HOUSE BILL NO. 595
INTRODUCED BY R. JORE
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING PROVISIONS RELATED TO FORFEITURES FOR CRIMINAL ACTS; PROVIDING A PROCEDURE FOR FORFEITURE OF PROPERTY; AMENDING SECTIONS 2-9-305, 3-10-601, 15-70-357, 16-6-105, 16-11-105, 16-11-131, 16-11-132, 16-11-144, 16-11-155, 17-7-502, 23-5-113, 30-13-145, 44-12-102, 44-13-102, 44-13-103, 45-6-301, 45-9-206, 46-5-308, 46-5-312, 46-18-235, 61-8-421, AND 81-5-104, MCA; AND REPEALING SECTIONS 16-11-147, 16-11-158, 44-12-103, 44-12-104, 44-12-201, 44-12-202, 44-12-203, 44-12-204, 44-12-205, 44-12-206, 81-5-108, 81-5-109, 81-5-110, AND 81-5-111, MCA."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Forfeiture of property for commission of criminal offense -- procedure -- disposition. (1) Money, real property, vehicles and other conveyances, or tangible and intangible personal property of any kind that is used in connection with the commission of a criminal offense provided for in the Montana statutes is not subject to forfeiture unless it is owned by a person convicted of a criminal offense, it is ordered forfeited as part of the sentence imposed upon conviction, and a section of Montana law specifically provides for forfeiture as part of the sentence imposed upon conviction. A civil forfeiture proceeding may not be used to proceed against property suspected of being used in connection with the commission of a criminal offense.
(2) Unless another section of Montana statute specifically provides a procedure for disposition of property forfeited as part of the sentence imposed upon conviction of a criminal offense specified in that section, the forfeited property must be disposed of as provided in this section.
(3) The sheriff shall seize the forfeited property within 10 days after the conviction.
(4) Forfeiture of property encumbered by a security interest is subject to the secured person's interest if the secured person did not know and could not have reasonably known of the unlawful possession, use, or other act in connection with the commission of the crime.
(5) If proper proof of a security interest is presented to the sheriff, the sheriff shall release the property to the secured person if the amount due the person is equal to or greater than the value of the property.
(6) Property not released to a secured person under subsection (5) must, except as provided in subsection (7), be sold by the sheriff at a public auction in the same manner as provided by law for the sale of property under execution. The property may not be sold to an officer or employee of a law enforcement agency. The net proceeds of the sale must be distributed first to a secured person who has presented proper proof of the security interest to the sheriff, and any remaining proceeds must be deposited in the account established in 53-9-109.
(7) Property that is unlawful to produce or possess must be destroyed by the sheriff if it cannot be sold to a person or entity that can lawfully possess it.
NEW SECTION. Section 2. Action for illegal forfeiture -- procedure. (1) It is the purpose of the legislature to create in state law a civil action that is similar to the form of action created in federal law by 42 U.S.C. 1983 and by Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics, 403 U.S. 388 (1971).
(2) A public official or employee of the state or of a local government who unlawfully seizes, holds, disposes of, or takes any other action in regard to property that a court may order forfeited as part of the sentence imposed upon a conviction of a criminal offense does so as a private person and not as a public official or employee, and the act is not an official act. The public official or employee is subject to a civil action by the owner of the property for compensatory and punitive damages. An action against a public official or employee is against the public official or employee as a private person acting outside of the public official's or employee's official capacity. Public funds may not be used to pay any costs of legal defense for or damages awarded against the public official or employee.
(3) A public official or employee who orders or directs another public official or employee or other person to unlawfully seize, hold, dispose of, or take any other action in regard to property that a court may order forfeited as part of the sentence imposed upon a conviction of a criminal offense is accountable for the act of the ordered or directed public official or employee or other person as if the ordering or directing public official or employee committed the act.
(4) A person who attempts to cover up an act that is actionable under this section or to obstruct an action under this section is accountable for the act giving rise to the action as if the person had committed the act.
(5) This section does not apply to:
(a) a peace officer making an arrest if the peace officer has probable cause to believe that the person being arrested has committed a crime or to a peace officer serving a warrant if the peace officer has reasonable cause to believe that the warrant has been issued with probable cause, due process, and proper authority;
(b) a judicial officer acting in a normal and usual judicial capacity; or
(c) a circumstance that included full compliance with due process of law.
(6) Either party to an action under this section must be granted a jury trial upon demand.
(7) In an action under this section, the prevailing party is entitled to be awarded reasonable court costs and attorney fees.
(8) In an action under this section, the jury or, in the absence of a jury, the court shall determine the damages.
Section 3. Section 2-9-305, MCA, is amended to read:
"2-9-305. Immunization, defense, and indemnification of employees. (1) It is the purpose of this section to provide for the immunization, defense, and indemnification of public officers and employees civilly sued for their actions taken within the course and scope of their employment.
