1.1 	A bill for an act
1.2 	relating to forfeiture; establishing the burden of production on the innocent 
1.3 	owner claimant and the burden of proof on the prosecutor in an innocent owner 
1.4 	case involving DWI, designated offenses, controlled substance offenses, fleeing 
1.5 	offenses, and prostitution offenses; expanding the homestead exemption; 
1.6 	amending Minnesota Statutes 2014, sections 169A.60, subdivision 1; 169A.63, 
1.7 	subdivisions 1, 7, 9; 609.531, subdivision 1, by adding subdivisions; 609.5311, 
1.8 	subdivision 3; 609.5312, subdivisions 2, 3, 4; 609.5318, subdivision 5.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2014, section 169A.60, subdivision 1, is amended to read:
1.11 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
1.12 	meanings given in this subdivision.
1.13 	(b) "Family or household member" has the meaning given in section 169A.63, 
1.14 	subdivision 1 means:
1.15 	(1) a parent, stepparent, or guardian;
1.16 	(2) any of the following persons related by blood, marriage, or adoption: brother, 
1.17 	sister, stepbrother, stepsister, first cousin, aunt, uncle, nephew, niece, grandparent, 
1.18 	great-grandparent, great-uncle, great-aunt; or
1.19 	(3) persons residing together or persons who regularly associate and communicate 
1.20 	with one another outside of a workplace setting.
1.21 	(c) "Motor vehicle" means a self-propelled motor vehicle other than a motorboat in 
1.22 	operation or an off-road recreational vehicle.
1.23 	(d) "Plate impoundment violation" includes:
1.24 	(1) a violation of section 169A.20 (driving while impaired) or 169A.52 (license 
1.25 	revocation for test failure or refusal), or an ordinance from this state or a statute or 
1.26 	ordinance from another state in conformity with either of those sections, that results in 
2.1 	the revocation of a person's driver's license or driving privileges, within ten years of a 
2.2 	qualified prior impaired driving incident;
2.3 	(2) a license disqualification under section 171.165 (commercial driver's license 
2.4 	disqualification) resulting from a violation of section 169A.52 within ten years of a 
2.5 	qualified prior impaired driving incident;
2.6 	(3) a violation of section 169A.20 or 169A.52 while having an alcohol concentration 
2.7 	of twice the legal limit or more as measured at the time, or within two hours of the time, 
2.8 	of the offense;
2.9 	(4) a violation of section 169A.20 or 169A.52 while having a child under the age of 
2.10 	16 in the vehicle if the child is more than 36 months younger than the offender; or
2.11 	(5) a violation of section 171.24 (driving without valid license) by a person whose 
2.12 	driver's license or driving privileges have been canceled or denied under section 171.04, 
2.13 	subdivision 1, clause (10) (persons not eligible for driver's license, inimical to public 
2.14 	safety).
2.15 	(e) "Violator" means a person who was driving, operating, or in physical control of 
2.16 	the motor vehicle when the plate impoundment violation occurred.

