Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 4571

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/16/2020 11:53pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10
1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 3.1 3.2 3.3 3.4 3.5
3.6 3.7
3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17
4.18 4.19
4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 6.1 6.2 6.3 6.4
6.5 6.6
6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10
8.11 8.12
8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18
9.19 9.20
9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23
11.24 11.25
11.26 11.27 11.28 11.29 11.30 11.31 11.32 12.1 12.2
12.3
12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12
13.13
13.14 13.15 13.16 13.17 13.18
13.19 13.20
13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10
14.11 14.12
14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21
15.22 15.23
15.24 15.25 15.26 15.27 15.28 15.29
15.30 15.31
16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 17.1 17.2 17.3 17.4 17.5
17.6 17.7
17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23
18.24 18.25
18.26 18.27 18.28 18.29 18.30 18.31 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30
19.31 19.32
20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17
20.18 20.19
20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11
21.12 21.13
21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8
24.9 24.10
24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21
24.22
24.23 24.24 24.25 24.26
24.27 24.28
24.29

A bill for an act
relating to forfeiture; limiting vehicles and other property subject to forfeiture;
providing for recovery of property by innocent owners; modifying participation
in the federal equitable sharing program; requiring reports; appropriating money;
amending Minnesota Statutes 2018, sections 169A.63, subdivisions 1, 7, 8, 10, by
adding subdivisions; 609.531, subdivision 1, by adding a subdivision; 609.5311,
subdivisions 2, 3, 4; 609.5314, subdivisions 1, 2, by adding a subdivision; 609.5315,
subdivisions 5, 5b, 6; Minnesota Statutes 2019 Supplement, section 169A.63,
subdivision 13; repealing Minnesota Statutes 2018, section 609.5317.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 169A.63, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) As used in this section, the following terms have the
meanings given them.

(b) "Appropriate agency" means a law enforcement agency that has the authority to
make an arrest for a violation of a designated offense or to require a test under section
169A.51 (chemical tests for intoxication).

new text begin (c) "Asserting person" means a person, other than the driver alleged to have committed
a designated offense, claiming an ownership interest in a vehicle that has been seized or
restrained under this section.
new text end

deleted text begin (c)deleted text end new text begin(d) new text end"Claimant" means an owner of a motor vehicle or a person claiming a leasehold
or security interest in a motor vehicle.

deleted text begin (d)deleted text endnew text begin (e)new text end "Designated license revocation" includes a license revocation under section
169A.52 (license revocation for test failure or refusal) or 171.177 (revocation; search warrant)
or a license disqualification under section 171.165 (commercial driver's license
disqualification) resulting from a violation of section 169A.52 or 171.177; within ten years
of the first of two or more qualified prior impaired driving incidents.

deleted text begin (e)deleted text endnew text begin (f)new text end "Designated offense" includes:

(1) a violation of section 169A.20 (driving while impaired) under the circumstances
described in section 169A.24 (first-degree driving while impaired)deleted text begin, or 169A.25
(second-degree driving while impaired)
deleted text end; or

(2) a violation of section 169A.20 or an ordinance in conformity with itdeleted text begin:deleted text endnew text begin within ten years
of the first of two qualified prior impaired driving incidents.
new text end

deleted text begin (i) by a person whose driver's license or driving privileges have been canceled as inimical
to public safety under section 171.04, subdivision 1, clause (10), and not reinstated; or
deleted text end

deleted text begin (ii) by a person who is subject to a restriction on the person's driver's license under
section 171.09 (commissioner's license restrictions), which provides that the person may
not use or consume any amount of alcohol or a controlled substance.
deleted text end

deleted text begin (f)deleted text endnew text begin (g)new text end "Family or household member" means:

(1) a parent, stepparent, or guardian;

(2) any of the following persons related by blood, marriage, or adoption: brother, sister,
stepbrother, stepsister, first cousin, aunt, uncle, nephew, niece, grandparent,
great-grandparent, great-uncle, great-aunt; or

(3) persons residing together or persons who regularly associate and communicate with
one another outside of a workplace setting.

deleted text begin (g)deleted text endnew text begin (h)new text end "Motor vehicle" and "vehicle" do not include a vehicle which is stolen or taken
in violation of the law.

deleted text begin (h)deleted text endnew text begin (i)new text end "Owner" means a person legally entitled to possession, use, and control of a motor
vehicle, including a lessee of a motor vehicle if the lease agreement has a term of 180 days
or more. There is a rebuttable presumption that a person registered as the owner of a motor
vehicle according to the records of the Department of Public Safety is the legal owner. For
purposes of this section, if a motor vehicle is owned jointly by two or more people, each
owner's interest extends to the whole of the vehicle and is not subject to apportionment.

deleted text begin (i)deleted text endnew text begin (j)new text end "Prosecuting authority" means the attorney in the jurisdiction in which the
designated offense occurred who is responsible for prosecuting violations of a designated
offense or a designee. If a state agency initiated the forfeiture, and the attorney responsible
for prosecuting the designated offense declines to pursue forfeiture, the Attorney General's
Office or its designee may initiate forfeiture under this section.

deleted text begin (j)deleted text endnew text begin (k)new text end "Security interest" means a bona fide security interest perfected according to
section 168A.17, subdivision 2, based on a loan or other financing that, if a vehicle is
required to be registered under chapter 168, is listed on the vehicle's title.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2018, section 169A.63, subdivision 7, is amended to read:


Subd. 7.

Limitations on vehicle forfeiture.

(a) A vehicle is presumed subject to forfeiture
under this section if:

(1) the driver is convicted of the designated offense upon which the forfeiture is based;new text begin
or
new text end

deleted text begin (2) the driver fails to appear for a scheduled court appearance with respect to the
designated offense charged and fails to voluntarily surrender within 48 hours after the time
required for appearance; or
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end the driver's conduct results in a designated license revocation and the driver fails
to seek judicial review of the revocation in a timely manner as required by section 169A.53,
subdivision 2
, (petition for judicial review), or the license revocation is judicially reviewed
and sustained under section 169A.53, subdivision 2.

(b) A vehicle encumbered by a security interest perfected according to section 168A.17,
subdivision 2
, or subject to a lease that has a term of 180 days or more, is subject to the
interest of the secured party or lessor unless the party or lessor had knowledge of or consented
to the act upon which the forfeiture is based. However, when the proceeds of the sale of a
seized vehicle do not equal or exceed the outstanding loan balance, the appropriate agency
shall remit all proceeds of the sale to the secured party after deducting the agency's costs
for the seizure, tow, storage, forfeiture, and sale of the vehicle. If the sale of the vehicle is
conducted in a commercially reasonable manner consistent with the provisions of section
336.9-610, the agency is not liable to the secured party for any amount owed on the loan in
excess of the sale proceeds. The validity and amount of a nonperfected security interest
must be established by its holder by clear and convincing evidence.

