CHAPTER 59. FORFEITURE OF CONTRABAND - Texas Statutes

CODE OF CRIMINAL PROCEDURE

TITLE 1. CODE OF CRIMINAL PROCEDURE

CHAPTER 59. FORFEITURE OF CONTRABAND

Art. 59.01. DEFINITIONS. In this chapter:

(1) "Attorney representing the state" means the prosecutor with

felony jurisdiction in the county in which a forfeiture

proceeding is held under this chapter or, in a proceeding for

forfeiture of contraband as defined under Subdivision (2)(B)(v)

of this article, the city attorney of a municipality if the

property is seized in that municipality by a peace officer

employed by that municipality and the governing body of the

municipality has approved procedures for the city attorney acting

in a forfeiture proceeding. In a proceeding for forfeiture of

contraband as defined under Subdivision (2)(B)(vii) of this

article, the term includes the attorney general.

Text of subdivision as reenacted by Acts 2009, 81st Leg., R.S.,

Ch.

153, Sec. 3

(2) "Contraband" means property of any nature, including real,

personal, tangible, or intangible, that is:

(A) used in the commission of:

(i) any first or second degree felony under the Penal Code;

(ii) any felony under Section 15.031(b), 20.05, 21.11, 38.04,

Subchapter B of Chapter 43, or Chapter 29, 30, 31, 32, 33, 33A,

or 35, Penal Code;

(iii) any felony under The Securities Act (Article 581-1 et

seq., Vernon's Texas Civil Statutes); or

(iv) any offense under Chapter 49, Penal Code, that is

punishable as a felony of the third degree or state jail felony,

if the defendant has been previously convicted three times of an

offense under that chapter;

(B) used or intended to be used in the commission of:

(i) any felony under Chapter 481, Health and Safety Code (Texas

Controlled Substances Act);

(ii) any felony under Chapter 483, Health and Safety Code;

(iii) a felony under Chapter 153, Finance Code;

(iv) any felony under Chapter 34, Penal Code;

(v) a Class A misdemeanor under Subchapter B, Chapter 365,

Health and Safety Code, if the defendant has been previously

convicted twice of an offense under that subchapter;

(vi) any felony under Chapter 152, Finance Code;

(vii) any felony under Chapter 32, Human Resources Code, or

Chapter 31, 32, 35A, or 37, Penal Code, that involves the state

Medicaid program;

(viii) a Class B misdemeanor under Chapter 522, Business &

Commerce Code;

(ix) a Class A misdemeanor under Section 306.051, Business &

Commerce Code; or

(x) any offense under Section 46.06(a)(1) or 46.14, Penal Code;

(C) the proceeds gained from the commission of a felony listed

in Paragraph (A) or (B) of this subdivision, a misdemeanor listed

in Paragraph (B)(viii) or (x) of this subdivision, or a crime of

violence;

(D) acquired with proceeds gained from the commission of a

felony listed in Paragraph (A) or (B) of this subdivision, a

misdemeanor listed in Paragraph (B)(viii) or (x) of this

subdivision, or a crime of violence; or

(E) used to facilitate or intended to be used to facilitate the

commission of a felony under Section 15.031 or 43.25, Penal Code.

Text of subdivision as reenacted by Acts 2009, 81st Leg., R.S.,

Ch.

1130, Sec. 11

(2) "Contraband" means property of any nature, including real,

personal, tangible, or intangible, that is:

(A) used in the commission of:

(i) any first or second degree felony under the Penal Code;

(ii) any felony under Section 15.031(b), 20.05, 21.11, 38.04,

Subchapter B of Chapter 43, or Chapter 29, 30, 31, 32, 33, 33A,

or 35, Penal Code;

(iii) any felony under The Securities Act (Article 581-1 et

seq., Vernon's Texas Civil Statutes); or

(iv) any offense under Chapter 49, Penal Code, that is

punishable as a felony of the third degree or state jail felony,

if the defendant has been previously convicted three times of an

offense under that chapter;

(B) used or intended to be used in the commission of:

(i) any felony under Chapter 481, Health and Safety Code (Texas

Controlled Substances Act);

(ii) any felony under Chapter 483, Health and Safety Code;

(iii) a felony under Chapter 153, Finance Code;

(iv) any felony under Chapter 34, Penal Code;

(v) a Class A misdemeanor under Subchapter B, Chapter 365,

Health and Safety Code, if the defendant has been previously

convicted twice of an offense under that subchapter;

(vi) any felony under Chapter 152, Finance Code;

(vii) any felony under Chapter 32, Human Resources Code, or

Chapter 31, 32, 35A, or 37, Penal Code, that involves the state

Medicaid program;

(viii) a Class B misdemeanor under Chapter 522, Business &

Commerce Code;

(ix) a Class A misdemeanor under Section 306.051, Business &

Commerce Code; or

(x) any offense under Chapter 71, Penal Code;

(C) the proceeds gained from the commission of a felony listed

in Paragraph (A) or (B) of this subdivision, a misdemeanor listed

in Paragraph (B)(viii) or (x) of this subdivision, or a crime of

violence;

(D) acquired with proceeds gained from the commission of a

felony listed in Paragraph (A) or (B) of this subdivision, a

misdemeanor listed in Paragraph (B)(viii) or (x) of this

subdivision, or a crime of violence; or

(E) used to facilitate or intended to be used to facilitate the

commission of a felony under Section 15.031 or 43.25, Penal Code.

Text of subdivision as reenacted by Acts 2009, 81st Leg., R.S.,

Ch.

