HB 1385 — Concerning seizure and forfeiture procedures and reporting.

Real property seized under this section shall not be transferred or otherwise conveyed until ninety p.days after seizure or until a judgment of forfeiture is entered, whichever is later:

14PROVIDED, SHBThat 1385real daysproperty afterseized seizureunder this section may be transferred or untilconveyed ato judgmentany ofperson forfeitureor isentity entered,who whicheveracquires istitle later:by foreclosure or deed in lieu of foreclosure of a p.

PROVIDED,14 ThatHB real1385 property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest.

(4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of p.items specified in subsection (1) of this section within forty-five days of the service of notice from the seizing agency in the case of personal property and ninety days in the case of real property, the item seized shall be deemed forfeited.

15The SHBcommunity 1385 items specified in subsection (1) of this section within forty-five days of the service of notice from the seizing agency in the case of personal property andp. ninety days in the case of real property, the item seized shall be deemed forfeited.

The15 communityHB property1385 interest in real property of a person whose spouse or domestic partner committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation.

In all cases, the burden of p.proof is upon the law enforcement agency to establish, by a preponderance of the evidence, that the property is subject to forfeiture.

16p. SHB 1385 proof is upon the law enforcement agency to establish, by a preponderance of the evidence, that the property is subject to forfeiture.

16 HB 1385 The seizing law enforcement agency shall promptly return the article or articles to the claimant upon a determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession thereof of items specified in subsection (1) of this section.

(9)(a) By January 31st of each year, each seizing agency shall remit to the state an amount equal to ten percent of the net proceeds p.of any property forfeited during the preceding calendar year.

17 SHB 1385 of any property forfeited during the preceding calendar year.

(b)p. The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure;

17 HB 1385 (b) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure;

(b) The landlord has applied any funds remaining in the tenant's deposit, to which the landlord has a right under chapter 59.18 RCW, p.to cover the damage directly caused by a law enforcement officer prior to asserting a claim under the provisions of this section:

18(i) SHBOnly 1385if to cover the damagefunds directlyapplied causedunder by(b) aof lawthis enforcementsubsection officerare priorinsufficient to assertingsatisfy athe claimdamage underdirectly thecaused provisionsby ofa thislaw section:p.

(i)18 OnlyHB if1385 the funds applied under (b) of this subsection are insufficient to satisfy the damage directly caused by a law enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;

However, if a law enforcement agency satisfies a landlord's claim under subsection (12) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency)) are governed p.

19 SHBHB 1385 claim under subsection (12) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency)) are governed by chapter 7.--- RCW (the new chapter created in section 18 of this act).

((The law enforcement agency under whose authority the seizure was made shall cause notice of the seizure and intended forfeiture of the seized proceeds to be p.served within fifteen days after the seizure on the owner of the property seized and the person in charge thereof and any person who has a known right or interest therein, including a community property interest.

20Service SHBof 1385notice servedof within fifteen days after the seizure on the owner of thereal property seizedshall andbe themade personp. in charge thereof and any person who has a known right or interest therein, including a community property interest.

Service20 ofHB notice1385 of seizure of real property shall be made according to the rules of civil procedure.

p.(1) The following are subject to seizure and forfeiture and no property right exists in them:

21All SHBpersonal 1385property, (1)including, Thebut followingnot arelimited subjectto, toany seizureitem, andobject, forfeituretool, andsubstance, nodevice, propertyweapon, rightmachine, existsvehicle inof them:any kind, money, security, or negotiable instrument, which has been or was actually employed as an p.

All21 personalHB property,1385 including, but not limited to, any item, object, tool, substance, device, weapon, machine, vehicle of any kind, money, security, or negotiable instrument, which has been or was actually employed as an instrumentality in the commission of, or in aiding or abetting in the commission of any felony, or which was furnished or was intended to be furnished by any person in the commission of, as a result of, or as compensation for the commission of, any felony, or which was acquired in whole or in part with proceeds traceable to the commission of a felony.

The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended p.forfeiture of the seized property.

22 SHB 1385 forfeiture of the seized property.

Notice of seizurep. in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title.

22 HB 1385 seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title.

The burden of producing p.evidence shall be upon the person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the property.

23The SHBseizing 1385law evidenceenforcement agency shall bepromptly uponreturn the personproperty claiming to be the lawfulclaimant ownerupon ora thedetermination personby claiming to have the lawfulp. right to possession of the property.

The23 seizingHB law1385 enforcement agency shall promptly return the property to the claimant upon a determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession of the property.

(c) Retained property and net proceeds not required to be remitted to the state, or otherwise required to be spent under this section, shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of law enforcement p.activity.

24 SHB 1385 activity.

(4)p. When property is seized under this chapter and forfeited pursuant to chapter 7.--- RCW (the new chapter created in section 18 of this act), the seizing agency must first satisfy any court-ordered victim restitution before retaining, using, selling, or taking other action with respect to the property as permitted under section 5 of this act.