(c) Notwithstanding paragraph (b), the secured party's or lessor's interest in a vehicle is
not subject to forfeiture based solely on the secured party's or lessor's knowledge of the act
or omission upon which the forfeiture is based if the secured party or lessor demonstrates
by clear and convincing evidence that the party or lessor took reasonable steps to terminate
use of the vehicle by the offender.

deleted text begin (d) A motor vehicle is not subject to forfeiture under this section if any of its owners
who petition the court can demonstrate by clear and convincing evidence that the petitioning
owner did not have actual or constructive knowledge that the vehicle would be used or
operated in any manner contrary to law or that the petitioning owner took reasonable steps
to prevent use of the vehicle by the offender. If the offender is a family or household member
of any of the owners who petition the court and has three or more prior impaired driving
convictions, the petitioning owner is presumed to know of any vehicle use by the offender
that is contrary to law. "Vehicle use contrary to law" includes, but is not limited to, violations
of the following statutes:
deleted text end

deleted text begin (1) section 171.24 (violations; driving without valid license);
deleted text end

deleted text begin (2) section 169.791 (criminal penalty for failure to produce proof of insurance);
deleted text end

deleted text begin (3) section 171.09 (driving restrictions; authority, violations);
deleted text end

deleted text begin (4) section 169A.20 (driving while impaired);
deleted text end

deleted text begin (5) section 169A.33 (underage drinking and driving); and
deleted text end

deleted text begin (6) section 169A.35 (open bottle law).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2018, section 169A.63, is amended by adding a subdivision to
read:


new text begin Subd. 7a. new text end

new text begin Innocent owner. new text end

new text begin (a) An asserting person may bring an innocent owner claim
by notifying the prosecuting authority in writing and within 60 days of the service of the
notice of seizure.
new text end

new text begin (b) Upon receipt of notice pursuant to paragraph (a), the prosecuting authority may
release the vehicle to the asserting person. If the prosecuting authority proceeds with the
forfeiture, the prosecuting authority must, within 30 days, file a separate complaint in the
name of the jurisdiction pursuing the forfeiture against the vehicle, describing the vehicle,
specifying that the vehicle was used in the commission of a designated offense or was used
in conduct resulting in a designated license revocation, and specifying the time and place
of the vehicle's unlawful use. The complaint may be filed in district court or conciliation
court and the filing fee is waived.
new text end

new text begin (c) A complaint filed by the prosecuting authority must be served on the asserting person
and on any other registered owners. Service may be made by certified mail at the address
listed in the Department of Public Safety's computerized motor vehicle registration records
or by any means permitted by court rules.
new text end

new text begin (d) The hearing on the complaint shall, to the extent practicable, be held within 30 days
of the filing of the petition. The court may consolidate the hearing on the complaint with a
hearing on any other complaint involving a claim of an ownership interest in the same
vehicle.
new text end

new text begin (e) At a hearing held pursuant to this subdivision, the prosecuting authority must:
new text end

new text begin (1) prove by a preponderance of the evidence that the seizure was incident to a lawful
arrest or a lawful search; and
new text end

new text begin (2) certify that the prosecuting authority has filed, or intends to file, charges against the
driver for a designated offense or that the driver has a designated license revocation.
new text end

new text begin (f) At a hearing held pursuant to this subdivision, the asserting person must prove by a
preponderance of the evidence that the asserting person:
new text end

new text begin (1) has an actual ownership interest in the vehicle; and
new text end

new text begin (2) did not have actual or constructive knowledge that the vehicle would be used or
operated in any manner contrary to law or that the asserting person took reasonable steps
to prevent use of the vehicle by the alleged offender.
new text end

new text begin (g) If the court determines that the state met both burdens under paragraph (e) and the
asserting person failed to meet any burden under paragraph (f), the court shall order that
the vehicle remains subject to forfeiture under this section.
new text end

new text begin (h) The court shall order that the vehicle is not subject to forfeiture under this section
and shall order the vehicle returned to the asserting person if it determines that:
new text end

new text begin (1) the state failed to meet any burden under paragraph (e);
new text end

new text begin (2) the asserting person proved both elements under paragraph (f); or
new text end

new text begin (3) clauses (1) and (2) apply.
new text end

new text begin (i) If the court determines that the asserting person is an innocent owner and orders the
vehicle returned to the innocent owner, an entity in possession of the vehicle is not required
to release it until the innocent owner pays:
new text end

new text begin (1) the reasonable costs of the towing, seizure, and storage of the vehicle incurred before
the innocent owner provided the notice required under paragraph (a); and
new text end

new text begin (2) any reasonable costs of storage of the vehicle incurred more than two weeks after
an order issued under paragraph (h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2018, section 169A.63, subdivision 8, is amended to read:


Subd. 8.

Administrative forfeiture procedure.

(a) A motor vehicle used to commit a
designated offense or used in conduct resulting in a designated license revocation is subject
to administrative forfeiture under this subdivision.

(b) Within 60 days from when a motor vehicle is seized under subdivision 2, or within
a reasonable time after seizure, the appropriate agency shall serve the driver or operator of
the vehicle with a notice of the seizure and intent to forfeit the vehicle. Additionally, when
a motor vehicle is seized under subdivision 2, or within a reasonable time after that, all
persons known to have an ownership, possessory, or security interest in the vehicle must
be notified of the seizure and the intent to forfeit the vehicle. For those vehicles required to
be registered under chapter 168, the notification to a person known to have a security interest
in the vehicle is required only if the vehicle is registered under chapter 168 and the interest
is listed on the vehicle's title. Upon motion by the appropriate agency or prosecuting
authority, a court may extend the time period for sending notice for a period not to exceed
90 days for good cause shown. Notice mailed by certified mail to the address shown in
Department of Public Safety records is sufficient notice to the registered owner of the
vehicle. For motor vehicles not required to be registered under chapter 168, notice mailed
by certified mail to the address shown in the applicable filing or registration for the vehicle
is sufficient notice to a person known to have an ownership, possessory, or security interest
in the vehicle. Otherwise, notice may be given in the manner provided by law for service
of a summons in a civil action.

(c) The notice must be in writing and contain:

(1) a description of the vehicle seized;

(2) the date of seizure; and

(3) notice of the right to obtain judicial review of the forfeiture and of the procedure for
obtaining that judicial review, printed in English. This requirement does not preclude the
appropriate agency from printing the notice in other languages in addition to English.

