044-2001 LTC
CfTY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miamj..beach.f1.us
L.T.C. No. '-I~- ~~!
LETTER TO COMMISSION
March 2, 2001
SUBJECT:
Mayor Neisen O. Kasdin and
Members of the City Commission
Jorge M. Gonzalez \ ~
City Manager (j
LAW ENFORCEMENT TRUST FUND
TO:
FROM:
This Letter to the Commission is to provide information regarding the Miami Beach Police
Department's Law Enforcement Trust Fund.
BACKGROUND
The history offorfeiture is as old as the law itself. In modern day terms, law enforcement is able to
seize and forfeit any contraband article, vessel, motor vehicle, aircraft, or other personal property
used in the commission of a felony and/or may be the proceeds of a felony. Law enforcement is
permitted to seize and have the item forfeited to them. This is commonly called "forfeiture" or "asset
forfeiture." Both federal and state laws authorize seizure and forfeiture as described above for
various crimes.
There are two very distinct and very different legal phases to the forfeiture. The first is the seizure
of the property and the second is forfeiture. Seizure involves law enforcement, upon probable cause,
physically taking custody of the property and holding it pending a final court hearing. Once the
property is seized,forfeitures proceedings are initiated in Circuit Court for forfeitures initiated under
State law or United States District Court for forfeitures initiated under federal law.
The Police Department uses both State and Federal laws for the purposes of seizing and forfeiting
property. However, the overwhelming majority of seizures and forfeitures are accomplished under
State Law.
FLORIDA'S CONTRABAND FORFEITURE ACT
Sections 932.701-932.707 of the Florida Statutes are known as the "Florida Contraband Forfeiture
Act." These are the statutes that govern the seizure, forfeiture, and expenditures of forfeiture property
and/or funds.
LETTER TO THE COMMISSION
February 19,2001
Page 2
Chapter 932.70, Florida Statutes, in part, defines what constitutes a violation for which property can
be seized and forfeited:
(2) As used in the Florida Contraband Forfeiture Act:
(a) "Contraband article" means:
1. Any controlled substance as defined in chapter 893 of the Florida Statutes, or any
substance, device, paraphernalia, or currency or other means of exchange that was used, was
attempted to be used, or was intended to be used in violation of any provision of chapter 893,
if the totality of the facts presented by the state is clearly sufficient to meet the state's burden
of establishing probable cause to believe that a nexus exists between the article seized and
the narcotics activity, whether or not the use of the contraband article can be traced to a
specific narcotics transaction.
2. Any gambling paraphernalia, lottery tickets, money, currency, or other means of exchange
which was used, was attempted, or intended to be used in violation of the gambling laws of
the state.
3. Any equipment, liquid or solid, which was being used, is being used, was attempted to be
used, or intended to be used in violation ofthe beverage or tobacco laws of the state.
4. Any motor fuel upon which the motor fuel tax has not been paid as required by law.
5. Any personal property, including, but not limited to, any vessel, aircraft, item, object, tool,
substance, device, weapon, machine, vehicle of any kind, money, securities, books, records,
research, negotiable instruments, or currency, which was used or was attempted to be used
as an instrumentality in the commission of, or in aiding or abetting in the commission of, any
felony, whether or not comprising an element of the felony, or which is acquired by proceeds
obtained as a result of a violation of the Florida Contraband Forfeiture Act.
6. Any real property, including any right, title, leasehold, or other interest in the whole of any
lot or tract of land, which was used, is being used, or was attempted to be used as an
instrumentality in the commission of, or in aiding or abetting in the commission of, any
felony, or which is acquired by proceeds obtained as a result of a violation of the Florida
Contraband Forfeiture Act.
7. Any personal property, including, but not limited to, equipment, money, securities, books,
records, research, negotiable instruments, currency, or any vessel, aircraft, item, object, tool,
substance, device, weapon, machine, or vehicle of any kind in the possession of or belonging
to any person who takes aquaculture products in violation ofs. 812.014(2)(c).
8. Any motor vehicle offered for sale in violation of s. 320.28.
9. Any motor vehicle used during the course of committing an offense in violation of s.
322.34(9)(a).
Chapter 932.7055, Florida Statutes, in part, details how the funds may be spent:
(1) When a seizing agency obtains a final judgment granting forfeiture of real property or
personal property, it may elect to:
(a) Retain the property for the agency's use;
LETTER TO THE COMMISSION
February 19,2001
Page 3
(b) Sell the property at public auction or by sealed bid to the highest bidder, except for real
property which should be sold in a commercially reasonable manner after appraisal by listing
on the market; or
(c) Salvage, trade, or transfer the property to any public or nonprofit organization.
(2) If the forfeited property is subject to a lien preserved by the court as provided in S.
932.703(6)(b), the agency shall:
(a) Sell the property with the proceeds being used towards satisfaction of any liens; or
(b) Have the lien satisfied prior to taking any action authorized by subsection (1).
(3) The proceeds from the sale of forfeited property shall be disbursed in the following
priority:
(a) Payment of the balance due on any lien preserved by the court in the forfeiture
proceedings.