1357, Sec. 3

(2) "Contraband" means property of any nature, including real,

personal, tangible, or intangible, that is:

(A) used in the commission of:

(i) any first or second degree felony under the Penal Code;

(ii) any felony under Section 15.031(b), 20.05, 21.11, 38.04,

Subchapter B of Chapter 43, or Chapter 29, 30, 31, 32, 33, 33A,

or 35, Penal Code;

(iii) any felony under The Securities Act (Article 581-1 et

seq., Vernon's Texas Civil Statutes); or

(iv) any offense under Chapter 49, Penal Code, that is

punishable as a felony of the third degree or state jail felony,

if the defendant has been previously convicted three times of an

offense under that chapter;

(B) used or intended to be used in the commission of:

(i) any felony under Chapter 481, Health and Safety Code (Texas

Controlled Substances Act);

(ii) any felony under Chapter 483, Health and Safety Code;

(iii) a felony under Chapter 153, Finance Code;

(iv) any felony under Chapter 34, Penal Code;

(v) a Class A misdemeanor under Subchapter B, Chapter 365,

Health and Safety Code, if the defendant has been previously

convicted twice of an offense under that subchapter;

(vi) any felony under Chapter 152, Finance Code;

(vii) any felony under Chapter 32, Human Resources Code, or

Chapter 31, 32, 35A, or 37, Penal Code, that involves the state

Medicaid program;

(viii) a Class B misdemeanor under Chapter 522, Business &

Commerce Code;

(ix) a Class A misdemeanor under Section 306.051, Business &

Commerce Code; or

(x) any offense under Section 42.10, Penal Code;

(C) the proceeds gained from the commission of a felony listed

in Paragraph (A) or (B) of this subdivision, a misdemeanor listed

in Paragraph (B)(viii) or (x) of this subdivision, or a crime of

violence;

(D) acquired with proceeds gained from the commission of a

felony listed in Paragraph (A) or (B) of this subdivision, a

misdemeanor listed in Paragraph (B)(viii) or (x) of this

subdivision, or a crime of violence; or

(E) used to facilitate or intended to be used to facilitate the

commission of a felony under Section 15.031 or 43.25, Penal Code.

(3) "Crime of violence" means:

(A) any criminal offense defined in the Penal Code or in a

federal criminal law that results in a personal injury to a

victim; or

(B) an act that is not an offense under the Penal Code involving

the operation of a motor vehicle, aircraft, or water vehicle that

results in injury or death sustained in an accident caused by a

driver in violation of Section 550.021, Transportation Code.

(4) "Interest holder" means the bona fide holder of a perfected

lien or a perfected security interest in property.

(5) "Law enforcement agency" means an agency of the state or an

agency of a political subdivision of the state authorized by law

to employ peace officers.

(6) "Owner" means a person who claims an equitable or legal

ownership interest in property.

(7) "Proceeds" includes income a person accused or convicted of a

crime or the person's representative or assignee receives from:

(A) a movie, book, magazine article, tape recording, phonographic

record, radio or television presentation, telephone service,

electronic media format, including an Internet website, or live

entertainment in which the crime was reenacted; or

(B) the sale of tangible property the value of which is increased

by the notoriety gained from the conviction of an offense by the

person accused or convicted of the crime.

(8) "Seizure" means the restraint of property by a peace officer

under Article 59.03(a) or (b) of this code, whether the officer

restrains the property by physical force or by a display of the

officer's authority, and includes the collection of property or

the act of taking possession of property.

(9) "Depository account" means the obligation of a regulated

financial institution to pay the account owner under a written

agreement, including a checking account, savings account, money

market account, time deposit, NOW account, or certificate of

deposit.

(10) "Primary state or federal financial institution regulator"

means the state or federal regulatory agency that chartered and

comprehensively regulates a regulated financial institution.

(11) "Regulated financial institution" means a depository

institution chartered by a state or federal government, the

deposits of which are insured by the Federal Deposit Insurance

Corporation or the National Credit Union Administration.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989. Subd. (2) amended by Acts 1991, 72nd Leg., ch.

102, Sec. 2, eff. Sept. 1, 1991; Subds. (1), (2) amended by Acts

1993, 73rd Leg., ch. 828, Sec. 1, eff. Sept. 1, 1993; Subd. (2)

amended by Acts 1993, 73rd Leg., ch. 761, Sec. 5, eff. Sept. 1,

1993. Amended by Acts 1993, 73rd Leg., ch. 780, Sec. 1, eff.

Sept. 1, 1993. Subd. (2) amended by Acts 1995, 74th Leg., ch.

621, Sec. 3, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 708,

Sec. 2, eff. Sept. 1, 1995; Subd. (3) amended by Acts 1995, 74th

Leg., ch. 76, Sec. 5.91, 5.95(112), eff. Sept. 1, 1995; Subd. (2)

amended by Acts 1997, 75th Leg., ch. 306, Sec. 6, eff. Sept. 1,

1997; Subd. (2) amended by Acts 1999, 76th Leg., ch. 62, Sec.

7.48, eff. Sept. 1, 1999; Subd. (3) amended by Acts 1999, 76th

Leg., ch. 62, Sec. 3.09, eff. Sept. 1, 1999; Subd. (2) amended by

Acts 2001, 77th Leg., ch. 467, Sec. 1, eff. Sept. 1, 2001; Subd.

(7) amended by Acts 2001, 77th Leg., ch. 124, Sec. 1, eff. Sept.

1, 2001; Subds. (9) to (11) added by Acts 2001, 77th Leg., ch.

438, Sec. 1, eff. Sept. 1, 2001; Subds. (1) and (2) amended by

Acts 2003, 78th Leg., ch. 198, Sec. 2.141, eff. Sept. 1, 2003;

Subds. (1) and (2) amended by Acts 2003, 78th Leg., ch. 257, Sec.

17, eff. Sept. 1, 2003; Subd. (2) amended by Acts 2003, 78th

Leg., ch. 649, Sec. 3, eff. Sept. 1, 2003; Subd. (2) amended by

Acts 2003, 78th Leg., ch. 1005, Sec. 7, eff. Sept. 1, 2003; Subd.

(7) amended by Acts 2003, 78th Leg., ch. 428, Sec. 1, eff. Sept.

1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

617, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

944, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

944, Sec. 2, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1026, Sec. 3, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1026, Sec. 4, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

127, Sec. 6, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

822, Sec. 2, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.14, eff. April 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 6.006, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

153, Sec. 3, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1130, Sec. 11, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1357, Sec. 3, eff. September 1, 2009.

Art. 59.011. ELECTION OF FORFEITURE PROCEEDING. If property

described by Article 59.01(2)(B)(x) is subject to forfeiture

under this chapter and Article 18.18, the attorney representing

the state may proceed under either this chapter or that article.

Added by Acts 2009, 81st Leg., R.S., Ch.

153, Sec. 4, eff. September 1, 2009.

Added by Acts 2009, 81st Leg., R.S., Ch.

1130, Sec. 12, eff. September 1, 2009.

