TO: Board of Supervisors
FROM: Oscar Ortiz, Sheriff-Coroner
REPORT BY: Rollie Soria, Sheriff’s Administrative Manager
SUBJECT: Napa Special Investigations Bureau Distribution of Asset Forfeiture Funds
RECOMMENDATION
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Approve a distribution of funds held in the Napa Special Investigations Bureau (NSIB) Asset Forfeiture agency fund to various law enforcement agencies in accordance with NSIB bylaws. (Fiscal Impact: $218,072; Fund 9600 - County Department Agency Funds; Not Budgeted; Discretionary)
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BACKGROUND
The Napa Special Investigations Bureau (NSIB) is a county-wide, multi-agency Task Force that investigates drug trafficking, human trafficking, illegal firearms, and other criminal matters. As part of its mission to disrupt criminal enterprises involved in drug dealing, NSIB also utilizes Asset Forfeiture laws to seize property (primarily cash) associated with criminal activities, often referred to as, “proceeds from drug trafficking”. After court filings and procedures, the property is often, but not always, forfeited. Property that is not forfeited is returned to the defendant. Seized property that is adjudicated and forfeited; however, is distributed to NSIB member agencies in accordance with the NSIB Memorandum of Understanding (MOU).
According to California Asset Forfeiture laws, funds that have been forfeited are held in a trust account until distribution is approved by the Napa Special Investigations Bureau Governing Board. Today’s requested action approves the Fiscal Year 2023-2024 distribution of Asset Forfeiture funds to various law enforcement agencies for future equipment purchases. The NSIB Governing Board approved the request for the distribution of funds at the April 25, 2024, NSIB Governing Board meeting.
Section 11489 of the Health and Safety Code defines the distribution process in cases where property seized and forfeited to the State of California or a local governmental entity. In the County of Napa, when a subject is booked on charges and property is seized, funds are deposited to a trust account under the subject’s name. The funds remain in the account until the case is adjudicated or dismissed. If the case is dismissed, funds are returned to the individual. If the case results in a conviction, the District Attorney’s Office posts public notices seeking public interest in the forfeited funds. When the distribution of forfeiture order is complete and the cost incurred by the sale or storage of the property has been reimbursed, the District Attorney notifies the Auditor-Controller that the trust account should be closed, and all remaining funds be distributed.
Funds are distributed per Section 11489 of the Health and Safety Code as follows:
• 65% to the state, local or state and local law enforcement entities that participated in the seizure distributed so as to reflect the proportionate contribution of each agency. In Napa County, the Napa Special Investigations Bureau (NSIB) is the agency that typically seizes property. Section 11495 of the Health and Safety Code requires that funds received by law enforcement agencies shall be deposited into an account maintained by the Auditor-Controller and distributed to the law enforcement agency at their request. Since NSIB is composed of several law enforcement agencies, the NSIB bylaws dictate that the funds held in this special account shall be disbursed at the end of each fiscal year and according to the agreed upon percentages. If funds are allocated to Napa County law enforcement agencies (i.e., Probation, Sheriff), those funds are transferred to separate trust accounts under the department’s name and held there until the department requests reimbursement. The Health and Safety Code also requires 15% of the 65% (or 9.75% of the grand total of funds) be deposited into a special account that is to be used to fund programs designed to combat drug abuse and divert gang activity. The actual distribution of these special funds is to be determined by a panel consisting of the Sheriff, a police chief selected by other chiefs in the County, the District Attorney, and the Chief Probation Officer. The Auditor-Controller’s Office deposits 55.25% of the funds into the NSIB Trust Account for distribution to agencies participating in NSIB per the Governing Board’s bylaws and 9.75% of the funds to the NSIB Community Service Trust Account to meet the legal requirement of allocating 15% of the 65% distributed to the law enforcement agency participating in the seizure for programs designed to combat drug abuse and divert gang activity.
• 10% to the prosecutorial agency which processes the forfeiture action.
• 24% to the California State General Fund. The state is required to make a portion of the funds collected from all counties available for school safety and security, upon appropriation by the Legislature.
• 1% to the Environmental Enforcement and Training Account established per Penal Code 14303.
Any interest earned while funds are held in trust are distributed according to percentages listed in Section 11489 of the Health and Safety Code.
Requested Action:
Approval for the distribution of asset forfeiture funds and interest held in trust in the amount of $218,072 to be distributed as follows per the NSIB bylaws:
• Napa Sheriff’s Department Asset Forfeiture Special Revenue Fund - $76,325.32 (35%)
• Napa Police Department - $76,325.32 (35%)
• Calistoga PD - $17,445.79 (8%)
• St. Helena PD - $17,445.79 (8%)
• Napa Probation Asset Forfeiture Special Revenue Fund - $10,903.62 (5%)
• California Highway Patrol - $19,626.51 (9%)
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Org 9613632: NSIB Ast Frft - Board Governed |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Asset Forfeiture funds must be distributed according to state law. The NSIB Governing Board has adopted bylaws that describe the distribution of assets seized during law enforcement activities. These funds must be distributed to law enforcement agencies that participate in NSIB activities. Current fund balance is $229,348.89 of which $218,072.35 was approved for distribution. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
If this item is not approved, local law enforcement agencies will not receive the share of Asset Forfeiture funds they are entitled to per the bylaws of the NSIB Governing Board. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulation 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.