BILL REQ. #:  H-0184.1 

Read first time 02/03/2003.   Referred to Committee on Judiciary.

     AN ACT Relating to civil forfeitures of property; amending RCW 69.50.505, 9A.83.030, and 69.50.520; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds the current practice of asset forfeiture to be unjust and, therefore, find it necessary to reform existing property forfeiture laws. Justice requires that the most important duty of government is the preservation of all of the rights of all of its citizens. Washingtonians have had their property taken from them in civil forfeiture actions without the benefit of fair procedures designed to protect their rights. No person should have property civilly forfeited unless that person has been found guilty of a crime related to the property, and then only if the value of the property taken is substantially proportionate to the seriousness of the offense.

NEW SECTION.  Sec. 2   This act may be known and cited as the innocent property owners protection act.

Sec. 3   RCW 69.50.505 and 2001 c 168 s 1 are each amended to read as follows:
     (a) No judgment of forfeiture of property in a civil forfeiture proceeding under this section by the state or any of its political subdivisions shall be allowed or entered until and unless the owner of the property is convicted of a criminal violation of this chapter or an equivalent crime in another jurisdiction and the state demonstrates by clear and convincing evidence that the property was instrumental in committing or facilitating the crime or the property is proceeds of that crime. The value of the property forfeited under the provisions of this subsection shall be substantially proportional to the specific conduct for which the owner of the property has been convicted.
     (b) In a civil forfeiture proceeding, if a financial institution claiming an interest in the property demonstrates that it holds an interest, its interest shall not be subject to forfeiture. In a civil forfeiture proceeding, if a person claiming an interest in the property, other than a financial institution or a defendant who has been charged with or convicted of a crime involving that property, demonstrates that the person has an interest in the property, that person's interest shall not be subject to forfeiture unless:
     (1) The forfeiting agency proves by clear and convincing evidence that the person took the property or the interest with the intent to defeat the forfeiture; or
     (2) A conviction under subsection (a) of this section is later obtained against the person.
     (c) Notwithstanding the provisions of subsection (a) of this section, and subject to subsection (p) of this section, if, following notice as required in this section, no person claims an interest in the seized property or if the property is contraband, a judgment of forfeiture may be allowed and entered without a criminal conviction as provided in subsection (i) of this section.
     (d) Nothing in this section may be construed to affect the temporary seizure of property for evidentiary, forfeiture, or protective purposes, or to alter the power of the governor to remit fines or forfeitures under Article III, section 11 of the Washington state Constitution.
     (e) The following are subject to seizure and forfeiture ((and no property right exists in them)) in accordance with subsections (a) through (d) of this section:
     (1) All controlled substances which have been manufactured, distributed, dispensed, acquired, or possessed in violation of this chapter or chapter 69.41 or 69.52 RCW, and all hazardous chemicals, as defined in RCW 64.44.010, used or intended to be used in the manufacture of controlled substances;
     (2) All raw materials, products, and equipment of any kind which are used, or intended for use, in manufacturing, compounding, processing, delivering, importing, or exporting any controlled substance in violation of this chapter or chapter 69.41 or 69.52 RCW;
     (3) All property which is used, or intended for use, as a container for property described in ((paragraphs)) (1) or (2) of this subsection;
     (4) All conveyances, including aircraft, vehicles, or vessels, which are used, or intended for use, in any manner to facilitate the sale, delivery, or receipt of property described in ((paragraphs)) (1) or (2) of this subsection, except that((:
     (i) No conveyance used by any person as a common carrier in the transaction of business as a common carrier is 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 this chapter or chapter 69.41 or 69.52 RCW;
     (ii) No conveyance is 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 or consent;
     (iii))) no conveyance is subject to forfeiture under this section if used in the receipt of only an amount of marijuana for which possession constitutes a misdemeanor under RCW 69.50.401(e);
     (((iv) 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 act or omission; and
     (v) When the owner of a conveyance has been arrested under this chapter or chapter 69.41 or 69.52 RCW the conveyance in which the person is arrested may not be subject to forfeiture unless it is seized or process is issued for its seizure within ten days of the owner's arrest;))
     (5) All books, records, and research products and materials, including formulas, microfilm, tapes, and data which are used, or intended for use, in violation of this chapter or chapter 69.41 or 69.52 RCW;
     (6) All drug paraphernalia;
     (7) All moneys, negotiable instruments, securities, or other tangible or intangible property of value furnished or intended to be furnished by any person in exchange for a controlled substance in violation of this chapter or chapter 69.41 or 69.52 RCW, all tangible or intangible personal property, proceeds, or assets acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter 69.41 or 69.52 RCW, and all moneys, negotiable instruments, and securities used or intended to be used to facilitate any violation of this chapter or chapter 69.41 or 69.52 RCW((. A forfeiture of money, negotiable instruments, securities, or other tangible or intangible property encumbered by a bona fide security interest is subject to the interest of the secured party if, at the time the security interest was created, the secured party neither had knowledge of nor consented to the act or omission. No personal property may be forfeited under this paragraph, to the extent of the interest of an owner, by reason of any act or omission which that owner establishes was committed or omitted without the owner's knowledge or consent)) when a substantial nexus exists between the crime for which the owner was convicted and the money, negotiable instruments, and securities; and