2.17 	Sec. 2. Minnesota Statutes 2014, section 169A.63, subdivision 1, is amended to read:
2.18 		Subdivision 1.Definitions. (a) As used in this section, the following terms have 
2.19 	the meanings given them.
2.20 	(b) "Appropriate agency" means a law enforcement agency that has the authority to 
2.21 	make an arrest for a violation of a designated offense or to require a test under section 
2.22 	169A.51 (chemical tests for intoxication).
2.23 	(c) "Claimant" means an owner of a motor vehicle or a person claiming a leasehold 
2.24 	or security interest in a motor vehicle.
2.25 	(d) "Designated license revocation" includes a license revocation under section 
2.26 	169A.52 (license revocation for test failure or refusal) or a license disqualification under 
2.27 	section 171.165 (commercial driver's license disqualification) resulting from a violation 
2.28 	of section 169A.52; within ten years of the first of two or more qualified prior impaired 
2.29 	driving incidents.
2.30 	(e) "Designated offense" includes:
2.31 	(1) a violation of section 169A.20 (driving while impaired) under the circumstances 
2.32 	described in section 169A.24 (first-degree driving while impaired), or 169A.25
2.33 	(second-degree driving while impaired); or
2.34 	(2) a violation of section 169A.20 or an ordinance in conformity with it:
3.1 	(i) by a person whose driver's license or driving privileges have been canceled 
3.2 	as inimical to public safety under section 171.04, subdivision 1, clause (10), and not 
3.3 	reinstated; or
3.4 	(ii) by a person who is subject to a restriction on the person's driver's license under 
3.5 	section 171.09 (commissioner's license restrictions), which provides that the person may 
3.6 	not use or consume any amount of alcohol or a controlled substance.
3.7 	(f) "Family or household member" means:
3.8 	(1) a parent, stepparent, or guardian;
3.9 	(2) any of the following persons related by blood, marriage, or adoption: brother, 
3.10 	sister, stepbrother, stepsister, first cousin, aunt, uncle, nephew, niece, grandparent, 
3.11 	great-grandparent, great-uncle, great-aunt; or
3.12 	(3) persons residing together or persons who regularly associate and communicate 
3.13 	with one another outside of a workplace setting.
3.14 	(g) "Motor vehicle" and "vehicle" do not include a vehicle which is stolen or taken 
3.15 	in violation of the law.
3.16 	(h) (g) "Owner" means a person legally entitled to possession, use, and control of 
3.17 	a motor vehicle, including a lessee of a motor vehicle if the lease agreement has a term 
3.18 	of 180 days or more. There is a rebuttable presumption that a person registered as the 
3.19 	owner of a motor vehicle according to the records of the Department of Public Safety 
3.20 	is the legal owner. For purposes of this section, if a motor vehicle is owned jointly by 
3.21 	two or more people, each owner's interest extends to the whole of the vehicle and is not 
3.22 	subject to apportionment.
3.23 	(i) (h) "Prosecuting authority" means the attorney in the jurisdiction in which the 
3.24 	designated offense occurred who is responsible for prosecuting violations of a designated 
3.25 	offense or a designee. If a state agency initiated the forfeiture, and the attorney responsible 
3.26 	for prosecuting the designated offense declines to pursue forfeiture, the Attorney General's 
3.27 	Office or its designee may initiate forfeiture under this section.
3.28 	(j) (i) "Security interest" means a bona fide security interest perfected according to 
3.29 	section 168A.17, subdivision 2, based on a loan or other financing that, if a vehicle is 
3.30 	required to be registered under chapter 168, is listed on the vehicle's title.

3.31 	Sec. 3. Minnesota Statutes 2014, section 169A.63, subdivision 7, is amended to read:
3.32 		Subd. 7.Limitations on vehicle forfeiture. (a) A vehicle is presumed subject to 
3.33 	forfeiture under this section if:
3.34 	(1) the driver is convicted of the designated offense upon which the forfeiture is based;
4.1 	(2) the driver fails to appear for a scheduled court appearance with respect to the 
4.2 	designated offense charged and fails to voluntarily surrender within 48 hours after the 
4.3 	time required for appearance; or
4.4 	(3) the driver's conduct results in a designated license revocation and the driver 
4.5 	fails to seek judicial review of the revocation in a timely manner as required by section 
4.6 	169A.53, subdivision 2, (petition for judicial review), or the license revocation is judicially 
4.7 	reviewed and sustained under section 169A.53, subdivision 2.
4.8 	(b) A vehicle encumbered by a security interest perfected according to section 
4.9 	168A.17, subdivision 2, or subject to a lease that has a term of 180 days or more, is subject 
4.10 	to the interest of the secured party or lessor unless the party or lessor had knowledge of 
4.11 	or consented to the act upon which the forfeiture is based. However, when the proceeds 
4.12 	of the sale of a seized vehicle do not equal or exceed the outstanding loan balance, the 
4.13 	appropriate agency shall remit all proceeds of the sale to the secured party after deducting 
4.14 	the agency's costs for the seizure, tow, storage, forfeiture, and sale of the vehicle. If the 
4.15 	sale of the vehicle is conducted in a commercially reasonable manner consistent with the 
4.16 	provisions of section 336.9-610, the agency is not liable to the secured party for any 
4.17 	amount owed on the loan in excess of the sale proceeds. The validity and amount of a 
4.18 	nonperfected security interest must be established by its holder by clear and convincing 
4.19 	evidence. The limitations and defenses in section 609.531, subdivisions 9 and 10, apply 
4.20 	to forfeitures under this section.
4.21 	(c) Notwithstanding paragraph (b), the secured party's or lessor's interest in a vehicle 
4.22 	is not subject to forfeiture based solely on the secured party's or lessor's knowledge of 
4.23 	the act or omission upon which the forfeiture is based if the secured party or lessor 
4.24 	demonstrates by clear and convincing evidence that the party or lessor took reasonable 
4.25 	steps to terminate use of the vehicle by the offender.
4.26 	(d) A motor vehicle is not subject to forfeiture under this section if its owner can 
4.27 	demonstrate by clear and convincing evidence that the owner did not have actual or 
4.28 	constructive knowledge that the vehicle would be used or operated in any manner contrary 
4.29 	to law or that the owner took reasonable steps to prevent use of the vehicle by the offender. 
4.30 	If the offender is a family or household member of the owner and has three or more prior 
4.31 	impaired driving convictions, the owner is presumed to know of any vehicle use by the 
4.32 	offender that is contrary to law. "Vehicle use contrary to law" includes, but is not limited 
4.33 	to, violations of the following statutes:
4.34 	(1) section 171.24 (violations; driving without valid license);
4.35 	(2) section 169.791 (criminal penalty for failure to produce proof of insurance);
4.36 	(3) section 171.09 (driving restrictions; authority, violations);
5.1 	(4) section 169A.20 (driving while impaired);
5.2 	(5) section 169A.33 (underage drinking and driving); and
5.3 	(6) section 169A.35 (open bottle law).