Substantially the following language must appear conspicuously in the notice:

"WARNING: new text beginIf you were the driver, new text endyou will automatically lose the above-described
property and the right to be heard in court if you do not file a lawsuit and serve the
prosecuting authority within 60 days. You may file your lawsuit in conciliation court if the
property is worth $15,000 or less; otherwise, you must file in district court. You deleted text beginmaydeleted text end new text begindonew text end
not have to pay a filing fee for your lawsuit deleted text beginif you are unable to afford the fee. You do not
have
deleted text enddeleted text beginto pay a conciliation court fee if your property is worth less than $500deleted text end.

new text begin WARNING: If you have an ownership interest in the vehicle and were not the driver,
you will automatically lose the above-described property and the right to be heard in court
if you do not notify the prosecuting authority of your interest in writing within 60 days.
new text end"

(d) If notice is not sent in accordance with paragraph (b), and no time extension is granted
or the extension period has expired, the appropriate agency shall return the deleted text beginpropertydeleted text endnew text begin vehiclenew text end
to the deleted text beginperson from whom the property was seized, if knowndeleted text endnew text begin ownernew text end. An agency's return of
property due to lack of proper notice does not restrict the agency's authority to commence
a forfeiture proceeding at a later time. deleted text beginThe agency shall not be required to return contraband
or other property that the person from whom the property was seized may not legally possess.
deleted text end

(e) Within 60 days following service of a notice of seizure and forfeiture under this
subdivision, a claimant may file a demand for a judicial determination of the forfeiture. The
demand must be in the form of a civil complaint and must be filed with the court
administrator in the county in which the seizure occurred, together with proof of service of
a copy of the complaint on the prosecuting authority having jurisdiction over the forfeituredeleted text begin,
including the standard filing fee for civil actions unless the petitioner has the right to sue
in forma pauperis under section 563.01
deleted text end. The claimant may serve the complaint by new text begincertified
mail or
new text endany means permitted by court rules. If the value of the seized property is $15,000
or less, the claimant may file an action in conciliation court for recovery of the seized vehicle.
A copy of the conciliation court statement of claim must be served personally or by mail
on the prosecuting authority having jurisdiction over the forfeituredeleted text begin, as well as on the
appropriate agency that initiated the forfeiture,
deleted text end within 60 days following service of the
notice of seizure and forfeiture under this subdivision. deleted text beginIf the value of the seized property is
less than $500,
deleted text end The claimant does not have to pay the deleted text beginconciliationdeleted text end court filing fee.

No responsive pleading is required of the prosecuting authority and no court fees may
be charged for the prosecuting authority's appearance in the matter. The prosecuting authority
may appear for the appropriate agency. Pleadings, filings, and methods of service are
governed by the Rules of Civil Procedure.

(f) The complaint must be captioned in the name of the claimant as plaintiff and the
seized vehicle as defendant, and must state with specificity the grounds on which the claimant
alleges the vehicle was improperly seized, the claimant's interest in the vehicle seized, and
any affirmative defenses the claimant may have. Notwithstanding any law to the contrary,
an action for the return of a vehicle seized under this section may not be maintained by or
on behalf of any person who has been served with a notice of seizure and forfeiture unless
the person has complied with this subdivision.

(g) If the claimant makes a timely demand for a judicial determination under this
subdivision, the forfeiture proceedings must be conducted as provided under subdivision
9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2018, section 169A.63, subdivision 10, is amended to read:


Subd. 10.

Disposition of forfeited vehicle.

(a) If the vehicle is administratively forfeited
under subdivision 8, or if the court finds under subdivision 9 that the vehicle is subject to
forfeiture under subdivisions 6 and 7, the appropriate agency shall:

(1) sell the vehicle and distribute the proceeds under paragraph (b); or

(2) keep the vehicle for official use. If the agency keeps a forfeited motor vehicle for
official use, it shall make reasonable efforts to ensure that the motor vehicle is available for
use by the agency's officers who participate in the drug abuse resistance education program.

(b) The proceeds from the sale of forfeited vehicles, after payment of seizure, towing,
storage, forfeiture, and sale expenses, and satisfaction of valid liens against the property,
must be distributed as follows:

(1) 70 percent of the proceeds must be forwarded to the appropriate agency for deposit
as a supplement to the state or local agency's operating fund or similar fund for use in
DWI-related enforcement, training, deleted text beginanddeleted text end educationnew text begin, crime prevention, equipment, or capital
expenses
new text end; and

(2) 30 percent of the money or proceeds must be forwarded to the prosecuting authority
that handled the forfeiture for deposit as a supplement to its operating fund or similar fund
for prosecutorial purposesnew text begin, training, education, crime prevention, equipment, or capital
expenses. For purposes of this subdivision, the prosecuting authority shall not include
privately contracted prosecutors of a local political subdivision and, in those events, the
forfeiture proceeds shall be forwarded to the political subdivision where the forfeiture was
handled for the purposes identified in clause (1)
new text end.

(c) If a vehicle is sold under paragraph (a), the appropriate agency shall not sell the
vehicle to: (1) an officer or employee of the agency that seized the property or to a person
related to the officer or employee by blood or marriage; or (2) the prosecuting authority or
any individual working in the same office or a person related to the authority or individual
by blood or marriage.

(d) Sales of forfeited vehicles under this section must be conducted in a commercially
reasonable manner.

(e) If a vehicle is forfeited administratively under this section and no demand for judicial
determination is made, the appropriate agency shall provide the prosecuting authority with
a copy of the forfeiture or evidence receipt, the notice of seizure and intent to forfeit, a
statement of probable cause for forfeiture of the property, and a description of the property
and its estimated value. Upon review and certification by the prosecuting authority that (1)
the appropriate agency provided a receipt in accordance with subdivision 2, paragraph (c),
(2) the appropriate agency served notice in accordance with subdivision 8, and (3) probable
cause for forfeiture exists based on the officer's statement, the appropriate agency may
dispose of the property in any of the ways listed in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 169A.63, subdivision 13, is amended
to read:


Subd. 13.

Exception.

(a) new text beginA forfeiture proceeding is stayed and the vehicle must be
returned
new text endif the driver deleted text beginwho committed a designated offense or whose conduct resulted in a
designated license revocation
deleted text end becomes a program participant in the ignition interlock program
under section 171.306 at any time before the motor vehicle is forfeiteddeleted text begin, the forfeiture
proceeding is stayed and the vehicle must be returned
deleted text endnew text begin and any of the following apply:
new text end

new text begin (1) the driver committed a designated offense other than a violation of section 169A.20
under the circumstances described in section 169A.24; or
new text end

new text begin (2) the driver is accepted into a treatment court dedicated to changing the behavior of
alcohol- and other drug-dependent offenders arrested for driving while impaired
new text end.

