HB2369 - 522R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-584, Arizona Revised Statutes, is amended to read:

START_STATUTE11-584. Public defender; duties; reimbursement

A. The public defender shall, on order of the court, shall defend, advise and counsel any person who is entitled to counsel as a matter of law and who is not financially able to employ counsel in the following proceedings and circumstances:

1. Offenses triable in the superior court or justice courts at all stages of the proceedings, including the preliminary examination.

2. Extradition hearings.

3. Mental disorder hearings only if appointed by the court under title 36, chapter 5.

4. Involuntary commitment hearings held pursuant to title 36, chapter 18, only if appointed by the court.

5. Involuntary commitment hearings held pursuant to title 36, chapter 37, if appointed by the court as provided in section 36‑3704, subsection C and the board of supervisors has advised the presiding judge of the county that the public defender is authorized to accept these appointments.

6. Juvenile delinquency and incorrigibility proceedings only if appointed by the court under section 8‑221.

7. Appeals to a higher court or courts.

8. All juvenile proceedings other than delinquency and incorrigibility proceedings under paragraph 6 of this subsection, including serving as a guardian ad litem, if appointed by the court pursuant to section 8‑221 and the board of supervisors has advised the presiding judge of the county that the public defender is authorized to accept these appointments.

9. All mental health hearings regarding release recommendations held before the psychiatric security review board pursuant to section 13‑3994, if appointed by the court as provided in section 31‑502, subsection A, paragraph 8 and the board of supervisors has advised the presiding judge of the superior court in the county that the public defender is authorized to accept these appointments.

10. As attorneys in any other proceeding or circumstance in which a party is entitled to counsel as a matter of law if the court appoints the public defender and the board of supervisors has advised the presiding judge of the county that the public defender is authorized to accept these appointments as specified.

11. All forfeiture proceedings held pursuant to title 13.

B. The public defender shall perform the following duties:

1. Keep a record of all services rendered by the public defender in that capacity and file with the board of supervisors an annual report of those services.

2. By December 1 of each year, file with the presiding judge of the superior court, the chief probation officer and the board of supervisors an annual report on the average cost of defending a felony case.

C. Although the services of the public defender or court appointed counsel shall be without expense to the defendant, the juvenile, a parent or any other party, the court may make the following assessments:

1. Order an indigent administrative assessment of not more than twenty‑five dollars.

2. Order an administrative assessment fee of not more than twenty‑five dollars to be paid by the juvenile or the juvenile's parent or guardian.

3. Require that the defendant, including a defendant who is placed on probation, a juvenile, a parent or any other party who is appointed counsel under subsection A of this section repay to the county a reasonable amount to reimburse the county for the cost of the person's legal services. Reimbursement for legal services in a delinquency, dependency or termination proceeding shall be ordered pursuant to section 8‑221. Reimbursement for legal services in a guardianship or conservatorship proceeding shall be ordered pursuant to section 14-5414.

D. In determining the amount and method of payment the court shall take into account the financial resources of the defendant and the nature of the burden that the payment will impose.

E. Assessments collected pursuant to subsection C of this section shall be paid into the county general fund in the account designed for use solely by the public defender and court appointed counsel to defray the costs of public defenders and court appointed counsel. The assessments shall supplement, not supplant, funding provided by counties for public defense, legal defense and contract indigent defense counsel in each county.END_STATUTE

Sec. 2. Section 12-348, Arizona Revised Statutes, is amended to read:

START_STATUTE12-348. Award of fees and other expenses against the state or a city, town or county; reduction or denial of award; application; basis for amount of award; source of award; definitions

A. In addition to any costs that are awarded as prescribed by statute, a court shall award fees and other expenses to any party other than this state or a city, town or county that prevails by an adjudication on the merits in any of the following:

1. A civil action brought by this state or a city, town or county against the party.

2. A court proceeding to review a state agency decision pursuant to chapter 7, article 6 of this title or any other statute authorizing judicial review of agency, city, town or county decisions.

3. A proceeding pursuant to section 41‑1034.

4. A special action proceeding brought by the party to challenge an action by this state or a city, town or county against the party.

5. An appeal by this state to a court of law from a decision of the personnel board under title 41, chapter 4, article 6.

6. A civil action brought by the party to challenge to the seizure and sale of personal property by this state or a city, town or county.

B. In addition to any costs that are awarded as prescribed by statute, except as provided in subsection C of this section, a court may award fees and other expenses to any party, other than this state or a city, town or county, that prevails by an adjudication on the merits in an action brought by the party against this state or a city, town or county challenging:

1. The assessment, collection or refund of taxes or in an action brought by this state or a city, town or county against the party to enforce the assessment or collection of taxes or the denial of a refund.

2. The adequacy or regularity of notice of delinquent taxes.

3. The regularity of sales of property for delinquent taxes.

C. The court in its discretion may deny the award provided for in this section or may reduce the award if it finds that any of the following applies:

1. During the course of the proceeding the prevailing party unduly and unreasonably protracted the final resolution of the matter.

2. The reason that the party other than this state or a city, town or county has prevailed is an intervening change in the applicable law.

3. The prevailing party refused an offer of civil settlement that was at least as favorable to the party as the relief ultimately granted.

D. A party may apply pursuant to the applicable procedural rules for an award of attorney fees and other expenses authorized under this section and shall include as part of the application evidence of the party's eligibility for the award and the amount sought, including an itemized statement from the attorneys and experts stating the actual time expended in representing the party and the rate at which the fees were computed.

E. The court shall base any award of fees as provided in this section on prevailing market rates for the kind and quality of the services furnished, except that:

1. An expert is not eligible for compensation at a rate in excess of the highest rate of compensation for experts paid by this state or a city, town or county except for awards made pursuant to subsection B of this section.

2. Except for awards made pursuant to subsection B of this section, the award of attorney fees may not exceed the amount that the prevailing party has paid or has agreed to pay the attorney or a maximum amount of seventy‑five dollars per hour unless the court determines that an increase in the cost of living or a special factor, such as the limited availability of qualified attorneys for the proceeding involved, justifies a higher fee.

3. For awards made pursuant to subsection B of this section, the award of attorney fees may not exceed the amount that the prevailing party has paid or agreed to pay the attorney or a maximum amount of three hundred fifty dollars per hour.

4. Except for awards made pursuant to subsection B of this section, an award of fees against a city, town or county as provided in this section shall not exceed ten thousand dollars.

5. For awards made pursuant to subsection B of this section, an award of fees against this state or a city, town or county shall not exceed seventy-five thousand dollars for fees incurred at each level of judicial appeal.

6. For each calendar year beginning from and after December 31, 2015, the attorney general shall adjust the income dollar amounts for maximum awards made pursuant to subsections subsection B and E of this section shall be adjusted by the attorney general and paragraphs 2, 3, 4 and 5 of this subsection according to the average annual change in the metropolitan Phoenix consumer price index published by the United States bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts may not be revised below the amounts prescribed in the prior calendar year.

F. The particular state agency over which a party prevails shall pay the fees and expenses awarded as provided in this section from any monies appropriated to the agency for that purpose. If no agency is involved or if an agency fails or refuses to pay fees and other expenses within thirty days after demand by a person who has received an award pursuant to this section, and if no further review or appeals of the award are pending, the person may file a claim for the fees and other expenses with the department of administration, which shall pay the claim within thirty days, in the same manner as an uninsured property loss under title 41, chapter 3.1, article 1. If, at the time the agency failed or refused to pay the award, it had appropriated monies either designated or assignable for the purpose of paying awards, the legislature shall reduce the agency's operating appropriation for the following year by the amount of the award and shall appropriate the amount of the reduction to the department of administration as reimbursement for the loss.

G. A city, town or county shall pay fees and expenses awarded as provided in this section within thirty days after demand by a party who has received an award if no further review or appeal of the award is pending.

H. This section does not:

1. Apply to an action arising from a proceeding before this state or a city, town or county in which the role of this state or a city, town or county was to determine the eligibility or entitlement of an individual to a monetary benefit or its equivalent, to adjudicate a dispute or issue between private parties or to establish or fix a rate.

2. Apply to proceedings brought by this state pursuant to title 13 or 28. This paragraph does apply to a forfeiture proceeding pursuant to title 13, chapter 39.

3. Entitle a party to obtain fees and other expenses incurred in making an application for an award pursuant to this section for fees and other expenses.

4. Apply to proceedings involving eminent domain, foreclosure, collection of judgment debts or proceedings in which this state or a city, town or county is a nominal party.

5. Personally obligate any officer or employee of this state or a city, town or county for the payment of an award entered under this section.

6. Apply, except as provided in subsection A, paragraph 5 of this section, to proceedings involving the personnel board under title 41, chapter 4, article 6.

7. Apply to proceedings brought by a city, town or county pursuant to title 13 or 28.

8. Apply to proceedings brought by a city, town or county on collection of taxes or pursuant to traffic ordinances or to criminal proceedings brought by a city, town or county on ordinances which that contain a criminal penalty or fine for violations of those ordinances.

I. For the purposes of this section:

1. "Fees and other expenses" means the reasonable expenses of expert witnesses, the reasonable cost of any study, analysis, engineering report, test or project which that the court finds to be directly related to and necessary for the presentation of the party's case and reasonable and necessary attorney fees, and in the case of an action to review an agency decision pursuant to subsection A, paragraph 2 of this section, all fees and other expenses that are incurred in the contested case proceedings in which the decision was rendered.

2. "Party" means an individual, partnership, corporation, limited liability company, limited liability partnership, association or public or private organization.

3. "State" means this state and any agency, officer, department, board or commission of this state.

