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2017-29916 ResolutionRESOLUTION 2017-29916 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER AND CHIEF OF POLICE TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MIAMI BEACH, ON BEHALF OF THE MIAMI BEACH POLICE DEPARTMENT, AND THE INTERNAL REVENUE SERVICE, CRIMINAL INVESTIGATION MIAMI FIELD OFFICE, TO PARTICIPATE IN THE SOUTH FLORIDA HIDTA FINANCIAL CRIMES STRIKE FORCE, FOR THE PURPOSE OF DEVELOPING AND ASSISTING WITH CRIMINAL INVESTIGATIONS AND ASSET FORFEITURES RELATED TO ILLEGAL ACTIVITIES WITHIN THE UNITED STATES JUDICIAL DISTRICT OF SOUTHERN FLORIDA. WHEREAS, the Miami Field Office of the Internal Revenue Service, Criminal Investigations Division (IRS-Cl) has established the South Florida HIDTA Financial Crimes Strike Force for the purpose of apprehending and prosecuting individuals who are involved in money laundering operations, narcotics offenses, violations of the Bank Secrecy Act and other related crimes; and WHEREAS, a detective from the Miami Beach Police Department will be assigned to the South Florida HIDTA Financial Crimes Strike Force to work in conjunction with Federal, State and local law enforcement personnel in identifying, locating and apprehending individuals who commit these crimes in the City of Miami Beach and the Southern District of Florida; and WHEREAS, the South Florida HIDTA Financial Crimes Strike Force enhances the effectiveness of Federal, State and local law enforcement resources through a coordinated law enforcement initiative, which seeks the most effective investigative and prosecutorial avenues to obtain arrests, prosecutions and large asset forfeitures regarding individuals and organizations involved in money laundering operations, narcotics offenses, violations of the Bank Secrecy Act and other related crimes; and WHEREAS, it is a great benefit to the Miami Beach Police Department to participate in this South Florida HIDTA Financial Crimes Strike Force based upon the access to investigative resources, capabilities, and potential revenue sharing pursuant to forfeiture proceedings; and WHEREAS, the IRS-Cl will reimburse the City of Miami Beach and the Miami Beach Police Department for overtime expenses, investigation related travel and training related travel for the term of the agreement with the South Florida HIDTA Financial Crimes Strike Force; and WHEREAS, the Miami Beach Police Department and the IRS-Cl wish to execute ·a Memorandum of Understanding (MOU) to participate in the South Florida HIDTA Financial Crimes Strike Force, which shall commence upon the signatures of all parties, and will remain in effect until September 30, 2018, unless terminated earlier. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City Manager and Chief of Police are hereby authorized to execute a Memorandum of Understanding between the City of Miami Beach, on behalf of the Miami Beach Police Department, and the Internal Revenue Service, Criminal Investigation Miami Field Office, to participate in the South Florida HIDTA Financial Crimes Strike Force, for the purpose of developing and assisting with criminal investigations and asset forfeitures related to illegal activities within the United States Judicial District of Southern Florida. PASSED and ADOPTED this Jy day of July, 2017. ATTEST BY: South Florida HIDTA/Financial Crimes Strike Force Fraud Task Force MEMORANDUM OF UNDERSTANDING PURPOSE This Memorandum of Understanding (MOU) is executed in order to memorialize the agreement and set forth the terms and conditions between the Internal Revenue Service, Criminal Investigation (IRS-Cl) and the City of Miami Beach, on behalf of the Miami Beach Police Department (hereinafter known as "the Agency or Department"), which have agreed to combine investigative efforts relative to narcotics, money laundering, violations of the Bank Secrecy Act, and other related statutes. AUTHORITY The Secretary has authority to investigate money laundering operations under 18 U.S.C. Sections 981, 1956(e) and 1957(e). The Secretary has delegated this authority to the Commissioner of IRS where the underlying conduct is subject to investigation under the Internal Revenue Code, or the Bank Secrecy Act, as amended, 31 U.S.C. Section 5311-5332. Treasury Directive (T.D.) 15-42: "Delegation of Authority to Commissioner to Investigate Violations of 18 U.S.C. 1956 and 1957", (Jan. 21, 1999); see also T.D. 15-41(Dec.1, 1992). MISSION OF THE TASK FORCE The mission of the Task Force is to develop and assist with criminal investigations and asset forfeitures relative to illegal activities with respect to narcotics within the U.S. Judicial District of Southern Florida. The emphasis of the Task Force is·to pursue investigations with regard to individuals and