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        PRIOR PRINTER'S NOS. 1131, 1700               PRINTER'S NO. 1713

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 885 Session of 2003


        INTRODUCED BY CONTI, EARLL, SCHWARTZ, KUKOVICH, BRIGHTBILL,
           PICCOLA, LOGAN, KITCHEN, WOZNIAK, STOUT, WONDERLING,
           ERICKSON, RAFFERTY, COSTA, STACK, MUSTO, THOMPSON, ARMSTRONG,
           HELFRICK, KASUNIC AND ORIE, AUGUST 1, 2003

        AS AMENDED ON SECOND CONSIDERATION, JUNE 21, 2004

                                     AN ACT

     1  Amending the act of December 16, 2002 (P.L.1810, No.222),
     2     entitled "An act prohibiting certain facsimiles, commercial
     3     electronic transmissions and the use of text, graphic or
     4     image messaging systems of wireless telephone systems to
     5     transmit unsolicited commercial messages; imposing penalties;
     6     authorizing the blocking of commercial electronic mail by
     7     interactive computer service; and providing for the powers of
     8     the Attorney General," further providing for definitions, for
     9     prohibition of unsolicited or misleading commercial
    10     electronic mail messages and faxes, for violations and for
    11     remedies available to consumers; and providing for
    12     confidentiality, for period of limitations, for jurisdiction
    13     and for forfeiture of property.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  Section 2 of the act of December 16, 2002
    17  (P.L.1810, No.222), known as the Unsolicited Telecommunication
    18  Advertisement Act, is amended to read:
    19  Section 2.  Definitions.
    20     The following words and phrases when used in this act shall
    21  have the meanings given to them in this section unless the
    22  context clearly indicates otherwise:


     1     "Assist a transmission."  Action taken by a person to provide
     2  substantial assistance or support which enables another person
     3  to formulate, compose, send, originate, initiate or transmit a
     4  commercial electronic mail message when the person providing the
     5  assistance knows or consciously avoids knowing that the
     6  indicator of the commercial electronic mail message is engaged
     7  or intends to engage in any practice that violates the act of
     8  December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade
     9  Practices and Consumer Protection Law. This term does not
    10  include action [by a provider of Internet access or electronic
    11  mail service for mere transmission or hosting services in the
    12  ordinary course of business.] taken by:
    13         (1)  a provider of Internet access or electronic mail
    14     service or other entity which provides intermediary
    15     transmission service in sending or receiving an electronic
    16     mail message;
    17         (2)  a provider of Internet access or electronic mail
    18     service or other entity which provides to users of electronic
    19     mail services the ability to send, receive or compose an
    20     electronic mail message; or
    21         (3)  an entity which designs, manufactures or distributes
    22     any technology, product or component that has a commercially
    23     reasonable use other than to violate or circumvent this act.
    24     "Commercial electronic mail message."  [An electronic mail
    25  message sent for the purpose of promoting real property, goods
    26  or services.] An electronic message sent primarily for the
    27  purpose of commercial advertisement or promotion of:
    28         (1)  a commercial product;
    29         (2)  a commercial service;
    30         (3)  the content of an Internet World Wide Web site; or
    20030S0885B1713                  - 2 -     

     1         (4)  an Internet World Wide Web site operated for a
     2     commercial purpose.
     3  The term does not include an electronic mail transmission:
     4         (1)  to which an interactive computer service has
     5     attached an advertisement in exchange for free use of an
     6     electronic mail account when the sender has agreed to such an
     7     arrangement; [or]
     8         (2)  sent as a result of an established business
     9     relationship[.];
    10         (3)  from an organization to its members; or
    11         (4)  a transactional or relationship message.
    12     "Do-not-e-mail list."  A list of residential electronic mail   <--
    13  subscribers who have notified the Office of Attorney General of
    14  their desire not to receive commercial electronic mail messages
    15  or advertisements.
    16     "Electronic mail address."  A destination, commonly expressed
    17  as a string of characters, to which electronic mail may be sent
    18  or delivered.
    19     "Electronic mail service."  A person who is an intermediary
    20  in sending or receiving electronic mail or who provides end-
    21  users of electronic mail services the ability to send or receive
    22  electronic mail.
    23     "Established business relationship."  A prior or existing
    24  relationship formed by a voluntary two-way communication
    25  initiated by a person or entity and a recipient, with or without
    26  an exchange of consideration, on the basis of an inquiry,
    27  application, purchase or transaction by the recipient regarding
    28  products or services offered by such persons or entity. In
    29  regard to an inquiry, the person or entity shall obtain the
    30  consent of a recipient beyond the initial inquiry. [An
    20030S0885B1713                  - 3 -     