4. "Taxes" includes all taxes and related levies and assessments addressed in section 12‑163. END_STATUTE

Sec. 3. Section 12-349, Arizona Revised Statutes, is amended to read:

START_STATUTE12-349. Unjustified actions; attorney fees, expenses and double damages; exceptions; definition

A. Except as otherwise provided by and not inconsistent with another statute, in any civil action commenced or appealed in a court of record in this state, the court shall assess reasonable attorney fees, expenses and, at the court's discretion, double damages of not to exceed five thousand dollars against an attorney or party, including this state and political subdivisions of this state, if the attorney or party does any of the following:

1. Brings or defends a claim without substantial justification.

2. Brings or defends a claim solely or primarily for delay or harassment.

3. Unreasonably expands or delays the proceeding.

4. Engages in abuse of discovery.

B. The court may allocate the payment of attorney fees among the offending attorneys and parties, jointly or severally, and may assess separate amounts against an offending attorney or party.

C. Attorney fees shall not be assessed if after filing an action a voluntary dismissal is filed for any claim or defense within a reasonable time after the attorney or party filing the dismissal knew or reasonably should have known that the claim or defense was without substantial justification.

D. This section does not apply to the adjudication of civil traffic violations or to any proceedings brought by this state pursuant to title 13, except for a proceeding brought pursuant to title 13, chapter 39.

E. Notwithstanding any other law, this state and political subdivisions of this state may be awarded attorney fees pursuant to this section.

F. For the purposes of this section, "without substantial justification" means that the claim or defense is groundless and is not made in good faith. END_STATUTE

Sec. 4. Section 13-2301, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2301. Definitions

A. For the purposes of sections 13‑2302, 13‑2303 and 13‑2304:

1. "Collect an extension of credit" means to induce in any way any person to make repayment of that extension.

2. "Creditor" means any person making an extension of credit or any person claiming by, under or through any person making an extension of credit.

3. "Debtor" means any person to whom an extension of credit is made or any person who guarantees the repayment of an extension of credit, or in any manner undertakes to indemnify the creditor against loss resulting from the failure of any person to whom an extension is made to repay the extension.

4. "Extend credit" means to make or renew any loan or to enter into any agreement, tacit or express, whereby the repayment or satisfaction of any debt or claim, whether acknowledged or disputed, valid or invalid, and however arising, may or shall be deferred.

5. "Extortionate extension of credit" means any extension of credit with respect to which it is the understanding of the creditor and the debtor at the time the extension is made that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person or the reputation or property of any person.

6. "Extortionate means" means the use, or an express or implicit threat of use, of violence or other criminal means to cause harm to the person or the reputation or property of any person.

7. "Repayment of any extension of credit" means the repayment, satisfaction or discharge in whole or in part of any debt or claim, acknowledged or disputed, valid or invalid, resulting from or in connection with that extension of credit.

B. For the purposes of section 13‑2305, 13‑2306 or 13‑2307:

1. "Dealer in property" means a person who buys and sells property as a business.

2. "Stolen property" means property of another as defined in section 13‑1801 that has been the subject of any unlawful taking.

3. "Traffic" means to sell, transfer, distribute, dispense or otherwise dispose of stolen property to another person, or to buy, receive, possess or obtain control of stolen property, with the intent to sell, transfer, distribute, dispense or otherwise dispose of the property to another person.

C. For the purposes of this chapter:

1. "Animal activity" means a commercial enterprise that uses animals for food, clothing or fiber production, agriculture or biotechnology.

2. "Animal facility" means a building or premises where a commercial activity in which the use of animals is essential takes place, including a zoo, rodeo, circus, amusement park, hunting preserve and horse and dog event.

3. "Animal or ecological terrorism" means any felony in violation of section 13‑2312, subsection B that involves at least three persons acting in concert, that involves the intentional or knowing infliction of property damage in an amount of more than ten thousand dollars to the property that is used by a person for the operation of a lawfully conducted animal activity or to a commercial enterprise that is engaged in a lawfully operated animal facility or research facility and that involves either:

(a) The use of a deadly weapon or dangerous instrument.

(b) The intentional or knowing infliction of serious physical injury on a person engaged in a lawfully conducted animal activity or participating in a lawfully conducted animal facility or research facility.

4. "Biological agent" means any microorganism, virus, infectious substance or biological product that may be engineered through biotechnology or any naturally occurring or bioengineered component of any microorganism, virus, infectious substance or biological product and that is capable of causing any of the following:

(a) Death, disease or physical injury in a human, animal, plant or other living organism.

(b) The deterioration or contamination of air, food, water, equipment, supplies or material of any kind.

5. "Combination" means persons who collaborate in carrying on or furthering the activities or purposes of a criminal syndicate even though such persons may not know each other's identity, membership in the combination changes from time to time or one or more members may stand in a wholesaler‑retailer or other arm's length relationship with others as to activities or dealings between or among themselves in an illicit operation.

6. "Communication service provider" has the same meaning prescribed in section 13‑3001.

7. "Criminal syndicate" means any combination of persons or enterprises engaging, or having the purpose of engaging, on a continuing basis in conduct that violates any one or more provisions of any felony statute of this state.

8. "Explosive agent" means an explosive as defined in section 13‑3101 and flammable fuels or fire accelerants in amounts over fifty gallons but excludes:

(a) Fireworks as defined in section 36‑1601.

(b) Firearms.

(d) A device that is commercially manufactured primarily for the purpose of illumination.

(e) A rocket having a propellant charge of less than four ounces.

9. "Material support or resources" includes money or other financial securities, financial services, lodging, sustenance, training, safehouses, false documentation or identification, communications equipment, facilities, weapons, lethal substances, explosives, personnel, transportation, disguises and other physical assets but does not include medical assistance, legal assistance or religious materials.

10. "Public establishment" means a structure that is owned, leased or operated by this state or a political subdivision of this state or a health care institution as defined in section 36‑401.

11. "Research facility" means a laboratory, institution, medical care facility, government facility, public or private educational institution or nature preserve at which a scientific test, experiment or investigation involving the use of animals is lawfully carried out, conducted or attempted.

12. "Terrorism" means any felony, including any completed or preparatory offense, that involves the use of a deadly weapon or a weapon of mass destruction or the intentional or knowing infliction of serious physical injury with the intent to either:

(a) Influence the policy or affect the conduct of this state or any of the political subdivisions, agencies or instrumentalities of this state.

(b) Cause substantial damage to or substantial interruption of public communications, communication service providers, public transportation, common carriers, public utilities, public establishments or other public services.

13. "Toxin" means the toxic material of plants, animals, microorganisms, viruses, fungi or infectious substances or a recombinant molecule, whatever its origin or method of reproduction, including:

(a) Any poisonous substance or biological product that may be engineered through biotechnology and that is produced by a living organism.

(b) Any poisonous isomer or biological product, homolog or derivative of such substance.

14. "Vector" means a living organism or molecule, including a recombinant molecule or biological product that may be engineered through biotechnology, that is capable of carrying a biological agent or toxin to a host.

15. "Weapon of mass destruction" means:

(a) Any device or object that is designed or that the person intends to use to cause multiple deaths or serious physical injuries through the use of an explosive agent or the release, dissemination or impact of a toxin, biological agent, poisonous chemical, or its precursor, or any vector.

(b) Except as authorized and used in accordance with a license, registration or exemption by the radiation regulatory agency pursuant to section 30‑672, any device or object that is designed or that the person intends to use to release radiation or radioactivity at a level that is dangerous to human life.

D. For the purposes of sections 13‑2312, 13‑2313, 13‑2314 and 13‑2315, unless the context otherwise requires:

1. "Control", in relation to an enterprise, means the possession of sufficient means to permit substantial direction over the affairs of an enterprise and, in relation to property, means to acquire or possess.

2. "Enterprise" means any corporation, partnership, association, labor union or other legal entity or any group of persons associated in fact although not a legal entity.

3. "Financial institution" means any business under the jurisdiction of the department of financial institutions or a banking or securities regulatory agency of the United States, a business coming within the definition of a bank, financial agency or financial institution as prescribed by 31 United States Code section 5312 or 31 Code of Federal Regulations section 1010.100 or a business under the jurisdiction of the securities division of the corporation commission, the state real estate department or the department of insurance.

4. "Racketeering" means any criminal act, including any preparatory or completed offense, that is chargeable or indictable results in a conviction under the laws of the state or country in which the criminal act occurred and, if the criminal act occurred in a state or country other than this state, that would be chargeable or indictable under the laws of this state if the criminal act had occurred in this state, and that would be punishable by imprisonment for more than one year under the laws of this state and, if the criminal act occurred in a state or country other than this state, under the laws of the state or country in which the criminal act occurred, regardless of whether the act is charged or indicted, and the criminal act involves either:

(a) Terrorism, animal terrorism or ecological terrorism that results or is intended to result in a risk of serious physical injury or death.

(b) Any of the following criminal acts if committed for financial gain:

(i) Homicide.

(ii) Robbery.

(iii) Kidnapping.

(iv) Forgery.

(v) Theft.

(vi) Bribery.

(vii) Gambling.

(viii) Usury.

(ix) Extortion.

(x) Extortionate extensions of credit.

(xi) Prohibited drugs, marijuana or other prohibited chemicals or substances.

(xii) Trafficking in explosives, weapons or stolen property.

(xiii) Participating in a criminal syndicate.

(xiv) Obstructing or hindering criminal investigations or prosecutions.

(xv) Asserting false claims including, but not limited to, false claims asserted through fraud or arson.

(xvi) Intentional or reckless false statements or publications concerning land for sale or lease or sale of subdivided lands or sale and mortgaging of unsubdivided lands.

(xvii) Resale of realty with intent to defraud.

(xviii) Intentional or reckless fraud in the purchase or sale of securities.

(xix) Intentional or reckless sale of unregistered securities or real property securities.

(xx) A scheme or artifice to defraud.

(xxi) Obscenity.

(xxii) Sexual exploitation of a minor.

(xxiii) Prostitution.

(xxiv) Restraint of trade or commerce in violation of section 34‑252.

(xxv) Terrorism.

(xxvi) Money laundering.

(xxvii) Obscene or indecent telephone communications to minors for commercial purposes.

(xxviii) Counterfeiting marks as proscribed in section 44‑1453.

(xxix) Animal terrorism or ecological terrorism.

(xxx) Smuggling of human beings.

(xxxi) Child prostitution.

(xxxii) Sex trafficking.

(xxxiii) Trafficking of persons for forced labor or services.

