City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01906 12/2/2025
Fiscal Year (FY) 2025/26 Asset Forfeiture Master Plan
File ID: 2025-01906
Location: Citywide
Recommendation: Adopt a Resolution: 1) approving the FY2025/26 Asset Forfeiture Master Plan; 2) authorizing the Interim City Manager, or designee to implement the FY2025/26 Asset Forfeiture Master Plan; 3) adjust the revenue and expense budgets in the Asset Forfeiture Externally Funded Program (EFP) projects (E11008000, E11008100, E11008200, and E11008300) by $304,851; and 4) adjust the allocations proposed in the FY2025/26 Asset Forfeiture Master Plan based on the operational requirements of the Sacramento Police Department.
Contact: Natalie Weaver, Administrative Officer, 916-808-0864, [email protected], Police Department
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution 2024-0220: Asset Forfeiture Policy
3-Resolution: FY2025/26 Asset Forfeiture Master Plan
4-Exhibit A - FY2025/26 Asset Forfeiture Master Plan
Description/Analysis
Issue Detail: This report recommends that City Council approve the FY2025/26 Asset Forfeiture Master Plan (Master Plan), as outlined in Attachment 4. The proposed allocations align with the allowable uses established in current City policy (Resolution 2024-0220, Attachment 2).
The Master Plan serves as the Sacramento Police Department’s (SPD’s) framework for responsibly allocating asset forfeiture funds in support of eligible law enforcement activities, public safety enhancements, and community-oriented initiatives. It ensures that expenditures are consistent with both legal requirements and departmental priorities.
SPD receives a portion of proceeds from forfeited assets under the Federal Comprehensive Crime Control Act of 1984 and the California Uniform Controlled Substances Act (Health and Safety Code
File ID: 2025-01906 12/2/2025
Sections 11469-11495). These revenues are deposited into multiple EFP projects.
Distribution among the EFP projects is determined by the agency responsible for securing the forfeiture and governed by applicable federal and state laws. The use of these funds is regulated by the US Departments of Justice and Treasury’sGuide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies and California Health and Safety Code Sections 11469-11495.
Policy Considerations: Recommendations contained in this report are in accordance with Resolution No. 2025-0162, Section 12.3, which requires Council approval to adjust EFP revenue and expenditure budgets by more than $250,000 and Resolution No. 2024-0220, which requires SPD to submit an Asset Forfeiture Master Plan to City Council on an annual basis.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report are of an administrative nature and are not considered to be a “project” as defined in the CEQA Guidelines, codified at Title 14, Section 15378 of the California Code of Regulations and Section 21065 of the California Public Resources Code.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The federal and state asset forfeiture programs are designed to provide law enforcement agencies with a mechanism to permanently deprive criminals of assets and proceeds obtained through illegal activities. These programs also support public safety by enabling the lawful and equitable distribution of forfeited assets to eligible agencies.
Through participation in these programs, SPD receives funding that may be used to enhance law enforcement capacity, including but not limited to:
· operations and investigations;
· training, education, travel, and per diem expenses;
· law enforcement and public safety facility improvements; · equipment purchase;
· anti-drug, anti-gang, and other prevention or public awareness programs; and · support for community-based organizations.
Both federal and state guidelines require that forfeiture funds be used solely for law enforcement purposes and prohibit their use to replace or otherwise supplant existing resources.
File ID: 2025-01906 12/2/2025
Financial Considerations: Since adoption of the FY2024/25 Asset Forfeiture Expenditure Master Plan (Resolution No. 2024-0221), SPD has received $304,851 in asset forfeiture revenues and interest earnings. The SPD proposes the appropriations be allocated as follows:
Category Amount
Law Enforcement Operations and Investigations 101,762
Law Enforcement Training/Education, Travel and Per Diem 6,144 Law Enforcement and Public Safety Facilities 24,416
Law Enforcement Equipment 104,969
Drug, Gang, and other Prevention/Awareness Programs 11,696 Support of Community Based Organizations (State Funds Only)1 55,864 Total 304,851
1) Mandated allocation; see HS § 11489.
Further details on each of the proposed allocations are included in the Master Plan (Attachment 4).
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO.
