AB 425 — Establishes provisions relating to the criminal forfeiture of certain currency used in or derived from unlawful acts relating to the transportation, sale or trafficking of controlled substances. (BDR 14-483)

Section 21 also requires the property- or*AB425_R1* personal– property3 – court alone to make a determination regarding the forfeiture of the seized minor currency after the conviction of the defendant and sets forth the standards for making such a determination.

Section 21 authorizes the forfeiture of seized realminor propertycurrency or personal property before the conviction of the defendant if the defendant dies, gets deported or absconds.

Section 2223 of this bill authorizesprovides thethat courta todefendant orderis thenot forfeiturejointly ofand substituteseverally propertyliaSection owned24 byof thethis defendantbill: under certain circumstances.

Section(1) 23authorizes of this bill provides that a defendant isto notpetition jointlythe andcourt severallyto liabledetermine forwhether anthe awardforfeiture of forfeitureminor owedcurrency byis otherunconstitutionally defendants.excessive;

determine whether the forfeiture of real property or personal property isurt to unconstitutionally excessive;

Section 25 of this bill requires aminor statecurrency orthat localis law enforcement agency to sell forfeited property and requires the proceeds of the sale in addition to any money forfeited to be distributed in accordance with a specific order of priority.

Section 2628 of this billbill: prohibits forfeited property from being sold to certain persons.

Section(1) 27provides that minor currency of thisan bill:innocent owner is not subject to forfeiture;

(1)(2) prohibitsauthorizes realthe propertyState or personal property subject to asummarily bonareturn fideminor securitycurrency interestto froman beinginnocent forfeited;owner;

(2)(3) authorizes toan theinnocent Stateowner to authorizes a person who holds a bona fide security interest in the seized property to file a petition for the return of the property;minor currency;

and (4) affords partiesappointment appellateof rightsan regardingattorney ato decisionrepresent onan theinnocent petition.owner.

Section 2829 of this billbillts establishesthe similarawards provisionscertain relatingfees and costs to innocent owners.owners who succeed on a petition for the return of seized minor currency.

Section 29 of this bill awards certain fees and costs to holders of security interests and innocent owners who succeed on a petition for the return of seized property.

Section 32 reasonablerequires periodminor ofcurrency timeto be returned to a person within a reasonable period not to exceedexcExisting 5law daysrequires afterlaw theenforcement issuanceagencies ofto amake courtannual orderreports to thatthe effect.Attorney General concerning the forfeiture of property.

Existing(NRS law179.1205) Section 33 of this bill requires state or local law enforcement agencies toacting makeunder annualthe reportsprovisions toof the AttorneyAct Generalto concerningcomply thewith forfeituresuch ofannual property.reporting requirements.

(NRS 179.1205) Section 33 of this bill requires state or local law enforcement agencies acting under the - *AB425* – 4 – provisions of the Act to comply with such annual reporting requirements.

Section 34 of this bill prohibits a state or local law enforcement agency from agencytransferring seekingseized theminor adoptioncurrency of the contraband or property.property to a federal Sectionagency 35seeking the adoption of thisthe billminor requires:currency.

(1) the Attorney General to establish guidelines concerning the participation of state or local law enforcement agencies in jointjointlines tasks forces;

Existing law requires the Peace Officers’ Standards and Training Commission to certify peace officers in this State and sets forth various training requirements concerning the certification of peace officers.

(NRS 289.550-289.605) Section 43 of this bill authorizes the certificationCommission ofto require peace officers to includereceive training concerning the provisions of the Act.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:FOLLOWS:D IN Section 1.

Section 1.

Sections 2 to 35, inclusive, of this act may be cited as the Criminal Forfeiture Processof Minor Currency Act.

- *AB425_R1* – 4 – Sec.

As used in sections 2 to 35, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4,4 5 and 65.5 of this act have the meanings ascribed to them in those sections.

“Contraband”(Deleted meansby goodsamendment.) thatSec. are unlawful to possess.

5.5.

“Minor currency” means United States currency totaling $5,000 or less.

“Real(Deleted property”by means:amendment.) Sec.

1.

Land, including, land under water;

2.

Anything growing on land;

and 3.

Permanent or temporary buildings, structures, fixtures or improvements on land.

Sec.

Confiscate propertyminor currency used in violation of the law;

Disgorge minor currency that is the fruit of illegal conduct;

Protect against the wrongful forfeiture of property.minor currency.

Notwithstanding any other provision of law, sections 2 to 35, inclusive, of this actact: govern the seizure, forfeiture and - *AB425* – 5 – disposition of property and contraband used in or derived from an unlawful act relating to the possession, distribution or use of controlled substances.

1.

Govern the seizure, forfeiture and disposition of minor currency used in or derived from an unlawful act relating to the transportation, sale or trafficking of a controlled substance.

2.

Prohibit the forfeiture of minor currency used in or derived from the possession or purchase of a controlled substance.

A court with jurisdiction over any underlying criminal proceedings shall have jurisdiction over any proceedings relating to the seizure, forfeiture and disposition of propertyminor currency pursuant to sections 2 to 35, inclusive, of this act.

If an attorney is appointed by the court to represent a defendant in the criminal proceedings, the attorney shall represent the defendant in the proceedings relating to the seizure, forfeiture and disposition of propertyminor currency pursuant to sections 2 to 35, inclusive, of this act.

