited under sections 1190 4549.61 to 4549.63 of the Revised Code may be given to a law 1191 enforcement agency for use in performing its duties. Those parts 1192 may be incorporated into any other official vehicle. Parts that 1193 H. B. No. 347 As Introduced Page 42 do not bear vehicle identification numbers or derivatives of 1194 them may be sold or disposed of as provided by rules of the 1195 director of public safety. Parts from which a vehicle 1196 identification number or derivative of it has been removed, 1197 defaced, covered, altered, or destroyed and that are not 1198 suitable for police work or incorporation into an official 1199 vehicle shall be destroyed and sold as junk or scrap. 1200 (7) Computers, computer networks, computer systems, and 1201 computer software suitable for police work may be given to a law 1202 enforcement agency for that purpose or disposed of under 1203 division (B) of this section. 1204 (8) Money seized in connection with a violation of section 1205 2905.32, 2907.21, or 2907.22 of the Revised Code shall be 1206 deposited in the victims of human trafficking fund created by 1207 section 5101.87 of the Revised Code. 1208 (B) Unclaimed or forfeited property that is not described 1209 in division (A) of this section or division (A)(2) of section 1210 2981.11 of the Revised Code, with court approval, may be used by 1211 the law enforcement agency in possession of it. If it is not 1212 used by the agency, it may be sold without appraisal at a public 1213 auction to the highest bidder for cash or disposed of in another 1214 manner that the court considers proper. 1215 (C) Except as provided in divisions (A) and (F) of this 1216 section and after compliance with division (D) of this section 1217 when applicable, any moneys acquired from the sale of property 1218 disposed of pursuant to this section shall be placed in the 1219 general revenue fund of the state, or the general fund of the 1220 county, the township, or the municipal corporation of which the 1221 law enforcement agency involved is an agency. 1222 H. B. No. 347 As Introduced (D) If the property was in the possession of the law Page 43 1223 enforcement agency in relation to a criminal proceeding or a 1224 delinquent child proceeding in a juvenile court, ten per cent of 1225 any moneys acquired from the sale of property disposed of under 1226 this section shall be applied to one or more community addiction 1227 services providers, as defined in section 5119.01 of the Revised 1228 Code. A juvenile court shall not specify a services provider, 1229 except as provided in this division, unless the services 1230 provider is in the same county as the court or in a contiguous 1231 county. If no services provider is located in any of those 1232 counties, the juvenile court may specify a services provider 1233 anywhere in Ohio. The remaining ninety per cent of the proceeds 1234 or cash shall be applied as provided in division (C) of this 1235 section. 1236 Each services provider that receives in any calendar year 1237 forfeited money under this division shall file an annual report 1238 for that year with the attorney general and with the court of 1239 common pleas and board of county commissioners of the county in 1240 which the services provider is located and of any other county 1241 from which the services provider received forfeited money. The 1242 services provider shall file the report on or before the first 1243 day of March in the calendar year following the calendar year in 1244 which the services provider received the money. The report shall 1245 include statistics on the number of persons the services 1246 provider served, identify the types of treatment services it 1247 provided to them, and include a specific accounting of the 1248 purposes for which it used the money so received. No information 1249 contained in the report shall identify, or enable a person to 1250 determine the identity of, any person served by the services 1251 provider. 1252 (E) Each community addiction services provider that 1253 H. B. No. 347 As Introduced Page 44 receives in any calendar year money under this section or under 1254 section 2981.13 of the Revised Code as the result of a juvenile 1255 forfeiture order shall file an annual report for that calendar 1256 year with the attorney general and with the court of common 1257 pleas and board of county commissioners of the county in which 1258 the services provider is located and of any other county from 1259 which the services provider received the money. The services 1260 provider shall file the report on or before the first day of 1261 March in the calendar year following the year in which the 1262 services provider received the money. The report shall include 1263 statistics on the number of persons served with the money, 1264 identify the types of treatment services provided, and 1265 specifically account for how the money was used. No information 1266 in the report shall identify or enable a person to determine the 1267 identity of anyone served by the services provider. 