SF 384

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 03/19/2015 09:02am

A bill for an act
relating to forfeiture; establishing the burden of production on the innocent
owner claimant and the burden of proof on the prosecutor in an innocent owner
case involving DWI, designated offenses, controlled substance offenses, fleeing
offenses, and prostitution offenses; expanding the homestead exemption;
amending Minnesota Statutes 2014, sections 169A.60, subdivision 1; 169A.63,
subdivisions 1, 7, 9; 609.531, subdivision 1, by adding subdivisions; 609.5311,
subdivision 3; 609.5312, subdivisions 2, 3, 4; 609.5318, subdivision 5.

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

Section 1.

Minnesota Statutes 2014, section 169A.60, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Family or household member" deleted text begin has the meaning given in section 169A.63,
subdivision 1 deleted text end new text begin means:
new text end

new text begin (1) a parent, stepparent, or guardian;
new text end

new text begin (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
new text end

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

(c) "Motor vehicle" means a self-propelled motor vehicle other than a motorboat in
operation or an off-road recreational vehicle.

(d) "Plate impoundment violation" includes:

(1) a violation of section 169A.20 (driving while impaired) or 169A.52 (license
revocation for test failure or refusal), or an ordinance from this state or a statute or
ordinance from another state in conformity with either of those sections, that results in
the revocation of a person's driver's license or driving privileges, within ten years of a
qualified prior impaired driving incident;

(2) a license disqualification under section 171.165 (commercial driver's license
disqualification) resulting from a violation of section 169A.52 within ten years of a
qualified prior impaired driving incident;

(3) a violation of section 169A.20 or 169A.52 while having an alcohol concentration
of twice the legal limit or more as measured at the time, or within two hours of the time,
of the offense;

(4) a violation of section 169A.20 or 169A.52 while having a child under the age of
16 in the vehicle if the child is more than 36 months younger than the offender; or

(5) a violation of section 171.24 (driving without valid license) by a person whose
driver's license or driving privileges have been canceled or denied under section 171.04,
subdivision 1, clause (10) (persons not eligible for driver's license, inimical to public
safety).

(e) "Violator" means a person who was driving, operating, or in physical control of
the motor vehicle when the plate impoundment violation occurred.

Sec. 2.

Minnesota Statutes 2014, 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).

(c) "Claimant" means an owner of a motor vehicle or a person claiming a leasehold
or security interest in a motor vehicle.

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

(e) "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), or 169A.25
(second-degree driving while impaired); or

(2) a violation of section 169A.20 or an ordinance in conformity with it:

(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

(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.

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

deleted text begin (1) a parent, stepparent, or guardian;
deleted text end

deleted text begin (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
deleted text end

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

deleted text begin (g) deleted 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 end new text begin (g) 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 end new text begin (h) 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 end new text begin (i) 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.

Sec. 3.

Minnesota Statutes 2014, 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;

(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

(3) 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) deleted text begin 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. deleted text end new text begin The limitations and defenses in section 609.531, subdivisions 9 and 10, apply
to forfeitures under this section.
new text end

deleted text begin (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 end

deleted text begin (d) A motor vehicle is not subject to forfeiture under this section if its owner can
demonstrate by clear and convincing evidence that the 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 owner took reasonable steps to prevent use of the vehicle by the offender.
If the offender is a family or household member of the owner and has three or more prior
impaired driving convictions, the 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 August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2014, section 169A.63, subdivision 9, is amended to read:

Subd. 9.

Judicial forfeiture procedure.

(a) This subdivision governs judicial
determinations of the forfeiture of a motor vehicle used to commit a designated offense or
used in conduct resulting in a designated license revocation. An action for forfeiture is a
civil in rem action and is independent of any criminal prosecution. All proceedings are
governed by the Rules of Civil Procedure.

(b) If no demand for judicial determination of the forfeiture is pending, the
prosecuting authority may, in the name of the jurisdiction pursuing the forfeiture, file a
separate complaint against the vehicle, describing it, specifying that it 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 its unlawful use.