1.Minor currency is subject to seizure pursuant to sections 11, 12 and 13 of this act, as applicable, if the minor currency was used in or derived from an unlawful act relating to the transportation, sale or trafficking of a controlled substance.

Except as otherwise provided in subsection 2, contraband, real property and personal property is subject to seizure pursuant to sections 11, 12 and 13 of this act, as applicable, if the contraband or property was used in or derived from an unlawful act relating to the possession, distribution or use of a controlled substance.

2.

The following types of property are not subject to seizure pursuant to sections 11, 12 and 13 of this act:

(a) Except as otherwise provided in paragraph (b), money totaling $200 or less and motor vehicles valued at $2,000 or less;

and (b) Money or motor vehicles which exceed the dollar amounts described in paragraph (a), respectively, unless the office of a prosecutor adopts a policy delineating higher dollar amounts which is based on the:

(1) Type and number of occurrences in the jurisdiction of the office of the prosecutor where the money and motor vehicles are subject to seizure pursuant to sections 2 to 35, inclusive, of this act;

and (2) Average value of money and motor vehicles seized in the jurisdiction of the office of a prosecuting attorney minus the cost to the office for the seizure, forfeiture and disposition of the money or motor vehicles pursuant to sections 2 to 35, inclusive, of this act.

3.

Each office of a prosecutor shall advise the state or local law enforcement agencies in the jurisdiction of the office as to any publication that may be used to establish the value of motor vehicles for the purpose of subsection 2.

1.(Deleted by amendment.) Sec.

Contraband may be seized by a state or local law enforcement agency at any time without a court order if the seizure is made incident to a lawful search.

2.

At any time in which contraband is no longer needed as evidence in the underlying criminal proceedings of the defendant, - *AB425* – 6 – the State may petition the court for the destruction of the contraband in accordance with State law.

3.

The court may grant a petition described in subsection 2 after notice has been provided to the defendant and any other party with an interest in the contraband and the State, at a hearing on the petition, proves by a clear and convincing evidence that the contraband was used in or derived from an unlawful act relating to the possession, distribution or use of a controlled substance.

Sec.

The State may file a verified application requesting that personalminor propertycurrency or real property be seized by a state or local law enforcement agency.

If it appears toby theclear satisfactionand ofconvincing theevidence court from the specific facts shown by the verified application that the personalminor property- or*AB425_R1* real– property5 – currency is subject to seizure pursuant to section 10 of this act, the court may grant a preliminary order for the seizure of the property.minor currency.

A preliminary order may be granted without notice to the defendant and any other party with an interest in the property.minor currency.

At the time of such expiration, the propertyminor currency seized pursuant to this section must be returned to the owner.

If good cause is shown for the extension, the court may grant the extension after notice is provided to the defendant and any person with an interest in the propertyminor currency and a hearing on the application.

In addition to the seizure of personalminor propertycurrency by court order pursuant to section 12 of this act, personalminor propertycurrency may be seized by a state or local law enforcement agency if:

(b) The personalminor propertycurrency subject to seizure has been the subject of a prior judgment in favor of the State;

or (c) The State has probable cause to believe that the delay occasioned by the necessity to obtain a court order would result in the removal or destruction of the personalminor propertycurrency that is forfeitable pursuant to sectionssection 20 or 21 of this act.

When contraband,minor realcurrency property or personal property is seized pursuant to section 11, 12 or 13 of this act, as applicable, the state or local law enforcement agency that seized the propertyminor orcurrency contraband shall:

- *AB425* – 7 – (a) Give an itemized receipt to the person possessing the contrabandminor orcurrency; property;

or (b) In the absence of a person possessing the contrabandminor orcurrency, property, leave an itemized receipt at the place where the contrabandminor orcurrency property was found, if reasonably practicable.

Upon providing the receipt to a person or leaving the receipt at the place where the contrabandminor orcurrency property was found pursuant to this section, notice of the seizure of the contrabandminor orcurrency property shall be deemed complete.

Not later than 30 days after the seizure of realminor propertycurrency or personal property pursuant to section 12 or 13 of this act, the State shall:

- *AB425_R1* – 6 – (a) Perform a reasonable search of public records to identify any person, other than the defendant, known to have an interest in the property;minor currency;

and (b) Provide notice to the defendant and any person identified pursuant to paragraph (a) that the seized propertyminor currency is subject to forfeiture pursuant to section 20 or 21 of this act.

In addition to any petition filed pursuant to section 24 of this act, any person to whom the State issued notice pursuant to section 15 of this act has a right to a pretrial hearing to determine the validity of the seizure of the realminor propertycurrency or personal property pursuant to section 12 or 13 of this act.

The State shall file an answer showing probable cause for the seizure of the realminor propertycurrency or personal property pursuant to section 12 or 13 of this act, not less than 5 days before the hearing on the motion.

- *AB425* – 8 – (b) An information or indictment charging the defendant with an unlawful act relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance has not been filed by the State;

(c) The judgment concerning the forfeiture of the propertyminor currency seized pursuant to section 12 or 13 of this act will likely be found in favor of:

or (2) A person with an interest in the propertyminor currency pursuant to section 27 or 28 of this act, if the interested person filed the motion pursuant to subsection 1;

or (d) Unless the State proves by aclear preponderanceand ofconvincing the evidence that the propertyminor currency will likely be forfeited pursuant to section 20 or 21 of this act, and subject to the limitations set forth in - *AB425_R1* – 7 – subsection 6, the defendant filed the motion pursuant to subsection 1 and the propertyminor currency is the only reasonable means for the defendant to pay for legal representation in the criminal proceedings.