     (8) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements which are being used with the knowledge of the owner for the manufacturing, compounding, processing, delivery, importing, or exporting of any controlled substance, or which have been acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter 69.41 or 69.52 RCW, if such activity is not less than a class C felony and a substantial nexus exists between the commercial production or sale of the controlled substance and the real property. However:
     (i) ((No property may be forfeited pursuant to this subsection, to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's knowledge or consent;
     (ii))) The bona fide gift of a controlled substance, legend drug, or imitation controlled substance shall not result in the forfeiture of real property;
     (((iii))) (ii) The possession of marijuana shall not result in the forfeiture of real property unless the marijuana is possessed for commercial purposes, the amount possessed is five or more plants or one pound or more of marijuana, and a substantial nexus exists between the possession of marijuana and the real property. In such a case, the intent of the offender shall be determined by the preponderance of the evidence, including the offender's prior criminal history, the amount of marijuana possessed by the offender, the sophistication of the activity or equipment used by the offender, and other evidence which demonstrates the offender's intent to engage in commercial activity; and
     (((iv))) (iii) The unlawful sale of marijuana or a legend drug shall not result in the forfeiture of real property unless the sale was forty grams or more in the case of marijuana or one hundred dollars or more in the case of a legend drug, and a substantial nexus exists between the unlawful sale and the real property((; and
     (v) A forfeiture of real property encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party, at the time the security interest was created, neither had knowledge of nor consented to the act or omission)).
     (((b))) (f) Real or personal property subject to forfeiture under this chapter may be seized by any board inspector or law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property. Seizure of real property shall include the filing of a lis pendens by the seizing agency. Real property seized under this section shall not be transferred or otherwise conveyed ((until ninety days after seizure or)) until a judgment of forfeiture is entered((, whichever is later: PROVIDED, That)). However, real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest.
     (g) Seizure of personal property without process may be made if:
     (1) The seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant;
     (2) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter; or
     (3) A board inspector or law enforcement officer has probable cause to believe that the property is directly or indirectly dangerous to health or safety((; or
     (4) The board inspector or law enforcement officer has probable cause to believe that the property was used or is intended to be used in violation of this chapter)).
     (((c))) (h)(1) In the event of seizure pursuant to subsection (((b))) (f) or (g) of this section, proceedings for forfeiture shall be deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within ((fifteen)) ten days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. The notice must include a statement that the owner of the property or any person having any known right or interest in the property may request, in writing, that the seizing agency appear in a hearing before a court of competent jurisdiction to show that probable cause exists to seize the property. Service of notice of seizure of real property shall be made according to the rules of civil procedure. However, the state may not obtain a ((default)) judgment with respect to real property against a party ((who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state)) unless the party is served personally. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title, shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title. The notice of seizure in ((other)) cases involving only personal property may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail shall be deemed complete upon mailing within the ((fifteen)) ten-day period following the seizure.
     (((d))) (2) Within twenty days of receiving notice of the seizure of personal property, the owner of the property or any person having any known right or interest in the property may serve upon the seizing agency a written request for a hearing before a court of competent jurisdiction to determine that probable cause exists for the seizure and detention of property pending the outcome of the forfeiture proceedings. Within seventy-two hours of receiving the written request for a hearing, the seizing agency shall cause a hearing to be held before a court of competent jurisdiction. The seizing agency must show cause why the property was lawfully seized and should be held pending forfeiture proceedings. If the court finds probable cause did not exist for seizure, the property shall be immediately returned to the owner of the property or person having an interest in the property, unless the seizing agency demonstrates that the property should be held for evidentiary purposes in a pending criminal proceeding. If property is held under this subsection for evidentiary purposes, the property not forfeited shall be returned to the owner or person having an interest in the property upon adjudication of the criminal proceedings.
     (i) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (((a))) (e)(4), (((a)))(7), or (((a)))(8) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the item seized shall be deemed forfeited. The community property interest in real property of a person whose spouse committed a violation giving rise to seizure of the real property may not be forfeited if the person ((did)) is not ((participate in the violation)) also convicted.
