OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 506
Date:05/02/00

1. LAW NUMBER: P.L.106-185 (H.R. 1658)
2. BILL TITLE: Civil Asset Forfeiture Reform Act
3. BILL PURPOSE: To modify civil forfeiture proceedings to increase the due process and other safeguards for property owners whose property has been seized.
4. OMB ESTIMATE: P.L. 106-185 shifts the burden of proof from the property owner to the Federal Government, eliminates the cost bond requirement, and makes numerous other changes to current civil asset forfeiture procedures. OMB estimates that these changes will result in fewer seizures of property and thus reduce forfeiture receipts by $115 million per year. Because these receipts are available to be spent without further action, spending will be reduced by the same amount over time. However, there will be a net cost to the government initially because there is a slight lag in the spending of the receipts. P.L. 106-185 also requires that attorneys be appointed to assist indigent claimants in certain cases. The Federal Government would be required to pay attorney's fees for property owners who prevail in court. OMB estimates that this would increase spending by $1 million per year.

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect............	0	-75	-107	-114	-114	-114
Receipt effect..........	0	-115	-115	-115	-115	-115
Net costs.................	0	40	8	1	1	1

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect............	0	-75	-107	-114	-114	-114
Receipt effect...........	0	-115	-115	-115	-115	-115
Net costs.................	0	40	8	1	1	1

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

OMB and CBO estimates are the same.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	2000	2001	2002	2003	2004	2005
Outlay effect..............	2	-71	-105	-113	-113	-113
Receipt effect............	*	-115	-115	-115	-115	-115
Net costs....................	2	44	10	2	2	2

*$500,000 or less.