RETRIEVE BILL
 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4578
 
                               2003-2004 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 19, 2003
                                       ___________
 
        Introduced by M. of A. STRANIERE -- Multi-Sponsored by -- M. of A. TOWN-
          SEND -- read once and referred to the Committee on Codes
 
        AN  ACT  to  amend  the civil practice law and rules, the penal law, the
          criminal procedure law, and the public  health  law,  in  relation  to
          asset forfeiture for certain crimes and to repeal subdivisions 4-a and
          4-b  of section 1310, subparagraph (v) of paragraph (b) of subdivision
          3 of section 1311, paragraphs (d) and (e) of subdivision  3,  subdivi-
          sions  3-a and 4-a, paragraph (c) of subdivision 11 and subdivision 12
          of section 1311, section 1311-a, subdivision 4 of  section  1312,  and
          section  1349  of the civil practice law and rules, article 480 of the
          penal law, subdivision 6 of section 220.50 of the  criminal  procedure
          law,  and subdivision 6 of section 837-a of the executive law relating
          thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 4 of section 1310 of the civil practice law and
     2  rules,  as  added by chapter 669 of the laws of 1984, is amended to read
     3  as follows:
     4    4. "Instrumentality of a crime" in cases involving the  commission  of
     5  felonies  defined  in  article  two  hundred twenty or section 221.30 or
     6  221.55 of the penal law means any property, including real property  and
     7  any  buildings, fixtures, appurtenances and improvements thereon and any
     8  right, title or interest in the whole or part of any  lot  or  tract  of
     9  land  whose use contributes directly and materially to the commission of
    10  the felony. However, in cases involving any other felony defined in  the
    11  penal  law  or  any other chapter of the consolidated laws of the state,
    12  "instrumentality of a crime"  means any property, other than real  prop-
    13  erty and any buildings, fixtures, appurtenances, and improvements there-
    14  on, whose use contributes directly and materially to the commission of a
    15  crime defined in [subdivisions] subdivision five [and six] hereof.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03253-01-3

        A. 4578                             2
 
     1    §  2.  Subdivisions  4-a and 4-b of section 1310 of the civil practice
     2  law and rules are REPEALED.
     3    §  3.  Subdivision  11  of  section 1310 of the civil practice law and
     4  rules, as amended by chapter 655 of the laws of 1990, is amended to read
     5  as follows:
     6    11. "Claiming authority" means the district attorney having  jurisdic-
     7  tion  over  the  offense  or  the  attorney general for purpose of those
     8  crimes for which the attorney general has  criminal  jurisdiction  in  a
     9  case  where  the  [underlying]  defendant  in the forfeiture action is a
    10  person against whom a criminal charge has been, is being or is about  to
    11  be  brought  by  the attorney general, or the deputy attorney general in
    12  charge of the organized crime task force, when exercising the powers and
    13  performing the duties of the district attorney pursuant  to  subdivision
    14  seven of section seventy-a of the executive law or pursuant to cross-de-
    15  signation  by the district attorney or the appropriate corporation coun-
    16  sel or county attorney, provided that the corporation counsel or  county
    17  attorney  may  act  as a claiming authority only with the consent of the
    18  district attorney or the attorney general or the deputy attorney general
    19  in charge of the organized crime task force, as appropriate.
    20    § 4. The opening paragraph of subdivision 1 of  section  1311  of  the
    21  civil  practice  law and rules, as amended by chapter 655 of the laws of
    22  1990, is amended to read as follows:
    23    A civil action may be commenced by the appropriate claiming  authority
    24  against  a  criminal defendant to recover the property which constitutes
    25  the proceeds of a crime, the substituted proceeds of a  crime[,]  or  an
    26  instrumentality  of  a  crime [or the real property instrumentality of a
    27  crime] or to recover a money judgment in an amount equivalent  in  value
    28  to  the  property which constitutes the proceeds of a crime, the substi-
    29  tuted proceeds of a crime, or an instrumentality of  a  crime[,  or  the
    30  real  property  instrumentality  of  a  crime].    A civil action may be
    31  commenced against a non-criminal defendant to recover the property which
    32  constitutes the proceeds of a  crime,  the  substituted  proceeds  of  a
    33  crime[,] or an instrumentality of a crime[, or the real property instru-
    34  mentality  of  a crime] provided, however, that a judgment of forfeiture
    35  predicated upon clause (A) of subparagraph  (iv)  of  paragraph  (b)  of
    36  subdivision  three hereof shall be limited to the amount of the proceeds
    37  of the crime. Any action under this article  must  be  commenced  within
    38  five  years of the commission of the crime and shall be civil, remedial,
    39  and in personam in nature and shall not be deemed to  be  a  penalty  or
    40  criminal  forfeiture  for  any  purpose.   Except as otherwise specially
    41  provided by  statute,  the  proceedings  under  this  article  shall  be
    42  governed  by this chapter.  An action under this article is not a crimi-
    43  nal proceeding and may not be deemed to be a previous prosecution  under
    44  article forty of the criminal procedure law.
    45    § 5. Paragraph (b) of subdivision 1 of section 1311 of the civil prac-
    46  tice  law  and  rules,  as  added by chapter 669 of the laws of 1984, is
    47  amended to read as follows:
    48    (b) Actions relating to pre-conviction forfeiture  crimes.  An  action
    49  relating  to a pre-conviction forfeiture crime need not be grounded upon
    50  conviction of a pre-conviction forfeiture crime, provided, however, that
    51  if the action is not grounded upon such a conviction, it shall be neces-
    52  sary in the action for the claiming authority to prove the commission of
    53  a pre-conviction forfeiture crime by clear and convincing  evidence.  An
    54  action  relating  to a pre-conviction forfeiture crime which is grounded
    55  upon a conviction of a pre-conviction forfeiture  crime    may  also  be
    56  grounded  upon criminal activity arising from a common scheme or plan of

        A. 4578                             3
 
     1  which such conviction is a part, or upon a count  of  an  indictment  or
     2  information  alleging a felony which was dismissed at the time of a plea
     3  of guilty in satisfaction of such count.  An action under this paragraph
     4  shall  be  stayed  during  the  pendency  of  a criminal action which is
     5  related to it; provided, that upon motion of a defendant in the  forfei-
     6  ture  action  or the claiming authority, a court may, in the interest of
     7  justice and for good cause, and with the consent of all  parties,  order
     8  that  the forfeiture action proceed despite the pending criminal action;
     9  and provided that such stay shall not prevent the  granting  or  contin-
    10  uance of any provisional remedy provided under this article or any other
    11  provision of law.
    12    §  6.  Subparagraph  (iv) of paragraph (b) of subdivision 3 of section
    13  1311 of the civil practice law and rules, as added by chapter 669 of the
    14  laws of 1984, is amended to read as follows:
    15    (iv) if the action relates to an instrumentality of a crime, except as
    16  provided for in subparagraph (i) hereof, the burden shall  be  upon  the
    17  claiming authority to prove by a preponderance of the evidence the facts
    18  necessary  to establish a claim for forfeiture and that the non-criminal
    19  defendant either (A) knew that the instrumentality was or would be  used
    20  in  the commission of a crime; provided, however, that where the instru-
    21  mentality is real property and any  buildings,  fixtures,  appurtenances
    22  and  improvements thereon, and any right, title or interest in the whole
    23  or part of any lot or tract of land,  no  forfeiture  of  such  property
    24  shall be ordered against a non-criminal defendant who has such knowledge
    25  and who makes a reasonable effort to prevent the use of such property in
    26  the  commission of the crime or (B) knowingly obtained his or her inter-
    27  est in the instrumentality to avoid forfeiture.
    28    § 7. Subparagraph (v) of paragraph (b) of  subdivision  3  of  section
    29  1311 of the civil practice law and rules is REPEALED.
    30    §  8.  Paragraphs  (d) and (e) of subdivision 3 of section 1311 of the
    31  civil practice law and rules are REPEALED.
    32    § 9. Subdivision 3 of section 1311 of the civil practice law and rules
    33  is amended by adding a new paragraph (d) to read as follows:
    34    (d) In a forfeiture action commenced by a claiming  authority  against
    35  any defendant the following rebuttable presumption shall apply:
    36    All  currency  or  negotiable  instruments payable to the defendant or
    37  payable to the bearer and exceeding one thousand dollars in  value,  (i)
    38  found  in  close proximity to controlled substances criminally possessed
    39  in an amount sufficient to constitute a violation of subdivision  eight,
    40  nine,  ten, eleven, twelve or thirteen of section 220.16, section 220.18
    41  or section 220.21 of the penal law; or (ii) found in close proximity  to
    42  marihuana  criminally  possessed in an amount sufficient to constitute a
    43  violation of section 221.25 or section 221.30 of the penal law; or (iii)
    44  found in close proximity to drug  paraphernalia  possessed  or  sold  in
    45  violation  of section 220.50 or section 220.55 of the penal law; or (iv)
    46  found in close proximity to precursors of controlled  substances  crimi-
    47  nally  possessed in combinations sufficient to constitute a violation of
    48  section 220.60 of the penal law; or (v)  found  in  close  proximity  to
    49  records  reflecting  the manufacture, sale, distribution, importation or
    50  transportation of controlled substances or marihuana in  amounts  suffi-
    51  cient  to  constitute  a  violation  of  section 220.16, 220.18, 220.21,
    52  221.25 or 221.30 of the penal law, are presumed to be the proceeds of  a
    53  common scheme or plan to unlawfully sell a controlled substance or mari-
    54  huana, as the case may be.
    55    §  10.  Subdivision  3-a of section 1311 of the civil practice law and
    56  rules is REPEALED.