(b) Notwithstanding paragraph (a), the vehicle whose forfeiture was stayed in paragraph
(a) may be seized and the forfeiture action may proceed under this section if the program
participant described in paragraph (a):

(1) subsequently operates a motor vehicle:

(i) to commit a violation of section 169A.20 (driving while impaired);

(ii) in a manner that results in a license revocation under section 169A.52 (license
revocation for test failure or refusal) or 171.177 (revocation; search warrant) or a license
disqualification under section 171.165 (commercial driver's license disqualification) resulting
from a violation of section 169A.52 or 171.177;

(iii) after tampering with, circumventing, or bypassing an ignition interlock device; or

(iv) without an ignition interlock devicenew text begin at any time when the driver's license requires
such device
new text end; deleted text beginor
deleted text end

(2) either voluntarily or involuntarily ceases to participate in the program for more than
30 days, or fails to successfully complete it as required by the Department of Public Safety
due to:

(i) two or more occasions of the participant's driving privileges being withdrawn for
violating the terms of the program, unless the withdrawal is determined to be caused by an
error of the department or the interlock provider; or

(ii) violating the terms of the contract with the provider as determined by the providerdeleted text begin.deleted text endnew text begin;
or
new text end

new text begin (3) if forfeiture was stayed after the driver entered a treatment court, the driver ceases
to be a participant in the treatment court for any reason.
new text end

(c) Paragraph (b) applies only if the described conduct occurs before the participant has
been restored to full driving privileges or within three years of the original designated offense
or designated license revocation, whichever occurs latest.

(d) The requirement in subdivision 2, paragraph (b), that device manufacturers provide
a discounted rate to indigent program participants applies also to device installation under
this subdivision.

(e) An impound or law enforcement storage lot operator must allow an ignition interlock
manufacturer sufficient access to the lot to install an ignition interlock device under this
subdivision.

(f) Notwithstanding paragraph (a), an entity in possession of the vehicle is not required
to release it until the reasonable costs of the towing, seizure, and storage of the vehicle have
been paid by the vehicle owner.

(g) At any time prior to the vehicle being forfeited, the appropriate agency may require
that the owner or driver of the vehicle deleted text begingive security or post bond payable to the appropriate
agency in an amount equal to the retail value
deleted text endnew text begin surrender the titlenew text end of the seized vehicle. deleted text beginIf this
occurs, any future forfeiture action against the vehicle must instead proceed against the
security as if it were the vehicle.
deleted text end

deleted text begin (h) The appropriate agency may require an owner or driver to give security or post bond
payable to the agency in an amount equal to the retail value of the vehicle, prior to releasing
the vehicle from the impound lot to install an ignition interlock device.
deleted text end

deleted text begin (i)deleted text endnew text begin (h)new text end If an event described in paragraph (b) occurs in a jurisdiction other than the one
in which the original forfeitable event occurred, and the vehicle is subsequently forfeited,
the proceeds shall be divided equally, after payment of seizure, towing, storage, forfeiture,
and sale expenses and satisfaction of valid liens against the vehicle, among the appropriate
agencies and prosecuting authorities in each jurisdiction.

deleted text begin (j)deleted text endnew text begin (i)new text end Upon successful completion of the program, the stayed forfeiture proceeding is
terminated or dismissed and any vehicle, security, or bond held by an agency must be
returned to the owner of the vehicle.

deleted text begin (k)deleted text endnew text begin (j)new text end A claimant of a vehicle for which a forfeiture action was stayed under paragraph
(a) but which later proceeds under paragraph (b), may file a demand for judicial forfeiture
as provided in subdivision 8, in which case the forfeiture proceedings must be conducted
as provided in subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2018, section 169A.63, is amended by adding a subdivision to
read:


new text begin Subd. 14. new text end

new text begin Subsequent unlawful use of seized vehicle; immunity. new text end

new text begin An appropriate
agency or prosecuting authority, including but not limited to any peace officer as defined
in section 626.84, subdivision 1, paragraph (c); prosecutor; or employee of an appropriate
agency or prosecuting authority who, in good faith and within the course and scope of the
official duties of the person or entity, returns a vehicle seized under this chapter to the owner
pursuant to this section shall be immune from criminal or civil liability regarding any event
arising out of the subsequent unlawful or unauthorized use of the motor vehicle.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 8.

Minnesota Statutes 2018, section 609.531, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purpose of sections 609.531 to 609.5318, the
following terms have the meanings given them.

(a) "Conveyance device" means a device used for transportation and includes, but is not
limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any equipment
attached to it. The term "conveyance device" does not include property which is, in fact,
itself stolen or taken in violation of the law.

(b) "Weapon used" means a dangerous weapon as defined under section 609.02,
subdivision 6
, that the actor used or had in possession in furtherance of a crime.

(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).

(d) "Contraband" means property which is illegal to possess under Minnesota law.

(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the Department
of Commerce Fraud Bureau, the Minnesota Division of Driver and Vehicle Services, the
Minnesota State Patrol, a county sheriff's department, the Three Rivers Park District park
rangers, the Department of Natural Resources Division of Enforcement, the University of
Minnesota Police Department, the Department of Corrections Fugitive Apprehension Unit,
a city, metropolitan transit, or airport police department; or a multijurisdictional entity
established under section 299A.642 or 299A.681.

(f) "Designated offense" includes:

(1) for weapons used: any violation of this chapter, chapter 152 or 624;

(2) for driver's license or identification card transactions: any violation of section 171.22;
and

(3) for all other purposes: a felony violation of, or a felony-level attempt or conspiracy
to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.2112; 609.2113;
609.2114; 609.221; 609.222; 609.223; 609.2231; 609.2335; 609.24; 609.245; 609.25;
609.255; 609.282; 609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343,
subdivision 1
, clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j);
609.345, subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466;
609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561;
609.562; 609.563; 609.582; 609.59; 609.595; 609.611; 609.631; 609.66, subdivision 1e;
609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89;
609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of section
609.891 or 624.7181; or any violation of section 609.324; or a felony violation of, or a
felony-level attempt or conspiracy to violate, Minnesota Statutes 2012, section 609.21.

