HB 420-FN - AS INTRODUCED
2021 SESSION
21-0336
04/05
HOUSE BILL 420-FN
AN ACT relative to the use of funds in the drug forfeiture fund.
SPONSORS: Rep. Spillane, Rock. 2; Rep. Verville, Rock. 2; Rep. Burt, Hills. 39; Sen. Reagan,
Dist 17
COMMITTEE: Judiciary
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ANALYSIS
This bill amends the administration and distribution of funds in the drug forfeiture fund and
permits such funds to be used for the establishment of substance misuse addiction, recovery, or
rehabilitation centers, programs, or services.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
HB 420-FN - AS INTRODUCED
21-0336
04/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the use of funds in the drug forfeiture fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 New Subparagraph; Controlled Drug Act; Forfeiture of Items Used in Connection With Drug
2 Offense. Amend RSA 318-B:17-b, I by inserting after subparagraph (e) the following new
3 subparagraph:
4 (f) U.S. currency or coin in the amount of $200 or less and a motor vehicle with a market
5 value of $1,500 or less shall be exempt from seizure or forfeiture under this section. The prosecuting
6 authority may establish a minimum dollar amount in excess of the minimums stated in this
7 subparagraph.
8 2 Controlled Drug Act; Forfeiture of Items Used in Connections With Drug Offense RSA 318-
9 B:17-b, V is repealed and reenacted to read as follows:
10 V. Final orders for forfeiture of property under this section shall be implemented by the
11 department of justice and shall provide for disposition of the items or property interests by the state
12 in any manner not prohibited by law, including retention for official use by law enforcement or other
13 public agencies or sale at public auction.
14 (a) From the funds available in the drug forfeiture fund established in RSA 318-B:17-c,
15 the department of justice shall, in the following order:
16 (1) Pay the reasonable expenses of the forfeiture proceeding, seizure, storage,
17 maintenance of custody, advertising, court costs, and notice of sale from any money forfeited and
18 from the proceeds of any sale or public auction of forfeited items, All outstanding recorded liens on
19 said items or property interests seized shall be paid in full upon conclusion of the court proceedings
20 from the proceeds of any sale or public auction of forfeited items; and
21 (2) Reimburse all direct costs incurred in the arrest and prosecution of a person for a
22 criminal violation of this chapter on a case by case basis, including the reasonable cost for towing a
23 forfeited vehicle, and the non-personnel operating costs directly related to the investigation of the
24 underlying criminal offense including any funds used in a controlled drug buy. To be reimbursed, a
25 municipality or law enforcement agency shall provide documentation to the department of justice of
26 such direct costs incurred.
27 (b) Each fiscal year, 10 percent of the balance remaining in the drug forfeiture fund after
28 the expenditures required under subparagraph (a), shall be credited to a special nonlapsing account
29 established in the state treasury for use by the department of health and human services for the
30 purposes established in RSA 318-B:17-c.
HB 420-FN - AS INTRODUCED
- Page 2 -
1 (c) Any balance remaining in the drug forfeiture fund shall be administered by the
2 department of health and human services pursuant to the provisions of RSA 318-B:17-c.
3 3 Controlled Drug Act; Drug Forfeiture Fund. Amend RSA 318-B:17-c, I to read as follows:
4 I. There is hereby established within the [office of the] state [treasurer] treasury a special
5 revolving fund to be designated as the drug forfeiture fund. This fund shall be administered by the
6 [attorney general] department of health and human services and may be used to [pay]
7 reimburse the direct costs [of] to local, county, or state officials incurred by an offender
8 resulting from arrest and prosecution in local, county and state drug related investigations[, as
9 well as drug control law enforcement programs within New Hampshire]. The fund may also be used
10 [to pay extraordinary costs of local, county and state drug prosecutions and trial expenses] for drug
11 treatment, mental health treatment, rehabilitation, prevention or education, or any other
12 program which deters drug or substance misuse or responds to problems created by drugs
13 or substance misuse; for matching funds for grant programs related to drug treatment or
14 prevention; and for any combination of these purposes.
15 4 Effective Date. This act shall take effect 60 days after its passage.
LBA
21-0336
1/6/21
HB 420-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the use of funds in the drug forfeiture fund.