        A. 4578                             4
 
     1    § 11. Subdivision 4-a of section 1311 of the civil  practice  law  and
     2  rules is REPEALED.
     3    §  12.  Paragraph  (a)  of subdivision 11 of section 1311 of the civil
     4  practice law and rules, as added by chapter 655 of the laws of 1990,  is
     5  amended to read as follows:
     6    (a)   Any stipulation or settlement agreement between the parties to a
     7  forfeiture action shall be filed with the clerk of the  court  in  which
     8  the  forfeiture  action is pending.  No stipulation or settlement agree-
     9  ment shall be accepted for filing unless it is accompanied by [an  affi-
    10  davit]  a  certification from the claiming authority that written notice
    11  of the stipulation or settlement agreement, including the terms of such,
    12  has been given to the state crime victims board, the state  division  of
    13  criminal  justice  services,  and in the case of a forfeiture based on a
    14  felony defined in article two hundred twenty or section 221.30 or 221.55
    15  of the penal law, to the [state division of  substance  abuse  services]
    16  office of alcoholism and substance abuse services.
    17    §  13.  Paragraph  (c)  of subdivision 11 of section 1311 of the civil
    18  practice law and rules is REPEALED.
    19    § 14. Subdivision 12 of section 1311 of the  civil  practice  law  and
    20  rules is REPEALED.
    21    §  15.  Section 1311-a of the civil practice law and rules is REPEALED
    22  and a new section 1311-a is added to read as follows:
    23    § 1311-a. Subpoena duces tecum. 1. An application for a subpoena duces
    24  tecum may be made to a court  by  a  claiming  authority  at  any  time,
    25  including  prior  to  the commencement of an action without notice. Such
    26  subpoena shall be directed only to financial institutions as  that  term
    27  is defined in subdivision six of section 470.00 of the penal law.
    28    2.  An application for a subpoena duces tecum shall be supported by an
    29  affidavit, and such other written documentation  as  may  be  submitted,
    30  which  demonstrates sufficient reason to believe that information may be
    31  obtained about any debt or property against which a forfeiture  judgment
    32  may be enforced.
    33    3.  Allegations  of  fact  in  the  application  may be based upon the
    34  personal knowledge of the claiming  authority  or  upon  information  or
    35  belief.  If  the facts stated in the application are derived in whole or
    36  in part from the statements of persons other than the claiming  authori-
    37  ty,  the sources of the facts must be either described or disclosed, and
    38  the application must contain facts establishing the existence and  reli-
    39  ability of the information supplied by them.
    40    4.  In  an  application for a subpoena duces tecum without notice, the
    41  claiming authority shall state whether any other such subpoena has  been
    42  previously sought in the same matter against the same defendant.
    43    5. A court may grant an application for a subpoena duces tecum without
    44  notice  when it determines that the affidavit or documentation submitted
    45  by the claiming authority establishes sufficient reason to believe  that
    46  information  may  be obtained about any debt or property against which a
    47  forfeiture judgment may be enforced.  The  subpoena  duces  tecum  shall
    48  direct that the recipient of the subpoena shall not disclose the subject
    49  of  the  subpoena  to  any person. The court shall seal all papers which
    50  relate to the application, issuance or proceedings  about  the  subpoena
    51  duces  tecum  until  such  time  as  the  debt or property which was the
    52  subject of the subpoena has been levied upon.
    53    § 16. Subdivision 3 of section 1312 of  the  civil  practice  law  and
    54  rules, as amended by chapter 655 of the laws of 1990, is amended to read
    55  as follows:

        A. 4578                             5
 
     1    3.   A court may grant an application for a provisional remedy when it
     2  determines that: (a) there is a substantial probability that the  claim-
     3  ing  authority  will prevail on the issue of forfeiture and that failure
     4  to enter the order may result in the property being  destroyed,  removed
     5  from  the  jurisdiction  of  the  court, or otherwise be unavailable for
     6  forfeiture; and (b) the need to preserve the availability of the proper-
     7  ty through the entry of the requested order outweighs  the  hardship  on
     8  any  party  against  whom  the  order may operate[; and (c) in an action
     9  relating to  real property, that entry of the requested order  will  not
    10  substantially  diminish, impair, or terminate the lawful property inter-
    11  est in such real property of  any  person  or  persons  other  than  the
    12  defendant or defendants].
    13    §  17.  Subdivision  4  of  section 1312 of the civil practice law and
    14  rules is REPEALED.
    15    § 18. Section 1349 of the civil practice law and rules is REPEALED and
    16  a new section 1349 is added to read as follows:
    17    § 1349. Disposition of property. 1. Any judgment or order  of  forfei-
    18  ture  issued  pursuant  to this article shall include provisions for the
    19  disposition of the property found to have been forfeited.
    20    2. If any other provision of  law  expressly  governs  the  manner  of
    21  disposition  of property subject to the judgment or order of forfeiture,
    22  that provision of law shall be controlling. Upon application by a claim-
    23  ing agent for reimbursement of moneys directly expended  by  a  claiming
    24  agent for the investigation of bribery-related felonies defined in arti-
    25  cles  one  hundred  eighty,  two  hundred and two hundred fifteen of the
    26  penal law, the court shall direct such reimbursement from money  secured
    27  pursuant  to  this  article. Upon application of the claiming agent, the
    28  court may direct that any vehicles, vessels or aircraft secured pursuant
    29  to this article be retained by the claiming agent  for  law  enforcement
    30  purposes.  In  the  absence of an application by the claiming agent, the
    31  claiming authority may apply to the court to retain  such  property  for
    32  law  enforcement purposes. In addition, the claiming agent or the claim-
    33  ing authority may apply to the court to  retain  any  personal  property
    34  secured  pursuant to this article, excluding vehicles, vessels, aircraft
    35  or money, for law enforcement purposes. If not so retained, the judgment
    36  or order shall direct the claiming authority to sell  the  property  and
    37  all other property secured under this article in accordance with article
    38  fifty-one  of  this  chapter, and that the proceeds of such sale and any
    39  other moneys realized as a consequence of  any  forfeiture  pursuant  to
    40  this  article  shall be apportioned and paid in the following descending
    41  order of priority as follows:
    42    (a) Amounts ordered to be paid by the court  in  satisfaction  of  any
    43  lien or claim against property forfeited. A fine imposed pursuant to the
    44  penal law shall not be deemed to constitute a lien or claim for purposes
    45  of this section;
    46    (b) Amounts ordered to be paid by the defendant in any other action or
    47  proceeding  as  restitution,  reparations  or damages to a victim of the
    48  crime, which crime constituted  the  basis  upon  which  forfeiture  was
    49  effected  under  this  article,  to  the extent that such amounts remain
    50  unpaid;
    51    (c) Amounts ordered to be paid by the defendant in any other action or
    52  proceeding as restitution, reparations or damages to  a  victim  of  any
    53  crime  committed by the defendant even though such crime did not consti-
    54  tute the basis for forfeiture under this article,  to  the  extent  that
    55  such amounts remain unpaid;