(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

(h) "Prosecuting authority" means the attorney who is responsible for prosecuting an
offense that is the basis for a forfeiture under sections 609.531 to 609.5318.

new text begin (i) "Asserting person" means a person, other than the driver alleged to have used a vehicle
in the transportation or exchange of a controlled substance intended for distribution or sale,
claiming an ownership interest in a vehicle that has been seized or restrained under this
section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 9.

Minnesota Statutes 2018, section 609.531, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Transfer of forfeitable property to federal government. new text end

new text begin The appropriate
agency shall not directly or indirectly transfer property subject to forfeiture under sections
609.531 to 609.5318 to a federal agency if the transfer would circumvent state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2018, section 609.5311, subdivision 2, is amended to read:


Subd. 2.

Associated property.

(a) All new text beginpersonal new text endpropertydeleted text begin,deleted text endnew text begin andnew text end real deleted text beginand personaldeleted text endnew text begin property,
other than homestead property exempt from seizure under section 510.01
new text end, that deleted text beginhas been
used, or is intended for use, or has in any way facilitated, in whole or in part, the
manufacturing, compounding, processing, delivering, importing, cultivating, exporting,
transporting, or exchanging of contraband or a controlled substance that has not been lawfully
manufactured, distributed, dispensed, and acquired
deleted text endnew text begin is an instrument or represents the proceeds
of a controlled substance offense
new text end is subject to forfeiture under this section, except as provided
in subdivision 3.

(b) The Department of Corrections Fugitive Apprehension Unit shall not seize real
property for the purposes of forfeiture under paragraph (a).

new text begin (c) Money is the property of an appropriate agency and may be seized and recovered by
the appropriate agency if:
new text end

new text begin (1) the money is used by an appropriate agency, or furnished to a person operating on
behalf of an appropriate agency, to purchase or attempt to purchase a controlled substance;
and
new text end

new text begin (2) the appropriate agency records the serial number or otherwise marks the money for
identification.
new text end

new text begin As used in this paragraph, "money" means United States currency and coin; the currency
and coin of a foreign country; a bank check, cashier's check, or traveler's check; a prepaid
credit card; cryptocurrency; or a money order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2018, section 609.5311, subdivision 3, is amended to read:


Subd. 3.

Limitations on forfeiture of certain property associated with controlled
substances.

(a) A conveyance device is subject to forfeiture under this section only if the
retail value of the controlled substance is deleted text begin$75deleted text endnew text begin $100new text end or more and the conveyance device deleted text beginis
associated with a felony-level controlled substance crime
deleted text endnew text begin was used in the transportation or
exchange of a controlled substance intended for distribution or sale
new text end.

(b) Real property is subject to forfeiture under this section only if the retail value of the
controlled substance or contraband is $2,000 or more.

(c) Property used by any person as a common carrier in the transaction of business as a
common carrier is subject to forfeiture under this section only if the owner of the property
is a consenting party to, or is privy to, the use or intended use of the property as described
in subdivision 2.

(d) Property is subject to forfeiture under this section only if its owner was privy to the
use or intended use described in subdivision 2, or the unlawful use or intended use of the
property otherwise occurred with the owner's knowledge or consent.

(e) Forfeiture under this section of a conveyance device or real property encumbered by
a bona fide security interest is subject to the interest of the secured party unless the secured
party had knowledge of or consented to the act or omission upon which the forfeiture is
based. A person claiming a security interest bears the burden of establishing that interest
by clear and convincing evidence.

(f) Forfeiture under this section of real property is subject to the interests of a good faith
purchaser for value unless the purchaser had knowledge of or consented to the act or omission
upon which the forfeiture is based.

(g) Notwithstanding paragraphs (d), (e), and (f), property is not subject to forfeiture
based solely on the owner's or secured party's knowledge of the unlawful use or intended
use of the property if: (1) the owner or secured party took reasonable steps to terminate use
of the property by the offender; or (2) the property is real property owned by the parent of
the offender, unless the parent actively participated in, or knowingly acquiesced to, a violation
of chapter 152, or the real property constitutes proceeds derived from or traceable to a use
described in subdivision 2.

new text begin (h) Money is subject to forfeiture under this section only if it has a total value of $1,500
or more or there is probable cause to believe that the money was exchanged for the purchase
of a controlled substance. As used in this paragraph, "money" means United States currency
and coin; the currency and coin of a foreign country; a bank check, cashier's check, or
traveler's check; a prepaid credit card; cryptocurrency; or a money order.
new text end

deleted text begin (h)deleted text endnew text begin (i)new text end The Department of Corrections Fugitive Apprehension Unit shall not seize a
conveyance device or real property, for the purposes of forfeiture under paragraphs (a) to
(g).

new text begin (j) Nothing in this subdivision prohibits the seizure, with or without warrant, of any
property or thing for the purpose of being produced as evidence on any trial or for any other
lawful purpose.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2018, section 609.5311, subdivision 4, is amended to read:


Subd. 4.

Records; proceeds.

deleted text begin(a)deleted text end All books, records, and research products and materials,
including formulas, microfilm, tapes, and data that are used, or intended for use in the
manner described in subdivision 2 are subject to forfeiture.

deleted text begin (b) All property, real and personal, that represents proceeds derived from or traceable
to a use described in subdivision 2 is subject to forfeiture.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2018, section 609.5314, subdivision 1, is amended to read:


Subdivision 1.

Property subject to administrative forfeituredeleted text begin; presumptiondeleted text end.

(a) The
following are deleted text beginpresumed to bedeleted text end subject to administrative forfeiture under this section:

(1) all moneynew text begin totaling $1,500 or morenew text end, precious metals, and precious stones deleted text beginfound in
proximity to:
deleted text endnew text begin that there is probable cause to believe represent the proceeds of a controlled
substance offense;
new text end

deleted text begin (i) controlled substances;
deleted text end

deleted text begin (ii) forfeitable drug manufacturing or distributing equipment or devices; or
deleted text end

deleted text begin (iii) forfeitable records of manufacture or distribution of controlled substances;
deleted text end

new text begin (2) all money found in proximity to controlled substances when there is probable cause
to believe that the money was exchanged for the purchase of a controlled substance;
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end all conveyance devices containing controlled substances with a retail value of
$100 or more if deleted text beginpossession or sale of the controlled substance would be a felony under
chapter 152
deleted text endnew text begin there is probable cause to believe that the conveyance device was used in the
transportation or exchange of a controlled substance intended for distribution or sale
new text end; and

deleted text begin (3)deleted text endnew text begin (4)new text end all firearms, ammunition, and firearm accessories found:

(i) in a conveyance device used or intended for use to commit or facilitate the commission
of a felony offense involving a controlled substance;

(ii) on or in proximity to a person from whom a felony amount of controlled substance
is seized; or

(iii) on the premises where a controlled substance is seized and in proximity to the
controlled substance, if possession or sale of the controlled substance would be a felony
under chapter 152.