Added by Acts 2009, 81st Leg., R.S., Ch.

1357, Sec. 4, eff. September 1, 2009.

Art. 59.02. FORFEITURE OF CONTRABAND. (a) Property that is

contraband is subject to seizure and forfeiture under this

chapter.

(b) Any property that is contraband other than property held as

evidence in a criminal investigation or a pending criminal case,

money, a negotiable instrument, or a security that is seized

under this chapter may be replevied by the owner or interest

holder of the property, on execution of a good and valid bond

with sufficient surety in a sum equal to the appraised value of

the property replevied. The bond may be approved as to form and

substance by the court after the court gives notice of the bond

to the authority holding the seized property. The bond must be

conditioned:

(1) on return of the property to the custody of the state on the

day of hearing of the forfeiture proceedings; and

(2) that the interest holder or owner of the property will abide

by the decision that may be made in the cause.

(c) An owner or interest holder's interest in property may not be

forfeited under this chapter if the owner or interest holder

proves by a preponderance of the evidence that the owner or

interest holder acquired and perfected the interest:

(1) before or during the act or omission giving rise to

forfeiture or, if the property is real property, he acquired an

ownership interest, security interest, or lien interest before a

lis pendens notice was filed under Article 59.04(g) of this code

and did not know or should not reasonably have known of the act

or omission giving rise to the forfeiture or that it was likely

to occur at or before the time of acquiring and perfecting the

interest or, if the property is real property, at or before the

time of acquiring the ownership interest, security interest, or

lien interest; or

(2) after the act or omission giving rise to the forfeiture, but

before the seizure of the property, and only if the owner or

interest holder:

(A) was, at the time that the interest in the property was

acquired, an owner or interest holder for value; and

(B) was without reasonable cause to believe that the property was

contraband and did not purposefully avoid learning that the

property was contraband.

(d) Notwithstanding any other law, if property is seized from the

possession of an owner or interest holder who asserts an

ownership interest, security interest, or lien interest in the

property under applicable law, the owner or interest holder's

rights remain in effect during the pendency of proceedings under

this chapter as if possession of the property had remained with

the owner or interest holder.

(e) On motion by any party or on the motion of the court, after

notice in the manner provided by Article 59.04 of this code to

all known owners and interest holders of property subject to

forfeiture under this chapter, and after a hearing on the matter,

the court may make appropriate orders to preserve and maintain

the value of the property until a final disposition of the

property is made under this chapter, including the sale of the

property if that is the only method by which the value of the

property may be preserved until final disposition.

(f) Any property that is contraband and has been seized by the

Texas Department of Criminal Justice shall be forfeited to the

department under the same rules and conditions as for other

forfeitures.

(g) An individual, firm, corporation, or other entity insured

under a policy of title insurance may not assert a claim or cause

of action on or because of the policy if the claim or cause of

action is based on forfeiture under this chapter and, at or

before the time of acquiring the ownership of real property,

security interest in real property, or lien interest against real

property, the insured knew or reasonably should have known of the

act or omission giving rise to the forfeiture or that the act or

omission was likely to occur.

(h)(1) An owner or interest holder's interest in property may not

be forfeited under this chapter if at the forfeiture hearing the

owner or interest holder proves by a preponderance of the

evidence that the owner or interest holder was not a party to the

offense giving rise to the forfeiture and that the contraband:

(A) was stolen from the owner or interest holder before being

used in the commission of the offense giving rise to the

forfeiture;

(B) was purchased with:

(i) money stolen from the owner or interest holder; or

(ii) proceeds from the sale of property stolen from the owner or

interest holder; or

(C) was used or intended to be used without the effective consent

of the owner or interest holder in the commission of the offense

giving rise to the forfeiture.

(2) An attorney representing the state who has a reasonable

belief that property subject to forfeiture is described by

Subdivision (1) and who has a reasonable belief as to the

identity of the rightful owner or interest holder of the property

shall notify the owner or interest holder as provided by Article

59.04.

(3) An attorney representing the state is not liable in an action

for damages resulting from an act or omission in the performance

of the duties imposed by Subdivision (2).

(4) The exclusive remedy for failure by the attorney representing

the state to provide the notice required under Subdivision (2) is

submission of that failure as a ground for new trial in a motion

for new trial or bill of review.

(i) The forfeiture provisions of this chapter apply to contraband

as defined by Article 59.01(2)(B)(v) of this code only in a

municipality with a population of 250,000 or more.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989. Subsec. (g) added by Acts 1993, 73rd Leg., ch.

828, Sec. 2, eff. Sept. 1, 1993; Subsecs. (c) to (g) amended by

Acts 2001, 77th Leg., ch. 438, Sec. 2, eff. Sept. 1, 2001;

Subsec. (h) added by Acts 2001, 77th Leg., ch. 438, Sec. 2, eff.

Sept. 1, 2001, and by Acts 2001, 77th Leg., ch. 929, Sec. 1, eff.

Sept. 1, 2001. Subsec. as added by Acts 2001, 77th Leg. ch. 438,

Sec. 2 renumbered as subsec. (i) by Acts 2003, 78th Leg., ch.

1275, Sec. 2(9), eff. Sept. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.043, eff. September 1, 2009.

Art. 59.03. SEIZURE OF CONTRABAND. (a) Property subject to

forfeiture under this chapter, other than property described by

Article 59.12, may be seized by any peace officer under authority

of a search warrant.

(b) Seizure of property subject to forfeiture may be made without

warrant if:

(1) the owner, operator, or agent in charge of the property

knowingly consents;

(2) the seizure is incident to a search to which the owner,

operator, or agent in charge of the property knowingly consents;

(3) the property subject to seizure has been the subject of a

prior judgment in favor of the state in a forfeiture proceeding

under this chapter; or

(4) the seizure was incident to a lawful arrest, lawful search,

or lawful search incident to arrest.

(c) A peace officer who seizes property under this chapter has

custody of the property, subject only to replevy under Article

59.02 of this code or an order of a court. A peace officer who

has custody of property shall provide the attorney representing

the state with a sworn statement that contains a schedule of the

property seized, an acknowledgment that the officer has seized

the property, and a list of the officer's reasons for the

seizure. Not later than 72 hours after the seizure, the peace

officer shall:

(1) place the property under seal;

(2) remove the property to a place ordered by the court; or

(3) require a law enforcement agency of the state or a political

subdivision to take custody of the property and move it to a

proper location.