The court shall not order the return of more realminor propertycurrency or personal property pursuant to paragraph (d) of subsection 5 than is reasonably necessary to cover the costs of the legal representation of the defendant.

A state or local law enforcement agency shall not request, require or induce a person to waive an interest in realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act for the purposes of the forfeiture pursuant to section 20 and 21 of this act.

A document purporting to waive an interest in realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act is void and inadmissible in court.

At the time propertyminor currency is seized pursuant to section 12 or 13 of this act, the State acquires provisional title to the seized property.minor currency.

Provisional title authorizes the State to hold and protect the property.minor currency.

Title to realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act vests with the State when the court renders a decision concerning the forfeiture of the seized propertyminor currency pursuant to section 20 andor 21 of this act and relates back to the time when the State acquired provisional title to the propertyminor currency pursuant to subsection 1.

Such title is subject to claims by third parties adjudicated pursuant to section 16,16 27 or 28 of this act.

3.

Title to contraband seized pursuant to section 11 of this act vests with the State at the time of the seizure by the state or local law enforcement agency.

RealMinor propertycurrency or personal property seized pursuant to section 12 or 13 of this act may not be forfeited and must be - *AB425* – 9 – returned to the person from whom the propertyminor currency was seized ifif: the State:

DoesThe notState: file criminal charges against the defendant relating to the commission of an unlawful act relating to the possession, distribution or use of a controlled substance;

(a) Does not file criminal charges against the defendant relating to the commission of an unlawful act relating to the transportation, sale or trafficking of a controlled substance;

or (b) Dismisses the charges filed against the defendant for an unlawful act relating to the transportation, sale or trafficking of a controlled substance;

DismissesThe thedefendant chargesis filednot againstconvicted theof defendant for an unlawful act relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance.

RealMinor propertycurrency or personal property seized pursuant to section 12 or 13 of this act may be forfeited as part of a plea agreement or the stipulation of the parties if:

and - *AB425_R1* – 8 – 2.

The State shall file a notice of proposed forfeiture with the information or indictment charging the defendant with a violation of state law relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance, or any time thereafter, but not later than the date of the commencement of the trial of the defendant.

(a) A description of the realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act;

(b) The time, date and place of the seizure of the propertyminor currency described in paragraph (a);

(d) A brief description of how the propertyminor currency described in paragraph (a) was used in or derived from the unlawful act relating to the possession,transportation, distributionsale or usetrafficking of any controlled substance for which the defendant was charged;

and (e) Whether the State seeks the forfeiture of the propertyminor currency described in paragraph (a):

Except as otherwise provided in subsection 7, a determination relating to the forfeiture of realminor propertycurrency or personal property pursuant to this section must be held in a single proceeding following the trial of the defendant.

The court shall - *AB425* – 10 – make a determination relating to the forfeiture in accordance with subsections 5 and 6.

The court shall order the return of any propertyminor currency seized pursuant to section 12 or 13 of this act if the defendant is not convicted or the provisions of subsection 6 are otherwise not satisfied.

The court shall order the forfeiture of the property,minor currency, if the defendant is convicted and the prosecuting attorney establishes by clear and convincing evidence that:

(a) The defendant committed an unlawful act relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance;

and - *AB425_R1* – 9 – (b) The propertyminor currency was used in or derived from an unlawful act relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance.

If the defendant dies, is deported or absconds before trial, the court shall order the returnforfeiture of the realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act upon a finding by clear and convincing evidence that:

(a) The defendant was charged with a violation of state law relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance;

(b) The propertyminor currency was used in or derived from an unlawful act relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance;

A decision of the court regarding forfeiture of propertyminor currency pursuant to this section may be appealed by any party to the decision.

Upon(Deleted a motion by theamendment.) StateSec. following conviction, or upon a motion of the court, the court may order the forfeiture of substitute property owned by the defendant up to the value of property described in section 10 of this act if the State proves by a preponderance of the evidence that the defendant intentionally:

1.

Dissipated the property;

2.

Transferred, sold or deposited the property with a third party to avoid the jurisdiction of the court;

3.

Substantially diminished the value of the property;

or 4.

Commingled the property with other property that cannot be divided without difficulty.

Sec.

If ownership of the propertyminor currency is unclear, a court may order each defendant to forfeit - *AB425* – 11 – the propertyminor currency on a pro rata basis or by any other means the court finds equitable.

At any time after a court has ordered the forfeiture of propertyminor currency pursuant to section 21 of this act, the defendant may petition the court to determine whether the forfeiture is unconstitutionally excessive under the Nevada Constitution or the United States Constitution.

In determining whether the forfeiture of property is unconstitutionally excessive, the court:

(3) The extent to which the propertyminor currency was used in committing the related crime;

- *AB425_R1* – 10 – (5) Whether the related crime was completed or attempted;

and (8) The hardship from the loss of the propertyminor currency to the family of the defendant or other relevant persons if the propertyminor currency is forfeited;

and (b) May not consider the value of the propertyminor currency to the State.

If a court orders the forfeiture of realminor propertycurrency or personal property pursuant to section 20 andor 21 of this act and all appeals of the order have been exhausted by the defendant, the State and any other party with an interest in the property,minor currency, the stateminor orcurrency localmust lawbe enforcementdistributed agencyin that seized the propertyfollowing pursuantorder toof sectionpriority: 12 or 13 must sell the property.