        A. 4578                             6
 
     1    (d)  Amounts  actually  expended by a claiming agent in the underlying
     2  criminal law action for the investigation  of  bribery-related  felonies
     3  defined  in  articles  one  hundred  eighty, two hundred and two hundred
     4  fifteen of the penal law which were converted into a  non-monetary  form
     5  and have not been reimbursed pursuant to this subdivision;
     6    (e)  Amounts  actually  expended  by  a claiming authority or claiming
     7  agent, which amounts are substantiated by vouchers  or  other  evidence,
     8  for the:
     9    (i)  Maintenance  and  operation  of real property seized, attached or
    10  forfeited under this chapter. Expenditures authorized by  this  subpara-
    11  graph  are  limited  to  mortgage,  tax  and other financial obligations
    12  imposed by law and those other payments necessary to  provide  essential
    13  service and repairs to real property whose occupants are innocent of the
    14  criminal conduct which led to the seizure, attachment or forfeiture; and
    15    (ii)  Proper  storage, cleanup and disposal of hazardous substances or
    16  other materials, the disposal of which is governed by the  environmental
    17  conservation  law  when such storage, cleanup or disposal is required by
    18  circumstances attendant to either the commission of  the  crime  or  the
    19  forfeiture action;
    20    (f)  In addition to amounts, if any, distributed pursuant to paragraph
    21  (e) of this subdivision, fifteen percent of all moneys realized  through
    22  forfeiture to the claiming authority in satisfaction of actual costs and
    23  expenses  incurred  in  the investigation, preparation and litigation of
    24  the forfeiture action, including that proportion of the salaries of  the
    25  attorneys,  clerical  and  investigative personnel devoted thereto, plus
    26  all costs and disbursements taxable under the provisions of  this  chap-
    27  ter;
    28    (g)  In addition to amounts, if any, distributed pursuant to paragraph
    29  (e) of this subdivision, five percent of  all  moneys  realized  through
    30  forfeiture  to  the  claiming  agent  in  satisfaction  of  actual costs
    31  incurred for protecting, maintaining and forfeiting the property includ-
    32  ing that proportion of the salaries of attorneys, clerical and  investi-
    33  gative  personnel  devoted  thereto,  less any costs already received as
    34  reimbursement for these expenses;
    35    (h) The remaining moneys shall be divided between the claiming  agents
    36  and claiming authority. The claiming authority shall receive twenty-five
    37  percent  of  the  remaining moneys and the claiming agents shall equally
    38  share the remaining seventy-five percent. The fair market value  of  any
    39  personal  property retained by the claiming agents or authority pursuant
    40  to this subdivision, except moneys received as direct reimbursement  for
    41  the  investigation  of  bribery-related felonies, shall be deducted from
    42  any amount of moneys the claiming agent or authority receives under this
    43  section; and
    44    (i) All moneys secured by the claiming  agent  or  claiming  authority
    45  under  this section shall be used to enhance law enforcement efforts and
    46  not a reimbursement of ordinary budgetary costs  including  salaries  of
    47  personnel  and  expenses  of  the  claiming  authority or claiming agent
    48  during the fiscal year in which this section takes effect.
    49    3. When the claiming authority  is  the  deputy  attorney  general  in
    50  charge of the organized crime task force, the proceeds due to the claim-
    51  ing  authority  pursuant  to  paragraph  (f)  of subdivision two of this
    52  section shall be paid to  said  deputy  attorney  general;  and  of  the
    53  proceeds  due  to  the  claiming  authority pursuant to paragraph (h) of
    54  subdivision two of this section, one-half shall be paid to the  district
    55  attorney and one-half shall be paid to said deputy attorney general.

        A. 4578                             7
 
     1    4.  The  claiming  authority shall report the disposal of property and
     2  collection of assets pursuant to this section to the state crime victims
     3  board and the state division of criminal justice services.
     4    §  19.  The  civil  practice  law and rules is amended by adding a new
     5  section 1349-a to read as follows:
     6    § 1349-a. Disposal of property when the crime upon which  the  forfei-
     7  ture  action  is  based  is defined in article two hundred twenty or two
     8  hundred twenty-one of the penal law. 1. Any judgment or order of forfei-
     9  ture issued pursuant to this article shall include  provisions  for  the
    10  disposal of the property found to have been forfeited.
    11    2.  If  any  other  provision  of  law expressly governs the manner of
    12  disposition of property subject to the judgment or order of  forfeiture,
    13  that provision of law shall be controlling. Upon application by a claim-
    14  ing  agent  for  reimbursement of moneys directly expended by a claiming
    15  agent in the underlying  criminal  investigation  for  the  purchase  of
    16  contraband, the court shall direct such reimbursement from money secured
    17  pursuant  to  this  article. Upon application of the claiming agent, the
    18  court may direct that any vehicles, vessels or aircraft secured pursuant
    19  to this article be retained by the claiming agent  for  law  enforcement
    20  purposes.  In  the  absence of an application by the claiming agent, the
    21  claiming authority may apply to the court to retain  such  property  for
    22  law  enforcement  purposes. The claiming agent or claiming authority may
    23  apply to retain any personal property secured pursuant to this  article,
    24  excluding  vehicles,  vessels,  aircraft  or  money, for law enforcement
    25  purposes. If not so retained, the judgment or  order  shall  direct  the
    26  claiming  authority  to sell the property and all other property secured
    27  under this article in accordance with article fifty-one of this chapter,
    28  and that the proceeds of such sale and any other moneys  realized  as  a
    29  consequence  of  any forfeiture pursuant to this article shall be appor-
    30  tioned and paid  in  the  following  descending  order  of  priority  as
    31  follows:
    32    (a)  Amounts  ordered  to  be paid by the court in satisfaction of any
    33  lien or claim against property forfeited. A fine imposed pursuant to the
    34  penal law shall not be deemed to constitute a lien or claim for purposes
    35  of this section;
    36    (b) Amounts ordered to be paid by the defendant in any other action or
    37  proceeding as restitution, reparations or damages to  a  victim  of  the
    38  crime,  which  crime  constitutes  the  basis  upon which forfeiture was
    39  effected under this article, to the  extent  that  such  amounts  remain
    40  unpaid;
    41    (c) Amounts ordered to be paid by the defendant in any other action or
    42  proceeding  as  restitution,  reparations  or damages to a victim of any
    43  crime committed by the defendant even though such crime did not  consti-
    44  tute  the  basis  for  forfeiture under this article, to the extent that
    45  such amounts remain unpaid;
    46    (d) Amounts directly expended by a claiming agent  in  the  underlying
    47  criminal  law action for the purchase of contraband which were converted
    48  into a non-monetary form and have not been reimbursed pursuant  to  this
    49  subdivision;
    50    (e)  Amounts  actually  expended  by  a claiming authority or claiming
    51  agent, which amounts are substantiated by vouchers  or  other  evidence,
    52  for the:
    53    (i)  Maintenance  and  operation  of real property seized, attached or
    54  forfeited under this chapter. Expenditures authorized by  this  subpara-
    55  graph  are  limited  to  mortgage,  tax  and other financial obligations
    56  imposed by law and those other payments necessary to  provide  essential