(d) A person in the possession of property at the time a peace

officer seizes the property under this chapter may at the time of

seizure assert the person's interest in or right to the property.

A peace officer who seizes property under this chapter may not at

the time of seizure request, require, or in any manner induce any

person, including a person who asserts an interest in or right to

the property seized, to execute a document purporting to waive

the person's interest in or rights to the property.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989. Subsec. (a) amended by Acts 2001, 77th Leg., ch.

438, Sec. 3, eff. Sept. 1, 2001; Subsec. (d) added by Acts 2001,

77th Leg., ch. 929, Sec. 2, eff. Sept. 1, 2001.

Art. 59.04. NOTIFICATION OF FORFEITURE PROCEEDING. (a) If a

peace officer seizes property under this chapter, the attorney

representing the state shall commence proceedings under this

section not later than the 30th day after the date of the

seizure.

(b) A forfeiture proceeding commences under this chapter when the

attorney representing the state files a notice of the seizure and

intended forfeiture in the name of the state with the clerk of

the district court in the county in which the seizure is made.

The attorney representing the state must attach to the notice the

peace officer's sworn statement under Article 59.03 of this code

or, if the property has been seized under Article 59.12(b), the

statement of the terms and amount of the depository account or

inventory of assets provided by the regulated financial

institution to the peace officer executing the warrant in the

manner described by Article 59.12(b). Except as provided by

Subsection (c) of this article, the attorney representing the

state shall cause certified copies of the notice to be served on

the following persons in the same manner as provided for the

service of process by citation in civil cases:

(1) the owner of the property; and

(2) any interest holder in the property.

(c) If the property is a motor vehicle, and if there is

reasonable cause to believe that the vehicle has been registered

under the laws of this state, the attorney representing the state

shall ask the Texas Department of Motor Vehicles to identify from

its records the record owner of the vehicle and any interest

holder. If the addresses of the owner and interest holder are

not otherwise known, the attorney representing the state shall

request citation be served on such persons at the address listed

with the Texas Department of Motor Vehicles. If the citation

issued to such address is returned unserved, the attorney

representing the state shall cause a copy of the notice of the

seizure and intended forfeiture to be posted at the courthouse

door, to remain there for a period of not less than 30 days. If

the owner or interest holder does not answer or appear after the

notice has been so posted, the court shall enter a judgment by

default as to the owner or interest holder, provided that the

attorney representing the state files a written motion supported

by affidavit setting forth the attempted service. An owner or

interest holder whose interest is forfeited in this manner shall

not be liable for court costs. If the person in possession of

the vehicle at the time of the seizure is not the owner or the

interest holder of the vehicle, notification shall be provided to

the possessor in the same manner specified for notification to an

owner or interest holder.

(d) If the property is a motor vehicle and is not registered in

this state, the attorney representing the state shall attempt to

ascertain the name and address of the person in whose name the

vehicle is licensed in another state. If the vehicle is licensed

in a state that has a certificate of title law, the attorney

representing the state shall request the appropriate agency of

that state to identify the record owner of the vehicle and any

interest holder.

(e) If a financing statement is required by law to be filed to

perfect a security interest affecting the property, and if there

is reasonable cause to believe that a financing statement has

been filed, the attorney representing the state who commences the

proceedings shall ask the appropriate official designated by

Chapter 9, Business & Commerce Code, to identify the record

owner of the property and the person who is an interest holder.

(f) If the property is an aircraft or a part of an aircraft, and

if there is reasonable cause to believe that a perfected security

instrument affects the property, the attorney representing the

state shall request an administrator of the Federal Aviation

Administration to identify from the records of that agency the

record owner of the property and the holder of the perfected

security instrument. The attorney representing the state shall

also notify the Department of Public Safety in writing of the

fact that an aircraft has been seized and shall provide the

department with a description of the aircraft.

(g) If the property is real property, the attorney representing

the state, not later than the third day after the date

proceedings are commenced, shall file a lis pendens notice

describing the property with the county clerk of each county in

which the property is located.

(h) For all other property subject to forfeiture, if there is

reasonable cause to believe that a perfected security instrument

affects the property, the attorney representing the state shall

make a good faith inquiry to identify the holder of the perfected

security instrument.

(i) Except as provided by Section (c) of this article, the

attorney representing the state who commences the proceedings

shall cause the owner and any interest holder to be named as a

party and to be served with citation as provided by the Texas

Rules of Civil Procedure.

(j) A person who was in possession of the property at the time it

was seized shall be made a party to the proceeding.

(k) If no person was in possession of the property at the time it

was seized, and if the owner of the property is unknown, the

attorney representing the state shall file with the clerk of the

court in which the proceedings are pending an affidavit stating

that no person was in possession of the property at the time it

was seized and that the owner of the property is unknown. The

clerk of the court shall issue a citation for service by

publication addressed to "The Unknown Owner of _______," filling

in the blank space with a reasonably detailed description of the

property subject to forfeiture. The citation must contain the

other requisites prescribed by and be served as provided by Rules

114, 115, and 116, Texas Rules of Civil Procedure.

(l) Proceedings commenced under this chapter may not proceed to

hearing unless the judge who is to conduct the hearing is

satisfied that this article has been complied with and that the

attorney representing the state will introduce into evidence at

the hearing any answer received from an inquiry required by

Subsections (c)-(h) of this article.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989. Subsec. (f) amended by Acts 1991, 72nd Leg., ch.

14, Sec. 282, eff. Sept. 1, 1991; Subsec. (b) amended by Acts

1995, 74th Leg., ch. 533, Sec. 1, eff. Sept. 1, 1995; Subsec. (c)

amended by Acts 1995, ch. 165, Sec. 22(25), eff. Sept. 1, 1995;

amended by Acts 1995, 74th Leg., ch. 533, Sec. 1, eff. Sept. 1,

1995; Subsec. (i) amended by Acts 1995, 74th Leg., ch. 533, Sec.

1, eff. Sept. 1, 1995; Subsec. (b) amended by Acts 2001, 77th

Leg., ch. 438, Sec. 4, eff. Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

933, Sec. 3B.02, eff. September 1, 2009.