(c) The prosecuting authority may file an answer to a properly served demand
for judicial determination, including an affirmative counterclaim for forfeiture. The
prosecuting authority is not required to file an answer.

(d) A judicial determination under this subdivision must be held at the earliest
practicable date, and in any event no later than 180 days following the filing of the
demand by the claimant. If a related criminal proceeding is pending, the hearing shall not
be held until the conclusion of the criminal proceedings. The district court administrator
shall schedule the hearing as soon as practicable after the conclusion of the criminal
prosecution. The district court administrator shall establish procedures to ensure efficient
compliance with this subdivision. The hearing is to the court without a jury.

(e) deleted text begin There is a presumption that a vehicle seized under this section is subject
to forfeiture if the prosecuting authority establishes that the vehicle was used in the
commission of a designated offense or designated license revocation. A claimant bears the
burden of proving any affirmative defense raised deleted text end new text begin The prosecuting authority has the burden
of proof to show by a preponderance of the evidence that the vehicle was used in the
commission of a designated offense or designated license revocation. The limitations and
defenses in section 609.531, subdivisions 9 and 10, apply to forfeitures under this section new text end .

(f) If the forfeiture is based on the commission of a designated offense and the person
charged with the designated offense appears in court as required and is not convicted of
the offense, the court shall order the property returned to the person legally entitled to it
upon that person's compliance with the redemption requirements of section 169A.42. If
the forfeiture is based on a designated license revocation, and the license revocation is
rescinded under section 169A.53, subdivision 3 (judicial review hearing, issues, order,
appeal), the court shall order the property returned to the person legally entitled to it upon
that person's compliance with the redemption requirements of section 169A.42.

(g) deleted text begin If the lawful ownership of the vehicle used in the commission of a designated
deleted text end deleted text begin offense or used in conduct resulting in a designated license revocation can be determined
deleted text end deleted text begin and the deleted text end deleted text begin owner makes the demonstration required under subdivision 7, paragraph (d) deleted text end new text begin If the
prosecuting authority fails to establish by a preponderance of the evidence that the vehicle
was used in the commission of a designated offense or designated license revocation new text end , the
vehicle must be returned immediately upon the owner's compliance with the redemption
requirements of section 169A.42.

(h) If the court orders the return of a seized vehicle under this subdivision it must
order that filing fees be reimbursed to the person who filed the demand for judicial
determination. In addition, the court may order sanctions under section 549.211 (sanctions
in civil actions). Any reimbursement fees or sanctions must be paid from other forfeiture
proceeds of the law enforcement agency and prosecuting authority involved and in the
same proportion as distributed under subdivision 10, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2014, 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) new text begin "Actual knowledge" means direct and clear awareness of information, a fact,
or a condition.
new text end

new text begin (b) new text end "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.

deleted text begin (b) deleted text end new text begin (c) new text end "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.

deleted text begin (c) deleted text end new text begin (d) new text end "Property" means property as defined in section 609.52, subdivision 1,
clause (1).

new text begin (e) "Constructive knowledge" means knowledge that is imputed to family or
household members of the owner, as defined in section 169A.60, subdivision 1, paragraph
(b), if the owner has been adjudicated guilty three or more times for the same or a specified
similar violation in the last ten years.
new text end

deleted text begin (d) deleted text end new text begin (f) new text end "Contraband" means property which is illegal to possess under Minnesota law.

deleted text begin (e) deleted text end new text begin (g) new text end "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.

deleted text begin (f) deleted text end new text begin (h) new text end "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; 609.21;
609.221; 609.222; 609.223; 609.2231; 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.

deleted text begin (g) deleted text end new text begin (i) new text end "Controlled substance" has the meaning given in section 152.01, subdivision 4.