(b) The Department of Corrections Fugitive Apprehension Unit shall not seize items
listed in paragraph (a), clauses deleted text begin(2)deleted text endnew text begin (3)new text end and deleted text begin(3)deleted text endnew text begin (4)new text end, for the purposes of forfeiture.

(c) deleted text begina claimant of the property bears the burden to rebut this presumption.deleted text endnew text begin Money is the
property of an appropriate agency and may be seized and recovered by the appropriate
agency if:
new text end

new text begin (1) the money is used by an appropriate agency, or furnished to a person operating on
behalf of an appropriate agency, to purchase or attempt to purchase a controlled substance;
and
new text end

new text begin (2) the appropriate agency records the serial number or otherwise marks the money for
identification.
new text end

new text begin (d) As used in this section, "money" means United States currency and coin; the currency
and coin of a foreign country; a bank check, cashier's check, or traveler's check; a prepaid
credit card; cryptocurrency; or a money order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2018, section 609.5314, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Innocent owner. new text end

new text begin (a) Any person, other than the defendant driver, alleged to
have used a vehicle in the transportation or exchange of a controlled substance intended for
distribution or sale, claiming an ownership interest in a vehicle that has been seized or
restrained under this section may assert that right by notifying the prosecuting authority in
writing and within 60 days of the service of the notice of seizure.
new text end

new text begin (b) Upon receipt of notice pursuant to paragraph (a), the prosecuting authority may
release the vehicle to the asserting person. If the prosecuting authority proceeds with the
forfeiture, the prosecuting authority must, within 30 days, file a separate complaint in the
name of the jurisdiction pursuing the forfeiture against the vehicle, describing the vehicle,
specifying that the vehicle was used in the transportation or exchange of a controlled
substance intended for distribution or sale, and specifying the time and place of the vehicle's
unlawful use. The complaint may be filed in district court or conciliation court and the filing
fee is waived.
new text end

new text begin (c) A complaint filed by the prosecuting authority must be served on the asserting person
and on any other registered owners. Service may be made by certified mail at the address
listed in the Department of Public Safety's computerized motor vehicle registration records
or by any means permitted by court rules.
new text end

new text begin (d) The hearing on the complaint shall, to the extent practicable, be held within 30 days
of the filing of the petition. The court may consolidate the hearing on the complaint with a
hearing on any other complaint involving a claim of an ownership interest in the same
vehicle.
new text end

new text begin (e) At a hearing held pursuant to this subdivision, the state must prove by a preponderance
of the evidence that:
new text end

new text begin (1) the seizure was incident to a lawful arrest or a lawful search; and
new text end

new text begin (2) the vehicle was used in the transportation or exchange of a controlled substance
intended for distribution or sale.
new text end

new text begin (f) At a hearing held pursuant to this subdivision, the asserting person must prove by a
preponderance of the evidence that the asserting person:
new text end

new text begin (1) has an actual ownership interest in the vehicle; and
new text end

new text begin (2) did not have actual or constructive knowledge that the vehicle would be used or
operated in any manner contrary to law or that the asserting person took reasonable steps
to prevent use of the vehicle by the alleged offender.
new text end

new text begin (g) If the court determines that the state met both burdens under paragraph (e) and the
asserting person failed to meet any burden under paragraph (f), the court shall order that
the vehicle remains subject to forfeiture under this section.
new text end

new text begin (h) The court shall order that the vehicle is not subject to forfeiture under this section
and shall order the vehicle returned to the asserting person if it determines that:
new text end

new text begin (1) the state failed to meet any burden under paragraph (e);
new text end

new text begin (2) the asserting person proved both elements under paragraph (f); or
new text end

new text begin (3) clauses (1) and (2) apply.
new text end

new text begin (i) If the court determines that the asserting person is an innocent owner and orders the
vehicle returned to the innocent owner, an entity in possession of the vehicle is not required
to release the vehicle until the innocent owner pays:
new text end

new text begin (1) the reasonable costs of the towing, seizure, and storage of the vehicle incurred before
the innocent owner provided the notice required under paragraph (a); and
new text end

new text begin (2) any reasonable costs of storage of the vehicle incurred more than two weeks after
an order issued under paragraph (h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 15.

Minnesota Statutes 2018, section 609.5314, subdivision 2, is amended to read:


Subd. 2.

Administrative forfeiture procedure.

(a) Forfeiture of property described in
subdivision 1 that does not exceed $50,000 in value is governed by this subdivision. Within
60 days from when seizure occurs, all persons known to have an ownership, possessory, or
security interest in seized property must be notified of the seizure and the intent to forfeit
the property. In the case of a motor vehicle required to be registered under chapter 168,
notice mailed by certified mail to the address shown in Department of Public Safety records
is deemed sufficient notice to the registered owner. The notification to a person known to
have a security interest in seized property required under this paragraph applies only to
motor vehicles required to be registered under chapter 168 and only if the security interest
is listed on the vehicle's title. Upon motion by the appropriate agency or the prosecuting
authority, a court may extend the time period for sending notice for a period not to exceed
90 days for good cause shown.

(b) Notice may otherwise be given in the manner provided by law for service of a
summons in a civil action. The notice must be in writing and contain:

(1) a description of the property seized;

(2) the date of seizure; and

(3) notice of the right to obtain judicial review of the forfeiture and of the procedure for
obtaining that judicial review, printed in English. This requirement does not preclude the
appropriate agency from printing the notice in other languages in addition to English.

Substantially the following language must appear conspicuously in the notice:

"WARNING: You will automatically lose the above-described property and the right
to be heard in court if you do not file a lawsuit and serve the prosecuting authority within
60 days. You may file your lawsuit in conciliation court if the property is worth $15,000 or
less; otherwise, you must file in district court. You deleted text beginmaydeleted text end new text begindonew text end not have to pay a filing fee for
your lawsuit deleted text beginif you are unable to afford the fee. You do not have to pay a conciliation court
fee
deleted text enddeleted text beginif your property is worth less than $500deleted text end.

new text begin WARNING: If you have an ownership interest in the vehicle and were not the driver,
you will automatically lose the above-described property and the right to be heard in court
if you do not notify the prosecuting authority of your interest in writing within 60 days.
new text end"

(c) If notice is not sent in accordance with paragraph (a), and no time extension is granted
or the extension period has expired, the appropriate agency shall return the property to the
person from whom the property was seized, if known. An agency's return of property due
to lack of proper notice does not restrict the agency's authority to commence a forfeiture
proceeding at a later time. The agency shall not be required to return contraband or other
property that the person from whom the property was seized may not legally possess.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2018, section 609.5315, subdivision 5, is amended to read:


Subd. 5.