5.4 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
5.5 	offenses committed on or after that date.

5.6 	Sec. 4. Minnesota Statutes 2014, section 169A.63, subdivision 9, is amended to read:
5.7 		Subd. 9.Judicial forfeiture procedure. (a) This subdivision governs judicial 
5.8 	determinations of the forfeiture of a motor vehicle used to commit a designated offense or 
5.9 	used in conduct resulting in a designated license revocation. An action for forfeiture is a 
5.10 	civil in rem action and is independent of any criminal prosecution. All proceedings are 
5.11 	governed by the Rules of Civil Procedure.
5.12 	(b) If no demand for judicial determination of the forfeiture is pending, the 
5.13 	prosecuting authority may, in the name of the jurisdiction pursuing the forfeiture, file a 
5.14 	separate complaint against the vehicle, describing it, specifying that it was used in the 
5.15 	commission of a designated offense or was used in conduct resulting in a designated 
5.16 	license revocation, and specifying the time and place of its unlawful use.
5.17 	(c) The prosecuting authority may file an answer to a properly served demand 
5.18 	for judicial determination, including an affirmative counterclaim for forfeiture. The 
5.19 	prosecuting authority is not required to file an answer.
5.20 	(d) A judicial determination under this subdivision must be held at the earliest 
5.21 	practicable date, and in any event no later than 180 days following the filing of the 
5.22 	demand by the claimant. If a related criminal proceeding is pending, the hearing shall not 
5.23 	be held until the conclusion of the criminal proceedings. The district court administrator 
5.24 	shall schedule the hearing as soon as practicable after the conclusion of the criminal 
5.25 	prosecution. The district court administrator shall establish procedures to ensure efficient 
5.26 	compliance with this subdivision. The hearing is to the court without a jury.
5.27 	(e) There is a presumption that a vehicle seized under this section is subject 
5.28 	to forfeiture if the prosecuting authority establishes that the vehicle was used in the 
5.29 	commission of a designated offense or designated license revocation. A claimant bears the 
5.30 	burden of proving any affirmative defense raised The prosecuting authority has the burden 
5.31 	of proof to show by a preponderance of the evidence that the vehicle was used in the 
5.32 	commission of a designated offense or designated license revocation. The limitations and 
5.33 	defenses in section 609.531, subdivisions 9 and 10, apply to forfeitures under this section.
5.34 	(f) If the forfeiture is based on the commission of a designated offense and the person 
5.35 	charged with the designated offense appears in court as required and is not convicted of 
6.1 	the offense, the court shall order the property returned to the person legally entitled to it 
6.2 	upon that person's compliance with the redemption requirements of section 169A.42. If 
6.3 	the forfeiture is based on a designated license revocation, and the license revocation is 
6.4 	rescinded under section 169A.53, subdivision 3 (judicial review hearing, issues, order, 
6.5 	appeal), the court shall order the property returned to the person legally entitled to it upon 
6.6 	that person's compliance with the redemption requirements of section 169A.42.
6.7 	(g) If the lawful ownership of the vehicle used in the commission of a designated 
6.8 	offense or used in conduct resulting in a designated license revocation can be determined 
6.9 	and the owner makes the demonstration required under subdivision 7, paragraph (d) If the 
6.10 	prosecuting authority fails to establish by a preponderance of the evidence that the vehicle 
6.11 	was used in the commission of a designated offense or designated license revocation, the 
6.12 	vehicle must be returned immediately upon the owner's compliance with the redemption 
6.13 	requirements of section 169A.42.
6.14 	(h) If the court orders the return of a seized vehicle under this subdivision it must 
6.15 	order that filing fees be reimbursed to the person who filed the demand for judicial 
6.16 	determination. In addition, the court may order sanctions under section 549.211 (sanctions 
6.17 	in civil actions). Any reimbursement fees or sanctions must be paid from other forfeiture 
6.18 	proceeds of the law enforcement agency and prosecuting authority involved and in the 
6.19 	same proportion as distributed under subdivision 10, paragraph (b).