24 HB 1385 (4) When property is seized under this chapter and forfeited pursuant to chapter 7.--- RCW (the new chapter created in section 18 of this act), the seizing agency must first satisfy any court-ordered victim restitution before retaining, using, selling, or taking other action with respect to the property as permitted under section 5 of this act.

(b) A forfeiture of property encumbered by a bona fide security interest is subject to the interest of the secured party if the p.secured party neither had actual or constructive knowledge of nor consented to the commission of any crime involving the theft, trafficking, or unlawful possession of commercial metal property;

25and SHBp. 1385 secured party neither had actual or constructive knowledge of nor consented to the commission of any crime involving the theft, trafficking, or unlawful possession of commercial metal property;

and25 HB 1385 (c) A property owner's property is not subject to seizure if an employee or agent of that property owner uses the property owner's property to knowingly or intentionally facilitate the commission of, or to knowingly or intentionally aid and abet the commission of, a crime involving theft, trafficking, or unlawful possession of commercial metal property, in violation of that property owner's instructions or policies against such activity, and without the property owner's knowledge or consent.

(3) Property subject to forfeiture under this chapter may be seized by any law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property.

26 SHBHB 1385 (3)Seizure Propertyof subjectreal toproperty forfeitureshall underinclude thisthe chapterfiling may be seized by any law enforcement officer of thisa statelis uponpendens process issued by any superior court having jurisdiction over the property.seizing agency.

Seizure of real property shall include the filing of a lis pendens by the seizing agency.

Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title shall be made by service upon the secured party p.or the secured party's assignee at the address shown on the financing statement or the certificate of title.

27p. SHB 1385 or the secured party's assignee at the address shown on the financing statement or the certificate of title.

27 HB 1385 (5) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the item seized shall be deemed forfeited.

The burden of producing evidence shall be upon the person claiming to be the lawful owner or p.the person claiming to have the lawful right to possession of the property.

28p. SHB 1385 the person claiming to have the lawful right to possession of the property.

28 HB 1385 (7) At the hearing, the seizing agency has the burden of proof to establish by a preponderance of the evidence that seized property is subject to forfeiture, and that the use or intended use of the seized property in connection with a crime pursuant to this section occurred with the owner's actual or constructive knowledge or consent.

(c) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is p.subject at the time of seizure;

29and SHBin 1385the subjectcase atof sold property, after deducting the timecost of seizure;sale, including reasonable fees or p.

and29 inHB the1385 case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents, and the cost of any valid landlord's claim for damages.

(1) Upon the arrest of a person or upon the filing of a complaint, citation, or information in a court of competent jurisdiction, based upon probable cause to believe that a person has violated RCW 46.20.740, 46.61.502, or 46.61.504 or any similar municipal ordinance, if such person has a prior offense within seven years as defined in RCW 46.61.5055, and where the person has been provided written notice that any transfer, sale, or encumbrance of such person's interest in the vehicle over which that person was p.

30 SHBHB 1385 provided written notice that any transfer, sale, or encumbrance of such person's interest in the vehicle over which that person was actually driving or had physical control when the violation occurred, is unlawful pending either acquittal, dismissal, sixty days after conviction, or other termination of the charge, such person shall be prohibited from encumbering, selling, or transferring his or her interest in such vehicle, except as otherwise provided in (a), (b), and (c) of this subsection, until either acquittal, dismissal, sixty days after conviction, or other termination of the charge.

Seizure of a vehicle may be made without process if the vehicle subject to seizure has been the p.subject of a prior judgment in favor of the state in a forfeiture proceeding based upon this section.

31p. SHB 1385 subject of a prior judgment in favor of the state in a forfeiture proceeding based upon this section.

31 HB 1385 (4) Seizure under subsection (3) of this section automatically commences proceedings for forfeiture, which proceedings are governed by chapter 7.--- RCW (the new chapter created in section 18 of this act).

The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080 or 4.92.020, within forty-five days after the p.person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession.

32The SHBp. 1385 person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession.

The32 HB 1385 court to which the matter is to be removed shall be the district court when the aggregate value of the vehicle is within the jurisdictional limit set forth in RCW 3.66.020.

(12) By January 31st of each year, each seizing agency shall remit to the state an amount equal to ten percent of the net proceeds of vehicles forfeited during the preceding calendar year for deposit into the behavioral health loan repayment program account created in p.RCW 28B.115.135 through June 30, 2027, and into the state general fund thereafter.

33p. SHB 1385 RCW 28B.115.135 through June 30, 2027, and into the state general fund thereafter.

33 HB 1385 (13) The net proceeds of a forfeited vehicle is the value of the forfeitable interest in the vehicle after deducting the cost of satisfying a bona fide security interest to which the vehicle is subject at the time of seizure;

or p.(d) The law enforcement officer has probable cause to believe that the explosives, improvised devices, or components were used or were intended to be used in violation of this chapter.