(xxxiv) Manufacturing, selling or distributing misbranded drugs in violation of section 13‑3406, subsection A, paragraph 9.

5. "Records" means any book, paper, writing, computer program, data, image or information that is collected, recorded, preserved or maintained in any form of storage medium.

6. "Remedy racketeering" means to enter a civil judgment pursuant to this chapter or chapter 39 of this title against property or a person who is subject to liability, including liability for injury to the state that is caused by racketeering or by actions in concert with racketeering.

E. For the purposes of sections 13‑2316, 13‑2316.01 and 13‑2316.02:

1. "Access" means to instruct, communicate with, store data in, retrieve data from or otherwise make use of any resources of a computer, computer system or network.

2. "Access device" means any card, token, code, account number, electronic serial number, mobile or personal identification number, password, encryption key, biometric identifier or other means of account access, including a canceled or revoked access device, that can be used alone or in conjunction with another access device to obtain money, goods, services, computer or network access or any other thing of value or that can be used to initiate a transfer of any thing of value.

3. "Computer" means an electronic device that performs logic, arithmetic or memory functions by the manipulations of electronic or magnetic impulses and includes all input, output, processing, storage, software or communication facilities that are connected or related to such a device in a system or network.

4. "Computer contaminant" means any set of computer instructions that is designed to modify, damage, destroy, record or transmit information within a computer, computer system or network without the intent or permission of the owner of the information, computer system or network. Computer contaminant includes a group of computer instructions, such as viruses or worms, that is self‑replicating or self‑propagating and that is designed to contaminate other computer programs or computer data, to consume computer resources, to modify, destroy, record or transmit data or in some other fashion to usurp the normal operation of the computer, computer system or network.

5. "Computer program" means a series of instructions or statements, in a form acceptable to a computer, that permits the functioning of a computer system in a manner designed to provide appropriate products from the computer system.

6. "Computer software" means a set of computer programs, procedures and associated documentation concerned with the operation of a computer system.

7. "Computer system" means a set of related, connected or unconnected computer equipment, devices and software, including storage, media and peripheral devices.

8. "Critical infrastructure resource" means any computer or communications system or network that is involved in providing services necessary to ensure or protect the public health, safety or welfare, including services that are provided by any of the following:

(a) Medical personnel and institutions.

(b) Emergency services agencies.

(d) Fire departments, districts or volunteer organizations.

(e) Law enforcement agencies.

(f) Financial institutions.

(g) Public educational institutions.

(h) Government agencies.

9. "False or fraudulent pretense" means the unauthorized use of an access device or the use of an access device to exceed authorized access.

10. "Financial instrument" means any check, draft, money order, certificate of deposit, letter of credit, bill of exchange, credit card or marketable security or any other written instrument as defined in section 13‑2001 that is transferable for value.

11. "Network" includes a complex of interconnected computer or communication systems of any type.

12. "Property" means financial instruments, information, including electronically produced data, computer software and programs in either machine or human readable form, and anything of value, tangible or intangible.

13. "Proprietary or confidential computer security information" means information about a particular computer, computer system or network that relates to its access devices, security practices, methods and systems, architecture, communications facilities, encryption methods and system vulnerabilities and that is not made available to the public by its owner or operator.

14. "Services" includes computer time, data processing, storage functions and all types of communication functions. END_STATUTE

Sec. 5. Section 13-2314, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2314. Racketeering; civil remedies by this state; definitions

A. The attorney general or a county attorney may file an action in superior court on behalf of a person who sustains injury to his person, business or property by racketeering as defined by section 13‑2301, subsection D, paragraph 4 or by a violation of section 13‑2312 for the recovery of treble damages and the costs of the suit, including reasonable attorney fees, or to prevent, restrain, or remedy racketeering as defined by section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312. If the person against whom a racketeering claim has been asserted, including a forfeiture action or lien, prevails on that claim, the person may be awarded costs and reasonable attorney fees incurred in defense of that claim. In actions filed by the state or a county, awards of costs and reasonable attorney fees are to be assessed against and paid from monies acquired pursuant to sections 13‑2314.01 and 13‑2314.03.

B. The superior court has jurisdiction to prevent, restrain, and remedy racketeering as defined by section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312 after making provision for the rights of any person who sustained injury to his person, business or property by the racketeering conduct and after a hearing or trial, as appropriate, by issuing appropriate orders.

C. Prior to Before a determination of liability such conviction, the orders may include, but are not limited to, issuing seizure warrants, entering findings of probable cause for in personam or in rem forfeiture, entering restraining orders or prohibitions or taking such other actions, including the acceptance of satisfactory performance bonds, the creation of receiverships and the enforcement of constructive trusts, in connection with any property or other interest subject to forfeiture, damages or other remedies or restraints pursuant to this section as the court deems proper.

D. Following a determination of liability such conviction, the orders may include, but are not limited to:

1. Ordering any person to divest himself of any interest, direct or indirect, in any enterprise.

2. Imposing reasonable restrictions on the future activities or investments of any person, including prohibiting any person from engaging in the same type of endeavor as the enterprise engaged in, the activities of which affect the laws of this state, to the extent the constitutions of the United States and this state permit.

3. Ordering dissolution or reorganization of any enterprise.

4. Ordering the payment of treble damages to those persons injured by racketeering as defined by section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312.

5. Ordering the payment of all costs and expenses of the prosecution and investigation of any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312, civil and criminal, including reasonable attorney fees, to be paid to the general fund of the state or the county which brings the action.

6. In personam forfeiture pursuant to chapter 39 of this title to the general fund of the state or county, as appropriate, to the extent that forfeiture is not inconsistent with protecting the rights of any person who sustained injury to his person, business or property by the racketeering conduct, of the interest of a person in:

(a) Any property or interest in property acquired or maintained by the person in violation of section 13‑2312.

(b) Any interest in, security of, claims against or property, office, title, license or contractual right of any kind affording a source of influence over any enterprise or other property which that the person has acquired or maintained an interest in or control of, conducted or participated in the conduct of in violation of section 13‑2312.

(c) All proceeds traceable to an offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 and held by the person and all monies, negotiable instruments, securities and other property used or intended to be used by the person in any manner or part to facilitate commission of the offense and that the person either owned or controlled for the purpose of that use.

(d) Any other property up to the value of the subject property described in subdivision (a), (b) or (c) of this paragraph.

7. Payment to the general fund of the state or county as appropriate of an amount equal to the gain that was acquired or maintained through an offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312 or that any person is liable for under this section.

E. A person who is liable for conduct described in subsection D, paragraph 6, subdivision (a), (b) or (c) of this section is liable for the total value of all interests in property described in those subdivisions. The court shall enter an order of forfeiture against the person in the amount of the total value of all those interests less the value of any interests that are forfeited before or at the time of the entry of the final judgment.

F. A person or enterprise that acquires any property through an offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or through a violation of section 13‑2312 is an involuntary trustee. The involuntary trustee and any other person or enterprise, except a bona fide purchaser for value who is reasonably without notice of the unlawful conduct and who is not knowingly taking part in an illegal transaction, hold the property, its proceeds and its fruits in constructive trust for the benefit of persons entitled to remedies under this section.

G. In addition to or in lieu of an action under this section the attorney general or a county attorney may file an in rem action pursuant to chapter 39 of this title for forfeiture, to the extent that forfeiture is not inconsistent with protecting the rights of any person who sustained injury to his person, business or property by the racketeering conduct, of:

1. Any property or interest in property acquired or maintained by a person in violation of section 13‑2312.

2. Any interest in, security of, claims against or property, office, title, license or contractual right of any kind affording a source of influence over any enterprise or other property which that a person has acquired or maintained an interest in or control of, conducted or participated in the conduct of in violation of section 13‑2312.

3. All proceeds traceable to an offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 and all monies, negotiable instruments, securities and other property used or intended to be used in any manner or part to facilitate the commission of the offense.

H. A defendant convicted in any criminal proceeding shall be precluded from subsequently denying the essential allegations of the criminal offense of which he was convicted in any civil proceeding. For the purposes of this subsection, a conviction may result from a verdict or plea including a no contest plea.

I. Notwithstanding any law creating a lesser period, the initiation of civil proceedings related to violations of any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312, including procedures pursuant to chapter 39 of this title, shall be commenced within seven years after actual discovery of the violation.

J. In any civil action brought pursuant to this section, the attorney general or a county attorney may file with the clerk of the superior court a certificate stating that the case is of special public importance. A copy of that certificate shall be furnished immediately by such clerk to the chief judge or presiding chief judge of the superior court in the county in which such action is pending, and, upon receipt of such copy, the judge shall immediately designate a judge to hear and determine the action. The judge so designated shall promptly assign such action for hearing, participate in the hearings and determination and cause the action to be expedited.

K. The standard of proof in actions brought pursuant to this section is the preponderance of the evidence test.

L. A civil action authorized by this section, including proceedings pursuant to chapter 39 of this title, is remedial and not punitive and does not limit and is not limited by any other previous or subsequent civil or criminal action under this title or any other provision of law. Civil remedies provided under this title are supplemental and not mutually exclusive.

M. The attorney general may appear as amicus curiae in any proceeding in which a claim under this section has been asserted, including proceedings pursuant to chapter 39 of this title, or in which the court is interpreting this chapter or chapter 39 of this title. A party who files a notice of appeal from a civil action brought under this chapter or chapter 39 of this title shall serve the notice and one copy of the appellant's brief on the attorney general at the time the person files the appellant's brief with the court. This requirement is jurisdictional.

N. In For the purposes of this section and section 13‑2312:

1. "Acquire" means for a person to do any of the following:

(a) Possess.

(b) Act so as to exclude other persons from using their property except on his own terms.

(c) Bring about or receive the transfer of any interest in property, whether to himself or to another person, or to secure performance of a service.

2. "Gain" means any benefit, interest or property of any kind without reduction for expenses of acquiring or maintaining it or incurred for any other reason.