Art. 59.05. FORFEITURE HEARING. (a) All parties must comply with

the rules of pleading as required in civil suits.

(b) All cases under this chapter shall proceed to trial in the

same manner as in other civil cases. The state has the burden of

proving by a preponderance of the evidence that property is

subject to forfeiture.

(c) It is an affirmative defense to forfeiture under this chapter

of property belonging to the spouse of a person whose acts gave

rise to the seizure of community property that, because of an act

of family violence, as defined by Section 71.004, Family Code,

the spouse was unable to prevent the act giving rise to the

seizure.

(d) A final conviction for an underlying offense is not a

requirement for forfeiture under this chapter. An owner or

interest holder may present evidence of a dismissal or acquittal

of an underlying offense in a forfeiture proceeding, and evidence

of an acquittal raises a presumption that the property or

interest that is the subject of the hearing is nonforfeitable.

This presumption can be rebutted by evidence that the owner or

interest holder knew or should have known that the property was

contraband.

(e) It is the intention of the legislature that asset forfeiture

is remedial in nature and not a form of punishment. If the court

finds that all or any part of the property is subject to

forfeiture, the judge shall forfeit the property to the state,

with the attorney representing the state as the agent for the

state, except that if the court finds that the nonforfeitable

interest of an interest holder in the property is valued in an

amount greater than or substantially equal to the present value

of the property, the court shall order the property released to

the interest holder. If the court finds that the nonforfeitable

interest of an interest holder is valued in an amount

substantially less than the present value of the property and

that the property is subject to forfeiture, the court shall order

the property forfeited to the state with the attorney

representing the state acting as the agent of the state, and

making necessary orders to protect the nonforfeitable interest of

the interest holder. On final judgment of forfeiture, the

attorney representing the state shall dispose of the property in

the manner required by Article 59.06 of this code.

(f) On forfeiture to the state of an amount greater than $2,500,

the clerk of the court in which the forfeiture proceeding was

held is entitled to court costs in that proceeding as in other

civil proceedings unless the forfeiture violates federal

requirements for multijurisdictional task force cases authorized

under Chapter 362, Local Government Code. The procedure for

collecting the costs is the procedure established under

Subsections (a) and (c), Article 59.06.

(g) If property is seized at a federal checkpoint, the notice of

seizure and intended forfeiture may be filed in and the

proceeding may be held in:

(1) the county in which the seizure occurred; or

(2) with the consent of the owner, operator, or agent in charge

of the property, a county that is adjacent to the county in which

the seizure occurred, if both counties are in the same judicial

district.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989. Subsec. (d) amended by Acts 1993, 73rd Leg., ch.

780, Sec. 2, eff. Sept. 1, 1993; Subsec. (e) amended by Acts

1995, 74th Leg., ch. 533, Sec. 2, eff. Sept. 1, 1995; Subsec. (f)

added by Acts 1999, 76th Leg., ch. 582, Sec. 1, eff. Sept. 1,

1999; Subsec. (c) amended by Acts 2003, 78th Leg., ch. 1276, Sec.

7.002(l), eff. Sept. 1, 2003; Subsec. (g) added by Acts 2003,

78th Leg., ch. 1153, Sec. 1, eff. Sept. 1, 2003.

Art. 59.06. DISPOSITION OF FORFEITED PROPERTY. (a) Except as

provided by Subsection (k), all forfeited property shall be

administered by the attorney representing the state, acting as

the agent of the state, in accordance with accepted accounting

practices and with the provisions of any local agreement entered

into between the attorney representing the state and law

enforcement agencies. If a local agreement has not been executed,

the property shall be sold on the 75th day after the date of the

final judgment of forfeiture at public auction under the

direction of the county sheriff, after notice of public auction

as provided by law for other sheriff's sales. The proceeds of the

sale shall be distributed as follows:

(1) to any interest holder to the extent of the interest holder's

nonforfeitable interest; and

(2) the balance, if any, after the deduction of court costs to

which a district court clerk is entitled under Article 59.05(f)

and, after that deduction, the deduction of storage and disposal

costs, to be deposited not later than the 30th day after the date

of the sale in the state treasury to the credit of the general

revenue fund.

(b) If a local agreement exists between the attorney

representing the state and law enforcement agencies, the attorney

representing the state may transfer the property to law

enforcement agencies to maintain, repair, use, and operate the

property for official purposes if the property is free of any

interest of an interest holder. The agency receiving the

forfeited property may purchase the interest of an interest

holder so that the property can be released for use by the

agency. The agency receiving the forfeited property may

maintain, repair, use, and operate the property with money

appropriated for current operations. If the property is a motor

vehicle subject to registration under the motor vehicle

registration laws of this state, the agency receiving the

forfeited vehicle is considered to be the purchaser and the

certificate of title shall issue to the agency. A law

enforcement agency to which property is transferred under this

subsection at any time may transfer or loan the property to any

other municipal or county agency, a groundwater conservation

district governed by Chapter 36, Water Code, or a school district

for the use of that agency or district. A municipal or county

agency, a groundwater conservation district, or a school district

to which a law enforcement agency loans a motor vehicle under

this subsection shall maintain any automobile insurance coverage

for the vehicle that is required by law.

(b-1) If a loan is made by a sheriff's office or by a municipal

police department, the commissioners court of the county in which

the sheriff has jurisdiction or the governing body of the

municipality in which the department has jurisdiction, as

applicable, may revoke the loan at any time by notifying the

receiving agency or district, by mail, that the receiving agency

or district must return the loaned vehicle to the loaning agency

before the seventh day after the date the receiving agency or

district receives the notice.

(b-2) An agency that loans property under this article shall:

(1) keep a record of the loan, including the name of the agency

or district to which the vehicle was loaned, the fair market

value of the vehicle, and where the receiving agency or district

will use the vehicle; and

(2) update the record when the information relating to the

vehicle changes.