     1  established business relationship does not exist if the
     2  recipient requests to be removed from the distribution lists of
     3  an initiator pursuant to section 3(a)(4).]
     4     "Fax."  The transmission of the facsimile of a document
     5  through a connection with a telephone or computer network.
     6     "Header information."  The source, destination and routing
     7  information attached to an electronic mail message, including:
     8         (1)  The originating domain name and originating
     9     electronic mail address.
    10         (2)  Any other information that appears in the line
    11     identifying or purporting to identify the person initiating
    12     the message.
    13         (3)  Technical information that authenticates the sender
    14     of an electronic mail message for network security or network
    15     management purposes.
    16     "Initiate a transmission."  Action by the original sender of
    17  an electronic mail message, excluding action by any intervening
    18  interactive computer service that may handle or retransmit the
    19  message unless such intervening interactive computer service of
    20  an electronic mail message when it knows or consciously avoids
    21  knowing that the person initiating the transmission is engaged
    22  or intends to engage in any act or practice that violates the
    23  act of December 17, 1968 (P.L.1224, No.387), known as the Unfair
    24  Trade Practices and Consumer Protection Law. The term does not
    25  include action by a provider of Internet access or electronic
    26  mail service for [mere transmission] the routine conveyance or
    27  hosting services in the ordinary course of business.
    28     "Internet domain name."  [A globally unique hierarchical
    29  reference to an Internet host or service assigned through
    30  centralized Internet naming authorities and comprising a series
    20030S0885B1713                  - 4 -     

     1  of character strings separated by periods with the right-most
     2  string specifying the top of the hierarchy.] Any alphanumeric
     3  designation that is registered with or assigned by a domain name
     4  registrar, domain name registry or other domain name
     5  registration authority as part of an electronic mail address on
     6  the Internet.
     7     "Materially falsifies."  Action taken to alter or conceal in
     8  a manner that would impair the ability of one of the following
     9  to identify, locate or respond to a person who initiated an
    10  electronic mail message or to investigate an alleged violation
    11  of this act by:
    12         (1)  a recipient of the message;
    13         (2)  an Internet access service processing the message on
    14     behalf of a recipient;
    15         (3)  a person alleging a violation of this act; or
    16         (4)  a law enforcement agency.
    17     "Multiple."  The term means:
    18         (1)  more than ten commercial electronic mail messages
    19     during a 24-hour period;
    20         (2)  more than 100 commercial electronic mail messages
    21     during a 30-day period; or
    22         (3)  more than 1,000 commercial electronic mail messages
    23     during a one-year period.
    24     "Routine conveyance."  The transmission, routing, relaying,
    25  handling or storing through an automatic technical process of an
    26  electronic mail message for which another person has identified
    27  the recipients or provided the recipient addresses.
    28     "Transactional or relationship message."  An electronic mail
    29  message the primary purpose of which is:
    30         (1)  to facilitate, complete or confirm a commercial
    20030S0885B1713                  - 5 -     