(2) In any Except as provided in [section 2], in a noncriminal action brought against any employee of a state, county,
city, town, or other governmental entity for a negligent act, error, or omission, including alleged violations of civil rights
pursuant to 42 U.S.C. 1983, or other actionable conduct of the employee committed while acting within the course and
scope of the employee's office or employment, the governmental entity employer, except as provided in subsection (6),
shall defend the action on behalf of the employee and indemnify the employee.
(3) Upon receiving service of a summons and complaint in a noncriminal action against him the employee, the
employee shall give written notice to his the employee's supervisor requesting that a defense to the action be provided by
the governmental entity employer. If the employee is an elected state official or other employee having no supervisor, the
employee shall give notice of the action to the legal officer or agency of the governmental entity defending the entity in
legal actions of that type. Except as provided in subsection (6), the employer shall offer a defense to the action on behalf of
the employee. The defense may consist of a defense provided directly by the employer. The employer shall notify the
employee, within 15 days after receipt of notice, whether a direct defense will be provided. If the employer refuses or is
unable to provide a direct defense, the defendant employee may retain other counsel. Except as provided in subsection (6),
the employer shall pay all expenses relating to the retained defense and pay any judgment for damages entered in the action
that may be otherwise payable under this section.
(4) In any a noncriminal action in which a governmental entity employee is a party defendant, the employee shall must
be indemnified by the employer for any money judgments or legal expenses, including attorney fees either incurred by the
employee or awarded to the claimant, or both, to which the employee may be subject as a result of the suit unless the
employee's conduct falls within the exclusions provided in subsection (6).
(5) Recovery Except as provided in [section 2], recovery against a governmental entity under the provisions of parts 1
through 3 of this chapter constitutes a complete bar to any action or recovery of damages by the claimant, by reason of the
same subject matter, against the employee whose negligence or wrongful act, error, or omission or other actionable conduct
gave rise to the claim. In any such action against a governmental entity, the employee whose conduct gave rise to the suit is
immune from liability by reasons of the same subject matter if the governmental entity acknowledges or is bound by a
judicial determination that the conduct upon which the claim is brought arises out of the course and scope of the employee's
employment, unless the claim constitutes an exclusion provided in (b) through (d) of subsection (6) subsections (6)(b)
through (6)(d).
(6) In a noncriminal action in which a governmental entity employee is a party defendant, the employee may not be defended or indemnified by the employer for any money judgments or legal expenses, including attorney fees, to which the employee may be subject as a result of the suit if the action is under [section 2] or a judicial determination is made that:
(a) the conduct upon which the claim is based constitutes oppression, fraud, or malice, or for any other reason does not
arise out of the course and scope of the employee's employment;
(b) the conduct of the employee constitutes a criminal offense, as defined in Title 45, chapters 4 through 7;
(c) the employee compromised or settled the claim without the consent of the government entity employer; or
(d) the employee failed or refused to cooperate reasonably in the defense of the case.
(7) If no judicial determination has been made applying the judicial exclusions provided in subsection (6), the
governmental entity employer may determine whether those exclusions apply. However, if there is a dispute as to whether
the judicial exclusions of subsection (6) apply and the governmental entity employer concludes it should clarify its
obligation to the employee arising under this section by commencing a declaratory judgment action or other legal action,
the employer is obligated to provide a defense or assume the cost of the defense of the employee until a final judgment is
rendered in such the action holding that the employer had no obligation to defend the employee. The governmental entity
employer has no obligation to provide a defense to the employee in a declaratory judgment action or other legal action
brought against the employee by the employer under this subsection."
Section 4. Section 3-10-601, MCA, is amended to read:
"3-10-601. Collection and disposition of fines, penalties, forfeitures, and fees. (1) Each justice of the peace shall collect the fees prescribed by law for justices' courts and shall pay them into the county treasury of the county in which the justice of the peace holds office, on or before the 10th day of each month, to be credited to the general fund of the county.
(2) All fines, penalties, and forfeitures that are required to be imposed, collected, or paid in a justice's court must, for
each calendar month, be paid by the justice's court on or before the 5th day of the following month to the treasurer of the
county in which the justice's court is situated, except that they may be distributed as provided in 44-12-206 if imposed,
collected, or paid for a violation of Title 45, chapter 9 or 10.
(3) The county treasurer shall, in the manner provided in 15-1-504, distribute money received under subsection (2) as follows:
(a) 50% to the state treasurer for deposit in the state general fund; and
(b) 50% to the county general fund."
Section 5. Section 15-70-357, MCA, is amended to read:
"15-70-357. Improperly imported fuel -- seizure. (1) As used in this section, the following definitions apply:
(a) "conveyance" means a tank car, vehicle, or vessel that is used to transport fuel;
(b) "department" means the department of transportation; and
(c) "peace officer" means an employee of the department of transportation appointed as a peace officer under 61-12-201.
(2) Pursuant to 61-12-206(5), a peace officer may:
(a) stop and search a conveyance in the state if the peace officer has reasonable cause to believe that the conveyance is being used to carry improperly imported fuel and is intentionally avoiding fuel tax responsibilities; and
(b) seize without a warrant imported fuel for which the distributor or transporter has not obtained a valid Montana gasoline or special fuel distributor license as required in 15-70-202 and 15-70-341.