Distribution of money.

The money or proceeds from the sale of forfeited
property, after payment of seizure, storage, forfeiture, and sale expenses, and satisfaction
of valid liens against the property, must be distributed as follows:

(1) 70 percent of the money or proceeds must be forwarded to the appropriate agency
for deposit as a supplement to the agency's operating fund or similar fund for use in law
enforcementnew text begin, training, education, crime prevention, equipment, or capital expensesnew text end;

(2) 20 percent of the money or proceeds must be forwarded to the prosecuting authority
that handled the forfeiture for deposit as a supplement to its operating fund or similar fund
for prosecutorial purposesnew text begin, training, education, crime prevention, equipment, or capital
expenses
new text end; and

(3) the remaining ten percent of the money or proceeds must be forwarded within 60
days after resolution of the forfeiture to the state treasury and credited to the general fund.
Any local police relief association organized under chapter 423 which received or was
entitled to receive the proceeds of any sale made under this section before the effective date
of Laws 1988, chapter 665, sections 1 to 17, shall continue to receive and retain the proceeds
of these sales.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2018, section 609.5315, subdivision 5b, is amended to read:


Subd. 5b.

Disposition of certain forfeited proceeds; trafficking of personsdeleted text begin; reportdeleted text end
deleted text begin requireddeleted text end.

deleted text begin(a)deleted text end Except as provided in subdivision 5c, for forfeitures resulting from violations
of section 609.282, 609.283, or 609.322, the money or proceeds from the sale of forfeited
property, after payment of seizure, storage, forfeiture, and sale expenses, and satisfaction
of valid liens against the property, must be distributed as follows:

(1) 40 percent of the proceeds must be forwarded to the appropriate agency for deposit
as a supplement to the agency's operating fund or similar fund for use in law enforcement;

(2) 20 percent of the proceeds must be forwarded to the prosecuting authority that handled
the forfeiture for deposit as a supplement to its operating fund or similar fund for
prosecutorial purposes; and

(3) the remaining 40 percent of the proceeds must be forwarded to the commissioner of
health and are appropriated to the commissioner for distribution to crime victims services
organizations that provide services to victims of trafficking offenses.

deleted text begin (b) By February 15 of each year, the commissioner of public safety shall report to the
chairs and ranking minority members of the senate and house of representatives committees
or divisions having jurisdiction over criminal justice funding on the money collected under
paragraph (a), clause (3). The report must indicate the following relating to the preceding
calendar year:
deleted text end

deleted text begin (1) the amount of money appropriated to the commissioner;
deleted text end

deleted text begin (2) how the money was distributed by the commissioner; and
deleted text end

deleted text begin (3) what the organizations that received the money did with it.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 18.

Minnesota Statutes 2018, section 609.5315, subdivision 6, is amended to read:


Subd. 6.

Reporting requirement.

(a) For each forfeiture occurring in the state regardless
of the authority for itnew text begin and including forfeitures pursued under federal lawnew text end, the appropriate
agency and the prosecuting authority shall provide a written record of the forfeiture incident
to the state auditor. The record shall includenew text begin:
new text end

new text begin (1)new text end the amount forfeiteddeleted text begin,deleted text endnew text begin;
new text end

new text begin (2)new text end the statutory authority for the forfeituredeleted text begin, itsdeleted text endnew text begin;
new text end

new text begin (3) thenew text end datedeleted text begin,deleted text endnew text begin of the forfeiture;
new text end

new text begin (4)new text end a brief description of the circumstances involveddeleted text begin, anddeleted text endnew text begin;
new text end

new text begin (5)new text end whether the forfeiture was contesteddeleted text begin.deleted text endnew text begin;
new text end

new text begin (6) whether the defendant was convicted pursuant to a plea agreement or a trial;
new text end

new text begin (7) whether there was a forfeiture settlement agreement;
new text end

new text begin (8) whether the property was sold, destroyed, or retained by an appropriate agency;
new text end

new text begin (9) the gross revenue from the disposition of the forfeited property;
new text end

new text begin (10) an estimate of the total costs to the agency to store the property in an impound lot,
evidence room, or other location; pay for the time and expenses of an appropriate agency
and prosecuting authority to litigate forfeiture cases; and sell or dispose of the forfeited
property;
new text end

new text begin (11) the net revenue, determined by subtracting the costs identified under clause (10)
from the gross revenue identified in clause (9), the appropriate agency received from the
disposition of forfeited property;
new text end

new text begin (12) if any property was retained by an appropriate agency, the purpose for which it is
used;
new text end

new text begin (13)new text end for controlled substance and driving while impaired forfeitures, deleted text beginthe record shall
indicate
deleted text end whether the forfeiture was initiated as an administrative or a judicial forfeituredeleted text begin.
The record shall also list
deleted text endnew text begin;
new text end

new text begin (14)new text end the number of firearms forfeited and the make, model, and serial number of each
firearm forfeiteddeleted text begin. The record shall indicatedeleted text endnew text begin; and
new text end

new text begin (15)new text end how the property was or is to be disposed of.

(b) An appropriate agency or the prosecuting authority shall report to the state auditor
all instances in which property seized for forfeiture is returned to its owner either because
forfeiture is not pursued or for any other reason.

new text begin (c) Each appropriate agency and prosecuting authority shall provide a written record
regarding the proceeds of forfeit property, including proceeds received through forfeiture
under state and federal law. The record shall include:
new text end

new text begin (1) the total amount of money or proceeds from the sale of forfeited property obtained
or received by an appropriate agency or prosecuting authority in the previous reporting
period;
new text end

new text begin (2) the manner in which each appropriate agency and prosecuting authority expended
money or proceeds from the sale of forfeited property in the previous reporting period,
including the total amount expended in the following categories:
new text end

new text begin (i) drug abuse, crime, and gang prevention programs;
new text end

new text begin (ii) victim reparations;
new text end

new text begin (iii) gifts or grants to crime victim service organizations that provide services to sexually
exploited youth;
new text end

new text begin (iv) gifts or grants to crime victim service organizations that provide services to victims
of trafficking offenses;
new text end

new text begin (v) investigation costs, including but not limited to witness protection, informant fees,
and controlled buys;
new text end

new text begin (vi) court costs and attorney fees;
new text end

new text begin (vii) salaries, overtime, and benefits, as permitted by law;
new text end