FISCAL IMPACT: [ ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
STATE: FY 2021 FY 2022 FY 2023 FY 2024
Appropriation $0 $0 $0 $0
Revenue $0 $0 $0 $0
Expenditures $0 Indeterminable Indeterminable Indeterminable
[ X ] General [ ] Education [ ] Highway [ X ] Other - Drug
Funding Source:
Forfeiture Fund
COUNTY:
Revenue $0 $0 $0 $0
Expenditures $0 Indeterminable Indeterminable Indeterminable
LOCAL:
Revenue $0 $0 $0 $0
Expenditures $0 Indeterminable Indeterminable Indeterminable
METHODOLOGY:
This bill amends the administration and distribution of funds in the drug forfeiture fund and
permits such funds to be used for the establishment of substance misuse addiction, recovery, or
rehabilitation centers, programs, or services.
The Department of Justice indicates this bill first permits the Department use forfeited funds
from drug offenses to reimburse itself for the actual costs of the forfeiture proceeding and other
related expenses, such as advertising and payment of liens, it then permits the reimbursement of
the local law enforcement agency and prosecuting agency for the actual costs of the criminal
investigation and prosecution. The balance of funds are then placed in the drug forfeiture fund.
The bill also transfers control over the drug forfeiture fund from the Attorney General to
Department of Health and Human Services. It limits use of those funds to reimburse local,
county, and state officials for costs arising from arrest or prosecution of drug-related
investigations. The bill also allows funds to be used for programs designed to prevent drug use
or treat substance abuse disorders. The Department reports under current law the distribution
is as follows:
· The first $100,000 of forfeited funds goes into the recently created “police psychological
stability screening fund.”
· Of the next $500,000:
o 45% of the first is returned to the fiscal officer or officers of the municipal,
county, state, or federal government which provided the law enforcement agency
or agencies responsible for the seizure;
o 10% is deposited into a special nonlapsing account established within the office of
the state treasurer for the Department of Health and Human Services;
o 45% is deposited in the revolving drug forfeiture fund;
o Of any funds in excess of $500,000:
· 10% is deposited into a special nonlapsing account established within the
office of the state treasurer for the Department of Health and Human
Services and;
· 90% is deposited in the revolving drug forfeiture fund.
The bill would repeal the recent establishment of “police psychological stability screening fund.”
The Department indicates in FY 2020, drug forfeitures totaled $121,005. From those funds, the
Department of Health and Human Services received $17,244, municipalities received $51,534
and the Drug Task Force received $52,227. All of those funds were used to support Drug Task
Force operations through Drug Task Force teams to reduce and confiscate illegal drugs
throughout the state.
The Department states the proposed provision that prohibits initiating a forfeiture action
against currency valued at $200 or less and vehicles with a market value of $1,500 or less would
have no fiscal impact because, under current practices, the Department does not bring forfeiture
actions against currency or motor vehicles of such low value. The Department states it is
uncertain what the costs would be to investigate and prosecute drug-related charges, therefore
the overall fiscal impact of the bill is indeterminable. Based on a five year average, $179,922 is
received for the Drug Task Force. The remaining funds are distributed pursuant to statute.
The Department of Health and Human Services currently has a drug forfeiture fund account
under the Bureau of Drug and Alcohol Services used for the surveillance of the sale of tobacco
and alcohol to minors across the state. The Bureau could expand programming around
substance misuse and addiction prevention, intervention and treatment services if the proposed
changes provided additional revenue in this account, but the potential increase in revenue is
indeterminable. The Department states expansion of the reimbursable activities would
necessitate an additional staff person to manage the fund. The Department assumes the
position would be a Business Administrator II at a labor grade 24 at an estimated costs of
$82,000 in FY 2022, $84,000 in FY 2023 and $87,000 in FY 2024. The Department expects the
bill would have an indeterminable impact on state, county and local expenditures.
It is assumed any fiscal impact would occur after July 1, 2021.
AGENCIES CONTACTED:
Departments of Justice and Health and Human Services
Statutes affected: Introduced: 318-B:17-b, 318-B:17-c
latest version: 318-B:17-b, 318-B:17-c