A landmark ruling by a Nevada judge has blocked state law enforcement from using a federal program to bypass stricter state laws on civil asset forfeiture, marking a major victory for property rights advocates.
Judge Connie Steinheimer of Washoe County ruled that the Nevada Highway Patrol (NHP) cannot participate in the federal "equitable sharing" program, which had allowed officers to seize property under state law but process it federally while receiving up to 80% of the proceeds.
The case emerged after retired Marine Stephen Lara had his life savings of $86,900 seized during a routine traffic stop in February 2021. Despite committing no crime and carrying legal documentation for the money, NHP officers confiscated the cash and transferred it to the Drug Enforcement Administration (DEA).
"Nevada's forfeiture laws require clear and convincing evidence that property is subject to forfeiture, while federal standards are lower," explained Ben Field, attorney at the Institute for Justice, which represented Lara. "The court recognized that state police cannot outsource forfeitures to the federal government simply to make extra money."
The judge's 19-page decision emphasized that while federal agencies can adopt seizures from state law enforcement, state agencies must have independent authority to participate in such transfers. The court found no such authority exists under Nevada law.
This ruling could have nationwide implications for civil forfeiture practices. In 2019 alone, federal agencies distributed $334 million in "adoption" payments to state and local law enforcement through the equitable sharing program.
"This decision serves as a wake-up call to other states that have allowed police to evade their own laws through supposed federal loopholes," said Brian Morris, another Institute for Justice attorney.
While Lara eventually recovered his savings, his case continues as he seeks damages and pursues additional claims under the Nevada Constitution. The state is expected to challenge the ruling, though the Nevada State Police has not commented on the decision.