2.

Any proceeds of the sale pursuant to subsection 1 must be combined with any property forfeited pursuant to section 20 or 21 of this act.

The combined total must be distributed in the following order of priority:

(b) To satisfyreimburse anythe outstandingstate liensor onlocal law enforcement agency who seized the forfeitedminor property;currency for expenses related to the seizure, forfeiture and disposition of the minor currency pursuant to sections 2 to 35, inclusive, of this act, except personnel costs;

-and *AB425* – 12 – (c) To reimburse the stateoffice orof local law enforcement agency who seized the propertyprosecutor, foroffice expensesof related to the seizure,public forfeituredefender andor dispositionother ofcourt theappointed propertyattorney pursuantfor toany sectionsexpenses 2related to 35,the inclusive,criminal ofproceedings, this act, except personnel costs;costs.

and2. (d) To reimburse the office of the prosecutor, office of the public defender or other court appointed attorney for any expenses related to the criminal proceedings, except personnel costs.

3.Any amount remaining after distribution pursuant to subsection 2 must be divided and disbursed to:

Any amount remaining after distribution pursuant to subsection 2 must be divided and dispersed to:

A(Deleted stateby oramendment.) localSec. law enforcement agency shall not sell property pursuant to section 25 of this act directly or indirectly to:

1.

An employee of the state or local law enforcement agency;

2.

A person related to an employee of the state or local law enforcement agency by blood or marriage;

or 3.

Another state or local law enforcement agency.

Sec.

1.(Deleted by amendment.) Sec.

Except as otherwise provided in subsection 4, a bona fide security interest in real property or personal property seized pursuant to section 12 or 13 of this act is not subject to forfeiture.

2.

At any time before real property or personal property seized pursuant to section 12 or 13 of this act is forfeited pursuant to section 20 or 21 of this act, the State may summarily return the property to a person who holds a bona fide security interest in the property.

3.

If the State does not summarily return real property or personal property pursuant to subsection 2, the holder of a bona fide security interest in the property may, at any time before the forfeiture of the property pursuant to section 20 or 21 of this act, petition the court for the return of the property.

4.

A court shall hear a petition filed pursuant to subsection 3 not later than 30 days after the filing or at another time within the discretion of the court.

The hearing shall be held before the court alone and the court may consolidate the hearing on the petition with any other hearing before the court in the case of the defendant.

5.

If the court determines that the petitioner established by clear and convincing evidence that the petitioner has a bona fide security interest in the real property or personal property seized pursuant to section 12 or 13 of this act, the court shall order the return of the seized property to the petitioner, unless the State proves by a preponderance of the evidence that the petitioner had - *AB425* – 13 – actual knowledge that the property was used in or derived from an unlawful act for which the property was seized pursuant to section 12 or 13 of this act.

6.

The determination of the court pursuant to subsection 5 may be appealed by any party to the decision.

Sec.

RealMinor propertycurrency or personal property of an innocent owner seized pursuant to section 12 or 13 of this act is not subject to forfeiture.

At any time before realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act is forfeited pursuant to section 20 or 21 of this act, the State may summarily return the propertyminor currency to an innocent owner.

If the State does not summarily return realthe propertyminor orcurrency personal property to an innocent owner pursuant to subsection 2, the innocent owner may, at any time before the propertyminor currency is forfeited pursuant to section 20 or 21 of this act, file a petition with the court, free of charge.

(a) The right, title or interest of the innocent owner to the realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act;

- *AB425_R1* – 11 – (b) The time and circumstances of the acquisition of the right, title or interest in the propertyminor currency described in paragraph (a);

If the court determines that the petitioner has established by cleara andpreponderance convincingof the evidence that the petitioner is an innocent owner, the court shall order the State to return the propertyminor currency to the petitioner, unless the State proves by aclear preponderanceand ofconvincing the evidence that the petitioner had actual knowledge that the propertyminor currency was used in or derived from the unlawful act for which the propertyminor currency was seized pursuant to section 12 or 13 of this act.

The prosecuting attorney may not use information provided in the petition described in subsection 3 in the criminal proceedings against the defendant unless the innocent party independently testifies to the same facts contained in the petition at the trial of the defendant.

- *AB425* – 14 – 8.

An attorney must not be appointed to represent an innocent owner.

10.

(a) Has any interest,interest including, without limitation, joint tenancy, tenancy in commonminor orcurrency tenancy be the entirety, in real property or personal property seized pursuant to section 12 or 13 of this act;

or (b) Is the heir of the defendant from whom realminor propertycurrency or personal property was seized pursuant to section 12 or 13 of this act.

In any proceeding pursuant to section 27 or 28 of this act where a court orders the return of realminor propertycurrency or personal property seized pursuant to section 12 or 13 of this act to a petitioner, the state or local law enforcement agency which seized the propertyminor currency shall be liable for:

InAny cases involving currency, other negotiable instruments or the proceeds of an interlocutory sale, any interest actually paid from the date of the seizure.

- *AB425_R1* – 12 – 1.

If a court orders the return of realminor propertycurrency or personal property pursuant to sections 2 to 35, inclusive, of this act, the state or local law enforcement agency which seized the propertyminor currency pursuant to section 12 or 13 of this act shall return the propertyminor currency to the person within a reasonable period of time not to exceed 5 days after the date of the issuance of the order.

The state or local law enforcement agency which seized the propertyminor currency pursuant to section 12 or 13 of this act is responsible for any damages, storage fees and costs relating to the propertyminor currency returned pursuant to subsection 1.