organizations that will result in criminal prosecutions and large asset forfeitures. The Task Force will work in coordination with the United States Attorney's Office(s) primarily within the U.S. Judicial District of Southern Florida to determine the types of activities that merit investigation and are allied to the investigation and prosecution strategy. PERSONNEL 1. IRS-Cl, will assign one supervisory special agent (SSA) to serve as the Task Force SSA and one or more special agents as needed by the Task Force. The Task Force SSA will be responsible for the management, supervision and coordination of all investigative, operational and administrative activities. The Task Force SSA with input from the participating agencies shall establish the 1 direction and any internal policy of the Task Force. The United States Attorney will also designate a point of contact for consultation regarding the selection of targets for investigation, and for obtaining legal assistance in such investigations, including but not limited to grand jury subpoenas, tax disclosure orders, ex parte orders (other than tax), search and seizure warrants and any required court proceedings. 2. During the period of assignment, the representatives remain under the supervision of their respective agency/department. Each agency/department representative will report to his/her agency/department for personnel administrative matters. 3. During the period of assignment, each agency/department shall be responsible for pay, overtime, annual leave, performance evaluations, insurance coverage and other benefits of its employees. 4. Task Force personnel shall adhere to all Department of Treasury and IRS-Cl policies and procedures. If Treasury and/or IRS-Cl policies conflict with the policies and procedures of any member's parent agency, the parent agency will request, in writing, that the Task Force SSA permit its employee to follow the policies and procedures of the parent agency. If the Task Force SSA does not assent to the request, the SSA and Chief Law Enforcement Officer of the respective agency will resolve the matter. Failure to adhere to the established policies and procedures may be grounds for immediate removal of the officer(s) from the Task Force. 5. Personnel assigned to the Task Force shall be designated as full or part time in accordance with an agreement with their respective agency/department. It is understood that personnel assigned to the Task Force may continue to have duties (training, administrative duties, etc.) that are linked to their respective agency/departments. 6. It is agreed that the Task Force SSA will contact any member's supervisor (or designee) regarding any personnel assigned whose performance or conduct is questioned. The matter will be addressed in coordination with the department supervisor/designee. ADMINISTRATIVE ISSUES 7. All computer and related equipment assigned to the Task Force personnel will be used for official purposes only, and remains the property of the Task Force. 8. The IRS-Cl Task Force Coordinator in conjunction with the AFC will be responsible for the oversight and administration of all equitable sharing distributions. 2 9. The Task Force will be located at South Florida HIDTA. IRS-Cl will provide all necessary secretarial, clerical, automation and technical support (regarding IRS- Cl issued equipment) for the Task Force. The IRS-Cl contact regarding this MOU is SA Harlan Daar. 10. In no event will the member departments charge IRS-Cl for administration or implementation of this memorandum of understanding. 11. All members of the Task Force agree not to knowingly act unilaterally on any matter affecting the Task Force without first coordinating with the IRS-Cl SSA INVESTIGATIVE MATTERS 12. IRS-Cl will provide the necessary funds for the investigative expenses, and for the purchase of evidence and information that relates to investigations and intelligence gathering (unless the cost is considered a grand jury expense). In the event IRS-Cl does use appropriated funds to pay for such investigative or other expenses, a separate agreement will be executed and signed by a contracting officer, if necessary. 13. The Task Force investigative procedures will conform to the requirements for Federal prosecutions. All prosecutions shall be initially referred to the United States Attorney's Office(s) within the Field Office. The United States Attorney's Office may then recommend referral for possible state charges. In the event that prosecution does not lie with that office, or there is a conflict as to the proper venue or jurisdiction, any dispute shall be resolved by agreement of all parties having an interest in the investigation. 