6.20 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
6.21 	offenses committed on or after that date.

6.22 	Sec. 5. Minnesota Statutes 2014, section 609.531, subdivision 1, is amended to read:
6.23 		Subdivision 1.Definitions. For the purpose of sections 609.531 to 609.5318, the 
6.24 	following terms have the meanings given them.
6.25 	(a) "Actual knowledge" means direct and clear awareness of information, a fact, 
6.26 	or a condition.
6.27 	(b) "Conveyance device" means a device used for transportation and includes, but 
6.28 	is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any 
6.29 	equipment attached to it. The term "conveyance device" does not include property which 
6.30 	is, in fact, itself stolen or taken in violation of the law.
6.31 	(b) (c) "Weapon used" means a dangerous weapon as defined under section 609.02, 
6.32 	subdivision 6, that the actor used or had in possession in furtherance of a crime.
6.33 	(c) (d) "Property" means property as defined in section 609.52, subdivision 1, 
6.34 	clause (1).
7.1 	(e) "Constructive knowledge" means knowledge that is imputed to family or 
7.2 	household members of the owner, as defined in section 169A.60, subdivision 1, paragraph 
7.3 	(b), if the owner has been adjudicated guilty three or more times for the same or a specified 
7.4 	similar violation in the last ten years.
7.5 	(d) (f) "Contraband" means property which is illegal to possess under Minnesota law.
7.6 	(e) (g) "Appropriate agency" means the Bureau of Criminal Apprehension, the 
7.7 	Department of Commerce Fraud Bureau, the Minnesota Division of Driver and Vehicle 
7.8 	Services, the Minnesota State Patrol, a county sheriff's department, the Three Rivers Park 
7.9 	District park rangers, the Department of Natural Resources Division of Enforcement, the 
7.10 	University of Minnesota Police Department, the Department of Corrections Fugitive 
7.11 	Apprehension Unit, a city, metropolitan transit, or airport police department; or a 
7.12 	multijurisdictional entity established under section 299A.642 or 299A.681.
7.13 	(f) (h) "Designated offense" includes:
7.14 	(1) for weapons used: any violation of this chapter, chapter 152 or 624;
7.15 	(2) for driver's license or identification card transactions: any violation of section 
7.16 	171.22; and
7.17 	(3) for all other purposes: a felony violation of, or a felony-level attempt or 
7.18 	conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 
7.19 	609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 
7.20 	609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, 
7.21 	clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, 
7.22 	subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 
7.23 	609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 
7.24 	609.562; 609.563; 609.582; 609.59; 609.595; 609.611; 609.631; 609.66, subdivision 1e; 
7.25 	609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 
7.26 	609.89; 609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation 
7.27 	of section 609.891 or 624.7181; or any violation of section 609.324.
7.28 	(g) (i) "Controlled substance" has the meaning given in section 152.01, subdivision 4.
7.29 	(h) (j) "Prosecuting authority" means the attorney who is responsible for prosecuting 
7.30 	an offense that is the basis for a forfeiture under sections 609.531 to 609.5318.

7.31 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
7.32 	offenses committed on or after that date.