- *AB425* – 15 – Sec.

A state or local law enforcement agency shall not refer or otherwise transfer contraband,minor realcurrency property or personal property seized pursuant to section 11, 12 or 13 of this act, as applicable, to a federal agency seeking the adoption of the seized propertyminor currency pursuant to the Controlled Substances Act, 21 U.S.C.

The Attorney General shall establish guidelines to be used by state or local law enforcement agencies who participate in joint task forces or otherwise collaborate with other jurisdictions concerning unlawful acts relating to the possession,transportation, distributionsale or usetrafficking of a controlled substance.

- *AB425_R1* – 13 – Sec.

NRS(Deleted 179.1164by isamendment.) herebySec. amended to read as follows:

179.1164 1.

Except as otherwise provided in subsection 2, the following property is subject to seizure and forfeiture in a proceeding for forfeiture:

(a) Any proceeds attributable to the commission or attempted commission of any felony.

(b) Any property or proceeds otherwise subject to forfeiture pursuant to NRS 179.121, 200.760, 202.257, 370.419 [, 453.301] or 501.3857.

2.

Property may not, to the extent of the interest of any claimant, be declared forfeited by reason of an act or omission shown to have been committed or omitted without the knowledge, consent or willful blindness of the claimant.

[3.

Unless the owner of real property or a mobile home:

- *AB425* – 16 – (a) Has given the tenant notice to surrender the premises pursuant to NRS 40.254 within 90 days after the owner receives notice of a conviction pursuant to subsection 2 of NRS 453.305;

or (b) Shows the court that the owner had good cause not to evict the tenant summarily pursuant to NRS 40.254,  the owner of real property or a mobile home used or intended for use by a tenant to facilitate any violation of the provisions of NRS 453.011 to 453.552, inclusive, except NRS 453.336, is disputably presumed to have known of and consented to that use if the notices required by NRS 453.305 have been given in connection with another such violation relating to the property or mobile home.

The holder of a lien or encumbrance on the property or mobile home is disputably presumed to have acquired an interest in the property for fair value and without knowledge or consent to such use, regardless of when the act giving rise to the forfeiture occurred.] Sec.

NRS(Deleted 179.1187by isamendment.) herebySec. amended to read as follows:

179.1187 1.

The governing body controlling each law enforcement agency that receives proceeds from the sale of forfeited property shall establish with the State Treasurer, county treasurer, city treasurer or town treasurer, as custodian, a special account, known as the “.................

Forfeiture Account.” The account is a separate and continuing account and no money in it reverts to the State General Fund or the general fund of the county, city or town at any time.

For the purposes of this section, the governing body controlling a metropolitan police department is the Metropolitan Police Committee on Fiscal Affairs.

2.

The money in the account may be used for any lawful purpose deemed appropriate by the chief administrative officer of the law enforcement agency, except that:

(a) The money must not be used to pay the ordinary operating expenses of the agency.

(b) [Money derived from the forfeiture of any property described in NRS 453.301 must be used to enforce the provisions of chapter 453 of NRS.

(c)] Money derived from the forfeiture of any property described in NRS 501.3857 must be used to enforce the provisions of title 45 of NRS.

[(d)] (c) Seventy percent of the amount of money in excess of $100,000 remaining in the account at the end of each fiscal year, as determined based upon the accounting standards of the governing body controlling the law enforcement agency that are in place on March 1, 2001, must be distributed to the State Education Fund.

[3.

Notwithstanding the provisions of paragraphs (a) and (b) of subsection 2, money in the account derived from the forfeiture of any property described in NRS 453.301 may be used to pay for the - *AB425* – 17 – operating expenses of a joint task force on narcotics otherwise funded by a federal, state or private grant or donation.

As used in this subsection, “joint task force on narcotics” means a task force on narcotics operated by the Department of Public Safety in conjunction with other local or federal law enforcement agencies.] Sec.

- *AB425_R1* – 14 – (a) On its Internet website, the reports submitted by law enforcement agencies and the aggregate report.

- *AB425* – 18 – 5.

NRS(Deleted 179.121by isamendment.) herebySec. amended to read as follows:

179.121 1.

All personal property, including, without limitation, any tool, substance, weapon, machine, computer, money or security, which is used as an instrumentality in any of the following crimes is subject to forfeiture:

(a) The commission of or attempted commission of the crime of murder, robbery, kidnapping, burglary, invasion of the home, grand larceny or theft if it is punishable as a felony;

(b) The commission of or attempted commission of any felony with the intent to commit, cause, aid, further or conceal an act of terrorism;

(c) A violation of NRS 202.445 or 202.446;

(d) The commission of any crime by a criminal gang, as defined in NRS 213.1263;

or (e) A violation of NRS 200.463 to 200.468, inclusive, 201.300, 201.320, 201.395, 202.265, 202.287, 205.473 to 205.513, inclusive, 205.610 to 205.810, inclusive, 370.380, 370.382, 370.395, 370.405, 465.070 to 465.086, inclusive, 630.400, 630A.600, 631.400, 632.285, 632.291, 632.315, 633.741, 634.227, 634A.230, 635.167, 636.145, 637.090, 637B.290, 639.100, 639.2813, 640.169, 640A.230, 644A.900 or 654.200.

2.