14.Access to and use of Task Force records will be in accordance with Federal Law and Department of Treasury and IRS-Cl regulations and policy, including but not limited to the Freedom of Information and Privacy Acts, 5 U.S.C. 552a. 15. The IRS is responsible for tax administration and the investigation of criminal violations of the Internal Revenue Code. Tax returns and return information are confidential and cannot be disclosed except as provided by IRC 6103. Reports recommending the prosecution of persons for criminal tax violations are subject to review by IRS Criminal Tax Counsel. Prosecution reports must also be referred to the Department of Justice (Tax Division) for their review and approval prior to prosecution. 16. In the event that another law or rule supercedes the Privacy Act, such as Rule 6(e) of the Federal Rules of Criminal Procedure pertaining to Grand Jury information, no information will be shared unless all pertinent laws and regulations permit the sharing. 3 INFORMANTS 17. All confidential and cooperating witnesses exclusively developed through the Task Force will be opened as IRS-Cl informants, sources, assets or cooperating witnesses, and handled in accordance with IRS-Cl guidelines, policy and procedures. 18. IRS-Cl, as permitted by Federal law, agrees to pay reasonable and necessary informant expenses incurred by the Task Force. IRS-Cl must approve all informant related expenses before they are incurred. 19. The Internal Revenue Service undercover policies, procedures and guidelines apply to the review of all undercover operations. Personnel assigned to the undercover operation shall adhere to their respective agency's or bureau's policies, procedures and reporting requirements. The Internal Revenue Service will cover all expenses relating to the undercover operations and will direct the operations in accordance with its policies and procedures. This MOU does not alter or abrogate existing Treasury/IRS orders, directives, or policies regarding the conduct of investigations or the use of special investigative techniques or controlled informants. FORFEITURE 20.Assets seized in connection with the Task Force will be forfeited under Federal and/or State laws. The agreement between the IRS-Cl and the agency/department, which have agreed to combine investigative efforts for equitable sharing from asset seizure and forfeiture, will be determined by agreement of all parties having an interest in the forfeiture. 21.All sharing will be within the discretionary authority of the Department of Treasury, as provided by 31 U.S.C. § 9703 (a)(1 )(G) and (h), 18 U.S.C. 981 (e)(2), and the Secretary of the Treasury's Guidelines for Equitable Sharing. LIABILITY 22. The parties agree to be responsible, to the extent allowed under applicable law, for the negligent or wrongful acts or omissions of their respective employees. Legal representation by the U.S. is determined by the Department of Justice (DOJ) on a case-by-case basis. The IRS cannot guarantee the U.S. will provide legal representation to any Federal or State law enforcement officer or employee. 23. For the limited purpose of defending claims arising out of Task Force activity, state officers who have been specifically detailed, and who are acting within the 4 course and scope of their official duties and assignments, pursuant to this MOU, may be considered an "employee" of the U.S. government, as defined in 28 U.S.C., Section 2671. See 5 U.S.C., Section 3374(c)(2). 24. Liability for any negligent or willful acts of Task Force members, undertaken outside the terms of this MOU will be the sole responsibility of the respective employee and agency/department involved. 25. Liability for violations of Federal constitutional law rests with the individual Federal agent or officer pursuant to Bivens v. Six Unknown Named Agents of the Federal Bureau of Narcotics, 403 U.S. 388 (1971) or pursuant to 42 U.S.C., Section 1983 for state officers or cross-detailed federal officers acting under color of state law. 26. Task Force members may request representation by the U.S. Department of Justice for civil suits against them in their individual capacities for actions taken within the scope of employment, 28 C.F.R., Sections 50.15, 50.16. 27. If a Task Force member is found to be liable for a constitutional tort, he/she may request indemnification from IRS to satisfy an adverse judgment rendered against the employee in his/her individual capacity. 