7.33 	Sec. 6. Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision 
7.34 	to read:
8.1 		Subd. 9.Limitations and defenses to forfeiture; ownership or interest at time 
8.2 	of the crime. (a) For purposes of sections 169A.63, 609.5311, 609.5312, 609.5314, and 
8.3 	609.5318, an innocent owner claimant may file a claim for the return of property that the 
8.4 	claimant owned or had interest in at the time of the crime by using the process described 
8.5 	in this subdivision. The innocent owner claimant may file a claim at any time prior to the 
8.6 	commencement of the underlying criminal trial and request a prompt hearing.
8.7 	(b) The prosecuting authority may move to postpone the hearing for a reasonable 
8.8 	period of time not to exceed five days, unless approved by the court, for the prosecuting 
8.9 	authority to complete an investigation of the property related to the underlying criminal 
8.10 	charge.
8.11 	(c) The alleged suspect or convicted offender may invoke the right against 
8.12 	self-incrimination at a civil hearing consistent with state law.
8.13 	(d) The innocent owner claimant has the burden of production to show by a 
8.14 	preponderance of the evidence that the claimant:
8.15 	(1) had a full or joint ownership or security interest in the property at the time the 
8.16 	conduct giving rise to the forfeiture occurred; and
8.17 	(2) is not the person accused or convicted of the crime for which the property is 
8.18 	subject to forfeiture.
8.19 	(e) If the claimant meets the burden of production in paragraph (d), the property 
8.20 	is subject to forfeiture if the prosecuting authority proves by a preponderance of the 
8.21 	evidence that the claimant:
8.22 	(1) had actual or constructive knowledge of the crime giving rise to the forfeiture; or
8.23 	(2) consented to the act or omission upon which the forfeiture is based.
8.24 	(f) If the trier-of-fact determines the property is not subject to forfeiture, all claims 
8.25 	of right, title, and interest to the property that vested in the state are relinquished. The 
8.26 	court shall order the return of the property within a reasonable period of time.
8.27 	(g) Notwithstanding paragraph (f), if the property is jointly owned, the court may 
8.28 	divide and allocate interest in the property among its joint owners and order the return 
8.29 	of a prorated amount of the property only to the innocent owner claimant. The court 
8.30 	may divide and allocate the property based on the joint owners' history of payments of 
8.31 	initial and ongoing costs, or other factors required to realize an equitable division and 
8.32 	allocation of the property.
8.33 	(h) At the claimant's option, the court may realize the division of jointly owned 
8.34 	property in paragraph (g) by ordering:
9.1 	(1) the sale of property in a commercially reasonable manner and dividing the 
9.2 	resulting net proceeds after first extinguishing any security interest perfected according to 
9.3 	section 168A.17, subdivision 2, or subject to a lease that has a term of 180 days or more;
9.4 	(2) the claimant to remit payment for the portion of the net value in the property 
9.5 	not awarded to the claimant; or
9.6 	(3) other equitable means.
9.7 	For purposes of clause (2), the net value is calculated by first establishing the market value 
9.8 	of the property and then subtracting any security interest perfected according to section 
9.9 	168A.17, subdivision 2, or subject to a lease that has a term of 180 days or more.
9.10 	(i) Notwithstanding paragraphs (e) to (h), the court may order the return of the 
9.11 	undivided property to the claimant in a case involving forfeiture under section 169A.63 
9.12 	if the claimant shows by a preponderance of the evidence either that failing to return 
9.13 	the vehicle would deprive the claimant of reasonable means to employment or care for 
9.14 	dependents residing with the claimant, or the innocent owner claimant took reasonable 
9.15 	steps to prevent the use of the vehicle by the offender.
9.16 	(j) The claimant is responsible for paying towing and storage fees if the appropriate 
9.17 	agency returns a seized vehicle within 60 days following seizure. After 60 days following 
9.18 	seizure, the appropriate agency is responsible for paying towing and storage fees if the 
9.19 	trier-of-fact determines the claims are valid.
9.20 	(k) Except as provided in paragraph (h), a motor vehicle encumbered by a security 
9.21 	interest perfected according to section 168A.17, subdivision 2, or subject to a lease that has 
9.22 	a term of 180 days or more, is subject to the interest of the secured party or lessor. When 
9.23 	the proceeds of the sale of a seized motor vehicle encumbered by a perfected security 
9.24 	interest vehicle do not equal or exceed the outstanding loan balance, the appropriate 
9.25 	agency shall remit all proceeds of the sale to the secured party after deducting the agency's 
9.26 	allowed costs for the seizure, towing, storage, forfeiture, and sale of the vehicle.
9.27 	(l) If a sale of a vehicle is conducted in a commercially reasonable manner consistent 
9.28 	with section 336.9-610, the agency is not liable to the secured party for any amount owed 
9.29 	on the loan in excess of the sale proceeds.

9.30 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
9.31 	offenses committed on or after that date.

