N.Y. Civil Practice Law & Rules § 1349: Disposal of property

§ 1349. Disposal of property. 1. Any judgment or order of forfeiture

issued pursuant to this article shall include provisions for the

disposal of the property found to have been forfeited.

2. If any other provision of law expressly governs the manner of

disposition of property subject to the judgment or order of forfeiture,

that provision of law shall be controlling, with the exception that,

notwithstanding the provisions of any other law, all forfeited monies

and proceeds from forfeited property shall be deposited into and

disbursed from an asset forfeiture escrow fund established pursuant to

section six-v of the general municipal law, which shall govern the

maintenance of such monies and proceeds from forfeited property. Upon

application by a claiming agent for reimbursement of moneys directly

expended by a claiming agent in the underlying criminal investigation

for the purchase of contraband which were converted into a non-monetary

form or which have not been otherwise recovered, the court shall direct

such reimbursement from money forfeited pursuant to this article. Upon

application of the claiming agent, the court may direct that any

vehicles, vessels or aircraft forfeited pursuant to this article be

retained by the claiming agent for law enforcement purposes, unless the

court determines that such property is subject to a perfected lien, in

which case the court may not direct that the property be retained unless

all such liens on the property to be retained have been satisfied or

pursuant to the court's order will be satisfied. In the absence of an

application by the claiming agent, the claiming authority may apply to

the court to retain such property for law enforcement purposes. Upon

such application, the court may direct that such property be retained by

the claiming authority for law enforcement purposes, unless the court

determines that such property is subject to a perfected lien. If not so

retained, the judgment or order shall direct the claiming authority to

sell the property in accordance with article fifty-one of this chapter,

and that the proceeds of such sale and any other moneys realized as a

consequence of any forfeiture pursuant to this article shall be

deposited to an asset forfeiture escrow fund established pursuant to

section six-v of the general municipal law and shall be apportioned and

paid in the following descending order of priority:

(a) Amounts ordered to be paid by the court in satisfaction of any

lien or claim against property forfeited. A fine imposed pursuant to the

penal law shall not be deemed to constitute a lien or claim for purposes

of this section;

(b) Amounts ordered to be paid by the defendant in any other action or

proceeding as restitution, reparations or damages to a victim of the

crime, which crime constitutes the basis upon which forfeiture was

effected under this article, to the extent such amounts remain unpaid;

(c) Amounts ordered to be paid by the defendant in any other action or

proceeding as restitution, reparations or damages to a victim of any

crime committed by the defendant even though such crime did not

constitute the basis for forfeiture under this article, to the extent

that such amounts remain unpaid;

(d) Amounts actually expended by a claiming authority or claiming

agent, which amounts are substantiated by vouchers or other evidence,

for the: (i) maintenance and operation of real property attached

pursuant to this article. Expenditures authorized by this subparagraph

are limited to mortgage, tax and other financial obligations imposed by

law and those other payments necessary to provide essential services and

repairs to real property whose occupants are innocent of the criminal

conduct which led to the attachment or forfeiture; and

(ii) proper storage, cleanup and disposal of hazardous substances or

other materials, the disposal of which is governed by the environmental

conservation law, when such storage, cleanup or disposal is required by

circumstances attendant to either the commission of the crime or the

forfeiture action, or any order entered pursuant thereto;

(e) In addition to amounts, if any, distributed pursuant to paragraph

(d) of this subdivision, fifteen percent of all moneys realized through

forfeiture to the claiming authority in satisfaction of actual costs and

expenses incurred in the investigation, preparation and litigation of

the forfeiture action, including that proportion of the salaries of the

attorneys, clerical and investigative personnel devoted thereto, plus

all costs and disbursements taxable under the provisions of this

chapter;

(f) In addition to amounts, if any, distributed pursuant to paragraph

(d) of this subdivision, five percent of all moneys realized through

forfeiture to the claiming agent in satisfaction of actual costs

incurred for protecting, maintaining and forfeiting the property

including that proportion of the salaries of attorneys, clerical and

investigative personnel devoted thereto;

(g) Forty percent of all moneys realized through forfeiture which are

remaining after distributions pursuant to paragraphs (a) through (f) of

this subdivision, to the chemical dependence service fund established

pursuant to section ninety-seven-w of the state finance law;

(h) All moneys remaining after distributions pursuant to paragraphs

(a) through (g) of this subdivision shall be distributed as follows:

(i) seventy-five percent of such moneys shall be deposited to a law

enforcement purposes subaccount of the general fund of the state where

the claiming agent is an agency of the state or the political

subdivision or public authority of which the claiming agent is a part,

to be used for law enforcement use in the investigation of penal law

offenses or law enforcement assisted diversion;

(ii) the remaining twenty-five percent of such moneys shall be

deposited to a prosecution services subaccount of the general fund of

the state where the claiming authority is the attorney general or the

political subdivision of which the claiming authority is a part, to be

used for the prosecution of penal law offenses.

Where multiple claiming agents participated in the forfeiture action,

funds available pursuant to subparagraph (i) of this paragraph shall be

disbursed to the appropriate law enforcement purposes subaccounts in

accordance with the terms of a written agreement reflecting the

participation of each claiming agent entered into by the participating

claiming agents.

3. All moneys distributed to the claiming agent and the claiming

authority pursuant to paragraph (h) of subdivision two of this section

shall be used to enhance law enforcement efforts and not in

supplantation of ordinary budgetary costs including salaries of

personnel, and expenses of the claiming authority or claiming agent

during the fiscal year in which this section takes effect.

4. The claiming authority shall report the disposal of property and

collection of assets pursuant to this section to the office of victim

services, the state division of criminal justice services and the state

division of substance abuse services.

5. Monies and proceeds from the sale of property realized as a

consequence of any forfeiture distributed to the claiming agent or

claiming authority of any county, town, city, or village of which the

claiming agent or claiming authority is a part, shall be deposited to an

asset forfeiture escrow fund established pursuant to section six-v of

the general municipal law.