34p. SHB 1385 (d) The law enforcement officer has probable cause to believe that the explosives, improvised devices, or components were used or were intended to be used in violation of this chapter.

34 HB 1385 (4) A law enforcement agency shall destroy explosives seized under this chapter when it is necessary to protect the public safety and welfare.

When destruction is not necessary to protect the public safety and welfare, and the explosives are not being held for evidence, a seizure pursuant to this section commences proceedings for forfeitureforfeiture, , which proceedings are governed by chapter 7.--- RCW (the new chapter created in section 18 of this act).

The seizing law enforcement agency shall bear the burden of proving that the person (a) has no lawful right of ownership or possession and (b) that the items seized were possessed, manufactured, stored, sold, purchased, transported, abandoned, p.detonated, or used in violation of a provision of this chapter with the person's knowledge or consent.

35p. SHB 1385 detonated, or used in violation of a provision of this chapter with the person's knowledge or consent.

35 HB 1385 (8) The seizing law enforcement agency shall promptly return the items seized to the claimant upon a determination that the claimant is entitled to possession of the items seized.

(2) In the event of a seizure of property under this section, jurisdiction to begin the forfeiture proceedings shall commence upon seizure, and shall be governed by chapter 7.--- RCW (the new chapter p.created in section 18 of this act).

36((Within SHBfifteen 1385days createdfollowing inthe sectionseizure, 18the ofseizing thisauthority act).shall serve a written notice of p.

((Within36 fifteenHB days1385 following the seizure, the seizing authority shall serve a written notice of intent to forfeit property on the owner of the property seized and on any person having any known right or interest in the property seized.

(6) A forfeiture of a conveyance encumbered by a perfected security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the act p.

37 SHBHB 1385 (6) A forfeiture of a conveyance encumbered by a perfected security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the act or omission.

(ii) No conveyance is subject to forfeiture under this section by reason of any act or omission ((established by the owner thereof to p.have been)) committed or omitted without the owner's knowledge or consent;

38p. SHB 1385 have been)) committed or omitted without the owner's knowledge or consent;

38 HB 1385 (iii) No conveyance is subject to forfeiture under this section if used in the receipt of only an amount of cannabis for which possession constitutes a misdemeanor under RCW 69.50.4014;

and (h) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements which are being used with the knowledge of the owner for p.

39 SHBHB 1385 (h) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements which are being used with the knowledge of the owner for the manufacturing, compounding, processing, delivery, importing, or exporting of any controlled substance, or which have been acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter 69.41 or 69.52 RCW, if such activity is not less than a class C felony and a substantial nexus exists between the commercial production or sale of the controlled substance and the real property.

(2) Real or personal property subject to forfeiture under this chapter may be seized by any commission inspector or law enforcement officer of this state upon process issued by any superior court p.

40 SHBHB 1385 (2) Real or personal property subject to forfeiture under this chapter may be seized by any commission inspector or law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property.

Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title, shall be made by service upon the secured party or the secured party's assignee at the p.

41 SHBHB 1385 has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title, shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title.

Removal of any matter p.involving personal property may only be accomplished according to the rules of civil procedure.

42The SHBperson 1385seeking involvingremoval personalof propertythe maymatter onlymust beserve accomplishedprocess accordingagainst to the rulesstate, ofcounty, civilpolitical procedure.subdivision, p.

The42 personHB seeking1385 removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080 or 4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession.

(8)(((a) When property is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the property, the disposition of the property, the p.

43 SHBHB 1385 (8)(((a) When property is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the property, the disposition of the property, the value of the property at the time of seizure, and the amount of proceeds realized from disposition of the property.

p.(10) Forfeited property and net proceeds not required to be remitted to the state shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of controlled substances related law enforcement activity.

44Money SHBp. 1385 (10) Forfeited property and net proceeds not required to be remitted to the state shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of controlled substances related law enforcement activity.

If44 theHB seizing1385 agencyretained isunder athis portsection district operating an airport in a county with a population of more than one million, it may use the net proceeds not required to be remittedused to thesupplant statepreexisting forfunding purposessources. related to controlled substances law enforcement, substance abuse education, human trafficking interdiction, and responsible gun ownership.

Money retained under this section may not be used to supplant preexisting funding sources.

p.(i) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence;

45 SHB 1385 (i) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence;

(A) Only if the funds applied under (a)(ii) of this subsection are insufficient to satisfy the damage directly caused by a law enforcementp. officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;

45 HB 1385 enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;

and p.(d) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (9)(b) of this section.

46 SHB 1385 (d) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (9)(b) of this section.

(18)p. The protections afforded by the service members' civil relief act, chapter 38.42 RCW, are applicable to proceedings under this section.

46 HB 1385 (18) The protections afforded by the service members' civil relief act, chapter 38.42 RCW, are applicable to proceedings under this section.

p.NEW SECTION.

47 SHB 1385 NEW SECTION.

4847 SHBHB 1385