new text begin (viii) professional outside services, including but not limited to auditing, court reporting,
expert witness fees, outside attorney fees, and membership fees paid to trade associations;
new text end

new text begin (ix) travel, meals, and conferences;
new text end

new text begin (x) training and continuing education;
new text end

new text begin (xi) other operating expenses, including but not limited to office supplies, postage, and
printing;
new text end

new text begin (xii) capital expenditures, including but not limited to vehicles, firearms, equipment,
computers, and furniture;
new text end

new text begin (xiii) gifts or grants to nonprofit or other programs, indicating the recipient of the gift
or grant; and
new text end

new text begin (xiv) any other expenditure, indicating the type of expenditure and, if applicable, the
recipient of any gift or grant;
new text end

new text begin (3) the total value of seized and forfeited property held by an appropriate agency and
not sold or otherwise disposed of; and
new text end

new text begin (4) a statement from the end of each year showing the balance of any designated forfeiture
accounts maintained by an appropriate agency or prosecuting authority.
new text end

deleted text begin (c)deleted text endnew text begin (d)new text end Reports new text beginunder paragraphs (a) and (b) new text endshall be made on a deleted text beginmonthlydeleted text endnew text begin quarterlynew text end basis
in a manner prescribed by the state auditor.new text begin Reports under paragraph (c) shall be made on
an annual basis in a manner prescribed by the state auditor.
new text end The state auditor shall report
annually to the legislature on the nature and extent of forfeituresdeleted text begin.deleted text endnew text begin, including the information
provided by each appropriate agency or prosecuting authority under paragraphs (a) to (c).
Summary data on seizures, forfeitures, and expenditures of forfeiture proceeds shall be
disaggregated by each appropriate agency and prosecuting authority. The report shall be
made public on the state auditor's website.
new text end

deleted text begin (d)deleted text endnew text begin (e)new text end For forfeitures resulting from the activities of multijurisdictional law enforcement
entities, the entity on its own behalf shall report the information required in this subdivision.

deleted text begin (e)deleted text endnew text begin (f)new text end The prosecuting authority is not required to report information required by deleted text beginthis
subdivision
deleted text endnew text begin paragraph (a) or (b)new text end unless the prosecuting authority has been notified by the
state auditor that the appropriate agency has not reported it.

new text begin (g) The state auditor may perform a financial audit of an appropriate agency or
prosecuting authority under the generally accepted government auditing standards of records
related to inventory of seized property and expenditures of forfeiture proceeds. A copy of
the final audit shall be submitted to the legislature within 90 days of the end of the fiscal
year and shall be made public.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021, and applies to seizures
that take place on or after that date.
new text end

Sec. 19. new text beginRECIDIVISM STUDY.
new text end

new text begin The legislative auditor shall conduct or contract with an independent third-party vendor
to conduct a comprehensive program audit on the efficacy of forfeiture and the use of ignition
interlock in cases involving an alleged violation of Minnesota Statutes, section 169A.20.
The audit shall assess the financial impact of the programs, the efficacy in reducing
recidivism, and the impacts, if any, on public safety. The audit shall be conducted in
accordance with generally accepted government auditing standards issued by the United
States Government Accountability Office. The legislative auditor shall complete the audit
no later than August 1, 2023, and shall report the results of the audit to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction over public
safety by January 15, 2024.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 20. new text beginAPPROPRIATION; STATE AUDITOR.
new text end

new text begin $61,000 in fiscal year 2021 is appropriated from the general fund to the state auditor for
the audit, data collection, and reporting requirements in section 18. The base for this activity
is $209,000 in fiscal year 2022 and each year thereafter.
new text end

Sec. 21. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, section 609.5317, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: H4571-2

609.5317 REAL PROPERTY; SEIZURES.

Subdivision 1.

Rental property.

(a) When contraband or a controlled substance manufactured, distributed, or acquired in violation of chapter 152 is seized on residential rental property incident to a lawful search or arrest, the prosecuting authority shall give the notice required by this subdivision to (1) the landlord of the property or the fee owner identified in the records of the county assessor, and (2) the agent authorized by the owner to accept service pursuant to section 504B.181. The notice is not required during an ongoing investigation. The notice shall state what has been seized and specify the applicable duties and penalties under this subdivision. The notice shall state that the landlord who chooses to assign the right to bring an eviction action retains all rights and duties, including removal of a tenant's personal property following issuance of the writ of recovery and delivery of the writ to the sheriff for execution. The notice shall also state that the landlord may contact the prosecuting authority if threatened by the tenant. Notice shall be sent by certified letter, return receipt requested, within 30 days of the seizure. If receipt is not returned, notice shall be given in the manner provided by law for service of summons in a civil action.

(b) Within 15 days after notice of the first occurrence, the landlord shall bring, or assign to the prosecuting authority of the county in which the real property is located, the right to bring an eviction action against the tenant. The assignment must be in writing on a form prepared by the prosecuting authority. Should the landlord choose to assign the right to bring an eviction action, the assignment shall be limited to those rights and duties up to and including delivery of the writ of recovery to the sheriff for execution.

(c) Upon notice of a second occurrence on any residential rental property owned by the same landlord in the same county and involving the same tenant, and within one year after notice of the first occurrence, the property is subject to forfeiture under sections 609.531, 609.5311, 609.5313, and 609.5315, unless an eviction action has been commenced as provided in paragraph (b) or the right to bring an eviction action was assigned to the prosecuting authority as provided in paragraph (b). If the right has been assigned and not previously exercised, or if the prosecuting authority requests an assignment and the landlord makes an assignment, the prosecuting authority may bring an eviction action rather than an action for forfeiture.

(d) The Department of Corrections Fugitive Apprehension Unit shall not seize real property for the purposes of forfeiture as described in paragraphs (a) to (c).

Subd. 2.

Additional remedies.

Nothing in subdivision 1 prevents the prosecuting authority from proceeding under section 609.5311 whenever that section applies.

Subd. 3.

Defenses.

It is a defense against a proceeding under subdivision 1, paragraph (b), that the tenant had no knowledge or reason to know of the presence of the contraband or controlled substance or could not prevent its being brought onto the property.

It is a defense against a proceeding under subdivision 1, paragraph (c), that the landlord made every reasonable attempt to evict a tenant or to assign the prosecuting authority the right to bring an eviction action against the tenant, or that the landlord did not receive notice of the seizure.

Subd. 4.

Limitations.

This section shall not apply if the retail value of the controlled substance is less than $100, but this section does not subject real property to forfeiture under section 609.5311 unless the retail value of the controlled substance is: (1) $1,000 or more; or (2) there have been two previous controlled substance seizures involving the same tenant.