Summary
# Fifth Amendment Integrity Restoration Act of 2023 (H.R. 1525)
## WHAT THIS BILL DOES
This bill changes how the federal government can take and keep property through forfeiture (a legal process where property is seized because it's connected to a crime). The bill requires the government to use courts instead of being able to take property without a judge involved. It also makes it harder for the government to keep property by requiring stronger proof and giving property owners more legal protections.
## WHO IT AFFECTS
- People whose property has been seized by federal agencies
- Federal law enforcement agencies that conduct property seizures
- Property owners defending against forfeiture claims in court
- People who cannot afford lawyers to fight forfeiture cases
## KEY PROVISIONS
- The government must notify property owners within 7 days of seizing their property, and property owners have only 7 days to file a claim (Sec. 2)
- Federal agencies cannot conduct forfeitures without going through federal courts, and property can only be taken through a judicial process (a case decided by a judge) (Sec. 2)
- The government must prove its case by "clear and convincing evidence" (a high standard of proof) instead of the lower "preponderance of the evidence" standard, and must show the property owner used or knowingly allowed the property to be used for the crime (Sec. 2)
- Courts can appoint lawyers to represent property owners who cannot afford them if the cost of a lawyer would exceed the value of the seized property (Sec. 2)
- Money from forfeited property goes into the General Fund of the Treasury (the main federal budget account) instead of going to law enforcement agencies (Sec. 3)
- The government must disclose separately how much money comes from criminal forfeitures versus civil forfeitures in its reports (Sec. 6)
## WHAT CHANGES
If this becomes law, federal agencies lose the ability to seize and keep property without a court order. Property owners get a shorter notification period (7 days instead of 60 days in some cases) to claim their property. The government must meet a higher burden of proof to keep seized property. Courts can provide free lawyers to poor property owners. Law enforcement agencies no longer receive direct revenue from forfeitures. Property seized after this law passes is handled under these new rules immediately.
## IMPORTANT DEFINITIONS
The bill defines "nonjudicial forfeiture" as a legal action that lets a federal agency start taking property without involving a court (Sec. 2).
## EFFECTIVE DATE
The amendments apply to any civil forfeiture case pending or filed on or after the date this law is enacted, and to money received from forfeitures on or after the date of enactment (Sec. 7).
I
118TH CONGRESS
1ST SESSION H. R. 1525
To restore the integrity of the Fifth Amendment to the Constitution of
the United States, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 2023
Mr. WALBERG (for himself, Mr. RASKIN, Mr. MCCLINTOCK, Mr. NEGUSE, Mr.
ARMSTRONG, and Mr. CA´RDENAS) introduced the following bill; which
was referred to the Committee on the Judiciary, and in addition to the
Committees on Energy and Commerce, Ways and Means, and Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To restore the integrity of the Fifth Amendment to the
Constitution of the United States, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Fifth Amendment In-
4
tegrity Restoration Act of 2023’’ or the ‘‘FAIR Act of
5
2023’’.
6
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•HR 1525 IH
SEC.
2.
CIVIL
FORFEITURE
AND
NONJUDICIAL
FOR-
1
FEITURE.