(3) The peace officer shall obtain authorization from the director of the department of transportation or the director's designee before seizing fuel.
(4) Upon seizing the fuel the peace officer believes to be improperly imported, the peace officer may:
(a) direct the rerouting or transfer of the fuel to a location designated by the department. The department shall reimburse the carrier for transportation costs from the point of seizure to the location designated by the department.
(b) unload the fuel; and
(c) take three samples of the fuel from the cargo tank for examination.
(5) Within 48 hours after seizure of the improperly imported fuel, the department shall issue a notice of right to file claim for the return of interest or title to the fuel. The notice must be issued to:
(a) the original owner of the fuel;
(b) the owner of the transportation company that conveyed the fuel; and
(c) any other interested party.
(6) The parties listed in subsections (5)(a) through (5)(c) may file a claim for the return of interest or title to the fuel within 30 days after the date of seizure. If a claim is filed for interest or title to the seized fuel, the department shall:
(a) provide the opportunity for a hearing;
(b) if requested, conduct the hearing within 5 days after receiving the claim;
(c) make a final determination of the party to take interest or title to the fuel within 2 working days after the hearing; and
(d) mail notice of the department's determination to interested parties.
(7) (a) The department may determine that the seized fuel be forfeited by the original owner and may:
(i) sell the fuel to the licensed Montana distributor predetermined through a bidding process established in department
administrative rule; or
(ii) use the forfeited fuel for a public purpose determined by the department.
(b) The department shall issue a certificate of sale to the licensed distributor who purchases the seized fuel.
(c) The net proceeds from the sale of the fuel must be deposited in the general fund, less:
(i) the applicable taxes, fees, and penalties, which the department shall deposit in a highway revenue account in the
state special revenue fund, as required in 15-70-101; and
(ii) the administrative costs incurred in conjunction with the seizure and disposal of the improperly imported fuel.
(8)(7) If the department determines that the original owner of the fuel may reclaim interest or title to the fuel, the
department may:
(a) return to the owner money, less tax and penalty, equal to the wholesale value of the fuel on the day of the seizure; or
(b) return the fuel.
(9)(8) A person forfeits the interest, right, and title to improperly imported fuel if the person:
(a) fails to file a claim for the seized fuel within the time allowed in subsection (5); or
(b) is determined to be guilty of violating fuel tax laws.
(10)(9) A person whose fuel is seized under this section is not relieved of any penalties imposed for illegal fuel
importation in Title 15, chapter 70."
Section 6. Section 16-6-105, MCA, is amended to read:
"16-6-105. Seizure and forfeiture of alcoholic beverage and conveyance. Whenever If an investigator or any peace
officer in making or attempting to make a search under and in pursuance of authority of law shall find in any motor vehicle,
vessel, boat, canoe, or conveyance of any description finds an alcoholic beverage which that is unlawfully kept or had or
kept or held for unlawful purposes contrary to the provisions of this code, he the investigator or peace officer may forthwith
immediately seize the alcoholic beverage and packages package in which the same is it is contained and the motor vehicle,
vessel, boat, canoe, or conveyance in which the alcoholic beverage is found. Upon the conviction of the occupant or a
person in charge of the motor vehicle, vessel, boat, canoe, or conveyance, or of any other person, for having or keeping
such the alcoholic beverages beverage contrary to any of the provisions of this code in any such vehicle, vessel, boat, canoe,
or conveyance, the court in which the conviction of any such person is had may, in addition to the sentence imposed under
authority of law, declare all or part of the seized alcoholic beverage or any part thereof so seized and the package in which
the same it is contained to be forfeited to the state of Montana. The court may in and by decree further declare the motor
vehicle, vessel, boat, canoe, or conveyance seized to be forfeited to the state of Montana. The forfeited property must be
disposed of as provided in [section 1]."
Section 7. Section 16-11-105, MCA, is amended to read:
"16-11-105. Rulemaking authority of department of justice. The department of justice may adopt rules to
implement 16-11-103, 16-11-118, 16-11-124, 16-11-141, 16-11-142, 16-11-147, and 16-11-149."
Section 8. Section 16-11-131, MCA, is amended to read:
"16-11-131. Transporting cigarettes without insignia a misdemeanor -- invoices and delivery tickets required -- stop and inspection authorized. (1) It is unlawful for a person to transport into, receive, carry, or move from place to place within this state, except in the course of interstate commerce, any cigarettes that do not bear the insignia (stamps) required by this part.
(2) (a) When transporting unstamped cigarettes, a person shall possess invoices or delivery tickets for the cigarettes that show the name and address of the consignor or seller, the name of the consignee or purchaser, and the quantity and brands of the cigarettes being transported.
