Today’s announced policy would stop the process of adoption, where state and local officials use federal law to forfeit property without charging owners with a crime and then profit from those forfeitures, regardless of whether those forfeitures are permitted under state law. But the new policy leaves open a significant loophole, as state and local law enforcement can still partner with federal agents through joint task forces for forfeitures not permitted under state law, and state and local law enforcement can use such task forces to claim forfeiture proceeds they would not be entitled to under state law. Moreover, the federal government can still pursue its own civil forfeiture actions, where property owners face very significant burdens. And the policy does not change state forfeiture laws, many of which burden property owners and permit policing for profit.
It will, though, go a long, long way towards that goal, by eliminating the perverse financial incentive that “equitable sharing” gave to local law enforcement agencies to grab as many assets as they could get their hands on in order to pad their budgets. Whether or not this is Holder’s way of trying to burnish his legacy before he leaves office, he gets three cheers from this corner.