deleted text begin (h) deleted text end new text begin (j) new text end "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 EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Limitations and defenses to forfeiture; ownership or interest at time
of the crime. new text end

new text begin (a) For purposes of sections 169A.63, 609.5311, 609.5312, 609.5314, and
609.5318, an innocent owner claimant may file a claim for the return of property that the
claimant owned or had interest in at the time of the crime by using the process described
in this subdivision. The innocent owner claimant may file a claim at any time prior to the
commencement of the underlying criminal trial and request a prompt hearing.
new text end

new text begin (b) The prosecuting authority may move to postpone the hearing for a reasonable
period of time not to exceed five days, unless approved by the court, for the prosecuting
authority to complete an investigation of the property related to the underlying criminal
charge.
new text end

new text begin (c) The alleged suspect or convicted offender may invoke the right against
self-incrimination at a civil hearing consistent with state law.
new text end

new text begin (d) The innocent owner claimant has the burden of production to show by a
preponderance of the evidence that the claimant:
new text end

new text begin (1) had a full or joint ownership or security interest in the property at the time the
conduct giving rise to the forfeiture occurred; and
new text end

new text begin (2) is not the person accused or convicted of the crime for which the property is
subject to forfeiture.
new text end

new text begin (e) If the claimant meets the burden of production in paragraph (d), the property
is subject to forfeiture if the prosecuting authority proves by a preponderance of the
evidence that the claimant:
new text end

new text begin (1) had actual or constructive knowledge of the crime giving rise to the forfeiture; or
new text end

new text begin (2) consented to the act or omission upon which the forfeiture is based.
new text end

new text begin (f) If the trier-of-fact determines the property is not subject to forfeiture, all claims
of right, title, and interest to the property that vested in the state are relinquished. The
court shall order the return of the property within a reasonable period of time.
new text end

new text begin (g) Notwithstanding paragraph (f), if the property is jointly owned, the court may
divide and allocate interest in the property among its joint owners and order the return
of a prorated amount of the property only to the innocent owner claimant. The court
may divide and allocate the property based on the joint owners' history of payments of
initial and ongoing costs, or other factors required to realize an equitable division and
allocation of the property.
new text end

new text begin (h) At the claimant's option, the court may realize the division of jointly owned
property in paragraph (g) by ordering:
new text end

new text begin (1) the sale of property in a commercially reasonable manner and dividing the
resulting net proceeds after first extinguishing any security interest perfected according to
section 168A.17, subdivision 2, or subject to a lease that has a term of 180 days or more;
new text end

new text begin (2) the claimant to remit payment for the portion of the net value in the property
not awarded to the claimant; or
new text end

new text begin (3) other equitable means.
new text end

new text begin For purposes of clause (2), the net value is calculated by first establishing the market value
of the property and then subtracting any security interest perfected according to section
168A.17, subdivision 2, or subject to a lease that has a term of 180 days or more.
new text end

new text begin (i) Notwithstanding paragraphs (e) to (h), the court may order the return of the
undivided property to the claimant in a case involving forfeiture under section 169A.63
if the claimant shows by a preponderance of the evidence either that failing to return
the vehicle would deprive the claimant of reasonable means to employment or care for
dependents residing with the claimant, or the innocent owner claimant took reasonable
steps to prevent the use of the vehicle by the offender.
new text end

new text begin (j) The claimant is responsible for paying towing and storage fees if the appropriate
agency returns a seized vehicle within 60 days following seizure. After 60 days following
seizure, the appropriate agency is responsible for paying towing and storage fees if the
trier-of-fact determines the claims are valid.
new text end

new text begin (k) Except as provided in paragraph (h), a motor 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. When
the proceeds of the sale of a seized motor vehicle encumbered by a perfected security
interest 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
allowed costs for the seizure, towing, storage, forfeiture, and sale of the vehicle.
new text end

new text begin (l) If a sale of a vehicle is conducted in a commercially reasonable manner consistent
with 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Limitations and defenses to forfeiture; ownership or interest acquired
after crime. new text end

new text begin (a) For purposes of sections 169A.63, 609.5311, 609.5312, 609.5314, and
609.5318, an innocent owner claimant may file a claim for the return of property that the
claimant acquired an interest in after the time of the crime by using the process described
in this subdivision. The innocent owner claimant may file a claim at any time prior to the
commencement of the underlying criminal trial and request a prompt hearing.
new text end

