1 New Subparagraph; Controlled Drug Act; Forfeiture of Items Used in Connection With Drug Offense. Amend RSA 318-B:17-b, I by inserting after subparagraph (e) the following new subparagraph:

(f) U.S. currency or coin in the amount of $200 or less and a motor vehicle with a market value of $1,500 or less shall be exempt from seizure or forfeiture under this section. The prosecuting authority may establish a minimum dollar amount in excess of the minimums stated in this subparagraph.

2 Controlled Drug Act; Forfeiture of Items Used in Connections With Drug Offense RSA 318-B:17-b, V is repealed and reenacted to read as follows:

V. Final orders for forfeiture of property under this section shall be implemented by the department of justice and shall provide for disposition of the items or property interests by the state in any manner not prohibited by law, including retention for official use by law enforcement or other public agencies or sale at public auction.

(a) From the funds available in the drug forfeiture fund established in RSA 318-B:17-c, the department of justice shall, in the following order:

(1) Pay the reasonable expenses of the forfeiture proceeding, seizure, storage, maintenance of custody, advertising, court costs, and notice of sale from any money forfeited and from the proceeds of any sale or public auction of forfeited items, All outstanding recorded liens on said items or property interests seized shall be paid in full upon conclusion of the court proceedings from the proceeds of any sale or public auction of forfeited items; and

(2) Reimburse all direct costs incurred in the arrest and prosecution of a person for a criminal violation of this chapter on a case by case basis, including the reasonable cost for towing a forfeited vehicle, and the non-personnel operating costs directly related to the investigation of the underlying criminal offense including any funds used in a controlled drug buy. To be reimbursed, a municipality or law enforcement agency shall provide documentation to the department of justice of such direct costs incurred.

(b) Each fiscal year, 10 percent of the balance remaining in the drug forfeiture fund after the expenditures required under subparagraph (a), shall be credited to a special nonlapsing account established in the state treasury for use by the department of health and human services for the purposes established in RSA 318-B:17-c.

(c) Any balance remaining in the drug forfeiture fund shall be administered by the department of health and human services pursuant to the provisions of RSA 318-B:17-c.

3 Controlled Drug Act; Drug Forfeiture Fund. Amend RSA 318-B:17-c, I to read as follows:

I. There is hereby established within the office of the state treasurer a special revolving fund to be designated as the drug forfeiture fund. This fund shall be administered by the attorney general and may be used to pay the costs of local, county and state drug related investigations, as well as drug control law enforcement programs within New Hampshire. The fund may also be used *to pay extraordinary costs of local, county and state drug prosecutions and trial expenses.

4 Effective Date. This act shall take effect 60 days after its passage.

1 New Subparagraph; Controlled Drug Act; Forfeiture of Items Used in Connection With Drug Offense. Amend RSA 318-B:17-b, I by inserting after subparagraph (e) the following new subparagraph:

(f) U.S. currency or coin in the amount of $200 or less and a motor vehicle with a market value of $1,500 or less shall be exempt from seizure or forfeiture under this section. The prosecuting authority may establish a minimum dollar amount in excess of the minimums stated in this subparagraph.

2 Controlled Drug Act; Forfeiture of Items Used in Connections With Drug Offense RSA 318-B:17-b, V is repealed and reenacted to read as follows:

V. Final orders for forfeiture of property under this section shall be implemented by the department of justice and shall provide for disposition of the items or property interests by the state in any manner not prohibited by law, including retention for official use by law enforcement or other public agencies or sale at public auction.

(a) From the funds available in the drug forfeiture fund established in RSA 318-B:17-c, the department of justice shall, in the following order:

(1) Pay the reasonable expenses of the forfeiture proceeding, seizure, storage, maintenance of custody, advertising, court costs, and notice of sale from any money forfeited and from the proceeds of any sale or public auction of forfeited items, All outstanding recorded liens on said items or property interests seized shall be paid in full upon conclusion of the court proceedings from the proceeds of any sale or public auction of forfeited items; and

(2) Reimburse all direct costs incurred in the arrest and prosecution of a person for a criminal violation of this chapter on a case by case basis, including the reasonable cost for towing a forfeited vehicle, and the non-personnel operating costs directly related to the investigation of the underlying criminal offense including any funds used in a controlled drug buy. To be reimbursed, a municipality or law enforcement agency shall provide documentation to the department of justice of such direct costs incurred.

(b) Each fiscal year, 10 percent of the balance remaining in the drug forfeiture fund after the expenditures required under subparagraph (a), shall be credited to a special nonlapsing account established in the state treasury for use by the department of health and human services for the purposes established in RSA 318-B:17-c.

(c) Any balance remaining in the drug forfeiture fund shall be administered by the department of health and human services pursuant to the provisions of RSA 318-B:17-c.

3 Controlled Drug Act; Drug Forfeiture Fund. Amend RSA 318-B:17-c, I to read as follows:

I. There is hereby established within the state treasury a special revolving fund to be designated as the drug forfeiture fund. This fund shall be administered by the department of health and human services and may be used to reimburse the direct costs to local, county, or state officials incurred by an offender resulting from arrest and prosecution in local, county and state drug related investigations. The fund may also be used to pay extraordinary costs of local, county and state drug prosecutions and trial expenses for drug treatment, mental health treatment, rehabilitation, prevention or education, or any other program which deters drug or substance misuse or responds to problems created by drugs or substance misuse; for matching funds for grant programs related to drug treatment or prevention; and for any combination of these purposes .

4 Effective Date. This act shall take effect 60 days after its passage.