9.32 	Sec. 7. Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision 
9.33 	to read:
10.1 		Subd. 10.Limitations and defenses to forfeiture; ownership or interest acquired 
10.2 	after crime. (a) For purposes of sections 169A.63, 609.5311, 609.5312, 609.5314, and 
10.3 	609.5318, an innocent owner claimant may file a claim for the return of property that the 
10.4 	claimant acquired an interest in after the time of the crime by using the process described 
10.5 	in this subdivision. The innocent owner claimant may file a claim at any time prior to the 
10.6 	commencement of the underlying criminal trial and request a prompt hearing.
10.7 	(b) The prosecuting authority may move to postpone the hearing for a reasonable 
10.8 	period of time not to exceed five days, unless approved by the court, for the prosecuting 
10.9 	authority to complete an investigation of the property related to the underlying criminal 
10.10 	charge.
10.11 	(c) The alleged suspect or convicted offender may invoke the right against 
10.12 	self-incrimination at a civil hearing consistent with state law.
10.13 	(d) The innocent owner claimant has the burden of production to show by a 
10.14 	preponderance of the evidence that the claimant:
10.15 	(1) acquired a full or joint ownership or security interest in the property after the 
10.16 	commission of the crime giving rise to the forfeiture; and
10.17 	(2) is not the person accused or convicted of the crime for which the property is 
10.18 	subject to forfeiture.
10.19 	(e) Property is subject to forfeiture if the prosecuting authority proves by a 
10.20 	preponderance of the evidence that, at the time of acquisition of the property, the claimant:
10.21 	(1) had actual or constructive knowledge of the crime giving rise to the forfeiture;
10.22 	(2) consented to the act or omission upon which the forfeiture is based; or
10.23 	(3) was not a bona fide purchaser for valuable consideration and without notice of 
10.24 	any defect in title.
10.25 	(f) If the trier-of-fact determines the property is not subject to forfeiture, all claims 
10.26 	of right, title, and interest to the property that vested in the state are relinquished. The 
10.27 	court shall order the return of the property within a reasonable period of time.
10.28 	(g) The claimant is responsible for paying towing and storage fees if the appropriate 
10.29 	agency returns a seized vehicle within 60 days following seizure. After 60 days following 
10.30 	seizure, the appropriate agency is responsible for paying towing and storage fees if the 
10.31 	trier-of-fact determines the claims are valid.

10.32 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
10.33 	offenses committed on or after that date.

10.34 	Sec. 8. Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision 
10.35 	to read:
11.1 		Subd. 11.Return of filing fees. If the court orders the return of seized property 
11.2 	under this section, it must order that filing fees be reimbursed to the person who filed the 
11.3 	demand for judicial determination or contested the forfeiture. Any reimbursement fees 
11.4 	must be paid from other forfeiture proceeds of the appropriate agency and prosecuting 
11.5 	authority involved, in the same proportion as proceeds would be distributed for the sale 
11.6 	of the property had it been forfeited, and any remaining proportion shall be divided and 
11.7 	paid evenly from the agencies.

11.8 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
11.9 	offenses committed on or after that date.

11.10 	Sec. 9. Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision 
11.11 	to read:
11.12 		Subd. 12.Exemption; homestead property. Real property that qualifies for the 
11.13 	homestead exemption as determined in sections 510.01 and 510.02, is not subject to 
11.14 	forfeiture.

11.15 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
11.16 	offenses committed on or after that date.

11.17 	Sec. 10. Minnesota Statutes 2014, section 609.5311, subdivision 3, is amended to read:
11.18 		Subd. 3.Limitations on forfeiture of certain property associated with controlled 
11.19 	substances. (a) A conveyance device is subject to forfeiture under this section only if 
11.20 	the retail value of the controlled substance is $75 or more and the conveyance device is 
11.21 	associated with a felony-level controlled substance crime.
11.22 	(b) Real property that does not qualify for the homestead exemption as determined 
11.23 	in sections 510.01 and 510.02, is subject to forfeiture under this section only if the retail 
11.24 	value of the controlled substance or contraband is $2,000 or more.
11.25 	(c) Property used by any person as a common carrier in the transaction of business 
11.26 	as a common carrier is subject to forfeiture under this section only if the owner of the 
11.27 	property is a consenting party to, or is privy to, the use or intended use of the property as 
11.28 	described in subdivision 2. The limitations and defenses in section 609.531, subdivisions 
11.29 	9 and 10, apply to forfeitures under this section.
11.30 	(d) Property is subject to forfeiture under this section only if its owner was privy to 
11.31 	the use or intended use described in subdivision 2, or the unlawful use or intended use of 
11.32 	the property otherwise occurred with the owner's knowledge or consent.
12.1 	(e) Forfeiture under this section of a conveyance device or real property encumbered 
12.2 	by a bona fide security interest is subject to the interest of the secured party unless the 
12.3 	secured party had knowledge of or consented to the act or omission upon which the 
12.4 	forfeiture is based. A person claiming a security interest bears the burden of establishing 
12.5 	that interest by clear and convincing evidence.
12.6 	(f) Forfeiture under this section of real property is subject to the interests of a good 
12.7 	faith purchaser for value unless the purchaser had knowledge of or consented to the act or 
12.8 	omission upon which the forfeiture is based.
12.9 	(g) Notwithstanding paragraphs (d), (e), and (f), property is not subject to forfeiture based 
12.10 	solely on the owner's or secured party's knowledge of the unlawful use or intended use of 
12.11 	the property if: (1) the owner or secured party took reasonable steps to terminate use of 
12.12 	the property by the offender; or (2) the property is real property owned by the parent of the 
12.13 	offender, unless the parent actively participated in, or knowingly acquiesced to, a violation 
12.14 	of chapter 152, or the real property constitutes proceeds derived from or traceable to a 
12.15 	use described in subdivision 2.
12.16 	(h) (d) The Department of Corrections Fugitive Apprehension Unit shall not seize a 
12.17 	conveyance device or real property, for the purposes of forfeiture under paragraphs (a) 
12.18 	to (g) and (b).