26 U.S.C., Section 7423(2). Such payments are allowed if the employee was acting in the performance of his or her duties under the Internal Revenue Code. 28. The Federal Government shall not be liable for any personal injury or property damage unless such injury or damage is compensable under the Federal Tort Claims Act [28 U.S.C. '§ 1346(b), 2671-2680], or pursuant to other Federal statutory authority. Similarly, Miami Beach shall not be liable for any personal injury or property damage unless such injury or damage is compensable under applicable State law. 29. Cl has no authority to agree, to indemnify and/or hold harmless any entity with which they may be working. Each party to this agreement shall be liable for the acts and omissions of its own employees. DURATION 30. This MOU shall be in effect from the date of execution until 09/30/2018, unless terminated earlier. If additional agencies join the Task Force a new MOU will be executed. 31. The provisions of the LIABILITY section will continue until all potential liabilities have lapsed. 5 32.Any participating agency may withdraw from the Task Force at any time by written notification to the heads of the other participating agencies or designees at least 30 days prior to withdrawal. 33. This MOU may be amended by deletion or modification of any provisions, provided that such amendment is in writing and is signed by all parties to the Agreement. OTHER PROVISIONS 34. To the extent there is any conflict between Federal Law and the law of Florida, Federal law controls. While State law may be used to aid in the interpretation of provisions of the MOU which are not specifically covered by Federal law, it cannot be used to the extent it is inconsistent with any Federal law. 35. The terms of this agreement are not intended to alter, amend, or rescind any current agreement or provision of Federal law now in effect Any provision of this MOU which conflicts with Federal law will be null and void. 36. This MOU does not confer any rights or benefits on any third party. 37.Any release of information to the media or through a press conference concerning Task Force investigations will be agreed to and coordinated jointly by the participating Task Force agencies/departments. No release may be made by any agency/department without the prior approval of the other Task Force agencies/departments. Generally, the United States Attorney's Office will be the lead concerning press releases pertaining to any arrest, convictions or seizure developed by the Task Force. 38. All Task Force related travel will require the approval of the agency employing the individual. All individuals will be responsible for securing his/her own agency/department approval for all travel. 39. For international travel, the IRS-Cl will obtain country clearances for all Task Force members. For domestic travel, each agency/department member will be responsible for appropriate notifications within their own agency/department. 40. The 11Agency 11 shall permit and have readily available for examination and auditing by the Internal Revenue Service, the Department of Treasury, the Comptroller of the United States, and any of their other duly authorized agents and representatives, any and all records, documents, accounts, invoices, receipts or expenditures relating to this agreement. They shall maintain all such records and reports until all audits and examinations are completed and resolved, or for a period of years in compliance with the State of Florida 6 document retention schedules, whichever time period requires preservation longer. 41. The IRS and the agency/department will review this MOU annually to evaluate any existing data exchange; examine the continuing needs for and uses of the exchanged data; determine whether the provisions of this agreement require amendment or revision and whether the agencies/departments are complying with the provisions of the agreement. The method of review (conference call, meeting, email, etc.) will be jointly determined by the IRS-Cl, Governmental Liaison, Office of Safeguards (if applicable) and the agencies/departments. STATE AND LOCAL LAW ENFORCEMENT DETAIL TO IRS-Cl 42. Personnel from state and local law enforcement departments assigned full or part time to the Task Force shall be detailed, per 5 U.S.C. §3374(a)(2), as IRS-Cl Task Force Officers. 43.All parties to this MOU understand that while "Detailees" are considered Federal employees for purposes of certain Federal statutes, they are not Federal employees for purposes of the Privacy Act or section 6103 of Title 26, United States Code. See Disclosure Document 9378 (rev. 10-2000). As such, detailees are not authorized to receive or access Privacy Act or 26 U.S.C. 6103 protected return information. The prohibition precludes receipt of return information pursuant to a section 6103(i) ex parte order. Detailees may have access to information covered by the Privacy Act pursuant to a written request from the head of their law enforcement agency complying with the Conditions of Disclosure provisions of 5 U.S.C. § 552a(b)(7). All parties to this agreement understand and agree that this MOU with the signatures of the agency heads represents the required written request authorizing such disclosures. 