Except as otherwise provided for conveyances forfeitable pursuant to NRS [453.301 or] 501.3857, all conveyances, including aircraft, vehicles or vessels, which are used or intended for use during the commission of a felony or a violation of NRS 202.287, 202.300 or 465.070 to 465.086, inclusive, are subject to forfeiture except that:

(a) A conveyance used by any person as a common carrier in the transaction of business as a common carrier is not subject to forfeiture under this section unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to the felony or violation;

(b) A conveyance is not subject to forfeiture under this section by reason of any act or omission established by the owner thereof to have been committed or omitted without the owner’s knowledge, consent or willful blindness;

(c) A conveyance is not subject to forfeiture for a violation of NRS 202.300 if the firearm used in the violation of that section was not loaded at the time of the violation;

and (d) A forfeiture of a conveyance encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the felony.

- *AB425* – 19 – If a conveyance is forfeited, the appropriate law enforcement agency may pay the existing balance and retain the conveyance for official use.

3.

For the purposes of this section, a firearm is loaded if:

(a) There is a cartridge in the chamber of the firearm;

(b) There is a cartridge in the cylinder of the firearm, if the firearm is a revolver;

or (c) There is a cartridge in the magazine and the magazine is in the firearm or there is a cartridge in the chamber, if the firearm is a semiautomatic firearm.

4.

As used in this section, “act of terrorism” has the meaning ascribed to it in NRS 202.4415.

Sec.

NRS(Deleted 115.010by isamendment.) herebySec. amended to read as follows:

115.010 1.

The homestead is not subject to forced sale on execution or any final process from any court, except as otherwise provided by subsections 2, 3 and 5, and NRS 115.090 and except as otherwise required by federal law.

2.

The exemption provided in subsection 1 extends only to that amount of equity in the property held by the claimant which does not exceed $605,000 in value, unless allodial title has been established and not relinquished, in which case the exemption provided in subsection 1 extends to all equity in the dwelling, its appurtenances and the land on which it is located.

3.

Except as otherwise provided in subsection 4, the exemption provided in subsection 1 does not extend to process to enforce the payment of obligations contracted for the purchase of the property, or for improvements made thereon, including any mechanic’s lien lawfully obtained, or for legal taxes, or for:

(a) Any mortgage or deed of trust thereon executed and given, including, without limitation, any second or subsequent mortgage, mortgage obtained through refinancing, line of credit taken against the property and a home equity loan;

or (b) Any lien to which prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070,  by both spouses, when that relation exists.

4.

If allodial title has been established and not relinquished, the exemption provided in subsection 1 extends to process to enforce the payment of obligations contracted for the purchase of the property, and for improvements made thereon, including any mechanic’s lien lawfully obtained, and for legal taxes levied by a state or local government, and for:

(a) Any mortgage or deed of trust thereon;

and - *AB425* – 20 – (b) Any lien even if prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070,  unless a waiver for the specific obligation to which the judgment relates has been executed by all allodial titleholders of the property.

5.

Establishment of allodial title does not exempt the property from forfeiture pursuant to NRS 179.1156 to 179.121, inclusive, 179.1211 to 179.1235, inclusive, or 207.350 to 207.520, inclusive [.] , or sections 2 to 35, inclusive, of this act.

6.

Any declaration of homestead which has been filed before July 1, 2007, shall be deemed to have been amended on that date by extending the homestead exemption commensurate with any increase in the amount of equity held by the claimant in the property selected and claimed for the exemption up to the amount permitted by law on that date, but the increase does not impair the right of any creditor to execute upon the property when that right existed before July 1, 2007.

Sec.

NRS(Deleted 202.340by isamendment.) herebySec. amended to read as follows:

202.340 1.

[Except as otherwise provided for firearms forfeitable pursuant to NRS 453.301, when] When any instrument or weapon described in NRS 202.350 is taken from the possession of any person charged with the commission of any public offense or crime or any child charged with committing a delinquent act, the instrument or weapon must be surrendered to:

(a) The head of the police force or department of an incorporated city if the possession thereof was detected by any member of the police force of the city;

or (b) The chief administrator of a state law enforcement agency, for disposal pursuant to NRS 333.220, if the possession thereof was detected by any member of the agency.

 In all other cases, the instrument or weapon must be surrendered to the sheriff of the county or the sheriff of the metropolitan police department for the county in which the instrument or weapon was taken.

2.

Except as otherwise provided in subsection 5, the governing body of the county or city or the metropolitan police committee on fiscal affairs shall at least once a year order the local law enforcement officer to whom any instrument or weapon is surrendered pursuant to subsection 1 to:

(a) Retain the confiscated instrument or weapon for use by the law enforcement agency headed by the officer;

(b) Sell the confiscated instrument or weapon to another law enforcement agency;

- *AB425* – 21 – (c) Destroy or direct the destruction of the confiscated instrument or weapon if it is not otherwise required to be destroyed pursuant to subsection 5;

(d) Trade the confiscated instrument or weapon to a properly licensed retailer or wholesaler in exchange for equipment necessary for the performance of the agency’s duties;

or (e) Donate the confiscated instrument or weapon to a museum, the Nevada National Guard or, if appropriate, to another person for use which furthers a charitable or public interest.

3.

All proceeds of a sale ordered pursuant to subsection 2 by:

(a) The governing body of a county or city must be deposited with the county treasurer or the city treasurer and the county treasurer or the city treasurer shall credit the proceeds to the general fund of the county or city.

(b) A metropolitan police committee on fiscal affairs must be deposited in a fund which was created pursuant to NRS 280.220.