12.19 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to crimes 
12.20 	committed on or after that date.

12.21 	Sec. 11. Minnesota Statutes 2014, section 609.5312, subdivision 2, is amended to read:
12.22 		Subd. 2.Limitations on forfeiture of property associated with designated 
12.23 	offenses. (a) Property used by a person as a common carrier in the transaction of business 
12.24 	as a common carrier is subject to forfeiture under this section only if the owner of the 
12.25 	property is a consenting party to, or is privy to, the commission of a designated offense.
12.26 	The limitations and defenses in section 609.531, subdivisions 9 and 10, apply to forfeitures 
12.27 	under subdivisions 1 and 1a.
12.28 	(b) Property is subject to forfeiture under this section only if the owner was privy to 
12.29 	the act or omission upon which the forfeiture is based, or the act or omission occurred 
12.30 	with the owner's knowledge or consent.
12.31 	(c) Property encumbered by a bona fide security interest is subject to the interest of 
12.32 	the secured party unless the party had knowledge of or consented to the act or omission 
12.33 	upon which the forfeiture is based. A person claiming a security interest bears the burden 
12.34 	of establishing that interest by clear and convincing evidence.
13.1 	(d) Notwithstanding paragraphs (b) and (c), property is not subject to forfeiture 
13.2 	based solely on the owner's or secured party's knowledge of the act or omission upon 
13.3 	which the forfeiture is based if the owner or secured party took reasonable steps to 
13.4 	terminate use of the property by the offender.

13.5 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to crimes 
13.6 	committed on or after that date.

13.7 	Sec. 12. Minnesota Statutes 2014, section 609.5312, subdivision 3, is amended to read:
13.8 		Subd. 3.Vehicle forfeiture for prostitution offenses. (a) A motor vehicle is subject 
13.9 	to forfeiture under this subdivision if it was used to commit or facilitate, or used during 
13.10 	the commission of, a violation of section 609.324 or a violation of a local ordinance 
13.11 	substantially similar to section 609.324. A motor vehicle is subject to forfeiture under 
13.12 	this subdivision only if the offense is established by proof of a criminal conviction for 
13.13 	the offense. Except as otherwise provided in this subdivision, a forfeiture under this 
13.14 	subdivision is governed by sections 609.531, 609.5312, and 609.5313.
13.15 	(b) When a motor vehicle subject to forfeiture under this subdivision is seized in 
13.16 	advance of a judicial forfeiture order, a hearing before a judge or referee must be held 
13.17 	within 96 hours of the seizure. Notice of the hearing must be given to the registered owner 
13.18 	within 48 hours of the seizure. The prosecuting authority shall certify to the court, at or 
13.19 	in advance of the hearing, that it has filed or intends to file charges against the alleged 
13.20 	violator for violating section 609.324 or a local ordinance substantially similar to section 
13.21 	609.324. After conducting the hearing, the court shall order that the motor vehicle be 
13.22 	returned to the owner if:
13.23 	(1) the prosecuting authority has failed to make the certification required by 
13.24 	paragraph (b);
13.25 	(2) the owner of the motor vehicle has demonstrated to the court's satisfaction 
13.26 	that the owner has a defense to the forfeiture, including but not limited to the defenses 
13.27 	contained in subdivision 2 the court finds that the motor vehicle is not subject to forfeiture 
13.28 	under section 609.531, subdivision 9 or 10; or
13.29 	(3) the court determines that seizure of the vehicle creates or would create an undue 
13.30 	hardship for members of the owner's family.
13.31 	(c) If the defendant is acquitted or prostitution charges against the defendant are 
13.32 	dismissed, neither the owner nor the defendant is responsible for paying any costs 
13.33 	associated with the seizure or storage of the vehicle.
13.34 	(d) A vehicle leased or rented under section 168.27, subdivision 4, for a period of 
13.35 	180 days or less is not subject to forfeiture under this subdivision.
14.1 	(e) For purposes of this subdivision, seizure occurs either:
14.2 	(1) at the date at which personal service of process upon the registered owner is 
14.3 	made; or
14.4 	(2) at the date when the registered owner has been notified by certified mail at the 
14.5 	address listed in the Minnesota Department of Public Safety computerized motor vehicle 
14.6 	registration records.
14.7 	(f) The Department of Corrections Fugitive Apprehension Unit shall not participate 
14.8 	in paragraphs (a) to (e).