(c) If a local agreement exists between the attorney representing

the state and law enforcement agencies, all money, securities,

negotiable instruments, stocks or bonds, or things of value, or

proceeds from the sale of those items, shall be deposited, after

the deduction of court costs to which a district court clerk is

entitled under Article 59.05(f), according to the terms of the

agreement into one or more of the following funds:

(1) a special fund in the county treasury for the benefit of the

office of the attorney representing the state, to be used by the

attorney solely for the official purposes of his office;

(2) a special fund in the municipal treasury if distributed to a

municipal law enforcement agency, to be used solely for law

enforcement purposes, such as salaries and overtime pay for

officers, officer training, specialized investigative equipment

and supplies, and items used by officers in direct law

enforcement duties;

(3) a special fund in the county treasury if distributed to a

county law enforcement agency, to be used solely for law

enforcement purposes; or

(4) a special fund in the state law enforcement agency if

distributed to a state law enforcement agency, to be used solely

for law enforcement purposes.

(c-1) Notwithstanding Subsection (a), the attorney representing

the state and special rangers of the Texas and Southwestern

Cattle Raisers Association who meet the requirements of Article

2.125 may enter into a local agreement that allows the attorney

representing the state to transfer proceeds from the sale of

forfeited property described by Subsection (c), after the

deduction of court costs as described by that subsection, to a

special fund established for the special rangers. Proceeds

transferred under this subsection must be used by the special

rangers solely for law enforcement purposes, such as training,

essential equipment, and operating expenses. Any expenditures of

the proceeds are subject to the audit provisions established

under this article.

(d) Proceeds awarded under this chapter to a law enforcement

agency or to the attorney representing the state may be spent by

the agency or the attorney after a budget for the expenditure of

the proceeds has been submitted to the commissioners court or

governing body of the municipality. The budget must be detailed

and clearly list and define the categories of expenditures, but

may not list details that would endanger the security of an

investigation or prosecution. Expenditures are subject to audit

provisions established under this article. A commissioners court

or governing body of a municipality may not use the existence of

an award to offset or decrease total salaries, expenses, and

allowances that the agency or the attorney receives from the

commissioners court or governing body at or after the time the

proceeds are awarded. The head of the agency or attorney

representing the state may not use the existence of an award to

increase a salary, expense, or allowance for an employee of the

attorney or agency who is budgeted by the commissioners court or

governing body unless the commissioners court or governing body

first approves the expenditure.

(e) On the sale of contraband under this article, the appropriate

state agency shall issue a certificate of title to the recipient

if a certificate of title is required for the property by other

law.

(f) A final judgment of forfeiture under this chapter perfects

the title of the state to the property as of the date that the

contraband was seized or the date the forfeiture action was

filed, whichever occurred first, except that if the property

forfeited is real property, the title is perfected as of the date

a notice of lis pendens is filed on the property.

(g)(1) All law enforcement agencies and attorneys representing

the state who receive proceeds or property under this chapter

shall account for the seizure, forfeiture, receipt, and specific

expenditure of all such proceeds and property in an audit, which

is to be performed annually by the commissioners court or

governing body of a municipality, as appropriate. The annual

period of the audit for a law enforcement agency is the fiscal

year of the appropriate county or municipality and the annual

period for an attorney representing the state is the state fiscal

year. The audit shall be completed on a form provided by the

attorney general. Certified copies of the audit shall be

delivered by the law enforcement agency or attorney representing

the state to the comptroller's office and the attorney general

not later than the 60th day after the date on which the annual

period that is the subject of the audit ends.

(2) If a copy of the audit is not delivered to the attorney

general within the period required by Subdivision (1), within

five days after the end of the period the attorney general shall

notify the law enforcement agency or the attorney representing

the state of that fact. On a showing of good cause, the attorney

general may grant an extension permitting the agency or attorney

to deliver a copy of the audit after the period required by

Subdivision (1) and before the 76th day after the date on which

the annual period that is the subject of the audit ends. If the

law enforcement agency or the attorney representing the state

fails to establish good cause for not delivering the copy of the

audit within the period required by Subdivision (1) or fails to

deliver a copy of an audit within the extension period, the

attorney general shall notify the comptroller of that fact. On

notice under this subdivision, the comptroller shall perform the

audit otherwise required by Subdivision (1). At the conclusion

of the audit, the comptroller shall forward a copy of the audit

to the attorney general. The law enforcement agency or attorney

representing the state is liable to the comptroller for the costs

of the comptroller in performing the audit.

(h) As a specific exception to the requirement of Subdivisions

(1)-(3) of Subsection (c) of this article that the funds

described by those subdivisions be used only for the official

purposes of the attorney representing the state or for law

enforcement purposes, on agreement between the attorney

representing the state or the head of a law enforcement agency

and the governing body of a political subdivision, the attorney

representing the state or the head of the law enforcement agency

shall comply with the request of the governing body to deposit

not more than a total of 10 percent of the gross amount credited

to the attorney's or agency's fund into the treasury of the

political subdivision. The governing body of the political

subdivision shall, by ordinance, order, or resolution, use funds

received under this subsection for:

(1) nonprofit programs for the prevention of drug abuse;

(2) nonprofit chemical dependency treatment facilities licensed

under Chapter 464, Health and Safety Code;

(3) nonprofit drug and alcohol rehabilitation or prevention

programs administered or staffed by professionals designated as

qualified and credentialed by the Texas Commission on Alcohol and

Drug Abuse; or

(4) financial assistance as described by Subsection (o).

(i) The governing body of a political subdivision may not use

funds received under this subchapter for programs or facilities

listed under Subsections (h)(1)-(3) if an officer of or member of

the Board of Directors of the entity providing the program or

facility is related to a member of the governing body, the

attorney representing the state, or the head of the law

enforcement agency within the third degree by consanguinity or

the second degree by affinity.

(j) As a specific exception to Subdivision (4) of Subsection (c)

of this article, the director of a state law enforcement agency

may use not more than 10 percent of the amount credited to the

special fund of the agency under that subdivision for the

prevention of drug abuse and the treatment of persons with

drug-related problems.

(k)(1) The attorney for the state shall transfer all forfeited

property that is income from, or acquired with the income from, a

movie, book, magazine article, tape recording, phonographic

record, radio or television presentation, telephone service,

electronic media format, including an Internet website, or live

entertainment in which a crime is reenacted to the attorney

general.

(2) The attorney for the state shall transfer to the attorney

general all income from the sale of tangible property the value

of which is increased by the notoriety gained from the conviction

of an offense by the person accused or convicted of the crime,

minus the deduction authorized by this subdivision. The attorney

for the state shall determine the fair market value of property

that is substantially similar to the property that was sold but

that has not been increased in value by notoriety and deduct that

amount from the proceeds of the sale. After transferring income

to the attorney general, the attorney for the state shall

transfer the remainder of the proceeds of the sale to the owner

of the property. The attorney for the state, the attorney

general, or a person who may be entitled to claim money from the

escrow account described by Subdivision (3) in satisfaction of a

claim may at any time bring an action to enjoin the waste of

income described by this subdivision.