3. "Proceeds" includes any interest in property of any kind acquired through or caused by an act or omission, or derived from the act or omission, directly or indirectly, and any fruits of this interest, in whatever form. END_STATUTE

Sec. 6. Section 13-2314.01, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2314.01. Anti-racketeering revolving fund; use of fund; reports; review board; board termination

A. The anti‑racketeering revolving fund is established. The attorney general shall administer the fund under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the lapsing provisions of section 35‑190.

B. Any prosecution and investigation costs, including attorney fees, recovered for the state by the attorney general as a result of enforcement of civil and criminal statutes pertaining to any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section.

C. Any monies received by any department or agency of this state or any political subdivision of this state from any department or agency of the United States or another state as a result of participation in any investigation or prosecution, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section or, if the recipient is a political subdivision of this state, may be deposited in the fund established by pursuant to section 13‑2314.03.

D. Any monies obtained as a result of a forfeiture by any department or agency of this state under this title or under federal law shall be deposited in the fund established by this section. Any monies or other property obtained as a result of a forfeiture by any political subdivision of this state or the federal government may be deposited in the fund established by this section. Monies deposited in the fund pursuant to this section or section 13‑4315 shall accrue interest and shall be held for the benefit of the agency or agencies responsible for the seizure or forfeiture to the extent of their contribution. Except as provided in subsections F and G of this section, the monies and interest shall be distributed within thirty days of application to the agency or agencies responsible for the seizure or forfeiture. Monies in the fund used by the attorney general for capital projects in excess of one million dollars are subject to review by the joint committee on capital review.

E. Monies in the fund:

1. May be used for the following:

1. (a) The funding of gang prevention programs, substance abuse prevention programs, substance abuse education programs, programs that provide assistance to victims of a criminal offense that is listed in section 13‑2301 and witness protection pursuant to section 41‑196 or for any purpose permitted by federal law relating to the disposition of any property that is transferred to a law enforcement agency.

2. (b) The investigation and prosecution of any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, including civil enforcement.

3. (c) The payment of the relocation expenses of any law enforcement officer and the officer's immediate family if the law enforcement officer is the victim of a bona fide threat that occurred because of the law enforcement officer's duties.

2. In addition to any other restriction on the use of public monies provided by law, may not be used for any of the following:

(a) Purchasing real property or any interest in real property except to acquire full title to or to satisfy liens or mortgages on forfeited property.

(b) Paying reception and representation expenses, including refreshments, meals, gifts or entertainment.

(c) Sharing vehicles or forfeited property or items purchased with shared monies by a person who is not employed by a law enforcement agency.

(d) Paying education-related costs, including scholarships, financial aid or classes that are not for law enforcement. This subdivision does not prohibit paying tuition for a law enforcement class that is necessary to the performance of a peace officer's official duties.

F. On or before January 15, April 15, July 15 and October 15 of each year, each department or agency of this state receiving monies pursuant to this section or section 13‑2314.03 or 13‑4315 or from any department or agency of the United States or another state as a result of participation in any investigation or prosecution shall file with the attorney general, the board of supervisors if the sheriff received the monies and the city or town council if the city city's or town's department received the monies a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall provide separate details for each forfeiture, including the criminal case number or the civil case number, as appropriate, that is associated with the forfeiture and any related law enforcement departmental report numbers. The report shall not include any identifying information about specific ongoing investigations. If a department or agency of this state fails to file a report within forty‑five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the department or agency until the report is filed. The attorney general is responsible for collecting all reports from departments and agencies of this state and transmitting the reports to the Arizona criminal justice commission at the time that the report required pursuant to subsection G of this section is submitted.

G. On or before January 25, April 25, July 25 and October 25 of each year, the attorney general shall file with the Arizona criminal justice commission a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. the report shall provide separate details for each forfeiture, including the criminal case number or the civil case number, as appropriate, that is associated with the forfeiture and any related law enforcement departmental report numbers. The report shall not include any identifying information about specific ongoing investigations. If the attorney general fails to file a report within sixty days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the attorney general until the report is filed. If a political subdivision of this state fails to file a report with the county attorney pursuant to section 13‑2314.03 within forty‑five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the political subdivision until the report is filed.

H. The Arizona criminal justice commission shall establish and maintain a searchable public website that includes the following information that is obtained from the attorney general pursuant to subsection G of this section:

1. from closed cases involving property, other than currency, that is seized by a state, county, city or town law enforcement agency under federal and state law:

(a) The name of the law enforcement agency that seized the property.

(b) A description of the seized property, other than currency, including the make and model of a motor vehicle, except that the details are not required if publishing the details will compromise an ongoing investigation.

(d) The estimated value of the seized property.

(e) Whether the suspect was charged with a criminal offense.

(f) The criminal offense alleged to have been committed that led to the property's seizure.

(g) Whether the criminal offense is under federal or state law.

(h) The disposition of the case, including whether charges were dropped or whether the defendant was acquitted, entered a plea or was convicted.

(i) Whether the forfeiture proceedings were civil or criminal.

(j) The date of sale if the property was sold.

(k) Selling expenses associated with the property's sale.

(l) The total net proceeds received from the property's sale.

(m) The proceeds received by the law enforcement agency from the property's sale.

(n) If the property was retained, the purpose for which the property was used, except that the details are not required if publishing the details will compromise an ongoing investigation.

(o) The date of destruction if the property was destroyed.

(p) The date of the property's return if the property was returned to an owner or interest holder by the law enforcement agency or prosecuting agency or by court order.

2. from closed cases involving currency that is seized by a state, county, city or town law enforcement agency under federal and state law:

(a) The name of the law enforcement agency that seized the currency.

(b) The amount of currency seized.

(d) Whether the suspect was charged with a criminal offense.

(e) The criminal offense alleged to have been committed that led to the currency's seizure.

(f) Whether the criminal offense is under federal or state law.

(g) The disposition of the case, including whether charges were dropped or whether the defendant was acquitted, entered a plea or was convicted.

(h) Whether the forfeiture proceedings were civil or criminal.

(i) The date of the return of the currency if the currency was returned to an owner or interest holder by the seizing law enforcement agency or prosecuting agency or by court order.

3. The total amount of monies spent in each of the following categories that resulted from property seized and reported pursuant to subsection G of this section:

(a) Abuse and crime prevention programs.

(b) Witness protection, victim restitution, informant fees, gang programs and controlled buys.

(d) Professional outside services and fees, including auditing, court reporting, expert witness fees, outside attorney fees and membership fees paid to trade associations.

(e) Travel, meals, entertainment, training, conferences and continuing education seminars.

(f) Other operating expenses, including office supplies, postage and advertising.

(g) Capital expenditures, including vehicles, firearms, equipment, computers and furniture.

(h) Other expenditures of forfeiture proceeds.

4. The total amount of currency that is held by the law enforcement agency at the end of the reporting period.

H. I. On or before September 30 of each year, the Arizona criminal justice commission shall compile the attorney general report and the reports of all departments and agencies of this state into a single comprehensive report and shall submit a copy of the report to the governor, the director of the department of administration, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the secretary of state.

J. The attorney general shall establish and appoint members to an independent review board. The review board shall review the sources and expenditures of all monies that are in the anti‑racketeering revolving fund. The review board shall notify the attorney general if it finds any unlawful uses of fund monies. Board members may not be current or former employees of a law enforcement or PROSECUTORIAL agency or have any familial relationship to an employee of an agency or any recipient of forfeited money or property.

K. The review board established by subsection J of this section ends on july 1, 2024 pursuant to section 41-3103.

L. The attorney general shall investigate all allegations of unlawful use of monies. If the allegation involves the attorney general, the county attorney in the county where the alleged unlawful use occurred shall investigate the allegation. END_STATUTE

Sec. 7. Section 13-2314.03, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2314.03. County anti-racketeering revolving fund; use of fund; reports; review board; board termination

A. The board of supervisors of a county shall establish a county anti‑racketeering revolving fund administered by the county attorney under the conditions and for the purposes provided by this section.

B. Any prosecution and investigation costs, including attorney fees, recovered for the county as a result of enforcement of civil and criminal statutes pertaining to any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by the board of supervisors.

C. Any monies received by any department or agency of this state or any political subdivision of this state from any department or agency of the United States or another state as a result of participation in any investigation or prosecution, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by pursuant to this section or in the fund established by section 13‑2314.01.

D. Any monies obtained as a result of a forfeiture by the county attorney under this title or under federal law shall be deposited in the fund established by pursuant to this section. Any monies or other property obtained as a result of a forfeiture by any political subdivision of this state or the federal government may be deposited in the fund established by pursuant to this section or in the fund established by section 13‑2314.01. Monies deposited in the fund pursuant to this section or section 13‑4315 shall accrue interest and shall be held for the benefit of the agency or agencies responsible for the seizure or forfeiture to the extent of their contribution. Except as provided in subsections F and G of this section, the monies and interest shall be distributed to the agency or agencies responsible for the seizure or forfeiture within thirty days of application.

E. Monies in the fund:

1. May be used for the following:

(a) The funding of gang prevention programs, substance abuse prevention programs, substance abuse education programs, programs that provide assistance to victims of a criminal offense that is listed in section 13‑2301 and witness protection pursuant to section 11‑536 or for any purpose permitted by federal law relating to the disposition of any property that is transferred to a law enforcement agency. Monies in the fund may be used for

(b) The investigation and prosecution of any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, including civil enforcement.

2. In addition to any other restriction on the use of public monies provided by law, may not be used for any of the following:

(a) Purchasing real property or any interest in real property except to acquire full title to or to satisfy liens or mortgages on forfeited property.

(b) Paying reception and representation expenses, including refreshments, meals, gifts or entertainment.

(c) Sharing vehicles or forfeited property or items purchased with shared monies by a person who is not employed by a law enforcement agency.

F. On or before January 25, April 25, July 25 and October 25 of each year, the county attorney shall cause to be filed file with the Arizona criminal justice commission a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall provide separate details for each forfeiture, including the criminal case number or the civil case number, as appropriate, that is associated with the forfeiture and any related law enforcement departmental report numbers. The report shall not include any identifying information about specific ongoing investigations. If the county attorney fails to file a report within sixty days after it is due and there is no good cause as determined by the Arizona criminal justice commission, the county attorney shall make no expenditures from the fund for the benefit of the county attorney until the report is filed.