4.

Any officer receiving an order pursuant to subsection 2 shall comply with the order as soon as practicable.

5.

Except as otherwise provided in subsection 6, the officer to whom a confiscated instrument or weapon is surrendered pursuant to subsection 1 shall:

(a) Except as otherwise provided in paragraph (c), destroy or direct to be destroyed any instrument or weapon which is determined to be dangerous to the safety of the public.

(b) Except as otherwise provided in paragraph (c), return any instrument or weapon, which has not been destroyed pursuant to paragraph (a):

(1) Upon demand, to the person from whom the instrument or weapon was confiscated if the person is acquitted of the public offense or crime of which the person was charged;

or (2) To the legal owner of the instrument or weapon if the Attorney General or the district attorney determines that the instrument or weapon was unlawfully acquired from the legal owner.

If retention of the instrument or weapon is ordered or directed pursuant to paragraph (c), except as otherwise provided in paragraph (a), the instrument or weapon must be returned to the legal owner as soon as practicable after the order or direction is rescinded.

(c) Retain the confiscated instrument or weapon held by the officer pursuant to an order of a judge of a court of record or by direction of the Attorney General or district attorney that the retention is necessary for purposes of evidence, until the order or direction is rescinded.

(d) Return any instrument or weapon which was stolen to its rightful owner, unless the return is otherwise prohibited by law.

- *AB425* – 22 – 6.

Before any disposition pursuant to subsection 5, the officer who is in possession of the confiscated instrument or weapon shall submit a full description of the instrument or weapon to a laboratory which provides forensic services in this State.

The director of the laboratory shall determine whether the instrument or weapon:

(a) Must be sent to the laboratory for examination as part of a criminal investigation;

or (b) Is a necessary addition to a referential collection maintained by the laboratory for purposes relating to law enforcement.

Sec.

- *AB425**AB425_R1* – 2315 – 5.

Property or minor currency forfeited [oror subject to forfeiture]forfeiture pursuant to [NRSNRS 453.301]453.301 or sections 2 to 35, inclusive, of this act must not be used to satisfy a fee, tax or penalty imposed by this section.

(c) “Minor currency” has the meaning ascribed to it in section 5.5 of this act.

NRS(Deleted 387.1212by isamendment.) herebySec. amended to read as follows:

387.121246.5. 1.

TheNRS State453.301 Education Fund is hereby createdamended as a special revenue fund to beread administeredas byfollows: the Superintendent of Public Instruction for the purpose of supporting the operation of the public schools in this State.

The453.301 interest[The] andExcept incomeas earnedotherwise onprovided thein moneysections in2 to 35, inclusive, of this act, the Fund,following afterare deductingsubject anyto applicableforfeiture charges,pursuant mustto beNRS credited179.1156 to the179.1205, Fund.inclusive:

2.

Money which must be deposited for credit to the State Education Fund includes, without limitation:

(a) All money derived from interest on the State Permanent School Fund, as provided in NRS 387.030;

(b) The proceeds of the tax imposed pursuant to NRS 244.33561 and any applicable penalty or interest, less any amount retained by the county treasurer for the actual cost of collecting and administering the tax;

(c) The proceeds of the tax imposed pursuant to subsection 1 of NRS 387.195;

(d) The portion of the money in each special account created pursuant to subsection 1 of NRS 179.1187 which is identified in paragraph [(d)] (c) of subsection 2 of NRS 179.1187;

(e) The money identified in subsection 1 of NRS 328.450;

(f) The money identified in subsection 1 of NRS 328.460;

(g) The money identified in paragraph (a) of subsection 2 of NRS 360.850;

(h) The money identified in paragraph (a) of subsection 2 of NRS 360.855;

(i) The money required to be paid over to the State Treasurer for deposit to the credit of the State Education Fund pursuant to subsection 4 of NRS 362.170;

(j) The portion of the proceeds of the tax imposed pursuant to subsection 1 of NRS 372A.290 identified in paragraph (b) of subsection 4 of NRS 372A.290;

(k) The proceeds of the tax imposed pursuant to subsection 3 of NRS 372A.290;

- *AB425* – 24 – (l) The proceeds of the fees, taxes, interest and penalties imposed pursuant to chapter 374 of NRS, as transferred pursuant to subsection 3 of NRS 374.785;

(m) The money identified in paragraph (b) of subsection 3 of NRS 678B.390;

(n) The portion of the proceeds of the excise tax imposed pursuant to subsection 1 of NRS 463.385 identified in paragraph (c) of subsection 5 of NRS 463.385;

(o) The money required to be distributed to the State Education Fund pursuant to subsection 3 of NRS 482.181;

(p) The portion of the net profits of the grantee of a franchise, right or privilege identified in NRS 709.110;

(q) The portion of the net profits of the grantee of a franchise identified in NRS 709.230;

(r) The portion of the net profits of the grantee of a franchise identified in NRS 709.270;

and (s) The direct legislative appropriation from the State General Fund required by subsection 3.

3.

In addition to money from any other source provided by law, support for the State Education Fund must be provided by direct legislative appropriation from the State General Fund in an amount determined by the Legislature to be sufficient to fund the operation of the public schools in this State for kindergarten through grade 12 for the next ensuing biennium for the population reasonably estimated for that biennium.

Money in the State Education Fund does not revert to the State General Fund at the end of a fiscal year, and the balance in the State Education Fund must be carried forward to the next fiscal year.

4.

