1. Asset Forfeiture Reporting
Kent S. Richardson
Assistant Attorney General
Criminal Prosecutions Division
Views expressed are those of the presenter, do not constitute legal advice, and are not official opinions of the Office of the Texas Attorney General.

2. Course Objectives
To advise reporting agencies on statutory reporting requirements
To familiarize reporting agencies with the reporting form

3. The Audit Requirement
Is found in Article of the Code of Criminal Procedure

4. Who Must Report
All law enforcement agencies and attorneys representing the state
Article 59.06(g)(1)

5. Definitions: Law Enforcement Agency
Article 59.01(5)
“Any agency of the state or an agency of a political subdivision of the state authorized by law to employ peace officers.”
Includes many different kinds of agencies
Article 2.12 of the Code of Criminal Procedure
District/county attorney’s offices
School districts police departments
Fire departments
NOT TASK FORCES (as a whole)

6. Definitions: Attorney Representing the State
Article 59.01(1)
The prosecutor with felony jurisdiction in the county where a forfeiture proceeding is held

7. Definitions: Attorney Representing the State
City Attorney IF
In a proceeding for forfeiture of contraband as defined under Subdivision 2(B)(v) (Illegal Dumping under H&S Code);
If the property is seized in that municipality by a peace officer employed by that municipality;
Governing body of the municipality has approved procedures

8. What is Accounted For? Seizures Forfeitures Receipts of property
Specific expenditures

9. How is Accounting Done? Article 59.06(g)(1) In an audit Annually
By the Commissioners Court or governing body of a municipality, as appropriate

10. When is the Audit Performed? Law Enforcement Agencies
Article 59.06(g)(1)
The annual period is the fiscal year of the appropriate county or municipality

11. When is the Audit Performed? Attorneys Representing the State
Article 59.06(g)(1)
The State fiscal year (Sept. 1 through August 31)

12. The Reporting Form Art. 59.06(g)(1) Provided by the Attorney General
Is now completed through online platform

13. The Deadline
Art (g)(1)
Must be certified and sent to the Attorney General no later than the 60th day after the annual reporting period

14. Late Reports
Art (g)(2)
Five Days after due Attorney General will notify
Attorney General can give one15 day extension for good cause
If the report is late, Attorney General shall notify the Comptroller
The Comptroller shall perform audit after notification
Liable to Comptroller for costs of audit

15. Allowable Expenditures
Art (c)
For law enforcement agencies must be generally used for “law enforcement purposes”
For attorneys representing the state must be generally used for “official purposes of the office”

16. Allowable Expenditures Cont.
59.06(d-3) details allowable categories of expenditures for law enforcement agencies
(1) equipment - vehicles, computers, firearms, body armor, furniture, software, uniforms
(2) supplies – including mobile phone and internet
(3) investigative and training related travel expenses
(4) conferences and training expenses
(5) investigative costs
(6) crime prevention and treatment programs
(7) facility costs – purchases, leases, remodeling, maintenance, utilities
(8) witness related costs
(9) audit costs

17. Allowable Expenditures Cont.
59.06(d-4) details allowable categories of expenditures for attorneys representing the state
(1) equipment - vehicles, computers, firearms, body armor, furniture, software, uniforms, litigation items
(2) supplies – including mobile phone and internet
(3) prosecution and training related travel expenses
(4) conferences and training expenses
(5) investigative costs
(6) crime prevention and treatment programs
(7) facility costs – purchases, leases, remodeling, maintenance, utilities
(8) legal fees, audit fees and witness related costs
(9) bar and association dues

18. Allowable Expenditures Cont.
Art (d-2)
Donation to an entity that assists in:
Detection, investigation or prosecution of criminal offenses or instances of abuse
Provision of mental health, drug or rehab services
Services for victims of crime or abuse
Training or education for above

19. Allowable Expenditures Cont.
Art (h)
Agency may agree with governing body to contribute no more than 10% of fund to:
Nonprofit programs for prevention of drug abuse
Nonprofit chemical dependency treatment programs
Nonprofit drug and alcohol rehab or prevention programs

20. Allowable Expenditures Cont.
Art (o)
May transfer no more than 10% of fund to the political subdivision to provide financial assistance to residents who plan to study related to law enforcement and will subsequently work for the political subdivision in law enforcement.

21. Allowable Expenditures Cont.
May transfer no more than 10% to the political subdivision to provide scholarships to children of peace officers killed in the line of duty.

22. Disallowed Expenditures
Art (d-1)
Contribute to a political campaign
Make a donation to an entity unless allowed by statute
Pay expenses related to training or education of any member of the judiciary
Pay travel expenses for seminars which violate applicable restrictions established by the governing body
Purchase alcoholic beverages
Make any expenditure by lame duck officeholder not approved by governing body
Increase a salary without first getting approval by governing body

23. Budget Requirement Art. 59.06(d)
Any agency that intends to use forfeited funds must first submit a budget to the governing body of the agency
Must be detailed but does not have to include items that might harm an investigation
Governing body must not use the existence of forfeiture funds to offset or decrease funding to the agency

24. Alternative Forfeiture Proceedings
(Substitute Assets) Should be reported as other property is reported on the form
(Property Removed from State) Should be reported as other property is reported on the form with the exception of civil penalties awarded to the State
(Suit for Proceeds) Should be reported as other proceeds are reported on the form

25. Enforcement Authority
Art
State Auditor may receive complaints and investigate for knowing violations of provisions related to the disposition of proceeds or property.
Shall refer any cases to the Attorney General
Art
Attorney general can file suit for injunctive relief and civil penalties.

26. Let’s Look at the Form
Please ask any questions you might have as we go through the forms
Your jurisdiction may account for its property in different ways

27. Questions Kent Richardson Assistant Attorney General
Office of the Attorney General
(512)