Adopted by the Sacramento City Council
[Date]
Fiscal Year (FY) 2025/26 Asset Forfeiture Master Plan
BACKGROUND
A. The Sacramento Police Department receives a portion of proceeds from seized/forfeited assets pursuant to the Federal Comprehensive Crime Control Act of 1984, California Uniform Controlled Substances Act, codified at Health and Safety Code Sections 11469 th rough 11495, and joint agreements with other government agencies.
B. Depending on the agency that secure d the forfeiture, and applicable Federal and State legislation, the revenues are deposited into the following Externally Funded Program (EFP) projects:
1. State Asset Forfeiture, California Health and Safety Code Sections 11469 – 11495
a. E11008000: Narcotics
b. E11008100: Narcotics (Burton Fund)
2. Federal Asset Forfeiture, Federal Comprehensive Crime Control Act of 1984 a. E11008200: U.S. Department of Treasury
b. E11008300: U.S. Department of Justice
C. The administration, budgeting, and expenditure of asset forfeiture funding is governed by the Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies, jointly issued by the U.S. Departments of Treas ury and Justice in March 2024, and California Health and Safety Code Sections 11469 through 11495.
D. The FY2024/25 Asset Forfeiture Master Plan is included as Exhibit A to this resolution.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager, or the City Manager’s designee , is authorized to implement the FY2025/26 Asset Forfeiture Master Plan.
Section 2. The City Manager, or the City Manager’s designee , is authorized to adjust the expenditure a nd revenue budgets in the Asset Forfeiture EFPs (E11008000, E11008100, E11008200, and E11008300) by $304,851.
Section 3. The City Manager, or the City Manager’s designee, is authorized to adjust the allocations proposed in the FY2025/26 Asset Forfeiture M aster Plan based on the operational requirements of the Sacramento Police Department.
Table of Contents:
Exhibit A – FY2025/26 Asset Forfeiture Master Plan
Attachment 4 - Exhibit A
FY2025/26 ASSET FORFEITURE MASTER PLAN
INTRODUCTION
Asset forfeiture and equitable sharing provide law enforcement with a mechanism to permanently remove access to assets derived from criminal activity. These funds are used to support law enforcement operations and drug/gang prevention programming in accordance with applicable federal and state laws.
Proceeds received through forfeiture are deposited into Externally Funded Program (EFP) projects based on the governing legal authority and participating agencies. The Asset Forfeiture Program is regulated by:
Federal Comprehensive Crime Control Act of 1984
California Uniform Controlled Substances Act (Health and Safety Code §§ 11469- 11495)
Federal and state regulations prohibit the use of forfeiture funds to replace existing public resources or to support anticipated revenues.
REVENUE SUMMARY
Since the adoption of Resolution 2024-0221 the SPD has received $289,577 in asset forfeiture disbursements and interest earnings:
Project Name/Number Revenue1
State Asset Forfeiture, Narcotics
(E11008000) 228,075
State Asset Forfeiture, Narcotics – Burton Fund2
(E11008100) 55,864
Equitable Sharing – US Department of Treasury3
(E11008200) 17,605
Equitable Sharing – US Department of Justice3
(E11008300) 3,307
Total $304,851
1) All amounts rounded to the nearest dollar.
2) HS §11489 requires 15% of state forfeiture proceeds be allocated to youth anti -drug/gang education 3) In compliance with HS §11471.2, SPD only receives federal funds when the criminal conviction requirement and/or monetary threshold is met.
PROPOSED EXPENDITURE PLAN
The SPD proposes the following funding allocations:
Allocation Category Allocation
Amount
Law Enforcement Operations, Investigations, and Administration 101,762 Law Enforcement Training/Education, Travel and Per Diem 6,144 Law Enforcement and Public Safety Facilities 24,416
Law Enforcement Equipment 104,969
Drug, Gang, and other Prevention/Awareness Programs 11,696 Support of Community Based Organizations (State Funds Only)1 55,864 Total $304,851
1) As mandated by HS § 11489
The Allocation Categories are defined as follows:
Law enforcement administrative costs: Administrative costs that further the agency’s law enforcement goals or missions. Examples include, but are not limited to, agency accreditation, banking and equitable sharing account maintenance fees, or agency membership dues. Memberships and dues for an individual are impermissible.