Money in the Fund must be paid out on claims as other claims against the State are paid.

5.

The Superintendent of Public Instruction may create one or more accounts in the State Education Fund for the purpose of administering any money received from the Federal Government for the support of education and any State money required to be administered separately to satisfy any requirement imposed by the Federal Government.

The money in any such account must not be considered when calculating the statewide base per pupil funding amount or appropriating money from the State Education Fund pursuant to NRS 387.1214.

The interest and income earned on the money in any such account, after deducting any applicable charges, must be credited to the account.

Sec.

47.

NRS 453.305 is hereby amended to read as follows:

453.305 1.

Whenever a person is arrested for violating any of the provisions of NRS 453.011 to 453.552, inclusive, except NRS 453.336, and real property or a mobile home occupied by the person - *AB425* – 25 – as a tenant has been used to facilitate the violation, the prosecuting attorney responsible for the case shall cause to be delivered to the owner of the property or mobile home a written notice of the arrest.

2.

Whenever a person is convicted of violating any of the provisions of NRS 453.011 to 453.552, inclusive, except NRS 453.336, and real property or a mobile home occupied by the person as a tenant has been used to facilitate the violation, the prosecuting attorney responsible for the case shall cause to be delivered to the owner of the property or mobile home a written notice of the conviction.

3.

The notices required by this section must:

(a) Be written in language which is easily understood;

(b) Be sent by certified or registered mail, return receipt requested, to the owner at the owner’s last known address;

(c) Be sent within 15 days after the arrest occurs or judgment of conviction is entered against the tenant, as the case may be;

and (d) Identify the tenant involved and the offense for which the tenant has been arrested or convicted .

[;

and (e) Advise the owner that:

(1) The property or mobile home is subject to forfeiture pursuant to NRS 179.1156 to 179.1205, inclusive, and 453.301 unless the tenant, if convicted, is evicted;

(2) Any similar violation by the same tenant in the future may also result in the forfeiture of the property unless the tenant has been evicted;

(3) In any proceeding for forfeiture based upon such a violation the owner will, by reason of the notice, be deemed to have known of and consented to the unlawful use of the property or mobile home;

and (4) The provisions of NRS 40.2514 and 40.254 authorize the supplemental remedy of summary eviction to facilitate the owner’s recovery of the property or mobile home upon such a violation and provide for the recovery of any reasonable attorney’s fees the owner incurs in doing so.] 4.

[Nothing in this section shall be deemed to preclude the commencement of a proceeding for forfeiture or the forfeiture of the property or mobile home, whether or not the notices required by this section are given as required, if the proceeding and forfeiture are otherwise authorized pursuant to NRS 179.1156 to 179.1205, inclusive, and 453.301.

5.] As used in this section, “tenant” means any person entitled under a written or oral rental agreement to occupy real property or a mobile home to the exclusion of others.

Sec.

48.

Notwithstanding the provisions of NRS 218D.430 and 218D.435, a committee, other than the Assembly Standing - *AB425* – 26 – on Finance, may vote on this act before the expiration of the period prescribed for the return of a fiscal note in NRS 218D.475.

This section applies retroactively from and after March 22, 2021.

Sec.

49.

NRS 453.301 is hereby repealed.

TEXT OF REPEALED SECTION 453.301 Property subject to forfeiture.

The following are subject to forfeiture pursuant to NRS 179.1156 to 179.1205, inclusive:

including4. formulas, microfilm, tapes and data, which are used, or intended for use, in violation of the provisions of NRS 453.011 to 453.552, inclusive, or a law of any other jurisdiction which prohibits the same or similar conduct.

All books, records and research products and materials, including formulas, microfilm, tapes and data, which are used, or intended for use, in violation of the provisions of NRS 453.011 to 453.552, inclusive, or a law of any other jurisdiction which prohibits the same or similar conduct.

- *AB425_R1* – 16 – 7.

All imitation controlled substances which have been manufactured, distributed or dispensed in violation of the provisions of NRS 453.332 or 453.3611 to 453.3648, inclusive, or a law of any other jurisdiction which prohibits the same or similar conduct.anyconduct. - *AB425* – 27 – 8.

8.

Everything of value furnished or intended to be furnished in exchange for a controlled substance in violation of the provisions of NRS 453.011 to 453.552, inclusive, or a law of any otherprovisionsother of jurisdiction which prohibits the same or similar conduct, all proceeds traceable to such an exchange, and all other property used or intended to be used to facilitate a violation of the provisions of NRS 453.011 to 453.552, inclusive, except NRS 453.336, or used or intended to be used to facilitate a violation of a law of any other jurisdiction which prohibits the same or similar conduct as prohibited in NRS 453.011 to 453.552, inclusive, except NRS 453.336.

If an amount of cash which exceeds $300 is found in the possession of a person who is arrested for a violation of NRS 453.337 or 453.338, then there is a rebuttable presumption that the cash is traceable to an exchange for a controlled substance and is sub10.subject to forfeiture pursuant to this subsection.

10.

HSec. - *AB425*

47.

(Deleted by amendment.) Sec.

48.

Notwithstanding the provisions of NRS 218D.430 and 218D.435, a committee, other than the Assembly Standing Committee on Ways and Means and the Senate Standing Committee - *AB425_R1* – 17 – prescribed for the return of a fiscal note in NRS 218D.475.

Thisriod section applies retroactively from and after March 22, 2021.

Sec.

49.

(Deleted by amendment.) H - *AB425_R1*