     1     transaction that the recipient has previously agreed to enter
     2     into with the sender;
     3         (2)  to provide warranty information, product recall
     4     information or safety or security information with respect to
     5     a commercial product or service used or purchased by the
     6     recipient;
     7         (3)  to provide:
     8             (i)  notification concerning a change in the terms or
     9         features of;
    10             (ii)  notification of a change in the recipient's
    11         standing or status with respect to; or
    12             (iii)  at regular periodic intervals, account balance
    13         information or other type of account statement with
    14         respect to
    15     a subscription, membership, account, loan or comparable
    16     ongoing commercial relationship involving the ongoing
    17     purchase or use by the recipient of products or services
    18     offered by the sender;
    19         (4)  to provide information directly related to an
    20     employment relationship or related benefit plan in which the
    21     recipient is currently involved, participating or enrolled;
    22     or
    23         (5)  to deliver goods or services, including product
    24     updates or upgrades, that the recipient is entitled to
    25     receive under the terms of a transaction that the recipient
    26     has previously agreed to enter into with the sender.
    27     "Wireless advertisement."  The initiation of a telephone call
    28  or a message capable of providing text, graphic or image
    29  messages by a commercial mobile service provider, unlicensed
    30  wireless services provider or common carrier wireless exchange
    20030S0885B1713                  - 6 -     

     1  access service provider for the purpose of marketing goods or
     2  services. The term does not include a call or message to a
     3  person with that person's prior express invitation or permission
     4  or to a person with whom the caller has an established business
     5  relationship.
     6     Section 2.  Sections 3, 5 and 7 of the act are amended to
     7  read:
     8  Section 3.  Prohibition of unsolicited or misleading commercial
     9                 electronic mail messages and faxes.
    10     [(a)  General rule.--No person may initiate a transmission or
    11  conspire with another person to initiate a transmission or
    12  assist a transmission of an unsolicited commercial electronic
    13  mail message or fax from a computer or fax machine located in
    14  this Commonwealth or to an electronic mail address that:
    15         (1)  uses a third party's Internet domain name in the
    16     return electronic mail message without permission of the
    17     third party;
    18         (2)  includes false or misleading information in the
    19     return address portion of the electronic mail, facsimile or
    20     wireless advertisement such that the recipient would be
    21     unable to send a reply message to the original authentic
    22     sender;
    23         (3)  contains false or misleading information in the
    24     subject line; or
    25         (4)  fails to operate a valid sender-operated return e-
    26     mail address or toll-free telephone number that the recipient
    27     of the unsolicited documents may e-mail or call to notify the
    28     sender not to transmit further unsolicited documents.]
    29     (a.1)  General rule.--No person may:
    30         (1)  initiate a transmission or conspire with another
    20030S0885B1713                  - 7 -     

     1     person to initiate a transmission or assist a transmission of
     2     a commercial electronic mail message or an unsolicited fax
     3     from a computer or fax machine located in this Commonwealth
     4     or to an electronic mail address that:
     5             (i)  uses a third party's Internet domain name in the
     6         return electronic mail message without permission of the
     7         third party;
     8             (ii)  includes false or misleading information in the
     9         return address portion of the electronic mail, facsimile
    10         or wireless advertisement such that the recipient would
    11         be unable to send a reply message to the original
    12         authentic sender;
    13             (iii)  contains false or misleading information in
    14         the subject line; or
    15             (iv)  materially falsifies header information in
    16         multiple commercial electronic mail messages and
    17         intentionally initiates the transmission of the messages;
    18         (2)  register, using information that materially
    19     falsifies the identity of the actual registrant, for 15 or
    20     more electronic mail accounts or online user accounts or two
    21     or more domain names and intentionally initiate the
    22     transmission of multiple commercial electronic mail messages
    23     from one or any combination of accounts or domain names;
    24         (3)  falsely represent the right to use five or more
    25     Internet protocol addresses and intentionally initiate the
    26     transmission of multiple commercial electronic mail messages
    27     from the Internet protocol addresses;
    28         (4)  provide or select electronic mail addresses for the
    29     purpose of sending a commercial mail message knowing that:
    30             (i)  the electronic mail addresses of the recipients
    20030S0885B1713                  - 8 -     