G. On or before January 15, April 15, July 15 and October 15 of each year, each political subdivision of this state receiving monies pursuant to this section or section 13‑2314.01 or 13‑4315 or from any department or agency of the United States or another state as a result of participating in any investigation or prosecution shall cause to be filed file with the board of supervisors of the county in which the political subdivision is located, each city or town council in which the political subdivision is located and the county attorney of the county in which the political subdivision is located a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall provide separate details for each forfeiture, including the criminal case number or the civil case number, as appropriate, that is associated with the forfeiture and any related law enforcement departmental report numbers. The report shall not include any identifying information about specific ongoing investigations. If a political subdivision of this state fails to file a report within forty‑five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the county attorney shall make no expenditures from the fund for the benefit of the political subdivision until the report is filed. The county attorney shall be responsible for collecting all reports from political subdivisions within that county and transmitting the reports to the Arizona criminal justice commission at the time that the county report required pursuant to subsection F of this section is submitted.

H. The Arizona criminal justice commission shall establish and maintain a searchable public website that includes the following information that is obtained from the county attorney pursuant to subsection G of this section:

1. from closed cases involving property, other than currency, that is seized by a state, county, city or town law enforcement agency under federal and state law:

(a) The name of the law enforcement agency that seized the property.

(d) The estimated value of the seized property.

(e) Whether the suspect was charged with a criminal offense.

(f) The criminal offense alleged to have been committed that led to the property's seizure.

(g) Whether the criminal offense is under federal or state law.

(h) The disposition of the case, including whether charges were dropped or whether the defendant was acquitted, entered a plea or was convicted.

(i) Whether the forfeiture proceedings were civil or criminal.

(j) The date of sale if the property was sold.

(k) Selling expenses associated with the property's sale.

(l) The total net proceeds received from the property's sale.

(m) The proceeds received by the law enforcement agency from the property's sale.

(n) If the property was retained, the purpose for which the property was used, except that the details are not required if publishing the details will compromise an ongoing investigation.

(o) The date of destruction if the property was destroyed.

(p) The date of the property's return if the property was returned to an owner or interest holder by the law enforcement agency or prosecuting agency or by court order.

2. from closed cases involving currency that is seized by a state, county, city or town law enforcement agency under federal and state law:

(a) The name of the law enforcement agency that seized the currency.

(b) The amount of currency seized.

(d) Whether the suspect was charged with a criminal offense.

(e) The criminal offense alleged to have been committed that led to the currency's seizure.

(f) Whether the criminal offense is under federal or state law.

(g) The disposition of the case, including whether charges were dropped or whether the defendant was acquitted, entered a plea or was convicted.

(h) Whether the forfeiture proceedings were civil or criminal.

(i) The date of the return of the currency if the currency was returned to an owner or interest holder by the seizing law enforcement agency or prosecuting agency or by court order.

3. The total amount of monies spent in each of the following categories that resulted from property seized and reported pursuant to subsection G of this section:

(a) Abuse and crime prevention programs.

(b) Witness protection, victim restitution, informant fees, gang programs and controlled buys.

(d) Professional outside services and fees, including auditing, court reporting, expert witness fees, outside attorney fees and membership fees paid to trade associations.

(e) Travel, meals, entertainment, training, conferences and continuing education seminars.

(f) Other operating expenses, including office supplies, postage and advertising.

(g) Capital expenditures, including vehicles, firearms, equipment, computers and furniture.

(h) Other expenditures of forfeiture proceeds.

4. The total amount of currency that is held by the law enforcement agency at the end of the reporting period.

H. I. On or before September 30 of each year, the Arizona criminal justice commission shall compile all county attorney reports into a single comprehensive report and all political subdivision reports into a single comprehensive report and submit a copy of each comprehensive report to the governor, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the secretary of state.

J. The board of supervisors shall establish and appoint members to an independent review board. The review board shall review the sources and expenditures of all monies that are in the anti‑racketeering revolving fund. The review board shall notify the attorney general if it finds any unlawful uses of fund monies. Board members may not be current or former employees of a law enforcement or prosecutorial agency or have any familial relationship to an employee of an agency or any recipient of forfeited money or property.

K. The review board established by subsection J of this section ends on July 1, 2024 pursuant to section 41-3103.

Sec. 8. Section 13-4304, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4304. Property subject to forfeiture; exemptions; waiver

A. Following a person's conviction for a criminal offense that provides for forfeiture, the court may order the person to forfeit any of the following:

1. Property, including all interests in such property, that was acquired through the commission of the offense.

2. Property, including all interests in such property, that is directly traceable to property acquired through the commission of the offense.

3. Any instrumentality the person used in the commission of the offense.

B. All property, including all interests in such property, described in a statute providing for its forfeiture is subsection A of this section is subject to forfeiture. However, except that:

1. No vehicle used by any person as a common carrier in the transaction of business as a common carrier may be forfeited under the provisions of this chapter unless it appears that the owner or other person in charge of the vehicle was a consenting party or privy to the act or omission giving rise to forfeiture or knew or had reason to know of it.

2. No vehicle may be forfeited under the provisions of this chapter for any act or omission established by the owner to have been committed or omitted by a person other than the owner while the vehicle was unlawfully in the possession of a person other than the owner in violation of the criminal laws of this state or of the United States.

3. No property may be forfeited pursuant to section 13‑3413, subsection A, paragraph 1 or 3 if the conduct giving rise to the forfeiture both:

(a) Did not involve an amount of unlawful substance greater than the statutory threshold amount as defined in section 13‑3401.

(b) Was not committed for financial gain.

4. No owner's or interest holder's interest may be forfeited under this chapter if the owner or interest holder establishes all of the following:

(a) He acquired the interest before or during the conduct giving rise to forfeiture.

(b) He did not empower any person whose act or omission gives rise to forfeiture with legal or equitable power to convey the interest, as to a bona fide purchaser for value, and he was not married to any such person or if married to such person, held the property as separate property.

5. No owner's or interest holder's interest may be forfeited under this chapter if the owner or interest holder establishes all of the following:

(a) He acquired the interest after the conduct giving rise to forfeiture.

(b) He is a bona fide purchaser for value not knowingly taking part in an illegal transaction.

(c) He was at the time of purchase and at all times after the purchase and before the filing of a racketeering lien notice or the provision of notice of pending forfeiture or the filing and notice of a civil or criminal proceeding under this title relating to the property, whichever is earlier, reasonably without notice of the act or omission giving rise to forfeiture and reasonably without cause to believe that the property was subject to forfeiture.

C. Notwithstanding subsections A and B of this section and except for real property, if the alleged property or an interest in property is abandoned, the property or interest in property may be forfeited without a conviction. For the purposes of this subsection, "abandoned" means the owner or interest holder of property leaves the property and intentionally relinquishes all rights to control the property or interest in the property.END_STATUTE

Sec. 9. Section 13-4305, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4305. Seizure of property

A. Property subject to forfeiture under this chapter may be seized for forfeiture by a peace officer:

1. On process issued pursuant to the Arizona rules of civil procedure or the provisions of this title including a seizure warrant.

2. By making a seizure for forfeiture on property seized on process issued pursuant to law, including sections 13‑3911 through 13‑3915.

3. By making a seizure for forfeiture without court process if any of the following is true:

(a) The seizure for forfeiture is of property seized incident to an arrest or search.

(b) The property subject to seizure for forfeiture has been the subject of a prior judgment in favor of this state or any other state or the federal government in a forfeiture proceeding.

B. Property subject to forfeiture under this chapter may be seized for forfeiture by placing the property under constructive seizure. Constructive seizure may be made by posting notice of seizure for forfeiture on the property or by filing notice of seizure for forfeiture or notice of pending forfeiture in any appropriate public record relating to the property.

C. The court shall determine probable cause for seizure before real property may be seized for forfeiture, unless the seizure is pursuant to a constructive seizure or the filing of a racketeering lien or lis pendens. The court may make its determination ex parte if the state demonstrates that notice and an opportunity to appear would create a risk of harm to the public safety or welfare, including the risk of physical injury or the likelihood of property damage or financial loss.

D. The court shall determine probable cause for seizure before property may be seized for forfeiture as a substitute asset pursuant to section 13‑2314, subsection D, E or G, or pursuant to section 13‑4313, subsection A, unless the seizure is pursuant to a constructive seizure or the filing of a racketeering lien or lis pendens. The court may issue a seizure warrant for such property if it determines that there is probable cause to believe that the property is subject to forfeiture and is not available for seizure for forfeiture for any reason described in section 13‑4313, subsection A. The determinations shall be made ex parte unless real property is to be seized and subsection C of this section requires notice and an opportunity to appear.

E. In establishing a preponderance of the evidence and in determining probable cause for seizure and for forfeiture, a rebuttable presumption exists that the property of any person is subject to forfeiture if the state establishes all of the following by the standard of proof applicable to that proceeding:

1. Conduct giving rise to forfeiture occurred.

2. The person acquired the property during the period of the conduct giving rise to forfeiture or within a reasonable time after that period.

3. There is no likely source for the property other than the conduct giving rise to forfeiture.

F. In establishing a preponderance of the evidence and in determining probable cause for seizure and for forfeiture, the fact that money or any negotiable instrument was found in proximity to contraband or to instrumentalities of an offense gives rise to an inference that the money or instrument was the proceeds of contraband or was used or intended to be used to facilitate commission of the offense. END_STATUTE

Sec. 10. Section 13-4306, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4306. Powers and duties of peace officers and agencies

A. In the event of a seizure for forfeiture under section 13‑4305, the property is not subject to replevin, conveyance, sequestration or attachment but is deemed to be in the custody of the law enforcement agency making the seizure for forfeiture. The seizing agency or the attorney for the state may authorize the release of the seizure for forfeiture of the property if forfeiture or retention is unnecessary, may transfer the property to any other state ~~or federal~~ agency or may transfer the action to another attorney for the state by discontinuing forfeiture proceedings in favor of forfeiture proceedings initiated by the other agency or attorney. An action pursuant to this chapter shall be consolidated with any other action or proceeding pursuant to this title relating to the same property on motion by the attorney for the state in either action.