new text begin (b) The prosecuting authority may move to postpone the hearing for a reasonable
period of time not to exceed five days, unless approved by the court, for the prosecuting
authority to complete an investigation of the property related to the underlying criminal
charge.
new text end

new text begin (c) The alleged suspect or convicted offender may invoke the right against
self-incrimination at a civil hearing consistent with state law.
new text end

new text begin (d) The innocent owner claimant has the burden of production to show by a
preponderance of the evidence that the claimant:
new text end

new text begin (1) acquired a full or joint ownership or security interest in the property after the
commission of the crime giving rise to the forfeiture; and
new text end

new text begin (2) is not the person accused or convicted of the crime for which the property is
subject to forfeiture.
new text end

new text begin (e) Property is subject to forfeiture if the prosecuting authority proves by a
preponderance of the evidence that, at the time of acquisition of the property, the claimant:
new text end

new text begin (1) had actual or constructive knowledge of the crime giving rise to the forfeiture;
new text end

new text begin (2) consented to the act or omission upon which the forfeiture is based; or
new text end

new text begin (3) was not a bona fide purchaser for valuable consideration and without notice of
any defect in title.
new text end

new text begin (f) If the trier-of-fact determines the property is not subject to forfeiture, all claims
of right, title, and interest to the property that vested in the state are relinquished. The
court shall order the return of the property within a reasonable period of time.
new text end

new text begin (g) The claimant is responsible for paying towing and storage fees if the appropriate
agency returns a seized vehicle within 60 days following seizure. After 60 days following
seizure, the appropriate agency is responsible for paying towing and storage fees if the
trier-of-fact determines the claims are valid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Return of filing fees. new text end

new text begin If the court orders the return of seized property
under this section, it must order that filing fees be reimbursed to the person who filed the
demand for judicial determination or contested the forfeiture. Any reimbursement fees
must be paid from other forfeiture proceeds of the appropriate agency and prosecuting
authority involved, in the same proportion as proceeds would be distributed for the sale
of the property had it been forfeited, and any remaining proportion shall be divided and
paid evenly from the agencies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2014, section 609.531, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Exemption; homestead property. new text end

new text begin Real property that qualifies for the
homestead exemption as determined in sections 510.01 and 510.02, is not subject to
forfeiture.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
offenses committed on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2014, 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 $75 or more and the conveyance device is
associated with a felony-level controlled substance crime.

(b) Real property new text begin that does not qualify for the homestead exemption as determined
in sections 510.01 and 510.02, new text end is subject to forfeiture under this section only if the retail
value of the controlled substance or contraband is $2,000 or more.

(c) deleted text begin 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. deleted text end new text begin The limitations and defenses in section 609.531, subdivisions
9 and 10, apply to forfeitures under this section.
new text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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 deleted text end deleted text begin 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.
deleted text end

deleted text begin (h) deleted text end new text begin (d) 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)
deleted text begin to (g) deleted text end new text begin and (b) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2014, section 609.5312, subdivision 2, is amended to read:

Subd. 2.

Limitations on forfeiture of property associated with designated
offenses.

deleted text begin (a) Property used by a 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 commission of a designated offense. deleted text end new text begin
The limitations and defenses in section 609.531, subdivisions 9 and 10, apply to forfeitures
under subdivisions 1 and 1a.
new text end

deleted text begin (b) Property is subject to forfeiture under this section only if the owner was privy to
the act or omission upon which the forfeiture is based, or the act or omission occurred
with the owner's knowledge or consent.
deleted text end

deleted text begin (c) Property encumbered by a bona fide security interest is subject to the interest of
the secured party unless the party had knowledge of or consented to the act or omission
deleted text end deleted text begin upon which the forfeiture is based. A person claiming a security interest bears the burden
of establishing that interest by clear and convincing evidence.
deleted text end

deleted text begin (d) Notwithstanding paragraphs (b) and (c), property is not subject to forfeiture
based solely on the owner's or secured party's knowledge of the act or omission upon
which the forfeiture is based if the owner or secured party took reasonable steps to
terminate use of the property by the offender.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2014, section 609.5312, subdivision 3, is amended to read:

Subd. 3.

