119-s263

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 263 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 263

To restore the integrity of the Fifth Amendment to the Constitution of 
 the United States, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 27, 2025

 Mr. Paul (for himself, Mr. Booker, Mr. Lee, Mr. King, Mr. Crapo, Ms. 
 Lummis, Mr. Wyden, Mr. Welch, and Mr. Van Hollen) introduced the 
 following bill; which was read twice and referred to the Committee on 
 the Judiciary

_______________________________________________________________________

 A BILL

To restore the integrity of the Fifth Amendment to the Constitution of 
 the United States, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Fifth Amendment Integrity 
Restoration Act of 2025'' or the ``FAIR Act of 2025''.

SEC. 2. CIVIL FORFEITURE AND NONJUDICIAL FORFEITURE.

 

Section 983 of title 18, United States Code, is amended--

    (1) in subsection

    (a) --
        (A) in the subsection heading, by striking 
 ``Claim;'';
        (B) in paragraph

    (1) --
            (i) in subparagraph
        (A) --
            (I) in clause
            (i) --

    (aa) by striking ``clauses
            (ii) through
            (v) , in any 
 nonjudicial'' and inserting 
 ``clause
            (ii) , in any''; and

    (bb) by striking ``60'' and 
 inserting ``7'';
            (II) by striking clauses
            (ii) through
            (v) ; and
            (III) by inserting after clause
            (i) the following:
 ``
            (ii) If the identity or interest of a 
 party is not determined until after the seizure 
 or turnover but is determined before a 
 declaration of forfeiture is entered, the 
 Government shall determine the identity and 
 address of the party or interest within 7 days 
 after the seizure or turnover, and notice shall 
 be sent to such interested party not later than 
 7 days after the determination by the 
 Government of the identity and address of the 
 party or the party's interest.'';
            (ii) by striking subparagraphs
        (B) and
            (C) ;
            (iii) by redesignating subparagraphs
            (D) through
        (F) as subparagraphs
        (B) through
            (D) , 
 respectively; and
            (iv) in subparagraph
            (C) , as so 
 redesignated, by striking ``nonjudicial'';
            (C) by striking paragraph

    (2) ;
            (D) by redesignating paragraphs

    (3) and

    (4) as 
 paragraphs

    (2) and

    (3) , respectively; and
        (E) in paragraph

    (2)
        (A) , as so redesignated--
            (i) by striking ``90'' and inserting 
 ``30''; and
            (ii) by striking ``after a claim has been 
 filed'' and inserting ``after the date of the 
 seizure'';

    (2) in subsection

    (b) --
        (A) in paragraph

    (1) --
            (i) by amending subparagraph
        (A) to read as 
 follows:
 ``
        (A) If a person with standing to contest the 
 forfeiture of property in a civil forfeiture proceeding 
 under a civil forfeiture statute is--
 ``
            (i) financially unable to obtain 
 representation by counsel; or
 ``
            (ii) the cost of obtaining representation 
 would exceed the value of the seized property,
 the court may authorize or appoint counsel to represent 
 that person with respect to the claim.''; and
            (ii) in subparagraph
        (B) , by inserting ``or 
 appoint'' after ``authorize''; and
        (B) in paragraph

    (2)
        (A) --
            (i) by striking ``in a judicial civil 
 forfeiture proceeding'' and inserting ``in a 
 civil forfeiture proceeding'';
            (ii) by inserting ``under paragraph

    (1) '' 
 after ``counsel'';
            (iii) by striking ``, and the property 
 subject to forfeiture is real property that is 
 being used by the person as a primary 
 residence,''; and
            (iv) by striking ``, at the request of the 
 person, shall insure'' and inserting ``shall 
 ensure'';

    (3) in subsection
            (c) --
        (A) in paragraph

    (1) , by striking ``a preponderance 
 of the evidence'' and inserting ``clear and convincing 
 evidence'';
        (B) in paragraph

    (2) , by striking ``a preponderance 
 of the evidence'' and inserting ``clear and convincing 
 evidence''; and
            (C) by striking paragraph

    (3) and inserting the 
 following:
 ``

    (3) if the Government's theory of forfeiture is that the 
 property was used to commit or facilitate the commission of a 
 criminal offense, or was involved in the commission of a 
 criminal offense, the Government shall establish, by clear and 
 convincing evidence, that--
 ``
        (A) there was a substantial connection between 
 the property and the offense; and
 ``
        (B) the owner of any interest in the seized 
 property--
 ``
            (i) used the property with intent to 
 facilitate the offense; or
 ``
            (ii) knowingly consented or was willfully 
 blind to the use of the property by another in 
 connection with the offense.'';

    (4) in subsection
            (d) --
        (A) in paragraph

    (1) , by striking the second 
 sentence and inserting the following: ``The Government 
 shall have the burden of proving that the claimant is 
 not an innocent owner by a preponderance of the 
 evidence.''; and
        (B) in paragraph