     1         were obtained using an automated means from an Internet
     2         World Wide Web site or proprietary online service
     3         operated by another person; and
     4             (ii)  the World Wide Web site or online service
     5         included, at the time the addresses were obtained, a
     6         notice stating that the operator of the World Wide Web
     7         site or online service will not transfer addresses
     8         maintained by the World Wide Web site or online service
     9         to any other party for the purposes of initiating or
    10         enabling others to initiate electronic mail messages; or
    11         (5)  provide or select electronic mail addresses of
    12     recipients by using an automated means that generates
    13     possible electronic mail addresses by combining names,
    14     letters or numbers into numerous permutations.
    15     (b)  Covered mobile telephone messaging systems.--No person
    16  may use a covered mobile telephone messaging system to transmit
    17  [an unsolicited] a commercial electronic mail message.
    18     (c)  Do-not-e-mail list.--The Office of Attorney General       <--
    19  shall establish and provide for the operation of a Statewide
    20  database to compile a list of Commonwealth electronic mail
    21  subscribers who object to receiving unsolicited electronic mail
    22  before July 1, 2004. The Office of Attorney General shall
    23  promulgate rules governing the establishment and administration
    24  of the list necessary to carry out the provisions of this act.
    25     (d) (C)  Construction.--Nothing in the act shall be            <--
    26  construed:
    27         (1)  to require a provider of Internet access service to
    28     block, transmit, route, relay, handle or store certain types
    29     of electronic mail messages;
    30         (2)  to prevent or limit, in any way, a provider of
    20030S0885B1713                  - 9 -     

     1     Internet access service from adopting a policy regarding
     2     commercial or other electronic mail, including a policy of
     3     declining to transmit certain types of electronic mail
     4     messages, or from enforcing such policy through technical
     5     means, through contract, or pursuant to any remedy available
     6     under any other provision of Federal, State or local criminal
     7     or civil law; or
     8         (3)  to render lawful any such policy that is unlawful
     9     under any other provision of law.
    10  Section 5.  Violations.
    11     (a)  Other law.--[A] Except as provided under subsections (c)
    12  and (d), a violation of this act shall constitute a violation of
    13  the act of December 17, 1968 (P.L.1224, No.387), known as the
    14  Unfair Trade Practices and Consumer Protection Law.
    15     (b)  Procedure.--All actions of the Office of Attorney
    16  General under this act shall be taken subject to the right of
    17  notice, hearing and adjudication and the right of appeal
    18  therefrom in accordance with 2 Pa.C.S. (relating to
    19  administrative law and procedure).
    20     (c)  High volume or revenue.--A person commits a felony of
    21  the third degree when the person:
    22         (1)  transmits a commercial electronic mail message to
    23     more than 10,000 attempted recipients in any consecutive 24-
    24     hour period, 100,000 attempted recipients in any consecutive
    25     30-day period or 1,000,000 attempted recipients in any
    26     consecutive 12-month period; or
    27         (2)  generates more than $1,000 from transmission of a
    28     commercial electronic mail message to a single recipient or
    29     more than $50,000 from transmission of a commercial
    30     electronic mail message to an electronic mail service.
    20030S0885B1713                 - 10 -     

     1     (d)  Use of minors.--A person who knowingly hires, employs,
     2  uses or permits any minor to assist in the transmission of
     3  commercial electronic mail messages in violation of subsection
     4  (c) commits a felony of the third degree.
     5     (e)  Exceptions.--An electronic mail service provider does
     6  not violate this act if the electronic mail service provider:
     7         (1)  is an intermediary between the sender and the
     8     recipient in the transmission of a commercial electronic mail
     9     message that violates this act; or
    10         (2)  transmits a commercial electronic mail message that
    11     violates this act.
    12  Section 7.  Remedies available to consumers.
    13     (a)  Cause of action.--A person whose property or person is
    14  injured by reason of a violation of this act may bring an action
    15  to recover any damages, including, but not limited to, lost
    16  profits and reasonable attorney fees and court costs.
    17     (b)  Liquidated damages.--
    18         (1)  An injured person, other than the electronic mail
    19     service, may elect to recover, instead of actual damages, $10
    20     for each commercial electronic mail message the person
    21     received that was transmitted in violation of this act not to
    22     exceed $25,000 per day if an injury under this act arises
    23     from the transmission of a commercial electronic mail message
    24     in contravention of the authority granted by or in violation
    25     of the policies set by an electronic mail service and:
    26             (i)  the defendant has knowledge of the authority or
    27         policies of the electronic mail service; and
    28             (ii)  the authority or policies of the electronic
    29         mail service are available on the electronic mail
    30         service's World Wide Web site.
    20030S0885B1713                 - 11 -     