Law enforcement training and education: Training of agency personnel in any area necessary to perform official law enforcement duties, provided the training is essential to the employees’ regular duties. Funds cannot be used to pay for training expenses of non -agency personnel. Examples include, but are not limited to, registration fees, tuition, speaker fees, or costs to produce training curricula on topics such as serving as a canine handler, narcotics detection, defensive tactics, criminal justice, languages, constitutional law, accounting and finance, or forensics.
Law enforcement , public safety , and detention facilities: Purchase, lease, operation of law enforcement, public safety or detention facilities used or managed by the City. Examples include costs of leasing, operating, and furnishing owned and occupied facilities. Improvements to leased facilities are prohibited. Certain improvements or expansion projects require prior approval from the US Department of Justi ce, refer to the Guide to Equitable Sharing State, Local, and Tribal Law Enforcement Agencies (“the Guide”) for further information.
Law enforcement equipment: Purchase, lease, maintenance (including repairs or service agreements), or operation of law enforcement equipment for use by law enforcement personnel that supports law enforcement activities. Examples include furniture; file cabinets; office supplies; telecommunications equipment; copiers; safes; fitness equipment; computers; computer accessories a nd software; body armor; uniforms; firearms; radios; electronic surveillance equipment; vehicles (e.g., patrol and unmarked vehicles); and animals and animal-related expenses.
Joint law enforcement and public safety operations: Costs associated with the purchase of multi -use equipment and operations used by both law enforcement and non-law enforcement personnel. Examples include, but are not limited to 911 call center equipment, defibrillators, Naloxone, search and rescue boats, aircraft, and diving equip ment. There must be a law enforcement use; the equipment cannot be solely for non -law enforcement operations, such as fire and EMS vehicles.
Contracts for services: Costs associated with a contract for a specific service that supports or enhances law enforcement. Examples include, but are not limited to, translation and language assistance services, outsourced laboratory testing, staffing and feasibility studies, auditing of equitable shared funds, Employee Assistance Program services, subject matter expert consultations, grant writing, or software development. Employment -related contracts involving inherently law enforcement functions are prohibited. Examples include, but are not limited to:
hiring an attorney, investigator, or civilian personnel to perfor m tasks typically or previously performed by agency or jurisdiction personnel.
Law enforcement travel and per diem: Costs associated with travel and transportation for law enforcement agency personnel to perform or support law enforcement duties and activ ities. Travel and per diem for personnel from other agencies is not permitted. All related costs must be in accordance with the jurisdiction’s travel and per diem policies.
Law enforcement awards and memorials: Costs associated with the purchase of plaque s, certificates, commemorative badges, and challenge coins in recognition of a law enforcement achievement, activity or training. Shared funds may not be used to pay monetary awards in any form, including cash, cash equivalents, or stored value cards.
Drug, gang and other prevention/awareness programs: Costs associated with conducting law enforcement agency awareness programs. Examples include, but are not limited to, public service announcements, meeting costs, motivational speakers, and items used or distributed by the agency such as child identification kits and anti -crime items, literature or software. This does not include support of community-based organizations.
Support of community-based organizations: Under HS § 11489, 15 percent of the funds distributed to the state, local, or state and local law enforcement entities that participated in the seizure proceedings must be maintained in a separate account and shall be used for the sole purpose of funding programs designed to combat drug use and divert gang activity to cause the development and continuation of positive intervention programs for high -risk elementary and secondary school-age students.
Under the terms of the Guide, federal equitable sharing funds may not be donated to or used to purchase items for community-based organizations.
Each of the programs identified below is geared towards high-risk elementary and high school students. These programs also include drug abuse and anti -gang activity education and have a proven track record of success. Also, all programs are collaborative and involve partnerships with educators, parent s, sworn law enforcement officers, community -based organizations, and local businesses.
Examples of the programs that have received funding in the past include:
FUNDING RESTRICTIONS AND GUIDELINES
Asset forfeiture revenues are governed by strict state and federal guidelines, which prohibit supplanting and require funds be used exclusively for law enforcement purposes.
Specific EFPs and their governing restrictions are as follows:
State Asset Forfeiture
Regulated by Health and Safety Code §§ 11469 -11495. Funds must be used for law enforcement purposes and drug/gang diversion, with certain expenditures subject to approval by a regional law enforcement panel.