B. If property is seized for forfeiture under section 13‑4305, pending forfeiture and final disposition, the seizing agency may do any of the following:

1. Remove the property to a storage area for safekeeping or, if the property is a negotiable instrument or money, deposit it in an interest bearing account.

2. Remove the property to a place designated by the court.

3. Provide for another custodian or agency to take custody of the property and remove it to an appropriate location within the jurisdiction of the court.

C. As soon as practicable after seizure for forfeiture, the seizing agency shall conduct an inventory and estimate the value of the property seized. Within twenty days the seizing agency or the attorney for the state shall make reasonable efforts to provide notice of seizure for forfeiture to all persons known to have an interest in the seized property.

D. A person who acts in good faith and in a reasonable manner to comply with an order of the court or a request of a peace officer is not liable to any person for acts done in compliance with the order or request.

E. A possessory lien of a person from whose possession property is seized is not affected by the seizure.

F. In the event of a seizure for forfeiture under section 13‑4305, the seizing agency shall send to an attorney for the state a written request for forfeiture within twenty days, which shall include a statement of facts and circumstances of the seizure including the names of witnesses then known, the appraised or estimated value of the property and a summary of the facts relied on for forfeiture.

G. An owner of property seized for forfeiture may obtain the release of the seized property by posting with the attorney for the state a surety bond or cash in an amount equal to the full fair market value of the property as determined by the attorney for the state. The state may refuse to release the property if any of the following applies:

1. The bond or cash tendered is inadequate.

2. The property is retained as contraband or evidence.

3. The property is particularly altered or designed for use in conduct giving rise to forfeiture.

H. If an owner of property posts a surety bond or cash and the property is forfeited the court shall forfeit the surety bond or cash in lieu of the property.

I. The seizing agency or the attorney for the state may not directly or indirectly transfer seized property to a federal agency or attorney unless the seized property is valued at more than fifty thousand dollars, excluding the potential value of the sale of contraband. A seizing agency or the attorney for the state may not enter into a partnership or agreement with a federal agency to seize property to avoid the requirement for a criminal conviction. END_STATUTE

Sec. 11. Section 13-4308, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4308. Commencement of proceedings

A. The attorney for the state shall determine whether it is probable that the property is subject to forfeiture and, if so, following a criminal conviction, may cause the initiation of uncontested or judicial proceedings against the property. If, on inquiry and examination, the attorney for the state determines that the proceedings probably cannot be sustained, that a conviction may not occur or that justice does not require the institution of such proceedings, he the attorney for the state shall notify the seizing agency and immediately authorize the release of the seizure for forfeiture on the property or on any specified interest in it.

B. If the state fails to initiate forfeiture proceedings against property seized for forfeiture by notice of pending forfeiture within sixty days after its seizure for forfeiture, or fails to pursue forfeiture of such property on which a timely claim has been properly filed by filing a complaint, information or indictment pursuant to section 13‑4311 or 13‑4312 within sixty days after notice of pending forfeiture or, if uncontested forfeiture has been made available, within sixty days after a declaration of forfeiture, whichever is later, such property shall be released from its seizure for forfeiture on the request of an owner or interest holder, pending further proceedings pursuant to this chapter, which shall be commenced within seven years after actual discovery of the last act giving rise to forfeiture.

C. If the property sought to be forfeited is real property, including fixtures, the attorney for the state may file a lis pendens or a notice of pending forfeiture with respect to the property with the county recorder of the county in which the property is located, in addition to any lien provided by section 13‑2314.02, without a filing fee or other charge. END_STATUTE

Sec. 12. Repeal

Section 13-4309, Arizona Revised Statutes, is repealed.

Sec. 13. Title 13, chapter 39, Arizona Revised Statutes, is amended by adding a new section 13-4309, to read:

START_STATUTE13-4309. Pretrial replevin hearing; seized property

A. If property is seized pursuant to this chapter, the defendant or any other person who has an ownership interest in the property may request a pretrial hearing to determine the validity of the seizure, the validity of the claimant's alleged interest in the seized property and whether the court should grant a writ of replevin or another remedy. At least sixty days before trial on the related criminal offense the claimant may file a motion with the court requesting a writ of replevin. The motion shall include any evidence that establishes the validity of the claimant's alleged interest in the property. The state shall file an answer that provides probable cause for the seizure, or cross motions, at least ten days before a hearing on the claimant's motion. The court shall conduct the hearing within thirty days after the claimant’s motion is filed.

B. Either party, by agreement or for good cause, may request that the court grant one extension for the hearing of not more than ten days. A motion for an extension may be supported by affidavit or other submissions.

C. The court shall grant the claimant's motion for replevin if the court finds that any of the following applies:

1. It is likely that the final judgment will require the state to return the seized property to the claimant.

2. The seized property is not reasonably required to be held for investigatory purposes.

3. The seized property is the only reasonable means for a defendant to pay for legal representation in the forfeiture or criminal proceeding. The court may order the return of money or property sufficient to obtain legal counsel but less than the total amount seized and require an accounting of the returned money or property.

D. In lieu of ordering the writ of replevin, the court may order the state to provide security or a written assurance for satisfaction of any judgment, including damages, that may be rendered in the action or order other relief as may be just.

Sec. 14. Section 13-4310, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4310. Judicial forfeiture proceedings; general

A. In any proceeding pursuant to this chapter, the court, on application of the state, may enter any restraining order or injunction, require the execution of satisfactory performance bonds, create receiverships, appoint conservators, appraisers, accountants or trustees or take any other action to seize, secure, maintain or preserve the availability of property subject to forfeiture under this title, including a warrant for its seizure, whether prior or subsequent to the filing of a notice of pending forfeiture, complaint, indictment or information.

B. If property is seized for forfeiture without a prior judicial determination of probable cause, an order of forfeiture or a hearing pursuant to section 13‑4312, subsection D, the court, on an application filed by an owner of or interest holder in the property within fifteen days after notice of its seizure for forfeiture or actual knowledge of it, whichever is earlier, and complying with the requirements for claims in section 13‑4311, subsections E and F, may issue an order to show cause to the seizing agency for a hearing on the sole issue of whether probable cause for forfeiture of the property then exists. Notice of the order to show cause hearing must be served upon on the attorney for the state at least five working days before the hearing is held. If the court finds that no probable cause for forfeiture of the property then exists or if the state elects not to contest the issue, the property seized for forfeiture from the applicant shall be released to the custody of the applicant pending the outcome of a judicial proceeding pursuant to this chapter. If the court finds that probable cause for the forfeiture of the property then exists, the court shall not order the property released, except as provided in section 13‑4306, subsection G.

C. A defendant convicted in any criminal proceeding shall be precluded from subsequently denying the essential allegations of the criminal offense of which he was convicted in any proceeding pursuant to this chapter. For the purposes of this chapter, a conviction may result from a verdict or plea including a no contest plea.

D. In any judicial forfeiture hearing, determination or other proceeding pursuant to this chapter, the applicant, petitioner or claimant must establish by a preponderance of the evidence that he is an owner of or interest holder in the property seized for forfeiture before other evidence is taken. The burden of proving the standing of the claimant and the existence of the exemption is on the claimant or party raising the claim, and it is not necessary to negate the standing of any claimant or the existence of any exemption in any notice, application, complaint, information or indictment. If a claimant establishes by a preponderance of the evidence that the claimant is an owner of or interest holder in the property, it is presumed that the claimant's interest in the property is exempt from forfeiture under section 13-4304 and the burden of establishing that the claimant's property should be forfeited is on the state.

E. In hearings and determinations pursuant to this chapter:

1. The law of evidence relating to civil actions applies equally to all parties, including the this state, an applicant, a petitioner, a claimant and a defendant, on all issues required to be established by a preponderance of the evidence.

2. The court shall receive and consider, in making any determination of probable cause or reasonable cause, all evidence and information that would be permissible in determining probable cause at a preliminary hearing, at a grand jury or by a magistrate pursuant to section 13‑3913, together with inferences from the evidence and information.

3. No Evidence may be suppressed in any hearing pursuant to this chapter on the ground that its acquisition by search or seizure violated constitutional protections applicable in criminal cases relating to unreasonable searches or seizures.

F. All property, including all interests in such property, declared forfeited under this title vests in this state on the commission of the act or omission giving rise to forfeiture under this title together with the proceeds of the property after such time. Any such property or proceeds subsequently transferred to any person are subject to forfeiture and thereafter shall be ordered forfeited unless the transferee claims and establishes in a hearing pursuant to this chapter the showings set out in section 13‑4304.

G. On the motion of a party and after notice to any persons who are known to have an interest in the property and an opportunity to be heard, the court may order property that has been seized for forfeiture sold, leased, rented or operated to satisfy an interest of any interest holder who has timely filed a proper claim or to preserve the interests of any party. The court may order a sale or any other disposition of the property if the property may perish, waste, be foreclosed on or otherwise be significantly reduced in value or if the expenses of maintaining the property are or will become greater than its fair market value. If the court orders a sale, the court shall designate a third party or state property manager to dispose of the property by public sale or other commercially reasonable method and shall distribute the proceeds in the following order of priority:

1. Payment of reasonable expenses incurred in connection with the sale.

2. Satisfaction of exempt interests in the order of their priority.

3. Preservation of the balance, if any, in the actual or constructive custody of the court in an interest bearing account, subject to further proceedings under this chapter.

H. If the property is disposed of pursuant to subsection G of this section, a successful claimant may apply to the court for actual monetary damages suffered, if any, as a result of the disposal of the property, but the this state, a political subdivision of the this state, or an officer, employee or agent of any of them shall not in any event be liable under this chapter for incidental or consequential damages or for damages either:

1. That could have been avoided if the claimant had made full and immediate disclosure to the attorney for the state of facts or evidence known or available to the claimant.