     1         (2)  No injured person shall have a cause of action
     2     against an electronic mail service that:
     3             (i)  routinely conveys commercial electronic mail
     4         messages over its computer network; and
     5             (ii)  establishes and implements, with due care,
     6         commercially reasonable practices and procedures designed
     7         to effectively prevent violations of this act.
     8     (c)  Electronic mail service provider cause of action.--
     9         (1)  If the injury arises from the transmission of a
    10     commercial electronic mail message in contravention of the
    11     authority granted by or in violation of the policies
    12     established by an electronic mail service and the defendant
    13     had knowledge of the authority or policies of the electronic
    14     mail service or where the authority or policies of the
    15     electronic mail service are available on the electronic mail
    16     service's World Wide Web site, an injured electronic mail
    17     service may elect, in lieu of actual damages, to recover,
    18     subject to adjustment under paragraph (2), $1 for each
    19     intended recipient of a commercial electronic mail message
    20     where the intended recipient is an end user of the electronic
    21     mail service or $25,000 for each day an attempt is made to
    22     transmit a commercial electronic mail message to an end user
    23     of the electronic mail service.
    24         (2)  In calculating the amount of damages under this
    25     subsection, the court may adjust the amount awarded as
    26     necessary, but in doing so, shall take into account:
    27             (i)  The number of complaints to the electronic mail
    28         service generated by the defendant's violation of the
    29         act.
    30             (ii)  The defendant's degree of culpability.
    20030S0885B1713                 - 12 -     

     1             (iii)  The defendant's prior history of such conduct.
     2             (iv)  The extent of the economic gain resulting from
     3         the conduct.
     4     (d)  Other law.--Nothing in this act shall be construed to
     5  limit the remedies available to consumers, the Attorney General
     6  or any district attorney under the act of December 17, 1968
     7  (P.L.1224, No.387), known as the Unfair Trade Practices and
     8  Consumer Protection Law, or any other Federal or State law.
     9     Section 3.  The act is amended by adding sections to read:
    10  Section 8.1.  Confidentiality.
    11     At the request of any party to an action brought pursuant to
    12  this act, the court may, in its discretion, conduct all
    13  proceedings in such manner as to protect the confidentiality and
    14  security of the computer, computer network, computer data,
    15  computer program and computer software involved in order to
    16  prevent possible reoccurrence of the same or a similar act by
    17  another person, to protect any trade secrets of a party and to
    18  protect the privacy of nonparties who complain about violations
    19  of this act.
    20  Section 8.2.  Period of limitations.
    21     A civil action under this act must be commenced before the
    22  earlier of:
    23         (1)  five years after the last act in the course of
    24     conduct constituting a violation of this act; or
    25         (2)  two years after the plaintiff discovers or
    26     reasonably should have discovered the last act in the course
    27     of conduct constituting a violation of this act.
    28  Section 8.3.  Jurisdiction.
    29     In an action alleging injury arising from the transmission of
    30  a commercial electronic mail message, personal jurisdiction may
    20030S0885B1713                 - 13 -     

