(1) Any personal
property subject to seizure, confiscation, forfeiture, or destruction under the
provisions of this part 3, and which is seized as a part of or incident to proceedings
under this part 3 for which disposition is not provided by another statute of this
state, shall be disposed of as provided in this section.
(2) Any such property which is required by law to be destroyed, or the
possession of which is illegal, or which in the opinion of the court is not properly the
subject of a sale may be destroyed pursuant to a warrant for the destruction of
personal property issued by the court and directed to the sheriff of the proper
county or any peace officer and returned by the sheriff or peace officer after
execution thereof. The court shall stay the execution of any such warrant during
the period in which the property is used as evidence in any pending criminal or civil
proceeding.
(3) (a) If the prosecution prevails in the forfeiture action, the court shall order
the property forfeited. Such order perfects the state's right and interest in and title
to such property and relates back to the date when title to the property vested in
the state pursuant to section 16-13-316. Except as otherwise provided in subsection
(3)(c) of this section, the court shall also order such property to be sold at a public
sale by the law enforcement agency in possession of the property in the manner
provided for sales on execution, or in another commercially reasonable manner.
Property forfeited pursuant to this section or proceeds therefrom must be
distributed or applied in the following order:
(I) To payment of the balances due on any liens perfected on or before the
date of seizure preserved by the court in the forfeiture proceedings, in the order of
their priority;
(II) To compensate an innocent partial owner for the fair market value of his
or her interest in the property;
(III) To any person who suffers bodily injury, property damage, or property
loss as a result of the conduct constituting a public nuisance that resulted in such
forfeiture, if said person petitions the court therefor prior to the hearing dividing the
proceeds pursuant to this section and the court finds that such person suffered said
damages as a result of the subject acts that resulted in the forfeiture;
(IV) To the law enforcement agency in possession of the property for
reasonable fees and costs of sale, maintenance, and storage of the property;
(V) To the district attorney for actual and reasonable expenses related to the
costs of prosecuting the forfeiture proceeding and title transfer not to exceed ten
percent of the value of the property;
(VI) One percent of the value of the property to the clerk of the court for
administrative costs associated with compliance with this section;
(VII) The balance must be delivered, upon order of the court, as follows:
(A) Fifty percent to the general fund of the governmental body or bodies
with budgetary authority over the seizing agency for public safety purposes or, if
the seizing agency was a multijurisdictional task force, fifty percent to be
distributed in accordance with the appropriate intergovernmental agreement;
(B) Twenty-five percent to the behavioral health administrative services
organization contracting with the behavioral health administration in the
department of human services serving the judicial district where the forfeiture
proceeding was prosecuted to fund detoxification and substance use disorder
treatment. Money appropriated to the behavioral health administrative services
organization must be in addition to, and not be used to supplant, other funding
appropriated to the behavioral health administration; and
(C) Twenty-five percent to the law enforcement community services grant
program fund, created pursuant to section 24-32-124 (5).
(b) (Deleted by amendment, L. 2002, p. 921, � 5, effective July 1, 2002.)
(c) If, in a forfeiture proceeding, a partial owner is determined to be an
innocent owner under law, at the option of the innocent partial owner, in lieu of a
public sale, the innocent partial owner may purchase the forfeited items from the
state at a private sale for fair market value. Proceeds received by the state shall be
disposed of pursuant to this section.
(d) After a judgment of forfeiture has been entered, any seizing agency in
possession of any money forfeited shall deposit the money in the registry of the
court where the forfeiture order was entered. Upon the sale of forfeited real or
personal property, the seizing agency responsible for overseeing the sale shall
ensure that any lienholders are compensated from the proceeds of the sale
pursuant to the priorities specified in paragraph (a) of this subsection (3) for their
interests in the forfeited property. The seizing agency shall deposit all remaining
proceeds from the sale in the registry of the court immediately upon completion of
the sale. The seizing agency shall notify the court and the district attorney when all
property subject to the forfeiture order has been sold and all proceeds and money
have been deposited in the registry of the court where the forfeiture order was
entered.
(e) Within thirty-five days after the date the order of forfeiture is entered, the
district attorney may submit a motion, an affidavit, and any supporting
documentation to the court to request compensation consistent with this section.
Within thirty-five days after the date the order of forfeiture is entered, any victim of
the criminal act giving rise to the forfeiture may submit a request for compensation,
an affidavit, and supporting documentation to the district attorney to request
compensation from the forfeiture proceeds.
(f) Within fourteen days after the date a seizing agency notifies the court
that all property forfeited has been sold and all proceeds and money have been
deposited in the registry of the court where the forfeiture order was entered, the
seizing agency may submit a motion, an affidavit, and supporting documentation to
the court for reimbursement of expenses consistent with this section. In its motion,
the seizing agency shall identify any other seizing agencies that participated in the
seizure and specify the details of any intergovernmental agreement regarding
sharing of proceeds. The seizing agency shall send a copy of this motion to the
district attorney.
(g) The district attorney shall prepare a motion and proposed order for
distribution based upon the motions and requests submitted by the parties. The
order shall include allocation of one percent of the value of the property to the
clerk of the court for the direct and indirect costs incurred by the clerk in
implementing the provisions of this subsection (3). The district attorney shall send
copies to all remaining interested parties.
(h) Any party shall have fourteen days after filing of the proposed order to
file any objections to the proposed order filed by the district attorney.
(3.5) Instead of liens and encumbrances on real property being satisfied
from the proceeds of sale, real property may be sold subject to all liens or
encumbrances on record. The purchase of the property by the successful bidder
under this subsection (3.5) shall be conditioned on the bidder satisfying and
obtaining the release of the first and second priority liens within sixty-three days
after the sale, or obtaining written authorization from those lien holders for the
bidder to receive the sheriff's deed which shall be issued after such satisfaction or
authorization. The purchaser of the property shall take title free of any lien,
encumbrance, or cloud on the title recorded after title vests in the state pursuant to
section 16-13-316.
(4) It is the intent of the general assembly that moneys allocated to a seizing
agency pursuant to subsection (3) of this section shall not be considered a source
of revenue to meet normal operating needs.
(5) If more than one seizing agency was substantially involved in effecting
the forfeiture, the agencies shall enter into a stipulation with regard to costs
incurred by the agencies and the percentage of any remaining proceeds to be
deposited for the benefit of the agencies or any property to be directly forfeited for
use of such agencies. Upon the filing by such agencies of such stipulation with the
court, the court shall order the proceeds or property so distributed. If the agencies
are unable to reach an agreement, the court shall take testimony and equitably
distribute the proceeds.
(6) The state shall issue a certificate of title for a vehicle to the purchaser or
seizing agency if said vehicle is acquired pursuant to this part 3.