(b) The cigarettes transported are subject to seizure, forfeiture, and sale as provided in 16-11-141, 16-11-147,
16-11-158, and this section if:
(i) there are no invoices or delivery tickets;
(ii) the name or address of the consignee or purchaser is falsified; or
(iii) the consignee or purchaser is not authorized to possess unstamped cigarettes may, as part of the sentence imposed
upon conviction, be ordered forfeited upon a conviction of the person under this section. The forfeited cigarettes must be
disposed of as provided in [section 1].
(3) Transportation of cigarettes from a point outside the state to a point in another state is not a violation of this section if the person transporting the unstamped cigarettes possesses adequate invoices or delivery tickets that give the name and address of the out-of-state consignor or seller and the out-of-state consignee or purchaser.
(4) If the department, its authorized agent, the department of justice, or a peace officer of the state has knowledge or reasonable grounds to believe that a vehicle is transporting cigarettes in violation of this section, the department, its agent, the department of justice, or a peace officer may stop and inspect the vehicle.
(5) A person violating the provisions of this section is guilty of a misdemeanor."
Section 9. Section 16-11-132, MCA, is amended to read:
"16-11-132. Unlawful to sell cigarettes without valid license -- exceptions. (1) A person may not sell, offer to sell, or possess with intent to sell any cigarettes, at wholesale or retail, unless the person's license is current and valid under the provisions of this part.
(2) A person may not sell, offer to sell, or possess with intent to sell any cigarettes, at wholesale or retail, to a resident or nonresident wholesaler, subjobber, or retailer who is not licensed under this part or who is not licensed by the state in which the person sells, offers to sell, or intends to sell cigarettes. However, a wholesaler, subjobber, or retailer licensed under the provisions of this chapter may sell cigarettes to any person, wholesaler, subjobber, or retailer not licensed under this chapter if:
(a) the person, wholesaler, subjobber, or retailer is exempt from state cigarette taxation provisions;
(b) the person, wholesaler, subjobber, or retailer furnishes documentary evidence of exemption from state cigarette taxation provisions; and
(c) the person, wholesaler, subjobber, or retailer signs a receipt of purchase for any cigarettes evidencing an exemption from state cigarette taxation provisions.
(3) A person convicted of violating the provisions of this section is guilty of a misdemeanor and shall be punished as
provided in this part, and the court shall order all cigarettes in the person's possession must to be seized and forfeited to the
state. The forfeited cigarettes must be disposed of as provided in [section 1]."
Section 10. Section 16-11-144, MCA, is amended to read:
"16-11-144. Revocation or suspension of license. (1) The department may revoke or suspend the license of any a
wholesaler, subjobber, retailer, cigarette vendor, or person licensed under 16-11-303 for failure to comply with any a
provision of this part, The Montana Cigarette Sales Act (Title 16, chapter 10), the Youth Access to Tobacco Products
Control Act (Title 16, chapter 11, part 3), or with any lawful a rule of the department made pursuant to those laws.
(2) A person aggrieved by a revocation or suspension may apply to the department for a hearing, which must be open to the public. If the person is aggrieved by the decision of the department, the person may further appeal to the court.
(3) When a license has been revoked, a license may not be issued to the licensee for a period of 1 year after revocation. When a license has been suspended, the suspension may be for any period not to exceed 1 year.
(4) A person who sells convicted of selling cigarettes after the person's license has been revoked or suspended is guilty
of a misdemeanor and must shall be punished as provided in this part, and the court shall order all cigarettes in the person's
possession must to be seized and forfeited to the state. The forfeited cigarettes must be disposed of as provided in [section
1]."
Section 11. Section 16-11-155, MCA, is amended to read:
"16-11-155. Definitions. As used in 16-11-111 and 16-11-155 through 16-11-158 16-11-157, the following definitions
apply:
(1) "Indian reservation" means lands declared to be a reservation for an Indian tribe or tribes:
(a) by a treaty between the tribe and a territorial government, a state government, or the United States;
(b) through an act of the United States congress; or
(c) through an executive order of the United States.
(2) "Quota" means 150% of the national average individual consumption of cigarettes multiplied by the enrolled tribal member population of an Indian reservation on which the cigarette sales are made or any other formula or amount agreed to in a state-tribal cooperative agreement."
Section 12. Section 17-7-502, MCA, is amended to read:
"17-7-502. (Temporary) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203;
10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117;
15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101;
17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107;
20-8-111; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402;
37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703;
53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111;
82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)
17-7-502. (Effective July 1, 2008) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203;
10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202;
15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804;
17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305;
19-19-506; 20-8-107; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631;
23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206;
44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108;
75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161;
85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"
Section 13. Section 23-5-113, MCA, is amended to read:
"23-5-113. Department as criminal justice agency -- seized property. (1) The department is a criminal justice agency. Designated agents of the department are granted peace officer status, with the power of search, seizure, and arrest, to investigate gambling activities in this state regulated by parts 1 through 8 of this chapter and the rules of the department and to report violations to the county attorney of the county in which they occur.
(2) Upon conviction for any a violation of parts 1 through 8 of this chapter, the court may order any property a
gambling device used in the commission of the offense, or an illegal gambling device, seized by a department or local law
enforcement agent during a lawful search to be forfeited to the department, sold, if necessary, and. The device must be
disposed of under 23-5-123 as provided in [section 1]."