44. No action will be taken by any Task Force Officer, utilizing their authority, under 26 U.S.C. § 7608(b) (1) and (2), without approval of the IRS-Cl SSA. 45. Upon the establishment of a State and Local Overtime (SLOT) agreement, departments will be reimbursed for overtime and investigation related and/or training travel, as well as, lease expenses for vehicles for full time Task Force Officers from the Treasury Forfeiture Fund, upon submission of Department of Treasury Form 9972, Request for Reimbursement of Joint Operation Expenses. Reimbursement will be limited to the yearly allocated funding. This form, with necessary documentation, will be submitted monthly to the IRS-Cl Task Force SSA. The Internal Revenue Service agrees to reimburse the "member agency(ies)/department(s)" for expenses incurred by its officer(s) participating in the Task Force that are directly related to official duties and investigations performed on behalf of the Task Force. These expenses include, but are not limited to the leasing of a motor vehicle; training and related expenses (i.e. travel, 7 lodging, meals) and overtime up to $15,000.00 per officer. The Internal Revenue Service will reimburse cell phone expense and may provide an official use computer for the officer(s)/agent(s) to use for Task Force related matters. 46. For the limited purpose of defending claims, arising out of Task Force activity, state officers who have been specifically detailed, and who are acting within the course and scope of their official duties and assignments, pursuant to this MOU, may be considered an "employee" of the U.S. government, as defined in 28 U.S.C., Section 2671. For CITY OF MIAMI BEACH, FLORIDA: Date 1-27-1'1 Date ATTEST: Date MY L. MORALES, CITY MANAGER ED AS TO & NGUAGE ~ ..... _ XECUTION ~{7 Name: Kelly R. Jackson Title: Special Agent in Charge Cl Field Office: Miami Field Office 8 Resolutions • C7 G MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 26, 2017 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER AND CHIEF OF POLICE TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MIAMI BEACH, ON BEHALF OF THE MIAMI BEACH POLICE DEPARTMENT, AND THE INTERNAL REVENUE SERVICE, CRIMINAL INVESTIGATION MIAMI FIELD OFFICE, TO PARTICIPATE IN THE SOUTH FLORIDA HIDTA FINANCIAL CRIMES STRIKE FORCE, FOR THE PURPOSE OF DEVELOPING AND ASSISTING WITH CRIMINAL INVESTIGATIONS AND ASSET FORFEITURES RELATED TO ILLEGAL ACTIVITIES WITHIN THE UNITED STATES JUDICIAL DISTRICT OF SOUTHERN FLORIDA. RECOMMENDATION Adopt the Resolution. ANALYSIS --------·--·----~-- The Miami Field Office of the Internal Revenue Service Criminal Investigations Division (IRS-Cl) established the South Florida HIDTA (High Intensity Drug Trafficking Area) Financial Crimes Strike Force, to apprehend and prosecute individuals involved in money laundering operations, narcotics offenses and other major crimes in the U.S. Judicial District of Southern Florida. The Team has since enhanced the effectiveness of Federal, State and local law enforcement resources by coordinating law enforcement efforts to investigate and prosecute individuals and organizations involved in money laundering and other, related crimes, and to make large asset forfeitures associated with these crimes. Membership of the Team is of significant benefit to the Miami Beach Police Department (MBPD) as it enables the MBPD to access additional investigative resources, capabilities, and to benefit from revenue sharing under forfeiture proceedings. In order to continue its membership the MBPD needs to execute a further Memorandum of Understanding (MOU) with the IRS-Cl Financial Crimes Task Force. The new MOU will remain in effect until September 30, 2018. A detective from the MBPD is already assigned to the Team and will continue to work in conjunction with Federal, State and local law enforcement personnel in identifying, locating and apprehending individuals who commit relevant crimes in the City of Miami Beach and the wider South Florida region. The IRS-Cl will continue to reimburse the MBPD for overtime expenses, and related travel, for the term of the renewed MOU. The MBPD is dedicated to the prevention, investigation and prosecution of persons involved in all crimes, and the apprehension and prosecution of criminals engaging in money laundering and other offenses will reduce crime both inside and outside the City of Miami Beach, thereby making it a safer Page 640 of 2495 city. CONCLUSION The MOU will benefit the City of Miami Beach. KEY INTENDED OUTCOMES SUPPORTED Insist On Police Department Accountability And Skilled Management/ Leadership Legislative Tracking Police ATTACHMENTS: Description ci Reso -form approved Page 641 of 2495