1268 As used in this division, "juvenile-related forfeiture 1269 order" means any forfeiture order issued by a juvenile court 1270 under section 2981.04 or 2981.05 of the Revised Code and any 1271 disposal of property ordered by a court under section 2981.11 of 1272 the Revised Code regarding property that was in the possession 1273 of a law enforcement agency in relation to a criminal proceeding 1274 or to a delinquent child proceeding in a juvenile court. 1275 (F) Each board of county commissioners that recognizes a 1276 citizens' reward program under section 9.92 of the Revised Code 1277 shall notify each law enforcement agency of that county and of a 1278 township or municipal corporation wholly located in that county 1279 of the recognition by filing a copy of its resolution conferring 1280 that recognition with each of those agencies. When the board 1281 recognizes a citizens' reward program and the county includes a 1282 part, but not all, of the territory of a municipal corporation, 1283 the board shall so notify the law enforcement agency of that 1284 H. B. No. 347 As Introduced Page 45 municipal corporation of the recognition of the citizens' reward 1285 program only if the county contains the highest percentage of 1286 the municipal corporation's population. 1287 Upon being so notified, each law enforcement agency shall 1288 pay twenty-five per cent of any forfeited proceeds or cash 1289 derived from each sale of property disposed of pursuant to this 1290 section to the citizens' reward program for use exclusively to 1291 pay rewards. No part of the funds may be used to pay expenses 1292 associated with the program. If a citizens' reward program that 1293 operates in more than one county or in another state in addition 1294 to this state receives funds under this section, the funds shall 1295 be used to pay rewards only for tips and information to law 1296 enforcement agencies concerning offenses committed in the county 1297 from which the funds were received. 1298 Receiving funds under this section or section 2981.11 of 1299 the Revised Code does not make the citizens' reward program a 1300 governmental unit or public office for purposes of section 1301 149.43 of the Revised Code. 1302 (G) Any property forfeited under this chapter shall not be 1303 used to pay any fine imposed upon a person who is convicted of 1304 or pleads guilty to an underlying criminal offense or a 1305 different offense arising out of the same facts and 1306 circumstances. 1307 (H) Any moneys acquired from the sale of personal effects, 1308 tools, or other property seized because the personal effects, 1309 tools, or other property were used in the commission of a 1310 violation of section 2905.32, 2907.21, or 2907.22 of the Revised 1311 Code or derived from the proceeds of the commission of a 1312 violation of section 2905.32, 2907.21, or 2907.22 of the Revised 1313 Code and disposed of pursuant to this section shall be placed in 1314 H. B. No. 347 As Introduced Page 46 the victims of human trafficking fund created by section 5101.87 1315 of the Revised Code. 1316 Sec. 2981.13. (A) Except as otherwise provided in this 1317 section, property ordered forfeited as contraband, proceeds, or 1318 an instrumentality pursuant to this chapter shall be disposed 1319 of, used, or sold pursuant to section 2981.12 of the Revised 1320 Code. If the property is to be sold under that section, the 1321 prosecutor shall cause notice of the proposed sale to be given 1322 in accordance with law. 1323 (B) If the contraband or instrumentality forfeited under 1324 this chapter is sold, any moneys acquired from a sale and any 1325 proceeds forfeited under this chapter shall be applied in the 1326 following order: 1327 (1) First, to pay costs incurred in the seizure, storage, 1328 maintenance, security, and sale of the property and in the 1329 forfeiture proceeding; 1330 (2) Second, in a criminal forfeiture case, to satisfy any 1331 restitution ordered to the victim of the offense or, in a civil 1332 forfeiture case, to satisfy any recovery ordered for the person 1333 harmed, unless paid from other assets; 1334 (3) Third, to pay the balance due on any security interest preserved under this chapter; 1335 1336 (4) Fourth, apply the remaining amounts as