Section 14. Section 30-13-145, MCA, is amended to read:
"30-13-145. Forfeiture. Any Upon a conviction for a violation of 30-13-142 through 30-13-144, the court may order a
lawfully seized article produced in violation of 30-13-142 through 30-13-144 and any equipment used to produce it are
subject to forfeiture to and destruction to be forfeited and to be destroyed by the an appropriate law enforcement agency."
Section 15. Section 44-12-102, MCA, is amended to read:
"44-12-102. Things subject to forfeiture. (1) The following are subject to forfeiture items owned by a convicted
person may, as part of the sentence imposed upon conviction, be ordered forfeited by the court, to be disposed of as
provided in [section 1]:
(a) all controlled substances that have been manufactured, distributed, prepared, cultivated, compounded, processed, or possessed in violation of Title 45, chapter 9;
(b) all money, raw materials, products, and equipment of any kind that are used or intended for use in manufacturing,
preparing, cultivating, compounding, or processing, delivering, importing, or exporting any controlled substance in
violation of Title 45, chapter 9, except items used or intended for use in connection with quantities of marijuana in amounts
less than 60 grams;
(c) except as provided in subsection (2)(d), all property that is used or intended for use as a container for anything enumerated in subsection (1)(a) or (1)(b);
(d) except as provided in subsection (2), all conveyances, including aircraft, vehicles, and vessels, that are used or
intended for use in any manner to facilitate the commission of a violation of Title 45, chapter 9;
(e)(d) all books, records, and research products and materials, including formulas, microfilm, tapes, and data, that are
used or intended for use in violation of Title 45, chapter 9;
(f)(e) all drug paraphernalia as defined in 45-10-101;
(g)(f) everything of value furnished or intended to be furnished in exchange for a controlled substance in violation of
Title 45, chapter 9; all proceeds traceable to such an exchange; and all money, negotiable instruments, and securities used
or intended to be used to facilitate a violation of Title 45, chapter 9;
(h)(g) any personal property constituting or derived from proceeds obtained directly or indirectly from a violation of
Title 45, chapter 9, that is punishable by more than 5 years in prison; and
(i)(h) real property, including any right, title, and interest in any lot or tract of land and any appurtenances or
improvements, that is directly used or intended to be used in any manner or part to commit or facilitate the commission of
or that is solely derived from or maintained by the proceeds resulting from a violation of Title 45, chapter 9, that is
punishable by more than 5 years in prison. An owner's interest in real property is not subject to forfeit by reason of any act
or omission unless it is proved that the act or omission was the owner's or was with his the owner's actual knowledge or
express consent.
(2) (a) A conveyance used by a 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 a violation of Title 45, chapter 9, and unless the conveyance constitutes or is solely derived from proceeds obtained directly or indirectly from a violation of Title 45, chapter 9, that is punishable by more than 5 years in prison.
(b) A conveyance is not subject to forfeiture under this section because of any act or omission established by the owner
of the conveyance to have been committed or omitted without his the owner's knowledge or consent.
(c) A forfeiture of a conveyance encumbered by a bona fide security interest is subject to the interest of the secured
party if he the secured party neither had knowledge of nor consented to any violation of Title 45, chapter 9.
(d) No A conveyance or container is not subject to forfeiture under this section if it was used or intended for use in
transporting less than 60 grams of marijuana."
Section 16. Section 44-13-102, MCA, is amended to read:
"44-13-102. Federal Deposit of federal forfeitures deposited in account. (1) Except as provided in 46-23-1032,
property and money forfeited under federal law and provided to the state by the federal government to support state and
local law enforcement programs must be deposited to the special law enforcement assistance account established in
44-13-101. An amount up to $125,000 each fiscal year is statutorily appropriated, as provided in 17-7-502, to the attorney
general for the support of state and local law enforcement programs. Any expenditure in excess of $125,000 each fiscal
year requires approval through budget amendment, as provided in Title 17, chapter 7, part 4.
(2) Property and money forfeited under federal law and provided to the state by the federal government without a mandatory federal direction for its use must be deposited in the account established in 53-9-109."
Section 17. Section 44-13-103, MCA, is amended to read:
"44-13-103. Limitations on use of special law enforcement assistance account. (1) After property is credited to the account established in 44-13-101, the attorney general may:
(a) transfer the property to any local or state law enforcement agency to be used for criminal investigation purposes;
(b) sell the property by public sale;
(c) destroy any illegal or controlled substances and sell or destroy raw materials, products, and equipment used or intended for use in manufacturing, compounding, or processing a controlled substance;
(d) compromise and pay claims against the property; and
(e) make any other disposition of the property authorized by law.