        A. 4578                             8
 
     1  services  and  repairs  to real property whose occupants are innocent of
     2  the criminal conduct which led to the seizure, attachment or forfeiture;
     3  and
     4    (ii)  Proper  storage, cleanup and disposal of hazardous substances or
     5  other materials, the disposal of which is governed by the  environmental
     6  conservation  law  when such storage, cleanup or disposal is required by
     7  circumstances attendant to either the commission of  the  crime  or  the
     8  forfeiture action;
     9    (f)  In addition to amounts, if any, distributed pursuant to paragraph
    10  (e) of this subdivision, fifteen percent of all moneys realized  through
    11  forfeiture to the claiming authority in satisfaction of actual costs and
    12  expenses  incurred  in  the investigation, preparation and litigation of
    13  the forfeiture action, including that proportion of the salaries of  the
    14  attorneys,  clerical  and  investigative personnel devoted thereto, plus
    15  all costs and disbursements taxable under the provisions of  this  chap-
    16  ter;
    17    (g)  In addition to amounts, if any, distributed pursuant to paragraph
    18  (e) of this subdivision, five percent of  all  moneys  realized  through
    19  forfeiture  to  the  claiming  agent  in  satisfaction  of  actual costs
    20  incurred for protecting, maintaining and forfeiting the property includ-
    21  ing that proportion of the salaries of attorneys, clerical and  investi-
    22  gative  personnel  devoted  thereto,  less any costs already received as
    23  reimbursement for these expenses;
    24    (h) Thirty percent of all moneys realized through  forfeiture  to  the
    25  substance    abuse  service fund established pursuant to section ninety-
    26  seven-w of the state finance law;
    27    (i) The remaining moneys shall be divided between the claiming  agents
    28  and claiming authority. The claiming authority shall receive twenty-five
    29  percent  of  the  remaining moneys and the claiming agents shall equally
    30  share the remaining seventy-five percent. The fair market value  of  any
    31  personal  property  retained by the claiming agent or authority pursuant
    32  to this subdivision, except moneys received as direct reimbursement  for
    33  the  purchase of contraband, shall be deducted from any amount of moneys
    34  the claiming agent or authority receives under this section; and
    35    (j) All moneys secured by the claiming agent and the claiming authori-
    36  ty under this section shall be used to enhance law  enforcement  efforts
    37  and not as reimbursement for ordinary budgetary costs including salaries
    38  of  personnel,  and expenses of the claiming authority or claiming agent
    39  during the fiscal year in which this section takes effect.
    40    3. When the claiming authority  is  the  deputy  attorney  general  in
    41  charge of the organized crime task force, the proceeds due to the claim-
    42  ing  authority  pursuant  to  paragraph  (f)  of subdivision two of this
    43  section shall be paid to  said  deputy  attorney  general;  and  of  the
    44  proceeds  due  to  the  claiming  authority pursuant to paragraph (i) of
    45  subdivision two of this section, one-half shall be paid to the  district
    46  attorney and one-half shall be paid to said deputy attorney general.
    47    4.  The  claiming  authority shall report the disposal of property and
    48  collection of assets pursuant to this section to the state crime victims
    49  board, the state division of criminal justice  services  and  the  state
    50  office of alcoholism and substance abuse services.
    51    §  20.  The  civil  practice  law and rules is amended by adding a new
    52  article 13-C to read as follows:
    53                                 ARTICLE 13-C
    54            FORFEITURE PROCEEDING INVOLVING CONTROLLED SUBSTANCES
    55                        AND FELONY MARIHUANA OFFENSES
    56  Section 1370. Definitions.

        A. 4578                             9
 
     1          1371. Property subject to forfeiture.
     2          1372. In rem civil forfeiture proceeding.
     3          1373. Disposition of forfeited property.
     4    §  1370. Definitions. (a) "Controlled substances contraband" means any
     5  of the following:
     6    (1) Any controlled substance as defined in subdivision five of section
     7  220.00 of the penal law; or
     8    (2) Any raw material, product or equipment of any kind which  is  used
     9  or  intended for use in manufacturing, compounding, processing, deliver-
    10  ing, importing or exporting any controlled substance.
    11    (b) "Controlled substances offense" means any offense defined in arti-
    12  cle two hundred twenty of the penal law,  any  solicitation  or  facili-
    13  tation  of  such  offense  in  violation  of  article one hundred or one
    14  hundred fifteen of the penal law,  and  any  conspiracy  or  attempt  to
    15  commit  such  offense  in  violation  of article one hundred five or one
    16  hundred ten of the penal law.
    17    (c) "Marihuana contraband" means any of the following:
    18    (1) Marihuana as defined in subdivision twenty-one of section  thirty-
    19  three hundred two of the public health law; or
    20    (2)  Any  raw material, product or equipment of any kind which is used
    21  or intended for use in manufacturing, compounding, processing,  deliver-
    22  ing, importing or exporting marihuana.
    23    (d) "Felony marihuana offense" means any felony defined in article two
    24  hundred twenty-one of the penal law, any solicitation or facilitation of
    25  such  felony  in violation of article one hundred or one hundred fifteen
    26  of the penal law, and any conspiracy or attempt to commit such felony in
    27  violation of article one hundred five or one hundred ten  of  the  penal
    28  law.
    29    (e)  "Proceeds  of a controlled substances offense or felony marihuana
    30  offense" means  any  property  obtained  through  the  commission  of  a
    31  controlled  substances  or  felony  marihuana  offense  and includes the
    32  appreciation in value of such property.
    33    (f) "Substituted proceeds of a controlled substances offense or felony
    34  marihuana offense" means any property obtained by the sale  or  exchange
    35  of  proceeds of a controlled substances or felony marihuana offense, and
    36  any gain realized by such sale or exchange.
    37    (g) "Property" means and includes: real property;  personal  property,
    38  other than vehicles, vessels or aircraft; money; negotiable instruments;
    39  securities;  any thing of value or any interest in a thing of value; and
    40  intangible personal property, including  rights,  privileges,  interests
    41  and claims.
    42    (h) "Real property" means any right, title or interest in the whole or
    43  any  part of any lot or tract and any buildings, fixtures, appurtenances
    44  and improvements thereon, including but not limited to any  condominium,
    45  cooperative, leasehold or tenancy interest in real property.
    46    (i)  "Instrumentality  of  a  controlled  substances offense or felony
    47  marihuana offense" means any property whose use contributes directly and
    48  materially to the commission of a  controlled  substances  or  a  felony
    49  marihuana  offense; provided, however, that where the instrumentality is
    50  real property, the real property must have been used as an instrumental-
    51  ity of an offense classified as a felony.
    52    (j) "Claiming authority" means the district attorney having  jurisdic-
    53  tion  over  the  offense  giving rise to the forfeiture, or the attorney
    54  general, in connection with forfeitures arising out of those crimes  for
    55  which  the  attorney  general  has  criminal jurisdiction, or the deputy
    56  attorney general in charge of the statewide organized crime  task  force

        A. 4578                            10
 
     1  where  said  deputy  attorney  general has received approval pursuant to
     2  subdivision seven of section seventy-a of  the  executive  law,  or  the
     3  appropriate  corporation  counsel  or county attorney, provided that the
     4  corporation  counsel  or county attorney may act as a claiming authority
     5  only with the consent of the  district  attorney,  attorney  general  or
     6  deputy  attorney general in charge of the statewide organized crime task
     7  force, as appropriate.
     8    (k) "Claiming agent" means any persons described in subdivision  thir-
     9  ty-four  of  section  1.20  of the criminal procedure law, and sheriffs,
    10  undersheriffs and deputy sheriffs of counties within  the  city  of  New
    11  York.
    12    (l)  "Owner" means any person, including a lienholder, whose rights or
    13  interest in property are or may be affected by a judgment in the forfei-
    14  ture proceeding.
    15    (m) "Claimant" means any person who objects to forfeiture.
    16    § 1371. Property subject to forfeiture. (a) The following is forfeited
    17  to the state and all rights or interests therein shall  be  extinguished
    18  in accordance with the provisions of this article:
    19    (1)  All  property furnished or intended to be furnished by any person
    20  in exchange for controlled substances contraband or marihuana contraband
    21  or in connection with a controlled substances offense or a felony  mari-
    22  huana offense;
    23    (2)  All  proceeds  or substituted proceeds of a controlled substances
    24  offense or a felony marihuana offense;
    25    (3) Any instrumentality of a controlled substances offense or a felony
    26  marihuana offense.
    27    (b) All rights or interests forfeited to the state shall vest  in  the
    28  state upon the commission of the offense giving rise to forfeiture under
    29  this article.
    30    (c)  Except  as  otherwise  specifically provided in this article, the
    31  procedures set forth in  article  four  of  this  chapter  shall  govern
    32  proceedings under this article.
    33    §  1372. In rem civil forfeiture proceeding. A proceeding to enforce a
    34  forfeiture declared by section  thirteen  hundred  seventy-one  of  this
    35  article shall be governed by the following provisions:
    36    (a)  Seizure of property. (1) In all cases, except those identified in
    37  paragraph two of this subdivision, the  claiming  authority  shall  make
    38  application  to  the  supreme or a county court for a warrant of seizure
    39  upon affidavits and other appropriate supporting papers  describing  the
    40  property  to  be  seized  and,  if  known, its location. The court shall
    41  promptly review the application and supporting papers, and if  there  is
    42  reasonable  cause  therefrom  to  believe  that  such  property has been
    43  forfeited, the court shall promptly issue a warrant of seizure  directed
    44  to  a  claiming  agent  in  any county where such property may be found,
    45  authorizing the claiming agent to seize such property. Proceedings under
    46  this paragraph may be conducted without notice to  any  person  who  may
    47  claim  an  interest  in such property or the proceeding. The court shall
    48  order the sealing of all papers and  proceedings  conducted  under  this
    49  paragraph until such time as seizure has occurred.
    50    (2)  Seizure  of the property without a warrant of seizure may be made
    51  by a claiming agent when there is reasonable cause to believe that prop-
    52  erty has been forfeited under section thirteen  hundred  seventy-one  of
    53  this article, and either:
    54    (i)  the  seizure  is  incident to an arrest or a search pursuant to a
    55  search warrant or an inspection pursuant to an administrative inspection
    56  warrant; or