(3) The attorney general shall deposit the money or proceeds from

the sale of the property into an escrow account. The money in the

account is available to satisfy a judgment against the person who

committed the crime in favor of a victim of the crime if the

judgment is for damages incurred by the victim caused by the

commission of the crime. The attorney general shall transfer the

money in the account that has not been ordered paid to a victim

in satisfaction of a judgment to the compensation to victims of

crime fund on the fifth anniversary of the date the account was

established. In this subsection, "victim" has the meaning

assigned by Article 56.32.

(l) A law enforcement agency that, or an attorney representing

the state who, does not receive proceeds or property under this

chapter during an annual period as described by Subsection (g)

shall, not later than the 30th day after the date on which the

annual period ends, report to the attorney general that the

agency or attorney, as appropriate, did not receive proceeds or

property under this chapter during the annual period.

(m) As a specific exception to Subdivisions (1)-(3) of Subsection

(c), a law enforcement agency or attorney representing the state

may use proceeds received under this chapter to contract with a

person or entity to prepare an audit as required by Subsection

(g).

(n) As a specific exception to Subsection (c)(2) or (3), a local

law enforcement agency may transfer not more than a total of 10

percent of the gross amount credited to the agency's fund to a

separate special fund in the treasury of the political

subdivision. The agency shall administer the separate special

fund, and expenditures from the fund are at the sole discretion

of the agency and may be used only for financial assistance as

described by Subsection (o).

(o) The governing body of a political subdivision or a local law

enforcement agency may provide financial assistance under

Subsection (h)(4) or (n) only to a person who is a Texas

resident, who plans to enroll or is enrolled at an institution of

higher education in an undergraduate degree or certificate

program in a field related to law enforcement, and who plans to

return to that locality to work for the political subdivision or

the agency in a field related to law enforcement. To ensure the

promotion of a law enforcement purpose of the political

subdivision or the agency, the governing body of the political

subdivision or the agency shall impose other reasonable criteria

related to the provision of this financial assistance, including

a requirement that a recipient of the financial assistance work

for a certain period of time for the political subdivision or the

agency in a field related to law enforcement and including a

requirement that the recipient sign an agreement to perform that

work for that period of time. In this subsection, "institution of

higher education" has the meaning assigned by Section 61.003,

Education Code.

(p) Notwithstanding Subsection (a), and to the extent necessary

to protect the commission's ability to recover amounts wrongfully

obtained by the owner of the property and associated damages and

penalties to which the commission may otherwise be entitled by

law, the attorney representing the state shall transfer to the

Health and Human Services Commission all forfeited property

defined as contraband under Article 59.01(2)(B)(vii). If the

forfeited property consists of property other than money or

negotiable instruments, the attorney representing the state may,

if approved by the commission, sell the property and deliver to

the commission the proceeds from the sale, minus costs

attributable to the sale. The sale must be conducted in a manner

that is reasonably expected to result in receiving the fair

market value for the property.

(q)(1) Notwithstanding any other provision of this article, a

multicounty drug task force, or a county or municipality

participating in the task force, that is not established in

accordance with Section 362.004, Local Government Code, or that

fails to comply with the policies and procedures established by

the Department of Public Safety under that section, and that

participates in the seizure of contraband shall forward to the

comptroller all proceeds received by the task force from the

forfeiture of the contraband. The comptroller shall deposit the

proceeds in the state treasury to the credit of the general

revenue fund.

(2) The attorney general shall ensure the enforcement of

Subdivision (1) by filing any necessary legal proceedings in the

county in which the contraband is forfeited or in Travis County.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989. Subsec. (c) amended by Acts 1991, 72nd Leg., ch.

312, Sec. 2, eff. Sept. 1, 1991; Subsec. (h) added by Acts 1991,

72nd Leg., ch. 312, Sec. 1, eff. Sept. 1, 1991; Subsec. (a)

amended by Acts 1993, 73rd Leg., ch. 780, Sec. 3, eff. Sept. 1,

1993; Subsec. (g) amended by Acts 1993, 73rd Leg., ch. 814, Sec.

1, eff. Aug. 30, 1993; Subsec. (i) added by Acts 1993, 73rd Leg.,

ch. 780, Sec. 4, eff. Sept. 1, 1993; Subsec. (i) amended by Acts

1995, 74th Leg., ch. 76, Sec. 5.95(112), eff. Sept. 1, 1995;

Subsec. (g) amended by and Subsecs. (j), (k) added by Acts 1997,

75th Leg., ch. 975, Sec. 1, eff. Sept. 1, 1997. Amended by Acts

1999, 76th Leg., ch. 707, Sec. 1, eff. Sept. 1, 1999; Subsecs.

(a), (c) amended by Acts 1999, 76th Leg., ch. 582, Sec. 2, eff.

Sept. 1, 1999; Subsec. (g) amended by Acts 1999, 76th Leg., ch.

481, Sec. 1, eff. Sept. 1, 1999; Subsec. (j) amended by Acts

1999, 76th Leg., ch. 481, Sec. 2, eff. Sept. 1, 1999; Subsec. (g)

amended by Acts 2001, 77th Leg., ch. 929, Sec. 3, eff. Sept. 1,

2001; Subsec. (k) amended by Acts 2001, 77th Leg., ch. 124, Sec.

2, eff. Sept. 1, 2001; Subsec. (k)(l) amended by Acts 2003, 78th

Leg., ch. 428, Sec. 2, eff. Sept. 1, 2003; Subsec. (p) added by

Acts 2003, 78th Leg., ch. 198, Sec. 2.142, eff. Sept. 1, 2003;

Subsec. (p) added by Acts 2003, 78th Leg., ch. 257, Sec. 18, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

556, Sec. 4, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

120, Sec. 2, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

446, Sec. 1, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

187, Sec. 1, eff. May 27, 2009.

Acts 2009, 81st Leg., R.S., Ch.

941, Sec. 1, eff. September 1, 2009.