     1  be exercised pursuant to 42 Pa.C.S. §§ 5301 (relating to
     2  persons) and 5322 (relating to bases of personal jurisdiction
     3  over persons outside this Commonwealth).
     4  Section 8.4.  Forfeiture of property.
     5     (a)  General rule.--Upon a conviction for a violation of
     6  section 5(c) or (d), the following shall be subject to
     7  forfeiture to the Commonwealth and no property right shall exist
     8  in them:
     9         (1)  All computers, computer data, computer software and
    10     financial instruments used to commit the violation.
    11         (2)  All raw materials, products and equipment of any
    12     kind that are used or intended for use in manufacturing,
    13     compounding, processing, delivering, importing or exporting
    14     any of the property listed in paragraph (1).
    15         (3)  All conveyances, including aircraft, vehicles or
    16     vessels, that are used or are intended for use to transport
    17     or in any manner facilitate the transportation, sale,
    18     receipt, possession or concealment of property described in
    19     paragraphs (1) or (2), except as follows:
    20             (i)  No conveyance used by any person as a common
    21         carrier in the transaction of business as a common
    22         carrier shall be forfeited under the provisions of this
    23         section unless it shall appear that the owner or other
    24         person in charge of such conveyance was a consenting
    25         party or privy to a violation of section 5(c) or (d).
    26             (ii)  No conveyance shall be forfeited under the
    27         provisions of this section by reason of any act or
    28         omission established by the owner thereof to have been
    29         committed or omitted without his knowledge or consent,
    30         which absence of such knowledge or consent must be
    20030S0885B1713                 - 14 -     

     1         reasonable under the circumstances presented.
     2             (iii)  No bona fide security interest retained or
     3         acquired under 13 Pa.C.S. (relating to commercial code)
     4         by any merchant dealing in new or used aircraft, vehicles
     5         or vessels, or retained or acquired by any licensed or
     6         regulated finance company, bank or lending institution,
     7         or by any other business regularly engaged in the
     8         financing of or lending on the security of such aircraft,
     9         vehicles or vessels, shall be subject to forfeiture or
    10         impairment.
    11         (4)  All books, records and research, including formulas,
    12     microfilm, tapes and data, that are used in violation of
    13     section 5(c) or (d).
    14         (5)  All of the following:
    15             (i)  Financial instruments or other things of value
    16         furnished or intended to be furnished by any person in
    17         exchange for a property listed in paragraph (1) or (2),
    18         and all proceeds traceable to such an exchange.
    19             (ii)  Financial instruments or other things of value
    20         used or intended to be used to facilitate any violation
    21         of section 5(c) or (d).
    22             (iii)  Real property used or intended to be used to
    23         facilitate any violation of section 5(c) or (d),
    24         including structures or other improvements thereon, and
    25         including any right, title and interest in the whole or
    26         any lot or tract of land and any appurtenances or
    27         improvements, that are used or intended to be used in any
    28         manner or part to commit or to facilitate the commission
    29         of a violation of section 5(c) or (d) of this act and
    30         things growing on, affixed to or found in the land,
    20030S0885B1713                 - 15 -     

     1         except as follows:
     2                 (A)  No property shall be forfeited under this
     3             paragraph to the extent of the interest of an owner
     4             by reason of any act or omission established by the
     5             owner to have been committed or omitted without the
     6             knowledge or consent of that owner.
     7                 (B)  No valid lien or encumbrances on real
     8             property shall be subject to forfeiture or impairment
     9             under this paragraph. A lien that is fraudulent or
    10             intended to avoid forfeiture shall be invalid.
    11     (b)  Process and seizure.--Property subject to forfeiture
    12  under this section may be seized by law enforcement upon process
    13  issued by any court of common pleas having jurisdiction over the
    14  property. Seizure without process may be made if:
    15         (1)  the seizure is incident to an arrest, a search under
    16     a search warrant or inspection under an administrative
    17     inspection warrant;
    18         (2)  the property subject to seizure has been the subject
    19     of a prior judgment in favor of the Commonwealth in a
    20     forfeiture proceeding under this act;
    21         (3)  there is probable cause to believe that the property
    22     is dangerous to health or safety; or
    23         (4)  there is probable cause to believe that the property
    24     has been used or is intended to be used in violation of
    25     section 5(c) or (d).
    26     (c)  Seizure without process.--In the event seizure without
    27  process occurs, as provided in subsection (b), proceedings for
    28  the issuance of process shall be instituted forthwith.
    29     (d)  Custody of property.--Property taken or detained under
    30  this section shall not be subject to replevin but is deemed to
    20030S0885B1713                 - 16 -     