        A. 4578                            11
 
     1    (ii)  the  seizure  is  necessary   to   prevent   imminent   removal,
     2  destruction, concealment or transfer of the property.
     3    (b)  Claiming agent's duties during and after seizure. (1) In making a
     4  seizure of property pursuant to the provisions of this section, a claim-
     5  ing agent must give, or make reasonable effort to give,  notice  of  his
     6  authority  and  purpose  and  if  the  seizure  is based on a warrant of
     7  seizure, show the warrant or a copy thereof upon request. If any  person
     8  resists or refuses to permit the seizure, the claiming agent may use any
     9  degree of physical force, other than deadly physical force, necessary to
    10  effect the seizure.
    11    (2)  Upon seizing property pursuant to the provisions of this section,
    12  the claiming agent shall write and subscribe  a  receipt  itemizing  the
    13  property  seized  and  identifying  the  claiming agent who has made the
    14  seizure and the claiming  authority  to  be  notified  pursuant  to  the
    15  provisions  of  paragraph  three of this subdivision. If the property is
    16  taken from a person, the receipt shall be given to such person. If prop-
    17  erty is taken from premises or a vehicle, such receipt shall be given to
    18  the owner, tenant or other person in possession thereof if he  is  pres-
    19  ent;  or if he is not, the claiming agent shall leave the receipt in the
    20  premises or vehicle from which the property was seized. If the  property
    21  seized is not taken or readily capable of movement, the receipt shall be
    22  affixed thereto.
    23    (3)  Upon seizing property pursuant to the provisions of this section,
    24  the claiming agent shall, without unnecessary delay, notify the claiming
    25  authority named in the warrant of seizure  or  an  appropriate  claiming
    26  authority  of the facts of the seizure. The claiming agent shall deliver
    27  actual or constructive custody of the seized property  to  the  claiming
    28  authority.
    29    (c)  Claiming authority's duty after seizure. (1) After being notified
    30  of a seizure, the claiming authority shall  promptly  cause  the  seized
    31  property to be returned if it is of the opinion either that a forfeiture
    32  proceeding  could  not  be  successfully  maintained or that the ends of
    33  justice do not warrant the institution or prosecution  of  a  forfeiture
    34  proceeding.
    35    (2) At any time after seizure, the claiming authority may apply to the
    36  court  without notice to any person for an order authorizing the immedi-
    37  ate sale of any perishable goods or the storage or repair of any  seized
    38  property.
    39    (d)  Notice  of  forfeiture  proceeding.  Within twenty days after the
    40  seizure of property made either pursuant to  a  warrant  of  seizure  or
    41  without  a  warrant,  unless  the property has been released pursuant to
    42  subdivision (c) of this section, the claiming authority shall  institute
    43  an  in  rem  civil  forfeiture  proceeding  pursuant  to this article as
    44  follows:
    45    (1) By personal service of a notice of petition and verified  petition
    46  on any owner of the seized property; or
    47    (2)  By first class mail of a notice of petition and verified petition
    48  to the last known residence of any owner whose present residence  cannot
    49  be  reasonably ascertained, and by publication of the notice of petition
    50  in a newspaper published or circulated in the county where  the  seizure
    51  occurred,  provided  that the notice of petition shall be published once
    52  each week for two successive weeks and provided further that it shall be
    53  sufficient if only the first of the two  said  publications  shall  have
    54  been made during the twenty day period; or
    55    (3)  In  any  case  where  the identity of an owner of seized property
    56  cannot be reasonably ascertained, by publication of the notice of  peti-

        A. 4578                            12
 
     1  tion  in  a  newspaper  published  or circulated in the county where the
     2  seizure  occurred,  provided  that  the  notice  of  petition  shall  be
     3  published  once  each week for two successive weeks and provided further
     4  that  it  shall be sufficient if only the first of the two said publica-
     5  tions shall have been made during the twenty day period.
     6    In all cases, the claiming authority shall file a copy of such  notice
     7  of  petition  and  verified petition with the state division of criminal
     8  justice services; however, failure to file  such  papers  shall  not  be
     9  grounds for any relief in the proceeding.
    10    (e)  Notice  of  petition  and  verified petition. The contents of the
    11  notice of petition and verified petition shall be as follows:
    12    (1) The notice of petition shall contain the following:
    13    (i) identification of the claiming authority as petitioner;
    14    (ii) identification of the seized property and any owners, if any  are
    15  reasonably identifiable, as respondents;
    16    (iii) a description of the seized property with reasonable particular-
    17  ity;
    18    (iv) the statutory basis for forfeiture;
    19    (v) the basis for venue; and
    20    (vi) the time and procedure for interposing an answer and bond for the
    21  purpose of contesting the forfeiture.
    22    (2) The verified petition shall contain the following information:
    23    (i)  a  description  of  the  seized  property including its appraised
    24  value, if known;
    25    (ii) a statement that the seized property is or  will  be  within  the
    26  state  during  the  pendency  of  the  proceeding,  or  that it has been
    27  disposed of in accordance with subdivision (c) of this section;
    28    (iii) the date, place and circumstances of the seizure of the property
    29  and the identity of the claiming agent who made the seizure; and
    30    (iv) the factual grounds  upon  which  a  judgment  of  forfeiture  is
    31  sought.
    32    (f)  Procedure for contesting forfeiture. (1) Within thirty days after
    33  personal service or first publication  of  the  notice  of  petition,  a
    34  claimant may interpose a verified answer by personal service of the same
    35  upon the claiming authority, which answer shall contain the following:
    36    (i)  a  statement  setting  forth  the factual basis of the claimant's
    37  interest in the seized property;
    38    (ii) a response to the petition; and
    39    (iii) the factual basis for any affirmative defense  asserted  by  the
    40  claimant.
    41    (2)  At the time of interposing an answer, a claimant must also post a
    42  bond with the clerk of the court in which the proceeding has been insti-
    43  tuted in the amount of ten percent of the value of the  seized  property
    44  or  ten  thousand  dollars, whichever is less. If the claiming authority
    45  recovers judgment, the court shall order payment from the  bond  of  the
    46  claiming  authority's  reasonable  costs  of  conducting the proceeding,
    47  including the cost of the legal and investigative resources expended  in
    48  conducting the proceeding.
    49    (3)  An  answer  which is not in full compliance with this section and
    50  accompanied by a bond as required shall be dismissed.
    51    (g) Standing of claimants. (1) A claimant must demonstrate that he has
    52  standing to contest a forfeiture by establishing by a  preponderance  of
    53  evidence that:
    54    (i) he has an actual, personal and substantial interest in the proper-
    55  ty  and is not merely the agent of another person who has such an inter-
    56  est in the property; and