Art. 59.07. IMMUNITY. This chapter does not impose any

additional liability on any authorized state, county, or

municipal officer engaged in the lawful performance of the

officer's duties.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989.

Art. 59.08. DEPOSIT OF MONEY PENDING DISPOSITION. (a) If money

that is contraband is seized, the attorney representing the state

may deposit the money in an interest-bearing bank account in the

jurisdiction of the attorney representing the state until a final

judgment is rendered concerning the contraband.

(b) If a final judgment is rendered concerning contraband, money

that has been placed in an interest-bearing bank account under

Subsection (a) of this article shall be distributed in the same

manner as proceeds are distributed under Article 59.06 of this

code, with any interest being distributed in the same manner and

used for the same purpose as the principal.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989.

Art. 59.09. RIGHT TO ATTORNEY NOT TO BE ABRIDGED. This chapter

is not intended to abridge an accused person's right to counsel

in a criminal case.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989.

Art. 59.10. ELECTION OF LAWS. If property is subject to

forfeiture under this chapter and under any other law of this

state, the attorney representing the state may bring forfeiture

proceedings under either law.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 12, Sec. 1, eff.

Oct. 18, 1989.

Art. 59.11. REPORT OF SEIZED AND FORFEITED AIRCRAFT. Not later

than the 10th day after the last day of each quarter of the

fiscal year, the Department of Public Safety shall report to the

State Aircraft Pooling Board:

(1) a description of each aircraft that the department has

received by forfeiture under this chapter during the preceding

quarter and the purposes for which the department intends to use

the aircraft; and

(2) a description of each aircraft the department knows to have

been seized under this chapter during the preceding quarter and

the purposes for which the department would use the aircraft if

it were forfeited to the department.

Added by Acts 1991, 72nd Leg., ch. 14, Sec. 283, eff. Sept. 1,

1991.

Art. 59.12. SEIZURE OF ACCOUNTS AND ASSETS AT REGULATED FINANCIAL

INSTITUTION. (a) This article applies to property consisting of

a depository account or assets in a regulated financial

institution.

(b) A regulated financial institution, at the time a seizure

warrant issued under Chapter 18 is served on the institution, may

either:

(1) pay an account or tender assets held as security for an

obligation owed to the institution at the time of the service of

the seizure warrant; or

(2) transfer the depository account or assets to a segregated

interest-bearing account in the name of the attorney representing

the state as trustee, to remain in the account until the time has

expired for an appeal from a decision of the court relating to

the forfeiture of accounts or assets under Article 59.05.

(c) Immediately on service of the seizure warrant, the regulated

financial institution shall take action as necessary to segregate

the account or assets and shall provide evidence, certified by an

officer of the institution, of the terms and amount of the

account or a detailed inventory of the assets to the peace

officer serving the warrant. Except as otherwise provided by this

article, a transaction involving an account or assets, other than

the deposit or reinvestment of interest, dividends, or other

normally recurring payments on the account or assets that do not

involve distribution of proceeds to the owner, is not authorized

unless approved by the court that issued the seizure warrant or,

if a forfeiture action has been instituted, the court in which

that action is pending.

(d) Any accrual to the value of the account or assets during the

pendency of the forfeiture proceedings is subject to the

procedures for the disbursement of interest under Article 59.08.

(e) If the regulated financial institution fails to release the

depository account or assets to a peace officer pursuant to a

seizure warrant or transfer the account or assets as required by

Subsection (b), and as a result cannot comply with the court's

forfeiture order, the court:

(1) shall order the regulated financial institution and its

culpable officers, agents, or employees to pay actual damages,

attorney's fees, and court costs incurred as a result of the

institution's failure to comply; and

(2) may find the regulated financial institution and its culpable

officers, agents, or employees in contempt.

(f) A regulated financial institution that complies with this

article is not liable in damages because of the compliance.

(g) This article does not:

(1) impair the right of the state to obtain possession of

physical evidence or to seize a depository account or other

assets for purposes other than forfeiture under this chapter; or

(2) waive criminal or civil remedies available under other law.

Added by Acts 2001, 77th Leg., ch. 438, Sec. 5, eff. Sept. 1,

2001.

Art. 59.13. DISCLOSURE OF INFORMATION RELATING TO ACCOUNTS AND

ASSETS AT REGULATED FINANCIAL INSTITUTION. (a) The attorney

representing the state may disclose information to the primary

state or federal financial institution regulator, including grand

jury information or otherwise confidential information, relating

to any action contemplated or brought under this chapter that

involves property consisting of a depository account in a

regulated financial institution or assets held by a regulated

financial institution as security for an obligation owed to a

regulated financial institution. An attorney representing the

state who discloses information as permitted by this subsection

is not subject to contempt under Article 20.02 for that

disclosure.

(b) A primary state or federal financial institution regulator

shall keep confidential any information provided by the attorney

representing the state under Subsection (a). The sharing of

information under Subsection (a) by a representative of the state

is not considered a waiver by the state of any privilege or claim

of confidentiality.

(c) A regulator described by Subsection (b) commits an offense if

the regulator knowingly discloses information in violation of

this article. An offense under this subsection is punishable by

confinement in jail for a period not to exceed 30 days, a fine

not to exceed $500, or both such confinement and fine.

Added by Acts 2001, 77th Leg., ch. 438, Sec. 5, eff. Sept. 1,

2001.

Art. 59.14. NOTICE TO PRIMARY STATE AND FEDERAL FINANCIAL

INSTITUTION REGULATORS. (a) Before taking any action under this

chapter that implicates a potentially culpable officer or

director of a regulated financial institution, the attorney

representing the state shall notify the banking commissioner, who

shall notify the appropriate state or federal financial

institution regulator.

(b) A state or federal financial institution regulator shall keep

confidential any information provided by the attorney

representing the state under Subsection (a).

(c) A regulator described by Subsection (b) commits an offense if

the regulator knowingly discloses information in violation of

this article. An offense under this subsection is punishable by

confinement in jail for a period not to exceed 30 days, a fine

not to exceed $500, or both such confinement and fine.

(d) The provision of notice under Subsection (a) is not

considered a waiver by the state of any privilege or claim of

confidentiality.

Added by Acts 2001, 77th Leg., ch. 438, Sec. 5, eff. Sept. 1,

2001.