Judiciary committee backs amendment requiring conviction before forfeiture, adds reporting

The Senate Committee on Judiciary voted to pass House Bill 126 with amendments that make conviction a prerequisite for property forfeiture and require additional reporting on seized and forfeited property.

The change — adopted as a proposed Senate Draft 1 (SD1) — allows police to seize property but generally prevents sale or final forfeiture until a felony conviction of the owner. Chair Rhodes said the committee would also add reporting requirements for seized and forfeited property.

The measure prompted sharply divided testimony. Gurudev Allen, deputy attorney general, told the committee that the Department of the Attorney General “strongly oppose[s] the proposed SD1,” arguing it “would undermine the program to the point of practically ending it,” and warned of negative fiscal and law-enforcement consequences.

Hailey Chang, first deputy public defender, urged support for the bill and the proposed SD1, arguing that civil forfeiture can penalize people without conviction and create barriers for low-income owners seeking return of property. “There is a tension when law enforcement is incentivized to seize property, especially when that seizure does not have to result in any conviction whatsoever,” she said.

Representatives of local law enforcement also opposed SD1. Domingo Manal, acting captain in the Honolulu Police Department’s vice division, said forfeiture is an “essential tool” that takes profit out of crime and that the proposed changes would “significantly compromise” policing and deterrence.

A Honolulu prosecuting attorney, Daniel Hugo, said the office supported the House Draft but could not support SD1 because requiring conviction before forfeiture creates practical problems: defendants who die during prosecution, suspects who flee jurisdictions, and situations where an owner cannot be identified even if funds are clearly linked to criminal activity.

Advocacy groups backed the stricter standard and transparency measures. Kat Brady of Community Alliance on Prisons cited an AG audit and urged returning proceeds to the general fund after expenses; Nikos Leverenz of the Drug Policy Forum and Hawaii Health and Harm Reduction Center said SD1 would align Hawaii with national trends toward limiting civil forfeiture.

Committee debate touched on remedies for owners who lack counsel, storage and disposition of seized property, and the suggestion — not adopted at the hearing — to create a special fund for forfeiture proceeds to remove profit incentives and pay court-appointed counsel or related expenses.

The committee’s adopted recommendation was to pass HB 126 HD1 with the proposed SD1 and additional reporting requirements. The roll call recorded Chair Rhodes, Senator Chang and Senator San Buenaventura voting aye; two members were recorded as excused. The recommendation was adopted.