        A. 4578                            13
 
     1    (ii) if he has obtained his interest in the property subsequent to the
     2  offense giving rise to forfeiture, he must also show:
     3    (A) he obtained his interest in the property for fair consideration;
     4    (B) he did not know and could not reasonably have known of the circum-
     5  stances  subjecting  the  property to forfeiture at the time he obtained
     6  his interest in the property;
     7    (C) he had no knowledge of and could not reasonably have known of  the
     8  forfeiture  action at the time he obtained his interest in the property;
     9  and
    10    (D) he did not participate in and was unaware of any scheme to conceal
    11  or disguise the manner in which he obtained his interest in the  proper-
    12  ty.
    13    (2)  A  claimant  shall retain the burden of establishing his standing
    14  notwithstanding whether he is identified as an owner in  the  notice  of
    15  petition or verified petition.
    16    (h)  Release petition. At any time subsequent to a seizure of property
    17  pursuant to this section, a claimant who has established his standing in
    18  accordance with this section may  make  application  to  the  court  for
    19  release of the seized property on the ground that there is no reasonable
    20  cause  to  believe that the property has been forfeited pursuant to this
    21  article. If the claimant has received the claiming authority's notice of
    22  petition and verified petition, a claimant  may  make  such  application
    23  only  if  he  has  interposed  an answer and bond in conformity with the
    24  requirements of this section. The  claiming  authority  shall  have  the
    25  burden  of  proving reasonable cause for the forfeiture whenever such an
    26  application is made. The court may conduct a hearing  on  any  issue  of
    27  fact  necessary to determine the application and, if the application  is
    28  granted, shall order the release of the seized property to the claimant.
    29    (i) The forfeiture proceeding. (1) In any forfeiture proceeding pursu-
    30  ant to this article in which no claimant interposes an answer and  bond,
    31  or  in which all claimants' answers are dismissed, the court shall enter
    32  judgment in favor of the claiming authority.
    33    (2) In any forfeiture proceeding brought pursuant to this  article,  a
    34  claimant  who files a fully complying answer and the required bond shall
    35  have the right to trial by jury on any issue of fact.
    36    (3) In any trial of a forfeiture proceeding pursuant to this  article,
    37  it  shall be the claiming authority's burden to prove by a preponderance
    38  of the evidence that a forfeiture has occurred.
    39    (4) In any trial of a forfeiture proceeding pursuant to this  article,
    40  it shall be the claimant's burden to establish by a preponderance of the
    41  evidence  both  his  standing in accordance with subdivision (g) of this
    42  section and one of the following affirmative defenses:
    43    (i) the offenses  giving  rise  to  the  forfeiture  of  the  property
    44  occurred without the knowledge and consent of the claimant; or
    45    (ii)  the  offenses  giving  rise  to  the  forfeiture of the property
    46  occurred while the property was unlawfully in the possession or  control
    47  of  a  person other than the claimant due to a violation of the criminal
    48  laws of the United States or any state.
    49    (5) In the trial of any forfeiture proceeding pursuant to  this  arti-
    50  cle,  except  as  the  court directs judgment in favor of any party as a
    51  matter of law, the issues shall be submitted to the jury or  the  court,
    52  as  the  case may be, for determination and judgment shall be entered in
    53  accordance with such determination. Judgment shall be entered  in  favor
    54  of  a  prevailing  claiming  authority, exclusive of any interest estab-
    55  lished by a prevailing claimant.

        A. 4578                            14
 
     1    (6) (i) Any stipulation or settlement agreement between the parties to
     2  a forfeiture proceeding shall be filed with the clerk of  the  court  in
     3  which  the proceeding is pending. No stipulation or settlement agreement
     4  shall be accepted for filing unless accompanied by an affidavit from the
     5  claiming  authority that written notice of the stipulation or settlement
     6  agreement, including the terms of such, has  been  given  to  the  state
     7  crime victims board, the state division of criminal justice services and
     8  the state office of alcoholism and substance abuse services.
     9    (ii)  No  judgment or order of forfeiture shall be accepted for filing
    10  unless it is accompanied by an affidavit  from  the  claiming  authority
    11  that  written  notice  of  the judgment or order, including the terms of
    12  such, has been given to the state crime victims board, the  state  divi-
    13  sion of criminal justice services and the state office of alcoholism and
    14  substance abuse services.
    15    (j)  Vacatur  or  modification of judgment. Any person may petition to
    16  the court in which a judgment of forfeiture was  entered,  at  any  time
    17  within one year after entry of the judgment, for vacatur or modification
    18  of the judgment of forfeiture upon a substantial showing that the person
    19  was  not  a party to, did not seek to interpose or answer in, and had no
    20  actual knowledge of the forfeiture proceeding. A proposed answer  and  a
    21  bond  in  accordance with this article must accompany the petition which
    22  must also make a substantial showing  of  the  person's  standing  as  a
    23  claimant  and  reasons  why  the judgment should be vacated or modified.
    24  Following service of the petition on the claiming authority,  the  court
    25  shall  hear  and  determine  any  issues  raised by the petition and, if
    26  necessary, conduct an immediate trial on any disputed issue of fact.  If
    27  it  does not deny the petition, the court may vacate or modify the judg-
    28  ment upon such terms and conditions as it deems just, including a direc-
    29  tion for trial of issues raised by the answer. If the petition  is  made
    30  following  the  sale  of  forfeited  property,  any relief accorded to a
    31  prevailing claimant shall be limited to the proceeds after deducting the
    32  expenses and costs incurred by the claiming authority in  effecting  the
    33  sale.
    34    (k)  Venue.  The proper venue for a proceeding for forfeiture pursuant
    35  to this section is:
    36    (1) The county where the seizure occurred; or
    37    (2) The county in which a criminal prosecution relating to the offense
    38  giving rise to the forfeiture could be commenced under article twenty of
    39  the criminal procedure law, or in the case of an action commenced by the
    40  office of prosecution, special narcotics courts of the city of New York,
    41  under section one hundred seventy-seven-b of the judiciary law.
    42    (1) Limitations.  A  proceeding  pursuant  to  this  article  must  be
    43  commenced within five years of the commission of the offense giving rise
    44  to the forfeiture proceeding.
    45    (m)  Stay  of proceedings. A proceeding pursuant to this article shall
    46  be stayed during the pendency of  a  criminal  action  relating  to  the
    47  offense  giving  rise  to  the forfeiture proceeding, provided that such
    48  stay shall not prevent: the  granting  of  a  warrant  of  seizure;  the
    49  seizure  and retention of property subject to forfeiture; the service of
    50  process of the forfeiture proceeding; or a claimant's right to  make  an
    51  application  for  release  of seized property, provided further that the
    52  stay may be modified by the court in which the forfeiture proceeding  is
    53  pending upon a finding that a modification is necessary to prevent undue
    54  hardship to an innocent party.
    55    (n)  Liability  of a claiming agent and claiming authority. (1) Except
    56  as provided in paragraph two of this subdivision, no claiming  authority

