LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7360 NOTE PREPARED: Jan 4, 2021
BILL NUMBER: SB 341 BILL AMENDED:
SUBJECT: Civil Forfeiture.
FIRST AUTHOR: Sen. Breaux BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
A. United Way Organization – It directs certain civil forfeiture proceeds to the United Way organization
in each county (or to a United Way organization that serves the county if the county lacks a United
Way organization) to be used to provide grants to aid the community.
B. Prohibited Purchases – It prohibits the use of certain other civil forfeiture proceeds to purchase or
facilitate the acquisition of armored vehicles, military-style weapons, or surplus military equipment.
C. Federal Revenue Sharing – It repeals a provision authorizing the transfer of seized property to the
United States.
Effective Date: July 1, 2021.
Explanation of State Expenditures:
Explanation of State Revenues: Federal Revenue Sharing – This bill would eliminate revenue from the
Equitable Sharing Program administered by the U.S. Department of Justice. Repealing this section would
no longer permit law enforcement agencies to participate in a program with federal drug enforcement
agencies in seizing and forfeiting illegal drugs and related assets. The state portion of revenue received from
forfeiture actions that result from these coordinated efforts are deposited into a special project account
administered by the Indiana State Police.
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Based on reports from the Auditor’s office, the revenue loss could range between $815,000 and $1.4 M based
on reported revenue this account received between FY 2016 and 2020.
Explanation of Local Expenditures:
Explanation of Local Revenues: United Way Organization – Another provision of this bill would reduce
money obtained from seizure and forfeiture actions by local law enforcement agencies and divert half of it
to local United Way Agencies.
After paying attorney’s fees for forfeiture proceedings and depositing a certain portion into the forfeiture fund
established by each prosecuting attorney, 85% of the remaining proceeds of assets, seizures, and forfeitures go
to the local units of government. As proposed, instead of 85%, 42.5% of these remaining proceeds would be
deposited into the general fund of the local units that employed the law enforcement officers involved in the
seizures and forfeiture actions. The other 42.5% would be transferred to the United Way organization in the
county in which these seizures and forfeitures occurred.
Based on the revenues reported to the Indiana Prosecuting Attorneys Council, the revenue loss to the local
units of government could be $900,000 per year.
Proceeds Deposited into Accounts of Local Law Enforcement Agencies
FY 2016 FY 2017 FY 2018 FY 2019 Four Year
Average
$1,039,275 $2,171,287 $2,279,863 $1,813,878 $1,826,076
Source: IPAC and https://iga.in.gov/legislative/2020/publications/agency/reports/ipac/
State Agencies Affected: Indiana State Police; Office of the Attorney General.
Local Agencies Affected: Prosecuting attorneys; Local law enforcement agencies.
Information Sources: Indiana Code; Agency Reports to the General Assembly; Indiana Prosecuting
Attorneys Council; Indiana State Police State Auditor’s Office Funds 44180 and 44860
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
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Statutes affected:
1. Introduced Senate Bill (S): 34-24-1-2, 34-24-1-4, 34-24-1-4.5, 35-33-5-5