    (2) --
            (i) in subparagraph
        (A) , by striking ``an 
 owner who'' and all that follows through ``upon 
 learning'' and inserting ``an owner who, upon 
 learning''; and
            (ii) in subparagraph
        (B)
            (i) , by inserting 
 before ``For the purposes of this paragraph'' 
 the following: ``If the Government satisfies 
 its burden under paragraph

    (1) , the claimant 
 may rebut the Government's evidence related to 
 his innocent ownership, including by showing 
 that he did all that could reasonably be 
 expected under the law.'';

    (5) in subsection

    (e) --
        (A) in paragraph

    (1) , in the matter preceding 
 subparagraph
        (A) --
            (i) by striking ``nonjudicial''; and
            (ii) by striking ``a declaration'' and 
 inserting ``an order'';
        (B) in paragraph

    (2) --
            (i) in subparagraph
        (A) , by striking 
 ``declaration'' and inserting ``order''; and
            (ii) by striking subparagraph
        (B) and 
 inserting the following:
 ``
        (B) Any proceeding described in subparagraph
        (A) shall be commenced within 6 months of the entry of the 
 order granting the motion.''; and
            (C) by striking paragraph

    (5) ;

    (6) in subsection

    (f)

    (1) , in the matter preceding 
 subparagraph
        (A) , by striking ``

    (a) '' and inserting 
 ``

    (a)

    (3)
        (A) '';

    (7) in subsection

    (g) --
        (A) in paragraph

    (1) , by striking ``

    (a)

    (4) '' and 
 inserting ``

    (a)

    (3) ''; and
        (B) by amending paragraph

    (2) to read as follows:
 ``

    (2) In making this determination, the court shall 
 consider such factors as--
 ``
        (A) the seriousness of the offense;
 ``
        (B) the extent of the nexus of the property to 
 the offense;
 ``
            (C) the range of sentences available for the 
 offense giving rise to forfeiture;
 ``
            (D) the fair market value of the property; and
 ``
        (E) the hardship to the property owner and 
 dependents.''; and

    (8) by adding at the end the following:
 ``

    (k)

    (1) Notwithstanding any other provision of law--
 ``
        (A) no Federal seizing agency may conduct 
 nonjudicial forfeitures;
 ``
        (B) no property may be subject to forfeiture 
 except through judicial process; and
 ``
            (C) no order of forfeiture may be entered except 
 by a United States district court.
 ``

    (2) In this subsection, the term `nonjudicial forfeiture' 
 means an in rem action that permits the Federal seizing agency 
 to start a forfeiture without judicial involvement.''.

SEC. 3. DISPOSITION OF FORFEITED PROPERTY.

    (a) Revisions to Controlled Substances Act.--

Section 511

    (e) of the 
Controlled Substances Act (21 U.S.C. 881

    (e) ) is amended--

    (1) in paragraph

    (1) --
        (A) in the matter preceding subparagraph
        (A) , by 
 striking ``civilly or'';
        (B) by striking subparagraph
        (A) ; and
            (C) by redesignating subparagraphs
        (B) through
        (E) as subparagraphs
        (A) through
            (D) , respectively;

    (2) in paragraph

    (2) --
        (A) in subparagraph
        (A) , in the matter preceding 
 clause
            (i) , by striking ``subparagraph
        (B) of paragraph

    (1) '' and inserting ``paragraph

    (1)
        (A) ''; and
        (B) in subparagraph
        (B) , by striking ``accordance 
 with 

section 524
            (c) of title 28,'' and inserting ``the 
 General Fund of the Treasury of the United States'';

    (3) by striking paragraph

    (3) ;

    (4) by redesignating paragraph

    (4) as paragraph

    (3) ; and

    (5) in paragraph

    (3) , as redesignated--
        (A) in subparagraph
        (A) , by striking ``paragraph

    (1)
        (B) '' and inserting ``paragraph

    (1)
        (A) ''; and
        (B) in subparagraph
        (B) , in the matter preceding 
 clause
            (i) , by striking ``paragraph

    (1)
        (B) that is 
 civilly or'' and inserting ``paragraph

    (1)
        (A) that 
 is''.

    (b) Revisions to Title 18.--Chapter 46 of title 18, United States 
Code, is amended--

    (1) in 

section 981

    (e) --
        (A) by striking ``is authorized'' and all that 
 follows through ``or forfeiture of the property;'' and 
 inserting ``shall forward to the Treasurer of the 
 United States any proceeds of property forfeited 
 pursuant to this section for deposit in the General 
 Fund of the Treasury or transfer such property on such 
 terms and conditions as such officer may determine--'';
        (B) by redesignating paragraphs

    (3) ,

    (4) ,

    (5) ,

    (6) , 
 and

    (7) as paragraphs

    (1) ,

    (2) ,

    (3) ,

    (4) , and

    (5) , 
 respectively; and
            (C) in the matter following paragraph

    (5) , as so 
 redesignated--
            (i) by striking the first, second, third, 
 sixth, and eighth sentences; and
            (ii) by striking ``paragraph