     (((e))) (j)(1) If any person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (((a))) (e)(2), (((a)))(3), (((a)))(4), (((a)))(5), (((a)))(6), (((a)))(7), or (((a)))(8) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the person or persons shall be afforded a reasonable opportunity to be heard as to the claim or right. The hearing shall be before ((the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except where the seizing agency is a state agency as defined in RCW 34.12.020(4), the hearing shall be before the chief law enforcement officer of the seizing agency or)) an administrative law judge appointed under chapter 34.12 RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction. Removal of any matter involving personal property may only be accomplished according to the rules of civil procedure. The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080 or 4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession. The court to which the matter is to be removed shall be the district court when the aggregate value of personal property is within the jurisdictional limit set forth in RCW 3.66.020. ((A hearing before the seizing agency and any appeal therefrom shall be under Title 34 RCW.)) The hearing provided under this subsection is in addition to the probable cause hearing authorized under subsection (h) of this section. Any filing fee required for removal of any matter to a court of competent jurisdiction shall be waived.
     (2) In all cases, the burden of proof is upon the law enforcement agency to establish, by ((a preponderance of the)) clear and convincing evidence, that the property is subject to forfeiture.
     The seizing law enforcement agency shall promptly return the article or articles to the claimant upon a determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession thereof of items specified in subsection (((a))) (e)(2), (((a)))(3), (((a)))(4), (((a)))(5), (((a)))(6), (((a)))(7), or (((a)))(8) of this section.
     (((f))) (k) In any proceeding to forfeit property under this title, where the claimant substantially prevails, the claimant is entitled to reasonable attorneys' fees reasonably incurred by the claimant. In addition, in a court hearing between two or more claimants to the article or articles involved, the prevailing party is entitled to a judgment for costs and reasonable attorneys' fees.
     (((g))) (l) All seized property must be stored in a commercially reasonable manner until it is forfeited or returned to the claimant. For any property that is returned to the claimant, the claimant is entitled to damages, costs, and reasonable attorneys' fees for any loss or damage incurred during seizure or storage.
     (m) When property is forfeited under this chapter the board or seizing law enforcement agency ((may)) shall:
     (1) ((Retain it for official use or upon application by any law enforcement agency of this state release such property to such agency for the exclusive use of enforcing the provisions of this chapter;
     (2))) Sell that which is not required to be destroyed by law and which is not harmful to the public;
     (((3) Request the appropriate sheriff or director of public safety to take custody of the property and remove it for disposition in accordance with law; or
     (4) Forward it to the drug enforcement administration for disposition.
     (h)(1) When property is forfeited, the seizing agency shall)) (2) Keep a record indicating the identity of the prior owner, if known, a description of the property, the disposition of the property, the value of the property at the time of seizure, and the amount of proceeds realized from disposition of the property((.
     (2) Each seizing agency shall));
     (3) Retain records of forfeited property for at least seven years((.
     (3) Each seizing agency shall));
     (4) File a report including a copy of the records of forfeited property with the state treasurer each calendar quarter. (((4))) The quarterly report need not include a record of forfeited property that is still being held for use as evidence during the investigation or prosecution of a case or during the appeal from a conviction((.
     (i)));
     (5) Destroy any property that is harmful to the public, required to be destroyed by law, or otherwise not appropriate for sale to the public.
     The provisions of this subsection requiring the seizing agency to keep records and file quarterly reports apply to all forfeited property the seizing agency receives under federal seizure and forfeiture laws. The seizing agency must specify from which federal agencies it receives funds. Seizing agencies that receive forfeited property under the federal seizure and forfeiture laws are required to use such forfeited property and proceeds pursuant to federal restrictions, and the reporting requirement does not require the seizing agency to remit federal funds to the state.
     (n)(1)(i) By January 31st of each year, each seizing agency shall remit to the state treasurer an amount equal to ten percent of the net proceeds of any property forfeited during the preceding calendar year. Money remitted shall be deposited in the violence reduction and drug enforcement account under RCW 69.50.520.
     (ii) By January 31st of the year, each seizing agency shall remit to the state treasurer an amount equal to ninety percent of the net proceeds of any property forfeited during the preceding calendar year. One-half of the money remitted shall be deposited in the permanent common school fund and the remaining one-half shall be allocated to public drug treatment programs as provided by law.
     (2) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting: (i) The cost of satisfying any bona fide security interest to which the property is subject at the time of seizure; and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents, and the cost of any valid landlord's claim for damages under subsection (((o))) (r) of this section; (ii) any foreclosed liens, security interest, and contracts in the order of their priority; and (iii) actual and reasonable expenses related to the costs of the forfeiture proceeding, including attorneys' fees, storage, maintenance, management, and disposition of the property incurred in connection with the sale of any forfeited property in an amount not to exceed twenty-five percent of the total proceeds in any single forfeiture.