2
Section 983 of title 18, United States Code, is
3
amended—
4
(1) in subsection (a)—
5
(A) in the subsection heading, by striking
6
‘‘CLAIM;’’;
7
(B) in paragraph (1)—
8
(i) in subparagraph (A)—
9
(I) in clause (i)—
10
(aa) by striking ‘‘clauses (ii)
11
through (v), in any nonjudicial’’
12
and inserting ‘‘clause (ii), in
13
any’’; and
14
(bb) by striking ‘‘60’’ and
15
inserting ‘‘7’’;
16
(II)
by
striking
clauses
(ii)
17
through (v);
18
(III) by inserting after clause (i)
19
the following:
20
‘‘(ii) If the identity or interest of a
21
party is not determined until after the sei-
22
zure or turnover but is determined before
23
a declaration of forfeiture is entered, the
24
Government shall determine the identity
25
and address of the party or interest within
26
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•HR 1525 IH
7 days after the seizure or turnover, and
1
notice shall be sent to such interested
2
party not later than 7 days after the deter-
3
mination by the Government of the identity
4
and address of the party or the party’s in-
5
terest.’’;
6
(ii) by striking subparagraphs (B) and
7
(C);
8
(iii) by redesignating subparagraphs
9
(D) through (F) as subparagraphs (B)
10
through (D), respectively; and
11
(iv) in subparagraph (C), as so redes-
12
ignated, by striking ‘‘nonjudicial’’;
13
(C) by striking paragraph (2);
14
(D) by redesignating paragraphs (3) and
15
(4) as paragraphs (2) and (3), respectively; and
16
(E) in paragraph (2)(A), as so redesig-
17
nated—
18
(i) by striking ‘‘90’’ and inserting
19
‘‘30’’; and
20
(ii) by striking ‘‘after a claim has
21
been filed’’ and inserting ‘‘after the date of
22
the seizure’’;
23
(2) in subsection (b)—
24
(A) in paragraph (1)—
25
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•HR 1525 IH
(i) by amending subparagraph (A) to
1
read as follows:
2
‘‘(A) If a person with standing to contest
3
the forfeiture of property in a civil forfeiture
4
proceeding under a civil forfeiture statute is—
5
‘‘(i) financially unable to obtain rep-
6
resentation by counsel; or
7
‘‘(ii) the cost of obtaining representa-
8
tion would exceed the value of the seized
9
property,
10
the court may authorize or appoint counsel to
11
represent that person with respect to the
12
claim.’’;
13
(B) in subparagraph (B), by inserting ‘‘or
14
appoint’’ after ‘‘authorize’’; and
15
(C) in paragraph (2)(A)—
16
(i) by striking ‘‘in a judicial civil for-
17
feiture proceeding’’ and inserting ‘‘in a
18
civil forfeiture proceeding’’;
19
(ii) by inserting ‘‘under paragraph
20
(1)’’ after ‘‘counsel’’;
21
(iii) by striking ‘‘, and the property
22
subject to forfeiture is real property that is
23
being used by the person as a primary resi-
24
dence,’’; and
25
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•HR 1525 IH
(iv) by striking ‘‘, at the request of
1
the person, shall insure’’ and inserting
2
‘‘shall ensure’’;
3
(3) in subsection (c)—
4
(A) in paragraph (1), by striking ‘‘a pre-
5
ponderance of the evidence’’ and inserting
6
‘‘clear and convincing evidence’’;
7
(B) in paragraph (2), by striking ‘‘a pre-
8
ponderance of the evidence’’ and inserting
9
‘‘clear and convincing evidence’’; and
10
(C) by striking paragraph (3) and insert-
11
ing the following:
12
‘‘(3) if the Government’s theory of forfeiture is
13
that the property was used to commit or facilitate
14
the commission of a criminal offense, or was in-
15
volved in the commission of a criminal offense, the
16
Government shall establish, by clear and convincing
17
evidence, that—
18
‘‘(A) there was a substantial connection
19
between the property and the offense; and
20
‘‘(B) the owner of any interest in the
21
seized property—
22
‘‘(i) used the property with intent to
23
facilitate the offense; or
24
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•HR 1525 IH
‘‘(ii) knowingly consented or was will-
1
fully blind to the use of the property by
2
another in connection with the offense.’’;
3
(4) in subsection (d)—
4
(A) in paragraph (1), by striking the sec-
5
ond sentence and inserting the following: ‘‘The
6
Government shall have the burden of proving
7
that the claimant is not an innocent owner by
8
a preponderance of the evidence.’’; and
9
(B) in paragraph (2)—
10
(i) in subparagraph (A), by striking
11
‘‘an owner who’’ and all that follows
12
through ‘‘upon learning’’ and inserting ‘‘an
13
owner who, upon learning’’; and
14
(ii) in subparagraph (B)(i), by insert-
15
ing before ‘‘For purposes of this para-
16
graph’’ the following: ‘‘If the Government
17
satisfies its burden under paragraph (1),
