Senate changes forfeiture rules

Monday, April 9, 2001 | 10:26 a.m.

CARSON CITY -- A bill that would require prosecutors to present a higher degree of evidence before money or property can be forfeited to law enforcement is headed to the Assembly.

The Senate, by a 19-0 vote, approved Senate Bill 36 Friday that requires "clear and convincing evidence" to be presented to show the money or property were profits from illegal activity before they can be confiscated.

Current law requires prosecutors present a less stringent "preponderance of the evidence" to show proceeds were gained from illegal transactions. Sen. Mark James, R-Las Vegas, said the proposed standard would be higher than it is currently but not as high as that required for criminal conviction.

"We must be vigilant to protect the rights of the accused," James said.

The bill says that only items seized after next October would be subject to the law, if it passes.

There had been speculation the original bill might help Las Vegas golf course developer Billy Walters recover $2.8 million seized in December 1996 after he was charged with money laundering. But James said the bill, as originally written or in its present form, would not help Walters, who has had three indictments against him dismissed.

The bill provides that law enforcement will be able to keep the first $100,000 confiscated every year and that 70 percent of the rest of the proceeds would go to school districts to buy books and computer equipment. At present all the money goes to law enforcement.

James earlier estimated it might mean as much as $1 million extra for the Clark County School District every year.

He said the $100,000 floor allowed to law enforcement was to help rural Nevada, where counties usually don't collect $100,000 in drug and criminal forfeiture cases. The bill, James said, has the support of Metro and Reno Police and the Washoe County Sheriff's Office.