1) E11008000 – Narcotics Investigations
In accor dance with California Health and Safety Code sections 11469 through 11495, and a memorandum of understanding with the Sacramento County District Attorney’s Office, all property forfeited under the provisions of this code shall be distributed amongst the se izing agency(ies), the Sacramento County District Attorney’s Office, the State of California, and a private nonprofit organization comprised of local prosecutors that provides education and training for prosecutors and law enforcement in program ethics and proper application of relevant laws.
Guidelines for Use
Funding must be used to support law enforcement efforts (HS § 11489(d)) Funding shall not be used to replace or supplant local resources (HS § 11489(d))
No sworn law enforcement officer’s employment or salary shall be made dependent upon the level of forfeitures (HS § 11469(b)) Forfeiture proceeds shall be maintained in a separate fund or account subject to the appropriate accounting controls and annual financial audits (HS § 11469(h))
Seizing agencies shall implement training for officers assigned to forfeiture programs, which training should be ongoing (HS § 11469(e)).
2) E11008100 – Burton Fund (15% youth programming set-aside)
In accordance with California Health and Safety Code sections 11469 through 11495, and a memorandum of understanding with the Sacramento County District Attorney’s Office, 15 percent of funds distributed to the State Narcotics Investigations Project (E11008000) must be maintained in a separate account for youth programming dedicated to anti-drug/gang education. Expenditures must be approved by a panel consisting of the Chief of Police, Sacramento County Sheriff, Sacramento County District Attorney, and the Sacramento County Chief Probation Officer.
Guidelines for Use
Funding must be used to support law enforcement efforts (HS § 11489(d)) Funding shall not be used to replace or supplant local resources (HS § 11489(d))
No sworn law enforcement officer’s employment or salary shall be made dependent upon the level of forfeitures (HS § 11469(b)) Forfeiture proceeds shall be maintained in a separate fund or account subject to the appropriate accounting controls and annual financial audits (HS § 11469(h))
Seizing agencies shall implement training for officers assigned to forfeiture programs, which training should be ongoing (HS § 11469(e)). Funds shall be used “for the sole purpose of [supporting] programs designed to combat drug abuse and divert gang activity” (HS § 11489(b)). Funding “shall wherever possible involve educators, parents, community- based organizations and local businesses, and uniformed law enforcement officers” (HS § 11489(b)).
Programs must cause the development and continuation of positive intervention programs for high-risk elementary and secondary-age students (HS § 11489(b)).
Distribution of funding must be approved by a panel consisting of the Chief of Police, Sacramento County Sheriff, Sacramento County District Attorney, and the Sacramento County Chief Probation Officer (HS §11489(b)).
Federal Asset Forfeiture
Governed by the Guide to Equitable Sharing to State, Local, and Tribal Law Enforcement Agencies. Federal funds cannot be donated to community-based organizations and must benefit law enforcement directly.
1) E11008200 – Department of Treasury
The authority for the Department of Treasury ( USDT) to share federally forfeited assets with participating federal, state, and local law enforcement agencies is established by federal law (18 USC § 981(e), 19 USC § 1616a(c) and 31 USC §§ 9703(a)(1)(G) and 9703(h)). The sharing of forfeited assets is discretionary.
Guidelines for Use:
Permissible uses for this funding are outlined in the Guide (https://www.justice.gov/criminal/media/1044326/dl). This funding can only be used for law enforcement purposes, and the DOT will terminate the sharing of asset forfeiture funds with any law enforcement agency that does not directly benefit from these funds.
General Guidance:
Funding must not be used to replace or supplant local resources Interest income on funding is subject to the same guidelines as outlined above
Anticipated funding should not be budgeted
Funding should not be retained unnecessarily
All interest earnings must remain in the project
2) E11008300 – Department of Justice
Federal law allows the Department of Justice (DOJ) to share forfeited property with participating state and local law enforcement agencies (21 USC § 881(e)(1)(A) and (e)(3), 18 USC § 981(e)(2), and 19 USC § 1616a). Sharing is discretionary and not required.
Guidelines for Use
Permissible uses for this funding are outlined in the Guide (https://www.justice.gov/criminal/media/1044326/dl). The DOJ will terminate sharing of asset forfeiture funds with any law enforcement agency that does not directly benefit from these funds.
General Guidance:
Funding must not be used to replace or supplant local resources Interest income on funding is subject to the same guidelines outlined above Anticipated funding should not be budgeted
Funding should not be retained unnecessarily
All interest earnings must remain in the project