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The state has been on notice for some time that its practice of taking away property of those suspected of criminal violations does not yet follow proper guidance. Right from the start, in fact. The civil asset forfeiture law was passed in 1988, with the intent that rules would be adopted to provide that guidance.
Thirty years have passed, and those rules are still not on the books, while state and county agencies have carried right on with the asset seizures. According to a state audit, 26% of Hawaii’s civil asset forfeiture cases were closed during the 2015 fiscal year without incurring any criminal charge.
Today, the veto deadline for bills on the governor’s desk, Hawaii residents will see whether the state has the resolve to correct a public injustice.
The Legislature has sought to do so by enacting crucial fixes to the asset forfeiture law; this is one of the principal bills that hang in the balance, to be decided by Gov. David Ige. Others include tax reform for real estate investment trusts (REITs), which also should not be vetoed; and the bill enabling tax collections through the vacation-rental booking platforms, which should.
As for civil asset forfeiture: It’s no wonder that the problem drew the attention of the state auditor, which last year issued a damning report.
Additionally, there’s been criticism by watchdog groups such as the libertarian Institute for Justice, a national nonprofit law firm that gave Hawaii a D-minus for its civil forfeiture laws. The group cited, among other shortcomings, a low bar for forfeiture, with no conviction required.
That is why House Bill 748, a bill to make needed reforms, passed the state Legislature, over protest from the various agencies that have taken advantage of the 1988 law. The case for reform was simply too strong, and despite their continuing protest, remains strong.
The bill would prohibit civil asset forfeiture except when the offense involved is chargeable as a felony and the owner of the asset has been convicted.
Ige, who had put HB 748 on his intent-to-veto list, should today take it off and let it become law, with or without his signature. Those in government pushing for the veto say they are fulfilling the prescriptions of the auditor, but the plain fact is, their long record of laggard attention to the issue weighs against them.
Adoption of the rules was No. 1 on the auditor’s list. That failure by the Department of the Attorney General, which administers the civil asset forfeiture law, speaks volumes.
Getting the rulemaking done was among the department’s goals listed in its annual report to the Legislature — for six years running. And then draft rules have languished for five more years. Only now that it’s on the verge of being reformed has a fire been lit.
The only course that shows respect for the civil rights of citizens would be for Ige to allow the reforms to be made, via HB 748. The people should not be compelled to wait and see whether government cleans up its act.
HB 748 is not the only outstanding measure the public is watching today:
>> Senate Bill 301, which would disallow the tax deduction for dividends paid by REITs for state income tax purposes, should become law. In the interest of fairness, some benefit from these investments should accrue to tax coffers in Hawaii, where the business activity occurs.
>> SB 1292, requiring booking platforms to collect vacation rental hosts’ state taxes, would give cover to illegal operations, as it is now written, and deserves a veto. Counties need to get regulations and enforcement set — and the state can be responsible for its own tax collections.
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