14.9 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to crimes 
14.10 	committed on or after that date.

14.11 	Sec. 13. Minnesota Statutes 2014, section 609.5312, subdivision 4, is amended to read:
14.12 		Subd. 4.Vehicle forfeiture for fleeing peace officer. (a) A motor vehicle is subject 
14.13 	to forfeiture under this subdivision if it was used to commit a violation of section 609.487
14.14 	and endanger life or property. A motor vehicle is subject to forfeiture under this subdivision 
14.15 	only if the offense is established by proof of a criminal conviction for the offense. Except 
14.16 	as otherwise provided in this subdivision, a forfeiture under this subdivision is governed 
14.17 	by sections 609.531, 609.5312, 609.5313, and 609.5315, subdivision 6.
14.18 	(b) When a motor vehicle subject to forfeiture under this subdivision is seized in 
14.19 	advance of a judicial forfeiture order, a hearing before a judge or referee must be held 
14.20 	within 96 hours of the seizure. Notice of the hearing must be given to the registered owner 
14.21 	within 48 hours of the seizure. The prosecuting authority shall certify to the court, at or 
14.22 	in advance of the hearing, that it has filed or intends to file charges against the alleged 
14.23 	violator for violating section 609.487. After conducting the hearing, the court shall order 
14.24 	that the motor vehicle be returned to the owner if:
14.25 	(1) the prosecuting authority has failed to make the certification required by this 
14.26 	paragraph;
14.27 	(2) the owner of the motor vehicle has demonstrated to the court's satisfaction 
14.28 	that the owner has a defense to the forfeiture, including but not limited to the defenses 
14.29 	contained in subdivision 2 the court finds that the motor vehicle is not subject to forfeiture 
14.30 	under section 609.531, subdivision 9 or 10; or
14.31 	(3) the court determines that seizure of the vehicle creates or would create an undue 
14.32 	hardship for members of the owner's family.
14.33 	(c) If the defendant is acquitted or the charges against the defendant are dismissed, 
14.34 	neither the owner nor the defendant is responsible for paying any costs associated with the 
14.35 	seizure or storage of the vehicle.
15.1 	(d) A vehicle leased or rented under section 168.27, subdivision 4, for a period of 
15.2 	180 days or less is not subject to forfeiture under this subdivision.
15.3 	(e) A motor vehicle that is an off-road recreational vehicle as defined in section 
15.4 	169A.03, subdivision 16, or a motorboat as defined in section 169A.03, subdivision 13, 
15.5 	is not subject to paragraph (b).
15.6 	(f) For purposes of this subdivision, seizure occurs either:
15.7 	(1) at the date at which personal service of process upon the registered owner is 
15.8 	made; or
15.9 	(2) at the date when the registered owner has been notified by certified mail at the 
15.10 	address listed in the Minnesota Department of Public Safety computerized motor vehicle 
15.11 	registration records.
15.12 	(g) The Department of Corrections Fugitive Apprehension Unit shall not seize a 
15.13 	motor vehicle for the purposes of forfeiture under paragraphs (a) to (f).

15.14 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to crimes 
15.15 	committed on or after that date.

15.16 	Sec. 14. Minnesota Statutes 2014, section 609.5318, subdivision 5, is amended to read:
15.17 		Subd. 5.Limitations. (a) A vehicle used by a person as a common carrier in the 
15.18 	transaction of business as a common carrier is subject to forfeiture under this section only 
15.19 	if the owner is a consenting party to, or is privy to, the commission of the act giving rise 
15.20 	to the forfeiture. The limitations and defenses in section 609.531, subdivisions 9 and 
15.21 	10, apply to forfeitures under this section.
15.22 	(b) A vehicle is subject to forfeiture under this section only if the registered owner 
15.23 	was privy to the act upon which the forfeiture is based, the act occurred with the owner's 
15.24 	knowledge or consent, or the act occurred due to the owner's gross negligence in allowing 
15.25 	another to use the vehicle.
15.26 	(c) A vehicle encumbered by a bona fide security interest is subject to the interest of 
15.27 	the secured party unless the party had knowledge of or consented to the act upon which the 
15.28 	forfeiture is based. A person claiming a security interest bears the burden of establishing 
15.29 	that interest by clear and convincing evidence.

15.30 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to crimes 
15.31 	committed on or after that date.