follows: 1337 (a) If the forfeiture was ordered by a juvenile court, ten 1338 Ten per cent to one or more community addiction services 1339 providers as specified in division (D) of section 2981.12 of the 1340 Revised Code; 1341 (b) If the forfeiture was ordered in a juvenile court, 1342 H. B. No. 347 As Introduced Page 47 ninety Ninety per cent, and if the forfeiture was ordered in a 1343 court other than a juvenile court, one hundred per cent to the 1344 law enforcement trust fund of the prosecutor and to the 1345 following fund supporting the law enforcement agency that 1346 substantially conducted the investigation: 1347 (i) The law enforcement trust fund of the county sheriff, 1348 municipal corporation, township, or park district created under 1349 section 511.18 or 1545.01 of the Revised Code; 1350 (ii) The state highway patrol contraband, forfeiture, and other fund; (iii) The department of public safety investigative unit contraband, forfeiture, and other fund; 1351 1352 1353 1354 (iv) The department of taxation enforcement fund; 1355 (v) The board of pharmacy drug law enforcement fund 1356 created by division (B)(1) of section 4729.65 of the Revised 1357 Code; 1358 (vi) The medicaid fraud investigation and prosecution fund; 1359 1360 (vii) The casino control commission enforcement fund created by section 3772.36 of the Revised Code; (viii) The auditor of state investigation and forfeiture 1361 1362 1363 trust fund established under section 117.54 of the Revised Code; 1364 (ix) The treasurer of state for deposit into the peace 1365 officer training commission fund if any other state law 1366 enforcement agency substantially conducted the investigation. 1367 In the case of property forfeited for medicaid fraud, any remaining amount shall be used by the attorney general to 1368 1369 H. B. No. 347 As Introduced investigate and prosecute medicaid fraud offenses. If the prosecutor declines to accept any of the remaining Page 48 1370 1371 amounts, the amounts shall be applied to the fund of the agency 1372 that substantially conducted the investigation. 1373 (c) If more than one law enforcement agency is 1374 substantially involved in the seizure of property forfeited 1375 under this chapter, the court ordering the forfeiture shall 1376 equitably divide the amounts, after calculating any distribution 1377 to the law enforcement trust fund of the prosecutor pursuant to 1378 division (B)(4) of this section, among the entities that the 1379 court determines were substantially involved in the seizure. 1380 (C)(1) A law enforcement trust fund shall be established 1381 by the prosecutor of each county who intends to receive any 1382 remaining amounts pursuant to this section, by the sheriff of 1383 each county, by the legislative authority of each municipal 1384 corporation, by the board of township trustees of each township 1385 that has a township police department, township or joint police 1386 district police force, or office of the constable, and by the 1387 board of park commissioners of each park district created 1388 pursuant to section 511.18 or 1545.01 of the Revised Code that 1389 has a park district police force or law enforcement department, 1390 for the purposes of this section. 1391 There is hereby created in the state treasury the state 1392 highway patrol contraband, forfeiture, and other fund, the 1393 department of public safety investigative unit contraband, 1394 forfeiture, and other fund, the medicaid fraud investigation and 1395 prosecution fund, the department of taxation enforcement fund, 1396 and the peace officer training commission fund, for the purposes 1397 of this section. 1398 H. B. No. 347 As Introduced Amounts distributed to any municipal corporation, Page 49 1399 township, or park district law enforcement trust fund shall be 1400 allocated from the fund by the legislative authority only to the 1401 police department of the municipal corporation, by the board of 1402 township trustees only to the township police department, 1403 township police district police force, or office of the 1404 constable, by the joint police district board only to the joint 1405 police district, and by the board of park commissioners only to 1406 the park district police force or law enforcement department. 