    (3) ,

    (4) , or

    (5) '' and inserting ``paragraph

    (1) ,

    (2) , or

    (3) ''; and

    (2) in 

section 983

    (g) --
        (A) in paragraph

    (3) , by striking ``grossly''; and
        (B) in paragraph

    (4) , by striking ``grossly''.
            (c) Tariff Act of 1930.--The Tariff Act of 1930 (19 U.S.C. 1304 et 
seq.) is amended--

    (1) in 

section 613A

    (a) (19 U.S.C. 1613b

    (a) )--
        (A) in paragraph

    (1) --
            (i) in subparagraph
            (D) , by inserting 
 ``and'' after the semicolon;
            (ii) in subparagraph
        (E) , by striking ``; 
 and'' and inserting a period; and
            (iii) by striking subparagraph
        (F) ; and
        (B) in paragraph

    (2) --
            (i) by striking ``
        (A) Any payment'' and 
 inserting ``Any payment''; and
            (ii) by striking subparagraph
        (B) ; and

    (2) in 

section 616 (19 U.S.C. 1616a)--
        (A) in the section heading, by striking ``transfer 
 of forfeited property'' and inserting ``dismissal in 
 favor of forfeiture under state law'';
        (B) in subsection

    (a) , by striking ``

    (a) The 
 Secretary'' and inserting ``The Secretary''; and
            (C) by striking subsections

    (b) through
            (d) .
            (d) Title 31.--

Section 9705 of title 31, United States Code, is 
amended--

    (1) in subsection

    (a)

    (1) --
        (A) by striking subparagraph
        (G) ; and
        (B) by redesignating subparagraphs
        (H) through
        (J) as subparagraphs
        (G) through
            (I) , respectively; and

    (2) in subsection

    (b) --
        (A) by striking paragraphs

    (2) and

    (4) ; and
        (B) by redesignating paragraphs

    (3) and

    (5) as 
 paragraphs

    (2) and

    (3) , respectively.

SEC. 4. DEPARTMENT OF JUSTICE ASSETS FORFEITURE FUND DEPOSITS.

 

Section 524
            (c) (4) of title 28, United States Code, is amended--

    (1) by striking subparagraphs
        (A) and
        (B) ; and

    (2) by redesignating subparagraphs
            (C) and
            (D) as 
 subparagraphs
        (A) and
        (B) , respectively.

SEC. 5. STRUCTURING TRANSACTIONS TO EVADE REPORTING REQUIREMENT 
 PROHIBITED.

    (a) Amendments to Title 31.--

Section 5324 of title 31, United 
States Code, is amended--

    (1) in subsection

    (a) --
        (A) in the matter preceding paragraph

    (1) , by 
 inserting ``knowingly'' after ``Public Law 91-508''; 
 and
        (B) in paragraph

    (3) , by inserting ``of funds not 
 derived from a legitimate source'' after ``any 
 transaction'';

    (2) in subsection

    (b) , in the matter preceding paragraph

    (1) , by inserting ``knowingly'' after ``such section''; and

    (3) in subsection
            (c) , in the matter preceding paragraph

    (1) , by inserting ``knowingly'' after ``

section 5316''.

    (b) Probable Cause Hearing in Connection With Property Seizures 
Relating to Certain Monetary Instruments Transactions.--

    (1) Amendment.--

Section 5317 of title 31, United States 
 Code, is amended by adding at the end the following:
 ``
            (d) Probable Cause Hearing in Connection With Property Seizures 
Relating to Certain Monetary Instruments Transactions.--
 ``

    (1) In general.--Not later than 14 days after the date on 
 which notice is provided under paragraph

    (2) --
 ``
        (A) a court of competent jurisdiction shall 
 conduct a hearing on any property seized or restrained 
 under subsection
            (c) (2) with respect to an alleged 
 violation of 

section 5324; and
 ``
        (B) any property described in subparagraph
        (A) shall be returned unless the court finds that there is 
 probable cause to believe that there is a violation of 
 

section 5324 involving the property.
 ``

    (2) Notice.--Each person from whom property is seized or 
 restrained under subsection
            (c) (2) with respect to an alleged 
 violation of 

section 5324 shall be notified of the right of the 
 person to a hearing under paragraph

    (1) .''.

    (2) Applicability.--The amendment made by paragraph

    (1) shall apply to property seized or restrained after the date of 
 enactment of this Act.

SEC. 6. REPORTING REQUIREMENTS.

 

Section 524
            (c) (6)
        (A)
            (i) of title 28, United States Code, is amended 
by inserting ``from each type of forfeiture, and specifically 
identifying which funds were obtained from including criminal 
forfeitures and which were obtained from civil forfeitures,'' after 
``deposits''.

SEC. 7. APPLICABILITY.

 The amendments made by this Act shall apply to--

    (1) any civil forfeiture proceeding pending on or filed on 
 or after the date of enactment of this Act; and

    (2) any amounts received from the forfeiture of property on 
 or after the date of enactment of this Act.
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