        A. 4578                            15
 
     1  or  claiming  agent shall have any liability to any person who claims to
     2  have been affected by the seizure or the forfeiture  proceeding  if  the
     3  claiming authority recovers judgment.
     4    (2)  The  claiming  authority  or  claiming agent shall be liable to a
     5  claimant who recovers judgment for all the claimant's costs and  damages
     6  which  have  been sustained by reason of the seizure and the institution
     7  and conduct of the forfeiture action  when  the  claimant  proves  by  a
     8  preponderance  of the evidence that in seizing the property or institut-
     9  ing and conducting the action, the claiming authority or claiming  agent
    10  acted without reasonable cause and not in good faith.
    11    (o) Forfeiture total value limits. The total amount that may be recov-
    12  ered  by any claiming authority in any forfeiture proceeding pursuant to
    13  this article shall be limited to the value of the proceeds of the  crime
    14  or  substituted proceeds of the crime, whichever amount is greater, and,
    15  in addition, the value of  all  instrumentalities  of  the  crime.  Such
    16  amount  shall be reduced by the value of any property forfeited pursuant
    17  to article thirteen-A of this chapter to the extent such  action  arises
    18  out of the same offense.
    19    (p)  Election  of  remedies.  The  imposition  of  a judgment of civil
    20  forfeiture pursuant to this article shall preclude the imposition  of  a
    21  judgment  or  order of forfeiture pursuant to article four hundred sixty
    22  or four hundred eighty of the penal law based  upon  the  same  criminal
    23  offense.
    24    (q)  Bona  fide  attorneys' fees. (1) Notwithstanding any inconsistent
    25  provisions in this article, upon a substantial showing by a claimant who
    26  has interposed an answer and posted a bond as  required  in  subdivision
    27  (f) of this section that:
    28    (i)  he  has standing in accordance with the provisions of subdivision
    29  (g) of this section;
    30    (ii) he has a meritorious defense; and
    31    (iii) a seizure of property has created a financial hardship in secur-
    32  ing the services of, and paying bona fide fees for, legal defense  coun-
    33  sel  in a criminal action relating to the offense giving rise to forfei-
    34  ture, the court in which the forfeiture proceeding is pending may  order
    35  the release of seized property, upon such conditions and security as may
    36  be  appropriate,  for  the  payment  of bona fide fees for legal defense
    37  counsel in said criminal action.
    38    (2) Notwithstanding any inconsistent provisions in this article, prop-
    39  erty paid to legal defense counsel as bona fide fees for legal  services
    40  in  defending  a  criminal action relating to the offense giving rise to
    41  the forfeiture shall be exempt from a judgment of forfeiture pursuant to
    42  this action.
    43    § 1373. Disposition of forfeited property. (a) Any judgment  or  order
    44  of  forfeiture pursuant to this article shall include provisions for the
    45  disposition of forfeited property.
    46    (b) All property which is forfeited following the  commencement  of  a
    47  proceeding  under  this  article,  whether  by  judgment, order or other
    48  agreement, shall be disposed of in accordance  with  the  provisions  of
    49  section thirteen hundred forty-nine-a of this chapter.
    50    §  21.  Subdivision  (a) of section 2302 of the civil practice law and
    51  rules, as amended by chapter 398 of the laws of 1997, is amended to read
    52  as follows:
    53    (a)  Without court order.   Subpoenas may be issued  without  a  court
    54  order  by  the  clerk of the court, a judge where there is no clerk, the
    55  attorney general, a claiming authority as defined in subdivision  eleven
    56  of  section  thirteen hundred ten of this chapter, an attorney of record

        A. 4578                            16
 
     1  for a party to an action,  an  administrative  proceeding  or  an  arbi-
     2  tration,  an arbitrator, a referee, or any member of a board, commission
     3  or committee authorized by law to hear, try or determine a matter or  to
     4  do  any  other  act, in an official capacity, in relation to which proof
     5  may be taken or the attendance of a person as a witness may be required;
     6  provided, however, that a subpoena to compel production of  a  patient's
     7  clinical  record  maintained pursuant to the provisions of section 33.13
     8  of the mental hygiene law shall be accompanied by  a  court  order.    A
     9  child  support  subpoena  may  be issued by the department, or the child
    10  support enforcement unit coordinator or support collection unit supervi-
    11  sor of a social services district, or his or her  designee,  or  another
    12  state's  child  support enforcement agency governed by title IV-D of the
    13  social security act.
    14    § 22. Article 480 of the penal law is REPEALED and a new  article  480
    15  is added to read as follows:
    16                                  ARTICLE 480
    17         CRIMINAL FORFEITURE - FELONY CONTROLLED SUBSTANCE OFFENSES
    18  Section 480.00 Definitions.
    19          480.05 Provisional remedies.
    20          480.10 Scope of forfeiture.
    21          480.15 Rebuttable presumption.
    22          480.20 Procedure.
    23          480.25 Disposal of property.
    24  § 480.00 Definitions.
    25    The following definitions are applicable to this article:
    26    1. A "felony controlled substance offense" means conduct constituting:
    27    (a)  any  felony  offense defined in article two hundred twenty or two
    28  hundred twenty-one of this chapter; or
    29    (b) any solicitation or facilitation of any felony offense defined  in
    30  article two hundred twenty or two hundred twenty-one of this chapter; or
    31    (c)  any attempt or conspiracy to commit any felony offense defined in
    32  article two hundred twenty or two hundred twenty-one of this chapter.
    33    2. "Property" means any real property;  personal  property;  currency;
    34  negotiable  instruments;  securities;  and intangible personal property,
    35  including rights, privileges, interests and claims.
    36    3. "Real property" means any right, title or interest in the whole  or
    37  any part of any lot or tract and any buildings, fixtures, appurtenances,
    38  and  improvements thereon, including but not limited to any condominium,
    39  cooperative, leasehold or tenancy interest in real property.
    40    4. "Proceeds" means any property obtained through the commission of  a
    41  felony  controlled  substance  offense  and includes the appreciation in
    42  value of such property.
    43    5. "Substituted proceeds" means any property obtained by the  sale  or
    44  exchange  of  proceeds  of a felony controlled substance offense and any
    45  gain realized by such sale or exchange.
    46    6. "Instrumentality of a felony controlled  substance  offense"  means
    47  any property of a person who has committed a felony controlled substance
    48  offense  whose use contributed directly and materially to the commission
    49  of such offense; provided, however, that where  the  instrumentality  is
    50  real property, the real property must have been used as an instrumental-
    51  ity of an offense classified as a felony.
    52  § 480.05 Provisional remedies.
    53    1.  The  provisional  remedies authorized by article thirteen-A of the
    54  civil practice law and rules shall be available in all criminal  actions
    55  in  which  criminal forfeiture is sought pursuant to this article to the

        A. 4578                            17
 
     1  extent and under the same terms and conditions as  provided  in  article
     2  thirteen-A of such law and rules.
     3    2.  Upon  the  filing  of  an indictment and special information, or a
     4  superior court information and  special  information,  seeking  criminal
     5  forfeiture  under  this article, all further proceedings with respect to
     6  provisional remedies shall be heard by the judge or justice in the crim-
     7  inal part to which the criminal action is assigned.
     8    3. For purposes of this section, the indictment and  special  informa-
     9  tion,  or  superior  court  information and special information, seeking
    10  criminal forfeiture shall constitute the summons with notice or  summons
    11  and  verified  complaint  referred to in article thirteen-A of the civil
    12  practice law and rules.
    13  § 480.10 Scope of forfeiture.
    14    Any person convicted of a felony controlled substance offense  may  be
    15  ordered pursuant to this article to criminally forfeit to the state:
    16    1.  any  property constituting the proceeds or substituted proceeds of
    17  such offense unless the value of forfeited property is  disproportionate
    18  to  the person's gain from the offense, in which event the forfeiture of
    19  a portion thereof may be ordered; and
    20    2. any property constituting an instrumentality of a felony controlled
    21  substance  offense  unless  the  value  of  the  forfeited  property  is
    22  disproportionate  to  the person's gain from the offense, in which event
    23  the forfeiture of a portion thereof may be ordered.
    24  § 480.15 Rebuttable presumption.
    25    When criminal forfeiture is  sought  pursuant  to  this  article,  the
    26  following rebuttable presumption shall apply:
    27    All  currency  or  negotiable  instruments found in close proximity to
    28  controlled substances or marihuana  in  amounts  constituting  a  felony
    29  offense,  or  found  in  close proximity to hypodermic instruments, drug
    30  manufacturing or distributing paraphernalia or  records  reflecting  the
    31  manufacture,  distribution, or importation of such controlled substances
    32  or marihuana are presumed to be the  proceeds  of  a  felony  controlled
    33  substance  offense.  The  presumption  created  by  this  section may be
    34  rebutted by a preponderance of evidence that such currency or negotiable
    35  instruments do not  constitute  the  proceeds  of  a  felony  controlled
    36  substance offense.
    37  § 480.20 Procedure.
    38    1.  When  the  grand jury files an indictment charging a person with a
    39  felony controlled substance offense and has  received  evidence  legally
    40  sufficient to establish, and providing reasonable cause to believe, that
    41  property  is  subject  to  forfeiture under this article, the grand jury
    42  shall file a special  information  specifying  the  property  for  which
    43  forfeiture is sought and containing a plain and concise statement of the
    44  factual basis for seeking forfeiture. Alternatively, where the defendant
    45  has  waived  indictment  and  consented  to  be  prosecuted for a felony
    46  controlled substance offense by superior court information  pursuant  to
    47  article  one  hundred  ninety-five  of  the  criminal procedure law, the
    48  prosecutor may, in  addition  to  superior  court  information,  file  a
    49  special  information  specifying  the  property  for which forfeiture is
    50  sought and containing a plain and concise statement of the factual basis
    51  for seeking forfeiture.
    52    The prosecutor shall file a copy of the special information, including
    53  the terms thereof, with the state division of criminal justice services.
    54  Failure to file such information, however, shall not be grounds for  any
    55  relief under this article.