18
the claimant may rebut the Government’s
19
evidence related to his innocent ownership,
20
including by showing that he did all that
21
could reasonably be expected under the
22
law.’’;
23
(5) in subsection (e)—
24
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•HR 1525 IH
(A) in paragraph (1), in the matter pre-
1
ceding subparagraph (A)—
2
(i) by striking ‘‘nonjudicial’’; and
3
(ii) by striking ‘‘a declaration’’ and in-
4
serting ‘‘an order’’;
5
(B) in paragraph (2)—
6
(i) in subparagraph (A), by striking
7
‘‘declaration’’ and inserting ‘‘order’’; and
8
(ii) by striking subparagraph (B) and
9
inserting the following:
10
‘‘(B) Any proceeding described in subparagraph
11
(A) shall be commenced within 6 months of the
12
entry of the order granting the motion.’’; and
13
(C) by striking paragraph (5);
14
(6) in subsection (f)(1), in the matter preceding
15
subparagraph (A), by striking ‘‘(a)’’ and inserting
16
‘‘(a)(3)(A)’’;
17
(7) in subsection (g)—
18
(A) in paragraph (1), by striking ‘‘(a)(4)’’
19
and inserting ‘‘(a)(3)’’; and
20
(B) by amending paragraph (2) to read as
21
follows:
22
‘‘(2) In making this determination, the court
23
shall consider such factors as—
24
‘‘(A) the seriousness of the offense;
25
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•HR 1525 IH
‘‘(B) the extent of the nexus of the prop-
1
erty to the offense;
2
‘‘(C) the range of sentences available for
3
the offense giving rise to forfeiture;
4
‘‘(D) the fair market value of the property;
5
and
6
‘‘(E) the hardship to the property owner
7
and dependents.’’; and
8
(8) by adding at the end the following:
9
‘‘(k)(1) Notwithstanding any other provision of law—
10
‘‘(A) no Federal seizing agency may conduct
11
nonjudicial forfeitures;
12
‘‘(B) no property may be subject to forfeiture
13
except through judicial process; and
14
‘‘(C) no order of forfeiture may be entered ex-
15
cept by a United States district court.
16
‘‘(2) In this subsection, the term ‘nonjudicial for-
17
feiture’ means an in rem action that permits the Federal
18
seizing agency to start a forfeiture without judicial in-
19
volvement.’’.
20
SEC. 3. DISPOSITION OF FORFEITED PROPERTY.
21
(a) REVISIONS
TO
CONTROLLED
SUBSTANCES
22
ACT.—Section 511(e) of the Controlled Substances Act
23
(21 U.S.C. 881(e)) is amended—
24
(1) in paragraph (1)—
25
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•HR 1525 IH
(A) in the matter preceding subparagraph
1
(A), by striking ‘‘civilly or’’;
2
(B) by striking subparagraph (A); and
3
(C) by redesignating subparagraphs (B)
4
through (E) as subparagraphs (A) through (D),
5
respectively;
6
(2) in paragraph (2)—
7
(A) in subparagraph (A), in the matter
8
preceding clause (i), by striking ‘‘subparagraph
9
(B) of paragraph (1)’’ and inserting ‘‘para-
10
graph (1)(A)’’; and
11
(B) in subparagraph (B), by striking ‘‘ac-
12
cordance with section 524(c) of title 28,’’ and
13
inserting ‘‘the General Fund of the Treasury of
14
the United States’’;
15
(3) by striking paragraph (3);
16
(4) by redesignating paragraph (4) as para-
17
graph (3); and
18
(5) in paragraph (3), as redesignated—
19
(A) in subparagraph (A), by striking
20
‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph
21
(1)(A)’’; and
22
(B) in subparagraph (B), in the matter
23
preceding clause (i), by striking ‘‘paragraph
24
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•HR 1525 IH
(1)(B) that is civilly or’’ and inserting ‘‘para-
1
graph (1)(A) that is’’.
2
(b) REVISIONS TO TITLE 18.—Chapter 46 of title 18,
3
United States Code, is amended—
4
(1) in section 981(e)—
5
(A) by striking ‘‘is authorized’’ and all that
6
follows through ‘‘or forfeiture of the property;’’
7
and inserting ‘‘shall forward to the Treasurer of
8
the United States any proceeds of property for-
9
feited pursuant to this section for deposit in the
10
General Fund of the Treasury or transfer such
11
property on such terms and conditions as such
12
officer may determine—’’;
13
(B) by redesignating paragraphs (3), (4),
14
(5), (6), and (7) as paragraphs (1), (2), (3),
15
(4), and (5), respectively; and
16
(C) in the matter following paragraph (5),
17
as so redesignated—
18
(i) by striking the first, second, third,
19
sixth, and eighth sentences; and
20
(ii) by striking ‘‘paragraph (3), (4), or
21
(5)’’ and inserting ‘‘paragraph (1), (2), or
22
(3)’’; and
23
(2) in section 983(g)—
24
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•HR 1525 IH
(A) in paragraph (3), by striking ‘‘gross-
1
ly’’; and
2
(B) in paragraph (4), by striking ‘‘gross-
3
ly’’.