     (3) The value of sold forfeited property is the sale price. ((The value of retained forfeited property is the fair market value of the property at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing for valuation of motor vehicles. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained property. If an appraiser is used, the value of the property appraised is net of the cost of the appraisal.)) The value of destroyed ((property and retained firearms or)) illegal property is zero.
     (((j))) (o) Forfeited property and net proceeds ((not required to be paid to the state treasurer shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of controlled substances related law enforcement activity. Money retained under this section may not be used to supplant preexisting funding sources)), including shared property or proceeds obtained from the federal government, shall be disposed of or distributed according to the following:
     (1) Any sale of forfeited property shall be conducted in a commercially reasonable manner. Property or proceeds forfeited under this section shall be distributed or applied as required by subsection (n) of this section.
     (2) The state of Washington or any of its political subdivisions shall take all necessary steps to obtain shared property or proceeds from the United States department of justice resulting from a forfeiture. Any property or proceeds received from the United States department of justice by the state of Washington or any of its political subdivisions shall be applied as provided in (1) of this subsection.
     (3) Neither the state of Washington, its political subdivisions, nor any forfeiting agency shall transfer forfeiture proceedings to the federal government unless a state court has affirmatively found that:
     (i) The activity giving rise to the forfeiture is interstate in nature and sufficiently complex to justify the transfer; or
     (ii) The seized property may only be forfeited under federal law.
     (((k))) (p) Controlled substances listed in Schedule I, II, III, IV, and V that are possessed, transferred, sold, or offered for sale in violation of this chapter are contraband and shall be seized and summarily forfeited to the state. Controlled substances listed in Schedule I, II, III, IV, and V, which are seized or come into the possession of the board, the owners of which are unknown, are contraband and shall be summarily forfeited to the board.
     (((l) Species of plants from which controlled substances in Schedules I and II may be derived which have been planted or cultivated in violation of this chapter, or of which the owners or cultivators are unknown, or which are wild growths, may be seized and summarily forfeited to the board.
     (m) The failure, upon demand by a board inspector or law enforcement officer, of the person in occupancy or in control of land or premises upon which the species of plants are growing or being stored to produce an appropriate registration or proof that he is the holder thereof constitutes authority for the seizure and forfeiture of the plants.
     (n))) (q) Upon the entry of an order of forfeiture of real property, the court shall forward a copy of the order to the assessor of the county in which the property is located. Orders for the forfeiture of real property shall be entered by the superior court, subject to court rules. Such an order shall be filed by the seizing agency in the county auditor's records in the county in which the real property is located.
     (((o))) (r) A landlord may assert a claim against proceeds from the sale of assets ((seized and forfeited)) under subsection (((g)(2))) (o) of this section, only if:
     (1) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence; and
     (2) The landlord has applied any funds remaining in the tenant's deposit, to which the landlord has a right under chapter 59.18 RCW, to cover the damage directly caused by a law enforcement officer prior to asserting a claim under the provisions of this section;
     (i) Only if the funds applied under (2) of this subsection are insufficient to satisfy the damage directly caused by a law enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;
     (ii) Only if the governmental entity denies or fails to respond to the landlord's claim within sixty days of the date of filing, may the landlord collect damages under this subsection by filing within thirty days of denial or the expiration of the sixty-day period, whichever occurs first, a claim with the seizing law enforcement agency. The seizing law enforcement agency must notify the landlord of the status of the claim by the end of the thirty-day period. Nothing in this section requires the claim to be paid by the end of the sixty-day or thirty-day period.
     (3) For any claim filed under (2) of this subsection, the law enforcement agency shall pay the claim unless the agency provides ((substantial)) proof by a preponderance of the evidence that the landlord either:
     (i) Knew or consented to actions of the tenant in violation of this chapter or chapter 69.41 or 69.52 RCW; or
     (ii) Failed to respond to a notification of the illegal activity, provided by a law enforcement agency under RCW 59.18.075, within seven days of receipt of notification of the illegal activity.
     (((p))) (s) The landlord's claim for damages under subsection (((o))) (r) of this section may not include a claim for loss of business and is limited to:
     (1) Damage to tangible property and clean-up costs;
     (2) The lesser of the cost of repair or fair market value of the damage directly caused by a law enforcement officer;
     (3) The proceeds from the sale of the specific tenant's property ((seized and forfeited)) under subsection (((g)(2))) (o) of this section; and
     (4) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (((i)(2))) (o) of this section.