        A. 4578                            18
 
     1    2.  After  accepting  a  verdict  of  guilty  of  a  felony controlled
     2  substance offense, the court shall present the  special  information  to
     3  the  jury  and proceed to hear any additional evidence which is relevant
     4  and legally admissible upon the forfeiture of property specified in  the
     5  special  information. Based upon all the evidence received in connection
     6  with the indictment or superior court information and the special infor-
     7  mation, the jury shall deliberate and may, if satisfied by proof  beyond
     8  a reasonable doubt that the property, or portions thereof, is subject to
     9  a  forfeiture, direct the forfeiture of such property. When a person has
    10  waived a jury trial pursuant to article  three  hundred  twenty  of  the
    11  criminal  procedure  law, upon a verdict or a plea of guilty of a felony
    12  controlled substance offense, the court shall  hear  and  determine  all
    13  evidence  upon  the  special  information and may, if satisfied by proof
    14  beyond a reasonable doubt that the property,  or  portions  thereof,  is
    15  subject to a forfeiture, direct the forfeiture of such property.
    16    3.  Following  a direction of forfeiture, the court may hear arguments
    17  and receive additional evidence upon a motion by  the  convicted  person
    18  that  the direction of forfeiture (i) is against the weight of evidence,
    19  or (ii) is, with respect to  a  forfeiture  pursuant  to  this  article,
    20  disproportionate  to  such  person's gain from the offense, or (iii) is,
    21  with respect to a forfeiture pursuant to this article,  disproportionate
    22  to  such person's gain from the offense. Upon granting such a motion, or
    23  in the interests of justice, the court may set aside, modify,  limit  or
    24  otherwise  condition a direction of forfeiture. Unless relief is granted
    25  under this subdivision, the court  shall  issue  an  order  of  criminal
    26  forfeiture.
    27    4.  An  order of criminal forfeiture shall authorize the prosecutor to
    28  seize all property directed to be forfeited under this article upon such
    29  terms and conditions as the court deems proper. If a property  right  is
    30  not  exercisable  or  transferable for value by the prosecutor, it shall
    31  expire and shall not revert to the convicted person.
    32    5. No person shall forfeit any right, title or interest in any proper-
    33  ty under this article who has not been convicted of a felony  controlled
    34  substance offense. Any person claiming an interest in forfeited property
    35  may  institute  a special proceeding to determine that claim pursuant to
    36  section thirteen hundred twenty-seven of  the  civil  practice  law  and
    37  rules;  provided,  however, that if such special proceeding is initiated
    38  prior to the conclusion of the criminal action, it may, upon  motion  of
    39  the prosecutor, and in the court's discretion, be stayed by the court in
    40  which  the  criminal  action is pending until the conclusion thereof. In
    41  addition, any person, other  than  the  convicted  person,  claiming  an
    42  interest  in  property  ordered forfeited may within one year after such
    43  order was entered, petition  the  court  which  issued  such  order  for
    44  remission  as  provided in subdivision seven of section thirteen hundred
    45  eleven of the civil practice law and rules.
    46  § 480.25 Disposal of property.
    47    1. All property which is ordered criminally forfeited under this arti-
    48  cle following the commencement of a criminal action, or which is  relin-
    49  quished to the prosecutor as part of any stipulation or understanding by
    50  the  convicted  person  in  connection  with the disposition of a felony
    51  controlled substance offense, shall be disposed of  in  accordance  with
    52  the  provisions  of  section  thirteen hundred forty-nine-a of the civil
    53  practice law and rules. Written notice of the disposition  of  any  such
    54  property, including the terms thereof, shall be given to the state crime
    55  victims  board,  the  state division of criminal justice services and to
    56  the state office of alcoholism and substance abuse services.

        A. 4578                            19
 
     1    2. If any property ordered criminally forfeited under this article, as
     2  a result of any act or omission of the convicted person:
     3    (a) cannot be located upon the exercise of due diligence; or
     4    (b) has been transferred or sold to, or deposited with, a third party;
     5  or
     6    (c) has been placed beyond the jurisdiction of the court; or
     7    (d) has been substantially diminished in value; or
     8    (e)  has  been  commingled with other property which cannot be divided
     9  without difficulty;
    10  the court may, upon application of the prosecutor, direct the forfeiture
    11  of any other property of the convicted person up to the value of proper-
    12  ty initially ordered forfeited.
    13    3. The imposition of an  order  of  criminal  forfeiture  pursuant  to
    14  section  480.20  of  this  article  shall preclude the imposition of any
    15  other such order or judgement of forfeiture based upon the same criminal
    16  conduct.
    17    § 23. Subdivision 6 of section 220.50 of the criminal procedure law is
    18  REPEALED.
    19    § 24. Paragraph (a) of subdivision 1 of section 200.95 of the criminal
    20  procedure law, as amended by chapter 655 of the laws of 1990, is amended
    21  to read as follows:
    22    (a)  "Bill of particulars" is a written statement  by  the  prosecutor
    23  specifying,  as  required  by this section, items of factual information
    24  which are not recited in the indictment and which pertain to the offense
    25  charged and including the substance of each defendant's  conduct  encom-
    26  passed  by the charge which the people intend to prove at trial on their
    27  direct case, and whether the people intend to prove that  the  defendant
    28  acted as principal or accomplice or both[, and items of factual informa-
    29  tion  which  are  not  recited  in  a  special forfeiture information or
    30  prosecutor's forfeiture information containing one  or  more  forfeiture
    31  counts  and  which  pertain to the substance of each defendant's conduct
    32  giving rise to the forfeiture claim, the approximate value  of  property
    33  for which forfeiture is sought, the nature and extent of the defendant's
    34  interest  in  such  property, and the extent of the defendant's gain, if
    35  any, from the offense charged].  However, the prosecutor  shall  not  be
    36  required  to  include  in  the  bill  of particulars matters of evidence
    37  relating to how the people intend to prove the elements of  the  offense
    38  charged  or  how the people intend to prove any item of factual informa-
    39  tion included in the bill of particulars.
    40    § 25. Subdivision 6 of section 837-a of the executive law is REPEALED.
    41    § 26. Subdivision 7 of section 3388  of  the  public  health  law,  as
    42  amended  by  chapter  655  of  the  laws  of 1990, is amended to read as
    43  follows:
    44    7. The district attorney, the superintendent of state  police  or  the
    45  police  department  having  custody  of  the seized property, after such
    46  judicial determination of forfeiture, shall, at their discretion, either
    47  retain such seized property for the official use of their office,  divi-
    48  sion  or  department, or, by a public notice of at least five days, sell
    49  such forfeited property at public sale[; provided, however,  that  where
    50  such  property  is subject to a perfected lien  such property may not be
    51  retained for their official use unless all such liens on the property to
    52  be retained have been or will be satisfied]. The  net  proceeds  of  any
    53  such  sale,  after  deduction  of the lawful expenses incurred, shall be
    54  paid into the general fund of the county wherein the  seizure  was  made
    55  except  that  the  net  proceeds  of  the sale of property seized in the
    56  cities of New York, Yonkers, Rochester and Buffalo shall  be  paid  into

        A. 4578                            20
 
     1  the respective general funds of such cities, and of the sale of property
     2  seized by the state police into the general fund of the state.
     3    §  27.  This  act  shall  take  effect  on  the first of November next
     4  succeeding the date on which it shall have become a law.