(2) Money and proceeds from property credited to the account may be used by the attorney general for:
(a) the payment of any expenses necessary to seize, detain, appraise, inventory, safeguard, maintain, advertise, or sell seized, detained, or forfeited property, including but not limited to payment for contract services and reimbursement to a federal, state, or local agency for its expenses;
(b) the payment of awards for information or assistance leading to a criminal proceeding or a civil forfeiture proceeding;
(c) the compromise and payment of claims against property;
(d) the payment of sums for criminal investigation purposes, including but not limited to:
(i) payment of informants;
(ii) use by undercover agents to purchase unlawful substances, including, without limitation, counterfeit or real controlled substances, pornographic materials, stolen property, or other contraband;
(iii) use by undercover agents as gambling front money; and
(iv) payment of overtime to state or local law enforcement officers when engaged in special criminal investigations;
(e) the payment of funds into the account created by 53-9-109; and
(f) matching federal grants for criminal investigation purposes."
Section 18. Section 45-6-301, MCA, is amended to read:
"45-6-301. Theft. (1) A person commits the offense of theft when the person purposely or knowingly obtains or exerts unauthorized control over property of the owner and:
(a) has the purpose of depriving the owner of the property;
(b) purposely or knowingly uses, conceals, or abandons the property in a manner that deprives the owner of the property; or
(c) uses, conceals, or abandons the property knowing that the use, concealment, or abandonment probably will deprive the owner of the property.
(2) A person commits the offense of theft when the person purposely or knowingly obtains by threat or deception control over property of the owner and:
(a) has the purpose of depriving the owner of the property;
(b) purposely or knowingly uses, conceals, or abandons the property in a manner that deprives the owner of the property; or
(c) uses, conceals, or abandons the property knowing that the use, concealment, or abandonment probably will deprive the owner of the property.
(3) A person commits the offense of theft when the person purposely or knowingly obtains control over stolen property knowing the property to have been stolen by another and:
(a) has the purpose of depriving the owner of the property;
(b) purposely or knowingly uses, conceals, or abandons the property in a manner that deprives the owner of the property; or
(c) uses, conceals, or abandons the property knowing that the use, concealment, or abandonment probably will deprive the owner of the property.
(4) A person commits the offense of theft when the person purposely or knowingly obtains or exerts unauthorized control over any part of any public assistance provided under Title 52 or 53 by a state or county agency, regardless of the original source of assistance, by means of:
(a) a knowingly false statement, representation, or impersonation; or
(b) a fraudulent scheme or device.
(5) A person commits the offense of theft when the person purposely or knowingly obtains or exerts or helps another obtain or exert unauthorized control over any part of any benefits provided under Title 39, chapter 71 or 72, by means of:
(a) a knowingly false statement, representation, or impersonation; or
(b) deception or other fraudulent action.
(6) A person commits the offense of theft when the person purposely or knowingly commits insurance fraud as provided in 33-1-1202.
(7) (a) A person convicted of the offense of theft of property not exceeding $500 in value shall be fined an amount not
to exceed $500 or be imprisoned in the county jail for any a term not to exceed 6 months, or both. A person convicted of a
second offense shall be fined $500 or be imprisoned in the county jail for a term not to exceed 6 months, or both. A person
convicted of a third or subsequent offense shall be fined $1,000 and be imprisoned in the county jail for a term of not less
than 30 days or more than 6 months.
(b) A person convicted of the offense of theft of property exceeding $500 in value or theft of any commonly
domesticated hoofed animal shall be fined an amount not to exceed $50,000 or be imprisoned in the state prison for any a
term not to exceed 10 years, or both, and if the conviction is for theft of a commonly domesticated hoofed animal, the court
may order any money, equipment, vehicle, or other personal property owned by the person and used to commit the theft
forfeited. Forfeited property must be disposed of as provided in [section 1].
(8) Amounts involved in thefts committed pursuant to a common scheme or the same transaction, whether from the same person or several persons, may be aggregated in determining the value of the property."
Section 19. Section 45-9-206, MCA, is amended to read:
"45-9-206. Use or possession of property subject to criminal forfeiture -- property subject to criminal forfeiture.
(1) A person commits the offense of use or possession of property subject to criminal forfeiture if the person knowingly
possesses, owns, uses, or attempts to use property that is subject to criminal forfeiture under this section. A person
convicted of the offense of use or possession of property subject to criminal forfeiture shall be imprisoned in the state
prison for a term not to exceed 10 years. Upon conviction, the property subject to criminal forfeiture is forfeited to the state
if it is owned by the convicted person and must be disposed of in accordance with the provisions of 44-12-205 and
44-12-206 [section 1].
