LOOPHOLE IN DRUG FORFEITURE LAW CLOSED

Saying it will help restore faith in police, Gov. Bob Holden on Thursday
signed a bill that dramatically changes how law enforcement handles seized
drug money and property in Missouri.

The new law, which takes effect Aug. 28, will make it much more difficult
for law enforcement agencies to keep the money they seize in drug crimes.

Holden said the new law makes Missouri the "first in the nation to take
this action." The bill closes a loophole in forfeiture law, he said.

Under the state constitution, drug money seized by police should go to
public education. But police in Missouri, as in other states, have been
handing seized money off to federal agencies, which keep part of it and
return up to 80 percent to police.

"This act will hopefully restore the public's confidence in how police
handle seizures, particularly in the area of confiscated funds," Holden said.

More than 35 persons stood in the governor's Capitol reception room for the
signing. They included legislators, education officials and even
representatives of law enforcement, which has opposed the bill.

Among those praising the law were Sen. Harry Wiggins and House Speaker Jim
Kreider as well as Col. Weldon Wilhoit of the Missouri Highway Patrol and
State Auditor Claire McCaskill.

Wiggins, a Kansas City Democrat, and Kreider, a Nixa Democrat, fought
together to pass the bill.

"It's been a long three-year struggle to get -- as the governor said -- a
landmark bill signed not just for Missouri but for the United States,"
Kreider said. "Our state becomes first to take a strong stand not only
against drugs but in support of our constitution and of law enforcement."

McCaskill said a statewide review of audits showed that 85 percent of all
forfeitures were going through the federal system rather than the state,
underlining the problem. She said, however, that forfeiture remains an
important tool for law enforcement.

"I think this legislation will, in fact, allow law enforcement to continue
to do the great job that they do in going after criminal profits, but at
the same time showing a healthy respect for due process and Missouri's
constitution," McCaskill said.

Several persons also praised the relatively new school building revolving
fund, which receives the proceeds of forfeited drug money. They said the
fund, which is intended to be used for low-interest loans to build or
repair school buildings in poor districts, should now be able to grow.

Until 1999, drug money that police did forfeit under state law went into
the school funds of each county to be split by the various school districts.

The new fund was created in 1999 but has received only about $2 million,
while federal figures show police agencies have been able to keep more than
$15 million.

The fund will get a boost later this month because Jackson County failed to
turn over $1.1 million for nine months until a reporter inquired about the
money.

Graham Morris, Jackson County finance director, acknowledged last week that
the money had been overlooked.

Susanne Medley, Department of Revenue spokesman, said she was looking into
the matter to determine what happened.