INDIANAPOLIS | Legislation changing the distribution of proceeds in forfeiture cases was vetoed Friday by Republican Gov. Mitch Daniels.

Senate Enrolled Act 215 would have given nearly 90 percent of forfeiture proceeds to the county prosecutor and police agencies involved in a case that led to the seizing of criminally used property, with the remainder going to the Common School Fund.

In his veto message, Daniels said paying out 90 cents of every forfeiture dollar for the "expense of collection" is improper.

"That is unwarranted as policy and constitutionally unacceptable in light of the Supreme Court's recent guidance and the plain language of Article 8, Section 2 of the Indiana Constitution," Daniels said.

Under the state constitution, proceeds from all seizures are required to be paid into the Common School Fund, which is used for loans to school corporations for construction and technology projects.

On April 27, two days before the end of the legislative session, the Indiana Supreme Court reaffirmed that all forfeiture money must be paid to the Common School Fund.

The Republican-controlled General Assembly nevertheless approved the distribution change on April 29 by a vote of 53-43 in the House and 45-5 in the Senate.

State Sen. Richard Bray, R-Martinsville, said he sponsored the legislation because too many police agencies were deducting "law enforcement expenses" from forfeiture proceeds and not sending any money to the school fund.