(2) The following property is subject to criminal forfeiture under this section:
(a) money, raw materials, products, and equipment, and other property of any kind that is used or intended for use in
manufacturing, preparing, cultivating, compounding, or processing, delivering, importing, or exporting a dangerous drug in
violation of 45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation of 45-9-101,
45-9-103, or 45-9-110;
(b) property used or intended for use as a container for property enumerated in subsection (2)(a);
(c) except as provided in subsection (3), a conveyance, including an aircraft, vehicle, or vessel, used or intended for use
to facilitate a violation of 45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation
of 45-9-101, 45-9-103, or 45-9-110;
(d)(c) books, records, research products and materials, formulas, microfilm, tapes, and data used or intended for use in
connection with a violation of 45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a
violation of 45-9-101, 45-9-103, or 45-9-110;
(e)(d) (i) everything of value furnished or intended to be furnished in exchange for a dangerous drug in violation of
45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation of 45-9-101, 45-9-103,
or 45-9-110; and
(ii) all proceeds traceable to such an the exchange;
(f)(e) money, negotiable instruments, securities, and weapons used or intended to be used to facilitate a violation of
45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation of 45-9-101, 45-9-103,
or 45-9-110;
(g)(f) personal property constituting or derived solely from proceeds obtained directly or indirectly from a violation of
45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation of 45-9-101, 45-9-103,
or 45-9-110; and
(h)(g) real property, including any right, title, and interest in a lot or tract of land and any appurtenances or
improvements, that is directly used or intended to be used in any manner to facilitate a violation of or that is solely derived
from or maintained by proceeds resulting from a violation of 45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the
object of the conspiracy was a violation of 45-9-101, 45-9-103, or 45-9-110. An owner's interest in real property is not
subject to criminal forfeiture by reason of an act or omission unless it is proved that the act or omission was the owner's or
was with the owner's express consent.
(3) A conveyance is not subject to criminal forfeiture under this section unless the owner or other person in charge of the
conveyance knowingly used the conveyance to violate or knowingly consented to its use for the purpose of violating
45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation of 45-9-101, 45-9-103,
or 45-9-110.
(4)(3) Criminal forfeiture under this section of property that is encumbered by a bona fide security interest is subject to
that interest if the secured party did not use or consent to the use of the property in connection with a violation of 45-9-101,
45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy was a violation of 45-9-101, 45-9-103, or
45-9-110.
(5)(4) Property subject to criminal forfeiture under this section may be seized under the following circumstances:
(a) A peace officer who has probable cause to make an arrest for a violation of 45-9-101, 45-9-103, or 45-9-110 or of
45-4-102 when the object of the conspiracy was a violation of 45-9-101, 45-9-103, or 45-9-110 may seize a conveyance
obtained with proceeds of the violation or used to facilitate the violation and shall immediately deliver the conveyance to
the peace officer's law enforcement agency, to be held as evidence until a criminal forfeiture is declared or release ordered.
(b) Property subject to criminal forfeiture under this section may be seized by a peace officer under a search warrant issued by a court having jurisdiction over the property.
(c) Seizure without a warrant may be made if:
(i) the seizure is incident to an arrest or a search under a search warrant issued for another purpose or an inspection under an administrative inspection warrant;
(ii) the property was the subject of a prior judgment in favor of the state in a criminal proceeding or a criminal forfeiture
proceeding based on this section or on Title 44, chapter 12;
(iii) a peace officer has probable cause to believe that the property is directly or indirectly dangerous to health or safety; or
(iv) a peace officer has probable cause to believe that the property was used or is intended to be used in violation of 45-9-101, 45-9-103, or 45-9-110 or of 45-4-102 when the object of the conspiracy is a violation of 45-9-101, 45-9-103, or 45-9-110.
(6)(5) As used in this section, "dangerous drug" means a substance designated as a dangerous drug under Title 50,
chapter 32, parts 1 and 2.
(7)(6) A prosecution under subsection (1) must be commenced within 45 days of the seizure of the property involved."
Section 20. Section 46-5-308, MCA, is amended to read:
"46-5-308. Order. (1) The court may enter an order providing for the destruction or disposition of the evidence. If a victim of the offense wishes to be heard on the petition, the court shall schedule a hearing on the petition and shall allow the victim to be heard in open court. The court shall consider the victim's statements prior to issuing an order under this section. A proposed order must be presented by the petitioner to the court and may include:
(a) authorization to destroy all contraband listed in the petition, the method of destruction, and the time within which the destruction must be accomplished;
(b) if certain contraband is requested by the petitioner for training or law enforcement purposes, including training,
authorization to use the items and a description of each;
(c) if the petition requests training or law enforcement use, including training, of noncontraband items, authorization to
retain the items by the law enforcement agency and a description of the items;
(d) if the evidence is money and the owner cannot be ascertained and no civil forfeiture action is pending, authorization
to deposit use the money to the appropriate city, county, or state drug forfeiture fund for law enforcement purposes,
including training;
(e) if the petition requests, authorization to sell noncontraband property at public sale or auction and to deposit use the
proceeds to the appropriate city, county, or state drug forfeiture fund for law enforcement purposes, including training; or
(f) authorization to destroy all items not otherwise provided for.
(2) The order must specify the time period in which destruction or sale must occur. Within 10 days following the destruction or sale, a return must be filed with the court, listing the property destroyed or sold and the date and method of disposition."
Section 21. Section 46-5-312, MCA, is amended to read:
"46-5-312. Return of property seized -- right to possess. (1) A person claiming the right to possession of property seized as evidence may apply to the judge for its return. The judge shall give written notice as the judge considers adequate to the prosecutor and all persons who have or may have an interest in the property and shall, within 2 weeks of the filing of the application for return of the property, hold a hearing to determine the right to possession.