1407 (2)(a) No amounts shall be allocated to a fund under this 1408 section or used by an agency unless the agency has adopted a 1409 written internal control policy that addresses the use of moneys 1410 received from the appropriate fund. The appropriate fund shall 1411 be expended only in accordance with that policy and, subject to 1412 the requirements specified in this section, only for the 1413 following purposes: 1414 (i) To pay the costs of protracted or complex investigations or prosecutions; (ii) To provide reasonable technical training or expertise; (iii) To provide matching funds to obtain federal grants 1415 1416 1417 1418 1419 to aid law enforcement, in the support of DARE programs or other 1420 programs designed to educate adults or children with respect to 1421 the dangers associated with the use of drugs of abuse; 1422 (iv) To pay the costs of emergency action taken under 1423 section 3745.13 of the Revised Code relative to the operation of 1424 an illegal methamphetamine laboratory if the forfeited property 1425 or money involved was that of a person responsible for the 1426 operation of the laboratory; 1427 H. B. No. 347 As Introduced (v) For other law enforcement purposes that the Page 50 1428 superintendent of the state highway patrol, department of public 1429 safety, auditor of state, prosecutor, county sheriff, 1430 legislative authority, department of taxation, Ohio casino 1431 control commission, board of township trustees, or board of park 1432 commissioners determines to be appropriateTo purchase personal 1433 safety equipment or apparel. 1434 (b) The board of pharmacy drug law enforcement fund shall 1435 be expended only in accordance with the written internal control 1436 policy so adopted by the board and only in accordance with 1437 section 4729.65 of the Revised Code, except that it also may be 1438 expended to pay the costs of emergency action taken under 1439 section 3745.13 of the Revised Code relative to the operation of 1440 an illegal methamphetamine laboratory if the forfeited property 1441 or money involved was that of a person responsible for the 1442 operation of the laboratory. 1443 (c) A fund listed in division (B)(4)(b) of this section, 1444 other than the Medicaid fraud investigation and prosecution 1445 fund, shall not be used to meet the operating costs of the 1446 agency, office, or political subdivision that are unrelated to 1447 law enforcement. 1448 (d) Forfeited moneys that are paid into the state treasury 1449 to be deposited into the peace officer training commission fund 1450 shall be used by the commission only to pay the costs of peace 1451 officer training. 1452 (3) Any of the following offices or agencies that receive 1453 amounts under this section during any calendar year shall file a 1454 report with the specified entity, not later than the thirty- 1455 first day of January of the next calendar year, verifying that 1456 the moneys were expended only for the purposes authorized by 1457 H. B. No. 347 As Introduced Page 51 this section or other relevant statute and specifying the 1458 amounts expended for each authorized purpose: 1459 (a) Any sheriff or prosecutor shall file the report with the county auditor. (b) Any municipal corporation police department shall file 1460 1461 1462 the report with the legislative authority of the municipal 1463 corporation. 1464 (c) Any township police department, township or joint 1465 police district police force, or office of the constable shall 1466 file the report with the board of township trustees of the 1467 township. 1468 (d) Any park district police force or law enforcement 1469 department shall file the report with the board of park 1470 commissioners of the park district. 1471 (e) The superintendent of the state highway patrol, the 1472 auditor of state, and the tax commissioner shall file the report 1473 with the attorney general. 1474 (f) The executive director of the state board of pharmacy 1475 shall file the report with the attorney general, verifying that 1476 cash and forfeited proceeds paid into the board of pharmacy drug 1477 law enforcement fund were used only in accordance with section 1478 4729.65 of the Revised Code. 1479 (g) The peace officer training commission shall file a 1480 report with the attorney general, verifying that cash and 1481 forfeited proceeds paid into the peace officer training 1482 commission fund pursuant to this section during the prior 1483 calendar year were used by the commission during the prior 1484 calendar year only to pay the costs of peace officer training. 