(b) Payment of the cost incurred by the seizing agency in connection with the storage,
maintenance, security, and forfeiture of such property.
(c) Payment of court costs incurred in the forfeiture proceeding.
(4)( a) If the seizing agency is a county or municipal agency, the remaining proceeds shall be
deposited in a special law enforcement trust fund established by the board of county
commissioners or the governing body of the municipality. Such proceeds and interest earned
therefrom shall be used for school resource officer, crime prevention, safe neighborhood,
drug abuse education and prevention programs, or for other law enforcement purposes, which
include defraying the cost of protracted or complex investigations, providing additional
equipment or expertise and providing matching funds to obtain federal grants. The proceeds
and interest may not be used to meet normal operating expenses of the law enforcement
agency.
(b) These funds may be expended upon request by the sheriff to the board of county
commissioners or by the chief of police to the governing body of the municipality,
accompanied by a written certification that the request complies with the provisions of this
subsection, and only upon appropriation to the sheriff's office or police department by the
board of county commissioners or the governing body of the municipality.
(c) An agency or organization, other than the seizing agency, that wishes to receive such
funds shall apply to the sheriff or chief of police for an appropriation and its application shall
be accompanied by a written certification that the moneys will be used for an authorized
purpose. Such requests for expenditures shall include a statement describing anticipated
recurring costs for the agency for subsequent fiscal years. An agency or organization that
receives money pursuant to this subsection shall provide an accounting for such moneys and
shall furnish the same reports as an agency of the county or municipality that receives public
funds. Such funds may be expended in accordance with the following procedures:
1. Such funds may be used only for school resource officer, crime prevention, safe
neighborhood, drug abuse education, or drug prevention programs or such other law
enforcement purposes as the board of county commissioners or governing body of the
municipality deems appropriate.
LETTER TO THE COMMISSION
February 19,2001
Page 4
2. Such funds shall not be a source of revenue to meet normal operating needs of the law
enforcement agency.
3. After July 1, 1992, and during every fiscal year thereafter, any local law enforcement
agency that acquires at least $15,000 pursuant to the Florida Contraband Forfeiture Act
within a fiscal year must expend or donate no less than IS percent of such proceeds for the
support or operation of any drug treatment, drug abuse education, drug prevention, crime
prevention, safe neighborhood, or school resource officer program(s). The local law
enforcement agency has the discretion to determine which program(s) will receive the
designated proceeds.
(7) Upon the sale of any motor vehicle, vessel, aircraft, real property, or other property
requiring a title, the appropriate agency shall issue a title certificate to the purchaser. Upon
the request of any law enforcement agency which elects to retain titled property after
forfeiture, the appropriate state agency shaH issue a title certificate for such property to said
law enforcement agency.
(c) Neither the law enforcement agency nor the entity having budgetary control over
the law enforcement agency shall anticipate future forfeitures or proceeds therefrom
in the adoption and approval ofthe budget for the law enforcement agency.
Due to the unpredictability of this source of funds, the Legislature clearly stated that these funds
cannot be used in the normal budget process.
REVENUES
The Police Department derives funds for this account from either proceedings under State law or
Federal law. Below is a table showing the revenues for the last five fiscal years.
FISCAL YEAR STATE FEDERAL TOTAL
95/96 $ 884,806(100%) $ 0 $ 884,806
96/97 $1,299,023(90%) $162,190(10%) $1,461,213
97/98 $2,576,462(96%) $108,749(4%) $2,685,211
98/99 $2,092,740(89%) $226,244( II %) $2,318,984
99/00 $1,530,212(70%) $447,719(30%) $1,977,931
EXPENDITURES
As you will recall from the statutes, all expenditures must be approved by the funding entity, in our
case, the Mayor and City Cornmission. All expenditures from the Law Enforcement Trust Account
are brought before the Mayor and City Commission at regularly scheduled meetings and voted on.
One of the important features of the statute is that after July 1, 1992, and during every fiscal year
thereafter, any local law enforcement agency that acquires at least $15,000 pursuant to the Florida
Contraband Forfeiture Act within a fiscal year must expend or donate no less than IS percent of such
proceeds for the support or operation of any drug treatment, drug abuse education, drug prevention,
crime prevention, safe neighborhood, or school resource officer program(s). The local law
LETTER TO THE COMMISSION
February 19, 2001
Page 5
enforcement agency has the discretion to determine which program(s) will receive the designated
proceeds.
The Police Department derives funds for this account from either proceedings under State law or
Federal law. Below is a table showing the expenditures for the last five fiscal years. The expenditure
amounts do not match the revenue amounts as funds are permitted to be carried over from fiscal year
to fiscal year.
FISCAL YEAR
TOTAL
95/96
96/97
97/98
98/99
99/00
$1,582,890
$1,499,992
$1,179,217
$2,589,240
$1,918,257
Attached please find charts that detail the expenditures for the last five fiscal years.
Please feel free to contact me should you have any questions regarding the Law Enforcement Trust
Account.
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