(2) If the right to possession is established, the judge shall order the property, other than contraband, returned if:
(a) the property is not needed as evidence;
(b) the property is needed and satisfactory arrangements can be made for its return for subsequent use as evidence; or
(c) all proceedings in which the property might be required have been completed."
Section 22. Section 46-18-235, MCA, is amended to read:
"46-18-235. Disposition of money collected as fines and costs. The money collected by a court as a result of the imposition of fines or assessment of costs under the provisions of 46-18-231 and 46-18-232 must be paid:
(1) by a district court to the county general fund of the county in which the court is held, except that:
(a) if the costs assessed include any district court expense listed in 3-5-901, the money collected from assessment of these costs must be paid to the state for deposit into the state general fund to the extent that the expenses were paid by the state; and
(b) if the fine was imposed for a violation of Title 45, chapter 9 or 10, the court may order the money paid into the drug
forfeiture account maintained under 44-12-206 for an account in the treasury of the appropriate government, to be used for
law enforcement purposes, including training, by the law enforcement agency that made the arrest from which the
conviction and fine arose; and
(2) by a justice's court pursuant to 3-10-601."
Section 23. Section 61-8-421, MCA, is amended to read:
"61-8-421. Forfeiture procedure. (1) A motor vehicle forfeited under 61-8-733 must be seized by the arresting agency
within 10 days after the conviction and disposed of as provided in Title 44, chapter 12, part 2. Except as provided in this
section, the provisions of Title 44, chapter 12, part 2, apply to the extent applicable.
(2) Forfeiture proceedings under 44-12-201(1) must be instituted by the arresting agency within 20 days after the
seizure of the motor vehicle.
(3) For purposes of 44-12-203 and 44-12-204, there is a rebuttable presumption of forfeiture. The owner of the motor
vehicle may rebut the presumption by proving a defense under 61-8-733(2) or by proving that the owner was not convicted
of a third or subsequent offense under 61-8-401 or 61-8-406. It is not a defense that the convicted person owns the motor
vehicle jointly with another person.
(4) (a) For purposes of 44-12-206, the proceeds of the sale of the motor vehicle must be distributed first to the holders
of security interests who have presented proper proof of their claims, up to the amount of the interests or the amount
received from the sale, whichever is less, and the remainder to the general fund of the arresting agency.
(b) A holder of a security interest may petition the sentencing court for transfer of title to the motor vehicle to the holder
of the security interest if the secured interest is equal to or greater than the estimated value of the motor vehicle.
(5) Actions the court may take under 44-12-205(3) [section 1]. In order to protect the rights of innocent persons include,
the court may order return of the motor vehicle without a sale to an owner who is unable to present an adequate defense
under this section but is found by the court to be without fault."
Section 24. Section 81-5-104, MCA, is amended to read:
"81-5-104. Stolen livestock -- seizure and forfeiture of vehicle and certain other property used in theft or
transportation. (1) The use of a vehicle, money, equipment, or personalty for the theft or transportation of a stolen mule,
horse, mare, colt, foal, filly, sheep, lamb, cow, calf, heifer, steer, bull, llama, alpaca, bison, hogs, poultry, ostrich, rhea, or
emu, or the products of stolen livestock is unlawful. Any vehicle, money, equipment, or personalty used for the theft or
unlawful transportation or upon probable cause believed to be devoted wholly or in part to the theft or unlawful
transportation must may be seized and held as evidence in a criminal prosecution.
(2) Within 45 days after the seizure, a peace officer or officer of the agency that seizes the property shall file a petition
to institute forfeiture proceedings with the clerk of the district court of the county in which the seizure occurs. The clerk
shall issue a summons at the request of the petitioning party, who shall serve the summons upon all owners or claimants of
the property by one of the following methods:
(a) upon an owner or claimant whose address is known, by personal service of a copy of the petition and summons as
provided in the Montana Rules of Civil Procedure;
(b) upon an owner or claimant whose address is unknown but who is believed to have an interest in the property, by
publication of the summons in one issue of a newspaper of general circulation in the county where the seizure occurred or,
if there is no newspaper of general county circulation, by publication in one issue of a newspaper of general circulation in
an adjoining county and by mailing a copy of the petition and summons to the most recent address of the owner or
claimant, if any, shown in the records of the division of motor vehicles.
(3) A vehicle is not subject to forfeiture seizure under this section if:
(a) it is a stolen vehicle at the time it is used for unlawful transportation; or
(b) the vehicle owner is not in collusion with the party or parties guilty of the theft."
NEW SECTION. Section 25. Repealer. Sections 16-11-147, 16-11-158, 44-12-103, 44-12-104, 44-12-201, 44-12-202, 44-12-203, 44-12-204, 44-12-205, 44-12-206, 81-5-108, 81-5-109, 81-5-110, and 81-5-111, MCA, are repealed.
- END -
Latest Version of HB 595 (HB0595.01)
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