     (((q))) (t) Subsections (((o))) (r) and (((p))) (s) of this section do not limit any other rights a landlord may have against a tenant to collect for damages. However, if a law enforcement agency satisfies a landlord's claim under subsection (((o))) (r) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency.
     (u) For the purposes of this section:
     (1) "Contraband" means personal property, articles, or things, including but not limited to controlled substances or drug paraphernalia and illegal firearms, that a person is prohibited by Washington statute or local ordinance from producing, obtaining, or possessing; and
     (2) "Property" means any interest in anything of value, including the whole of any lot or tract of land and tangible and intangible personal property, including currency, instruments, or securities, or any other kind of privilege, interest, claim, or right whether due or to become due.

Sec. 4   RCW 9A.83.030 and 2001 c 168 s 2 are each amended to read as follows:
     (1) Proceeds traceable to or derived from specified unlawful activity or a violation of RCW 9A.83.020 are subject to seizure and forfeiture. The attorney general or county prosecuting attorney may file a civil action for the forfeiture of proceeds. Unless otherwise provided for under this section, no property rights exist in these proceeds. All right, title, and interest in the proceeds shall vest in the governmental entity of which the seizing law enforcement agency is a part upon commission of the act or omission giving rise to forfeiture under this section.
     (2) Real or personal property subject to forfeiture under this chapter may be seized by any law enforcement officer of this state upon process issued by a superior court that has jurisdiction over the property. Any agency seizing real property shall file a lis pendens concerning the property. Real property seized under this section shall not be transferred or otherwise conveyed until ninety days after seizure or until a judgment of forfeiture is entered, whichever is later. Real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest. Seizure of personal property without process may be made if:
     (a) The seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant issued pursuant to RCW 69.50.502; or
     (b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter.
     (3) A seizure under subsection (2) of this section commences proceedings for forfeiture. The law enforcement agency under whose authority the seizure was made shall cause notice of the seizure and intended forfeiture of the seized proceeds to be served within fifteen days after the seizure on the owner of the property seized and the person in charge thereof and any person who has a known right or interest therein, including a community property interest. Service of notice of seizure of real property shall be made according to the rules of civil procedure. However, the state may not obtain a default judgment with respect to real property against a party who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state. The notice of seizure in other cases may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail is complete upon mailing within the fifteen-day period after the seizure.
     (4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of the property within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the property seized shall be deemed forfeited. The community property interest in real property of a person whose spouse committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation.
     (5) If a person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of property within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the person or persons shall be afforded a reasonable opportunity to be heard as to the claim or right. The provisions of RCW 69.50.505(((e))) (j) shall apply to any such hearing. The seizing law enforcement agency shall promptly return property to the claimant upon the direction of the administrative law judge or court.
     (6) Disposition of forfeited property shall be made in the manner provided for in RCW 69.50.505 (((h))) (m) through (((j))) (o) and (((n))) (q).

Sec. 5   RCW 69.50.520 and 2002 c 371 s 920 are each amended to read as follows:
     The violence reduction and drug enforcement account is created in the state treasury. All designated receipts from RCW 9.41.110(8), 66.24.210(4), 66.24.290(2), 69.50.505(((i))) (n)(1), 82.08.150(5), 82.24.020(2), 82.64.020, and section 420, chapter 271, Laws of 1989 shall be deposited into the account. Expenditures from the account may be used only for funding services and programs under chapter 271, Laws of 1989 and chapter 7, Laws of 1994 sp. sess., including state incarceration costs. Funds from the account may also be appropriated to reimburse local governments for costs associated with implementing criminal justice legislation including chapter 338, Laws of 1997. During the 2001-2003 biennium, funds from the account may also be used for costs associated with providing grants to local governments in accordance with chapter 338, Laws of 1997, the replacement of the department of corrections' offender-based tracking system, maintenance and operating costs of the Washington association of sheriffs and police chiefs jail reporting system, civil indigent legal representation, and for multijurisdictional narcotics task forces. After July 1, 2003, at least seven and one-half percent of expenditures from the account shall be used for providing grants to community networks under chapter 70.190 RCW by the family policy council.

NEW SECTION.  Sec. 6   Within four years of the effective date of this act, and every four years thereafter, the state auditor shall conduct an audit of each seizing agency filing quarterly reports with the state treasurer pursuant to RCW 69.50.505 to monitor the agency's compliance with RCW 69.50.505 (m), (n), and (o). The state auditor shall produce written findings regarding compliance and submit a report to the legislature within a reasonable time after each audit period.

NEW SECTION.  Sec. 7   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.