STAND. COM. REP. NO. 416-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2880

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2880 entitled:

"A BILL FOR AN ACT RELATING TO FORFEITURES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Amend the state forfeiture laws to require federal forfeiture proceeds to be transmitted to the state for distribution in accordance with state law; and

(2) Designate a portion of the State Criminal Forfeiture Fund (Fund) to be used for substance abuse treatment.

More specifically, this bill would:

(1) Require that all proceeds from federally prosecuted forfeiture proceedings on property and money seized by state or local law enforcement agencies be transmitted to the state Attorney General (AG);

(2) Require the State to have property appraised before being sold in forfeiture proceedings;

(3) Require that all state forfeiture funds in excess of $3,000,000 be distributed to the general fund and held available for substance abuse treatment; and

(4) Require that the proceeds in the Fund, after deduction for administrative expenses, be used for drug treatment programs with priority in treatment for first-time drug offenders pursuant to section 706-622.5, Hawaii Revised Statutes.

The League of Women Voters of Hawaii, Harm Reduction Hawaii, Hawaii State Commission on the Status of Women, Parents and Children Together, Hawaii Youth Services Network, Community Alliance on Prisons, Drug Policy Action Group, and several concerned citizens testified in support of this bill. The Judiciary supported the intent of this measure to fund treatment for drug offenders. The Department of the Attorney General, Department of Public Safety, Honolulu Police Department, and the Department of the Prosecuting Attorney of the City and County of Honolulu opposed this bill.

Your Committee finds that all revenue sources to pay for substance abuse treatment should be explored and considered as the state addresses the need to combat the devastating effects of crystal methamphetamine abuse. Proceeds from forfeiture of property and money seized by law enforcement from drug dealers are appropriately used for substance abuse treatment.

Your Committee has amended this bill by:

(1) Removing the requirement that federal forfeiture funds be transmitted to the State;

(2) Requiring local and state government law enforcement agencies who seize property or money forfeited under federal proceedings to spend 15 percent of federal forfeiture funds received on substance abuse prevention and treatment as a condition of receiving proceeds from any state forfeiture proceedings;

(3) Requiring the AG to include in the annual report on the Fund a summary of accountings from the state and local law enforcement agencies' spending of federal forfeiture funds on substance abuse treatment and prevention programs; and

(4) Making technical, nonsubstantive amendments for style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2880, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2880, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

 

____________________________

ERIC G. HAMAKAWA, Chair