1485 H. B. No. 347 As Introduced (h) The executive director of the Ohio casino control Page 52 1486 commission shall file the report with the attorney general, 1487 verifying that cash and forfeited proceeds paid into the casino 1488 control commission enforcement fund were used only in accordance 1489 with section 3772.36 of the Revised Code. 1490 (D) The written internal control policy of a county 1491 sheriff, prosecutor, municipal corporation police department, 1492 township police department, township or joint police district 1493 police force, office of the constable, or park district police 1494 force or law enforcement department shall provide that at least 1495 ten per cent of the first one hundred thousand dollars of 1496 amounts deposited during each calendar year in the agency's law 1497 enforcement trust fund under this section, and at least twenty 1498 per cent of the amounts exceeding one hundred thousand dollars 1499 that are so deposited, shall be used in connection with 1500 community preventive education programs. The manner of use shall 1501 be determined by the sheriff, prosecutor, department, police 1502 force, or office of the constable after receiving and 1503 considering advice on appropriate community preventive education 1504 programs from the county's board of alcohol, drug addiction, and 1505 mental health services, from the county's alcohol and drug 1506 addiction services board, or through appropriate community 1507 dialogue. 1508 The financial records kept under the internal control 1509 policy shall specify the amount deposited during each calendar 1510 year in the portion of that amount that was used pursuant to 1511 this division, and the programs in connection with which the 1512 portion of that amount was so used. 1513 As used in this division, "community preventive education programs" include, but are not limited to, DARE programs and 1514 1515 H. B. No. 347 As Introduced Page 53 other programs designed to educate adults or children with 1516 respect to the dangers associated with using drugs of abuse. 1517 (E) Upon the sale, under this section or section 2981.12 1518 of the Revised Code, of any property that is required by law to 1519 be titled or registered, the state shall issue an appropriate 1520 certificate of title or registration to the purchaser. If the 1521 state is vested with title and elects to retain property that is 1522 required to be titled or registered under law, the state shall 1523 issue an appropriate certificate of title or registration. 1524 (F) Any failure of a law enforcement officer or agency, 1525 prosecutor, court, or the attorney general to comply with this 1526 section in relation to any property seized does not affect the 1527 validity of the seizure and shall not be considered to be the 1528 basis for suppressing any evidence resulting from the seizure, 1529 provided the seizure itself was lawful. 1530 Sec. 2981.14. (A) Nothing Subject to division (B) of this 1531 section, nothing in this chapter precludes the head of a law 1532 enforcement agency that seizes property from seeking forfeiture 1533 under federal law. If the property is forfeitable under this 1534 chapter and federal forfeiture is not sought, the property is 1535 subject only to this chapter. 1536 (B) A law enforcement agency or prosecuting authority 1537 shall not directly or indirectly transfer any property seized by 1538 the agency or authority to any federal law enforcement authority 1539 or other federal agency for purposes of forfeiture under federal 1540 law unless the value of the seized property exceeds fifty 1541 thousand dollars, excluding the potential value of the sale of 1542 contraband. 1543 (C) Any law enforcement agency that receives moneys from a 1544 H. B. No. 347 As Introduced Page 54 sale of forfeited property under federal law shall deposit, use, 1545 and account for the amounts, including any interest derived, in 1546 accordance with applicable federal law. If the state highway 1547 patrol or the investigative unit of the department of public 1548 safety receives such federal forfeiture moneys, the appropriate 1549 official shall deposit all interest or other earnings derived 1550 from the investment of the moneys into the highway patrol 1551 treasury contraband fund, the highway patrol justice contraband 1552 fund, the investigative unit treasury contraband fund, or the 1553 investigative unit justice contraband fund, whichever is 1554 appropriate. 1555 (C) (D) There is hereby created in the state treasury the 1556 highway patrol treasury contraband fund, the highway patrol 1557 justice contraband fund, the investigative unit treasury 1558 contraband fund, and the investigative unit justice contraband 1559 fund. Each fund shall consist of moneys received under division 1560 (B) (C) of this section and shall be used in accordance with any 1561 federal or other requirements associated with moneys received. 1562 Section 2. That existing sections 2923.36, 2981.01, 1563 2981.02, 2981.03, 2981.04, 2981.06, 2981.08, 2981.09, 2981.11, 1564 2981.12, 2981.13, and 2981.14 and section 2981.05 of the Revised 1565 Code are hereby repealed. 1566