2. In excess of the fair market value of the property seized for forfeiture at the time of its seizure plus interest from the time of its seizure for forfeiture.

I. If an indictment or information is filed alleging the same conduct as the conduct giving rise to forfeiture in a civil forfeiture proceeding, the court in the civil proceeding may stay civil discovery against the criminal defendant and against the state in the civil proceeding until the defendant's criminal trial is completed. Before staying civil discovery, the court shall make adequate provision to prevent any loss or expense to any victim or party resulting from the delay, including loss or expense due to maintenance, management, insurance, storage or preservation of the availability of the property or due to depreciation in the value of the property.

J. I. No person claiming to be an owner of or interest holder in property seized for forfeiture under this chapter may commence or maintain any action against the state concerning the validity of the alleged interest other than as provided in this chapter. END_STATUTE

Sec. 15. Section 13-4311, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4311. Judicial in rem forfeiture proceedings

A. If a forfeiture is authorized by law, it shall be ordered by a court on an action in rem brought by the state pursuant to a notice of pending forfeiture or a verified complaint for forfeiture. The state may serve the complaint in the manner provided by section 13‑4307 or by the Arizona rules of civil procedure.

B. A civil in rem action may be brought by the state in addition to or in lieu of the civil and criminal in personam forfeiture procedures set forth in sections 13‑4312 and 13‑4313 or the uncontested civil forfeiture procedures set forth in section 13‑4309. Judicial in rem forfeiture proceedings are in the nature of an action in rem and are governed by the Arizona rules of civil procedure unless a different procedure is provided by law.

C. On the filing of a civil in rem action by the state in superior court the clerk of the court in which the action is filed shall provide, and the attorney for the state may provide, the notice of pending forfeiture required by section 13‑4307 unless the files of the clerk of the court reflect that such notice has previously been made.

D. An owner of or interest holder in the property may file a claim against the property, within thirty days after the notice, for a hearing to adjudicate the validity of his claimed interest in the property. The court shall hold the hearing shall be held by the court without a jury.

E. The claim shall be signed by the claimant under penalty of perjury and shall set forth all of the following:

1. The caption of the proceeding as set forth on the notice of pending forfeiture or complaint and the name of the claimant.

2. The address at which the claimant will accept future mailings from the court or attorney for the state.

3. The nature and extent of the claimant's interest in the property.

4. The date, the identity of the transferor and the circumstances of the claimant's acquisition of the interest in the property.

5. The specific provisions of this chapter relied on in asserting that the property is not subject to forfeiture.

6. All facts supporting each such assertion.

7. Any additional facts supporting the claimant's claim.

8. The precise relief sought.

F. Copies of the claim shall be mailed to the seizing agency and to the attorney for the state. No extension of time for the filing of a claim may be granted.

G. Within twenty days after service of the complaint, the claimant shall file and serve the answer to the complaint and the answers to interrogatories and requests for admission if any were served with the complaint. The answer shall be signed by the owner or interest holder under penalty of perjury, shall comply with the Arizona rules of civil procedure relating to answers and shall comply with all of the requirements for claims. If no proper answer is timely filed, the attorney for the state shall proceed as provided in sections 13‑4314 and 13‑4315 with ten days' notice to any person who has timely filed a claim that has not been stricken by the court.

H. At the time of filing its pleadings or at any other time not less than thirty days before the hearing, the state and any claimant who has timely answered the complaint may serve discovery requests on any other party, the answers or response to which shall be due in twenty days, and may take the deposition of any person at any time after the expiration of fifteen days after the filing and service of the complaint. Any party may move for summary judgment at any time after an answer or responsive pleading is served and not less than thirty days before the hearing. The state, as the party defending against the claim, may make offers of judgment at any time more than ten days before the hearing begins.

I. An injured person may submit a request for compensation from forfeited property to the court at any time before the earlier of the entry of a final judgment or an application for an order of the forfeiture of the property, or if a hearing pursuant to subsections K, L and M of this section is held, not less than thirty days before the hearing. The request shall be signed by the requestor under penalty of perjury and shall set forth all of the following:

1. The caption of the proceeding as set forth on the notice of pending forfeiture or complaint and the name of the requestor.

2. The address at which the requestor will accept future mailings from the court or parties to the action.

3. The property subject to forfeiture from which the requestor seeks compensation.

4. The nature of the economic loss sustained by the requestor.

5. All facts supporting each such assertion.

6. Any additional facts supporting the request.

7. The amount of economic loss for which the requestor seeks compensation.

J. If a proper request for compensation from forfeited property is timely filed, the court shall hold a hearing to establish whether there is a factual basis for the request. The requestor has the burden of establishing by a preponderance of the evidence that the requestor is an injured person who sustained economic loss.

K. The hearing on the claim, to the extent practicable and consistent with the interest of justice, shall be held sixty days after all parties have complied with the disclosure required by rule 26.1 of the Arizona rules of civil procedure. The court may consolidate the hearing on the claim with a hearing on any other claim concerning the same property.

L. At the hearing, the claimant may testify, present evidence and witnesses on the claimant's own behalf and cross‑examine witnesses who appear at the hearing. The state may present evidence and witnesses and cross‑examine witnesses who appear at the hearing.

M. At the hearing, the state has the burden of establishing by a preponderance of the evidence that the property is subject to forfeiture under section 13‑4304. Any If the claimant who has previously established by a preponderance of the evidence that the claimant is an owner of or interest holder in the property, has the burden of establishing by a preponderance of the evidence it is presumed that the claimant's interest in the property is exempt from forfeiture under section 13‑4304 and the burden of establishing that the claimant's property should be forfeited is on the state.

N. In accordance with its findings at the hearing:

1. The court shall order an interest in property returned or conveyed to a claimant, if any, who has established by a preponderance of the evidence that the claimant is an owner of or interest holder in the property if either of the following applies:

(a) The state has failed to establish by a preponderance of the evidence that the interest is subject to forfeiture under section 13‑4304.

(b) The claimant state has established by a preponderance of the evidence failed to establish that the interest is not exempt from forfeiture under section 13‑4304.

2. The court shall order all other property, including all interests in the property, forfeited to this state and proceed pursuant to sections 13‑4314 and 13‑4315.

3. If the court finds that a requestor is an injured person the court shall determine the amount of the injured person's economic loss caused by the conduct giving rise to the forfeiture of the designated property and shall require the following:

(a) If the designated property is not contraband and is not altered or designed for use in conduct giving rise to forfeiture, the attorney for the state shall sell the property as provided in section 13‑4315, subsection A, paragraph 2, and shall apply the resulting balance to compensate the injured person's economic loss in the amount found by the court.

(b) If the balance is insufficient to compensate the economic loss of all injured persons the attorney for the state shall distribute the balance among the injured persons according to a method determined by the court.

(c) After compensation of all injured persons, the attorney for the state shall transmit ten per cent percent of the remaining balance, if any, to the Arizona criminal justice commission for deposit in the victim compensation and assistance fund established by section 41‑2407.

(d) The attorney for the state shall deposit the remainder of the balance, if any, in an appropriate anti‑racketeering revolving fund established by section 13‑2314.01 or established pursuant to section 13‑2314.03. END_STATUTE

Sec. 16. Section 13-4312, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4312. Judicial in personam forfeiture proceedings

A. If a forfeiture is authorized by law, it shall be ordered by a court on proceedings by the state after a criminal conviction in an in personam civil or criminal action pursuant to section 13‑2313 or 13‑2314 or any other law providing for a forfeiture.

B. Any complaint, information or indictment alleging or charging one or more offenses included in section 13‑2301, subsection D, paragraph 4 or a violation of section 13‑2312, or any other offense giving rise to forfeiture under this title, shall set forth with reasonable particularity property that the state seeks to forfeit pursuant to this section in that action, if any. The court shall allow the allegation that particular new or different or differently described property is subject to forfeiture in an in personam criminal or civil case to be made at any time prior to the date the case is actually tried unless the allegation is filed fewer than twenty days before the case is actually tried, and the court finds on the record that the defendant was in fact prejudiced by the untimely filing and states reasons for these findings, provided that when the allegation is filed, the state must make available to the defendant a copy of any material information concerning the allegation.

C. In any proceeding pursuant to this section, the court, on application of the state, may enter any order authorized by section 13‑4310, subsection A or take any other action to seize, secure, maintain or preserve the availability of property subject to forfeiture under this title, including a warrant for its seizure, whether before or after the filing of a complaint, indictment or information.

D. Notwithstanding subsection E of this section, a temporary restraining order under this section may be entered on application of the state without notice or an opportunity for a hearing if the state demonstrates both that:

1. There is probable cause to believe that the property with respect to which the order is sought would, in the event of final judgment or a criminal conviction, be subject to forfeiture under this title.

2. Provision of notice will jeopardize the availability of the property for forfeiture. A temporary restraining order expires within ten days after the date on which it is entered unless the party against whom it is entered consents to an extension for a longer period or unless after commencing a hearing the court enters or is considering a preliminary injunction.

E. Notice of the entry of the restraining order and an opportunity for a hearing shall be afforded to persons known to have an interest in the property, whether or not a temporary restraining order is entered without notice. The hearing, however, is limited to the issues of whether both:

1. There is a probability that the state will prevail on the issue of forfeiture and that failure to enter the order will result in the property being destroyed, conveyed, encumbered or further encumbered, removed from the jurisdiction of the court, concealed or otherwise made unavailable for forfeiture.

2. The need to preserve the availability of property through the entry of the requested order outweighs the hardship on any owner, interest holder or defendant against whom the order is to be entered.

F. A hearing requested by any owner or interest holder concerning an order entered under this section shall be held at the earliest possible time and before the expiration of a temporary order.