4
(c) TARIFF ACT OF 1930.—The Tariff Act of 1930
5
(19 U.S.C. 1304 et seq.) is amended—
6
(1) in section 613A(a) (19 U.S.C. 1613b(a))—
7
(A) in paragraph (1)—
8
(i) in subparagraph (D), by inserting
9
‘‘and’’ after the semicolon;
10
(ii) in subparagraph (E), by striking
11
‘‘; and’’ and inserting a period; and
12
(iii) by striking subparagraph (F);
13
and
14
(B) in paragraph (2)—
15
(i) by striking ‘‘(A) Any payment’’
16
and inserting ‘‘Any payment’’; and
17
(ii) by striking subparagraph (B); and
18
(2) in section 616 (19 U.S.C. 1616a)—
19
(A) in the section heading, by striking
20
‘‘TRANSFER
OF
FORFEITED
PROPERTY’’
21
and inserting ‘‘DISMISSAL
IN
FAVOR
OF
22
FORFEITURE UNDER STATE LAW’’;
23
(B) in subsection (a), by striking ‘‘(a) The
24
Secretary’’ and inserting ‘‘The Secretary’’; and
25
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•HR 1525 IH
(C) by striking subsections (b) through
1
(d).
2
(d) TITLE 31.—Section 9705 of title 31, United
3
States Code, is amended—
4
(1) in subsection (a)(1)—
5
(A) by striking subparagraph (G); and
6
(B) by redesignating subparagraphs (H)
7
through (J) as subparagraphs (G) through (I),
8
respectively; and
9
(2) in subsection (b)—
10
(A) by striking paragraphs (2) and (4);
11
and
12
(B) by redesignating paragraphs (3) and
13
(5) as paragraphs (2) and (3), respectively.
14
SEC. 4. DEPARTMENT OF JUSTICE ASSETS FORFEITURE
15
FUND DEPOSITS.
16
Section 524(c)(4) of title 28, United States Code, is
17
amended—
18
(1) by striking subparagraphs (A) and (B); and
19
(2) by redesignating subparagraphs (C) and
20
(D) as subparagraphs (A) and (B), respectively.
21
SEC. 5. STRUCTURING TRANSACTIONS TO EVADE REPORT-
22
ING REQUIREMENT PROHIBITED.
23
(a) AMENDMENTS TO TITLE 31.—Section 5324 of
24
title 31, United States Code, is amended—
25
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•HR 1525 IH
(1) in subsection (a)—
1
(A) in the matter preceding paragraph (1),
2
by inserting ‘‘knowingly’’ after ‘‘Public Law
3
91–508’’; and
4
(B) in paragraph (3), by inserting ‘‘of
5
funds not derived from a legitimate source’’
6
after ‘‘any transaction’’;
7
(2) in subsection (b), in the matter preceding
8
paragraph (1), by inserting ‘‘knowingly’’ after ‘‘such
9
section’’; and
10
(3) in subsection (c), in the matter preceding
11
paragraph (1), by inserting ‘‘knowingly’’ after ‘‘sec-
12
tion 5316’’.
13
(b) PROBABLE CAUSE HEARING
IN CONNECTION
14
WITH PROPERTY SEIZURES RELATING TO CERTAIN MON-
15
ETARY INSTRUMENTS TRANSACTIONS.—
16
(1) AMENDMENT.—Section 5317 of title 31,
17
United States Code, is amended by adding at the
18
end the following:
19
‘‘(d) PROBABLE CAUSE HEARING IN CONNECTION
20
WITH PROPERTY SEIZURES RELATING TO CERTAIN MON-
21
ETARY INSTRUMENTS TRANSACTIONS.—
22
‘‘(1) IN
GENERAL.—Not later than 14 days
23
after the date on which notice is provided under
24
paragraph (2)—
25
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•HR 1525 IH
‘‘(A) a court of competent jurisdiction shall
1
conduct a hearing on any property seized or re-
2
strained under subsection (c)(2) with respect to
3
an alleged violation of section 5324; and
4
‘‘(B) any property d
[Text truncated for display. Full text available on Congress.gov.]