     1  be in the custody of the law enforcement authority subject only
     2  to the orders and decrees of the court of common pleas having
     3  jurisdiction over the forfeiture proceedings and the district
     4  attorney or Attorney General. When property is seized under this
     5  act, the law enforcement authority shall place the property
     6  under seal and either:
     7         (1)  remove the property to a place designated by it; or
     8         (2)  require that the district attorney or Attorney
     9     General take custody of the property and remove it to an
    10     appropriate location for disposition in accordance with law.
    11     (e)  Use of property held in custody.--Property forfeited
    12  under this act shall be transferred to the custody of the
    13  district attorney if the law enforcement authority seizing the
    14  property has local or county jurisdiction or the Attorney
    15  General if the law enforcement authority seizing the property
    16  has Statewide jurisdiction. The district attorney or the
    17  Attorney General, where appropriate, may:
    18         (1)  Retain the property for official use.
    19         (2)  Sell any forfeited property that is not required to
    20     be destroyed by law and is not harmful to the public, but the
    21     proceeds from any sale shall be used to pay all proper
    22     expenses of the proceedings for forfeiture and sale,
    23     including expenses of seizure, custody, advertising and court
    24     costs. The balance of the proceeds shall be dealt with in
    25     accordance with subsections (f) and (g).
    26     (f)  Use of cash or proceeds of property.--Cash or proceeds
    27  of forfeited property transferred to the custody of the district
    28  attorney pursuant to subsection (e) shall be placed in the
    29  operating fund of the county in which the district attorney is
    30  elected. The appropriate county authority shall immediately
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     1  release from the operating fund, without restriction, a like
     2  amount for the use of the district attorney enforcing the
     3  provisions of this act. The entity having budgetary control
     4  shall not anticipate future forfeitures or proceeds therefrom in
     5  adoption and approval of the budget for the district attorney.
     6     (g)  Distribution of property among law enforcement
     7  authorities.--If both municipal and State law enforcement
     8  authorities were substantially involved in effecting the
     9  seizure, the court having jurisdiction over the forfeiture
    10  proceedings shall equitably distribute the property between the
    11  district attorney and the Attorney General.
    12     (h)  Authorization to utilize property.--The district
    13  attorney and the Attorney General shall utilize forfeited
    14  property or the proceeds thereof for the purpose of enforcing
    15  the provisions of this act. In appropriate cases, the district
    16  attorney and the Attorney General may designate proceeds from
    17  forfeited property to be utilized by community-based crime-
    18  fighting programs and for relocation and protection of witnesses
    19  in criminal cases.
    20     (i)  Annual audit of forfeited property.--It shall be the
    21  responsibility of every county in this Commonwealth to provide,
    22  through the controller, board of auditors or other appropriate
    23  auditor and the district attorney, an annual audit of all
    24  forfeited property and proceeds obtained under this section and
    25  the disposition thereof. The audit shall not be made public but
    26  shall be submitted to the Office of Attorney General by
    27  September 30 of each year.
    28     (j)  Annual report; confidential information regarding
    29  property.--The Attorney General shall annually submit a report
    30  to the Appropriations Committee and the Judiciary Committee of
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     1  the Senate and the Appropriations Committee and the Judiciary
     2  Committee of the House of Representatives, specifying the
     3  forfeited property or proceeds thereof obtained under this
     4  section. The report shall provide an accounting of all proceeds
     5  derived from the sale of forfeited property and the use made of
     6  unsold forfeited property. The Attorney General shall adopt the
     7  procedures and guidelines governing the release of information
     8  by the district attorney to protect the confidentiality of
     9  forfeited property or proceeds used in ongoing enforcement
    10  activities.
    11     (k)  Proceeds and appropriations.--The proceeds or future
    12  proceeds from forfeited property under this section shall be in
    13  addition to any appropriation made to the Office of Attorney
    14  General.
    15     Section 4.  This act shall take effect in 180 days.










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