G. On a determination of liability or the conviction of a person for conduct giving rise to forfeiture under this title, the court shall enter a judgment of forfeiture of the property described in the forfeiture statute alleged and set out in the complaint, information or indictment, as amended, and shall also authorize the county attorney or attorney general, their agents or any peace officer to seize all property ordered forfeited that was not previously seized or is not then under seizure. Following the entry of an order declaring the property forfeited, the court, on application of the state, may enter any order authorized by section 13‑4310, subsection A or take any other action to protect the interest of this state or a political subdivision in the property ordered forfeited. The filing of the order of forfeiture in the appropriate public records perfects the interest of the state in the property described in the order as of the earlier of the date of the act or omission giving rise to forfeiture or the date that a notice of seizure for forfeiture or notice of pending forfeiture or racketeering lien was first filed in the records, which entitles the state to all rights of a secured party as to that property in addition to any other rights or remedies of the state in relation to the property. Any income accruing to, or derived from, an enterprise or any interest in an enterprise or other property interest that is forfeited under this chapter is also forfeited from the time of the conduct giving rise to forfeiture. It may be used pending procedures subsequent to a verdict or finding of liability to offset ordinary and necessary expenses of the enterprise or property as required by law or that are necessary to protect the interests of this state or a political subdivision.

H. Procedures subsequent to the verdict or finding of liability and order of forfeiture shall be as follows:

1. Following the entry of an order of forfeiture under this subsection the clerk of the court shall, and the attorney for the state may, give notice of pending forfeiture to all owners and interest holders who have not previously been given notice, if any, in the manner provided in section 13‑4307.

2. An owner of or interest holder in property that has been ordered forfeited pursuant to such action whose claim is not precluded may file a claim as described in section 13‑4311, subsections E and F in the court for a hearing to adjudicate the validity of his claimed interest in the property within thirty days after initial notice of pending forfeiture or after notice under paragraph 1 of this subsection, whichever is earlier.

3. The hearing on the claim, to the extent practicable and consistent with the interest of justice, shall be held within sixty days after the order of forfeiture. The court may consolidate the hearing on the claim with a hearing on any other claim filed by a person other than a party or defendant in the underlying action and concerning the same property.

4. The hearing shall be held by the court without a jury and conducted in the manner provided for in rem judicial forfeiture actions including the provisions of section 13‑4311, subsections J and K L and M. In addition to testimony and evidence presented at the hearing, the court shall consider the relevant portions of the record of the underlying civil or criminal action that resulted in the order of forfeiture.

5. In accordance with its findings at the hearing, the court may amend the order of forfeiture if it determines that any claimant has established by a preponderance of the evidence that the claimant is an owner of or interest holder in the property if either of the following applies:

(a) The state has failed to establish by a preponderance of the evidence that the interest is subject to forfeiture under section 13‑4304.

(b) The claimant state has established by a preponderance of the evidence failed to establish that the interest is not exempt from forfeiture under section 13‑4304.

I. In order to facilitate the identification or location of property declared forfeited and to facilitate the disposition of filed or subsequent claims pursuant to subsection H, paragraph 2 of this section, the court, on application of the state, may order that the testimony of any witness relating to the property forfeited or alleged to be subject to forfeiture be taken by deposition and that any designated book, paper, document, record, recording, electronic or otherwise, or other material which is not privileged be produced at the same time and place and in the same manner as that provided for the taking of depositions under the rules of civil procedure. END_STATUTE

Sec. 17. Section 13-4314, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4314. Disposition by court

A. If no petitions for remission or mitigation or claims are timely filed or if no petitioner files a claim in the court within thirty days after the mailing of a declaration of forfeiture After a criminal conviction occurs, the attorney for the state shall apply to the court for an order of forfeiture and allocation of forfeited property pursuant to section 13‑4315. On the state's written application showing a conviction, jurisdiction, and notice and facts sufficient to demonstrate probable cause for forfeiture, and in cases brought pursuant to section 13‑3413, subsection A, paragraph 1 or 3, probable cause to believe that the conduct giving rise to forfeiture involved an amount of unlawful substance greater than the statutory threshold amount as defined in section 13‑3401 or was committed for financial gain, the court shall order the property forfeited to the state.

B. After the court's disposition of all claims timely filed under this chapter, the state has clear title to the forfeited property and the court shall so order. Title to the forfeited property and its proceeds is deemed to have vested in the state on the commission of the act or omission giving rise to the forfeiture under this title.

C. If, in his discretion, the attorney for the state has entered into a stipulation with an interest holder that the interest holder has an interest that is exempted from forfeiture, the court, on application of the attorney for the state, may release or convey forfeited personal property to the interest holder if all of the following are true:

1. The interest holder has an interest which that was acquired in the regular course of business as a financial institution within section 13‑2301, subsection D, paragraph 3.

2. The amount of the interest holder's encumbrance is readily determinable and it has been reasonably established by proof made available by the attorney for the state to the court.

3. The encumbrance held by the interest holder seeking possession is the only interest exempted from forfeiture and the order forfeiting the property to the state transferred all of the rights of the owner prior to before forfeiture, including rights to redemption, to the state.

4. After the court's release or conveyance, the interest holder shall dispose of the property by a commercially reasonable public sale, and within ten days of disposition shall tender to the state the amount received at disposition less the amount of the interest holder's encumbrance and reasonable expense incurred by the interest holder in connection with the sale or disposal.

D. On order of the court forfeiting the subject property, the attorney for the state may transfer good and sufficient title to any subsequent purchaser or transferee, and the title shall be recognized by all courts, by this state and by all departments and agencies of this state and any political subdivision.

E. On entry of judgment for a claimant or claimants in any proceeding to forfeit property under this chapter such property or interest in property shall be returned or conveyed immediately to the claimant or claimants designated by the court. If it appears that there was reasonable cause for the seizure for forfeiture or for the filing of the notice of pending forfeiture, complaint, information or indictment, the court shall cause a finding to be entered, and the claimant is not or claimants, in such case, are entitled to attorney fees, costs or damages. , nor is The person or seizing agency that made the seizure, nor is and the attorney for the state is not liable to suit or judgment on account of such the seizure, suit or prosecution.

F. The court shall order any claimant who fails to establish that his entire interest is exempt from forfeiture under section 13‑4304 to pay the his proportionate costs of any claimant who establishes that his entire interest is exempt from forfeiture under section 13‑4304 and the state's costs and expenses of the investigation and prosecution of the matter, including reasonable attorney fees. The proportionate costs shall be equal to the claimant's percentage of interest that is subject to forfeiture.END_STATUTE

Sec. 18. Section 13-4315, Arizona Revised Statutes, is amended to read:

START_STATUTE13-4315. Allocation of forfeited property

A. Any property, including all interests in property, forfeited to the state under this title shall be transferred as requested by the attorney for the state to the seizing agency or to the agency or political subdivision employing the attorney for the state, which may do any of the following:

1. Sell, lease, lend or transfer the property to any local or state government entity or agency or political subdivision, any law enforcement agency or prosecutorial agency or any federal law enforcement agency which that operates within this state for official federal, state or political subdivision use within this state, with expenses for keeping and transferring such property to be paid by the recipient. Property may not be allocated for official use if the fair market value of the property substantially exceeds the agency's probable cost of purchasing other property equally suited for the intended official use. Property that is allocated for official use may not be assigned for use by any person who supervised or exercised discretion in its forfeiture unless the use is approved in writing by the head of the agency.

2. Sell forfeited property by public or otherwise commercially reasonable sale with expenses of keeping and selling the property and the amount of all valid interests established by claimants paid out of the proceeds of the sale with the balance paid into the anti‑racketeering revolving fund of the state or of the county in which the political subdivision seizing the property or prosecuting the action is located. A sale of forfeited property may not be made to any employee of the seizing agency, any person who participated in the forfeiture, any employee of a contractor selling the property on behalf of the seizing agency or any member of the immediate family of any of these employees or persons.

3. Destroy or use for investigative purposes any illegal or controlled substances or other contraband at any time more than twenty days after seizure, on written approval of the attorney for the state, preserving only such material as may be necessary for evidence.

4. Sell, use or destroy all raw materials, products and equipment of any kind used or intended for use in manufacturing, compounding or processing a controlled substance.

5. Compromise and pay claims against property forfeited pursuant to any provision of this section.

6. Make any other disposition of forfeited property authorized by law for the disposition of property of the state, government entity, agency or political subdivision.

B. Notwithstanding subsection A of this section or any other provision of law to the contrary:

1. If the property forfeited is money, and a law enforcement agency can specifically identify monies as being from its investigative funds or as being exchanged for property from its investigative property, the monies shall be remitted to the investigative fund. If there are additional forfeited monies or monies tendered on satisfaction by an interest holder which that cannot be specifically identified, the court shall order the monies returned to each law enforcement agency that makes a showing of costs or expenses which that it incurred in connection with the investigation and prosecution of the matter and shall order all excess monies remaining after such returns deposited in the anti‑racketeering revolving fund of this state or of the county in which the political subdivision seizing the monies or prosecuting the action is located, established pursuant to section 13‑2314.01 or 13‑2314.03.

2. If the property declared forfeited is an interest in a vehicle, the court shall order it forfeited to the local, state or other law enforcement agency seizing the vehicle for forfeiture or to the seizing agency.

C. Monies in any anti‑racketeering revolving fund established pursuant to this title may be used, in addition to any other lawful use, for:

1. The payment of any expenses necessary to seize, detain, appraise, inventory, protect, maintain, preserve the availability of, advertise or sell property that is subject to forfeiture and that is seized, detained or forfeited pursuant to this title or of any other necessary expenses incident to the seizure, detention, preservation or forfeiture of the property. The payments may include payments for contract services and payments to reimburse any federal, state or local agency for any expenditures made to perform the functions of the seizing agency.

2. The payment of awards for information or assistance leading to a civil or criminal proceeding under this title.

3. The payment of compensation from forfeited property to injured persons as provided in section 13‑4311, subsection N, paragraph 3.

D. Each attorney for the state shall submit a copy of each forfeiture judgment, including each order of forfeiture, to the Arizona criminal justice commission within sixty days after the forfeiture judgment becomes final or after the conclusion of appellate review, if any.

E. The attorney general shall investigate all allegations of unlawful use of monies. If the allegation involves the attorney general, the county attorney in the county where the alleged unlawful use occurred shall investigate the allegation. END_STATUTE