Vehicle forfeiture for prostitution offenses.

(a) A motor vehicle is subject
to forfeiture under this subdivision if it was used to commit or facilitate, or used during
the commission of, a violation of section 609.324 or a violation of a local ordinance
substantially similar to section 609.324. A motor vehicle is subject to forfeiture under
this subdivision only if the offense is established by proof of a criminal conviction for
the offense. Except as otherwise provided in this subdivision, a forfeiture under this
subdivision is governed by sections 609.531, 609.5312, and 609.5313.

(b) When a motor vehicle subject to forfeiture under this subdivision is seized in
advance of a judicial forfeiture order, a hearing before a judge or referee must be held
within 96 hours of the seizure. Notice of the hearing must be given to the registered owner
within 48 hours of the seizure. The prosecuting authority shall certify to the court, at or
in advance of the hearing, that it has filed or intends to file charges against the alleged
violator for violating section 609.324 or a local ordinance substantially similar to section
609.324. After conducting the hearing, the court shall order that the motor vehicle be
returned to the owner if:

(1) the prosecuting authority has failed to make the certification required by
paragraph (b);

(2) deleted text begin the owner of the motor vehicle has demonstrated to the court's satisfaction
that the owner has a defense to the forfeiture, including but not limited to the defenses
contained in subdivision 2 deleted text end new text begin the court finds that the motor vehicle is not subject to forfeiture
under section 609.531, subdivision 9 or 10 new text end ; or

(3) the court determines that seizure of the vehicle creates or would create an undue
hardship for members of the owner's family.

(c) If the defendant is acquitted or prostitution charges against the defendant are
dismissed, neither the owner nor the defendant is responsible for paying any costs
associated with the seizure or storage of the vehicle.

(d) A vehicle leased or rented under section 168.27, subdivision 4, for a period of
180 days or less is not subject to forfeiture under this subdivision.

(e) For purposes of this subdivision, seizure occurs either:

(1) at the date at which personal service of process upon the registered owner is
made; or

(2) at the date when the registered owner has been notified by certified mail at the
address listed in the Minnesota Department of Public Safety computerized motor vehicle
registration records.

(f) The Department of Corrections Fugitive Apprehension Unit shall not participate
in paragraphs (a) to (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2014, section 609.5312, subdivision 4, is amended to read:

Subd. 4.

Vehicle forfeiture for fleeing peace officer.

(a) A motor vehicle is subject
to forfeiture under this subdivision if it was used to commit a violation of section 609.487
and endanger life or property. A motor vehicle is subject to forfeiture under this subdivision
only if the offense is established by proof of a criminal conviction for the offense. Except
as otherwise provided in this subdivision, a forfeiture under this subdivision is governed
by sections 609.531, 609.5312, 609.5313, and 609.5315, subdivision 6.

(b) When a motor vehicle subject to forfeiture under this subdivision is seized in
advance of a judicial forfeiture order, a hearing before a judge or referee must be held
within 96 hours of the seizure. Notice of the hearing must be given to the registered owner
within 48 hours of the seizure. The prosecuting authority shall certify to the court, at or
in advance of the hearing, that it has filed or intends to file charges against the alleged
violator for violating section 609.487. After conducting the hearing, the court shall order
that the motor vehicle be returned to the owner if:

(1) the prosecuting authority has failed to make the certification required by this
paragraph;

(2) deleted text begin the owner of the motor vehicle has demonstrated to the court's satisfaction
that the owner has a defense to the forfeiture, including but not limited to the defenses
contained in subdivision 2 deleted text end new text begin the court finds that the motor vehicle is not subject to forfeiture
under section 609.531, subdivision 9 or 10 new text end ; or

(3) the court determines that seizure of the vehicle creates or would create an undue
hardship for members of the owner's family.

(c) If the defendant is acquitted or the charges against the defendant are dismissed,
neither the owner nor the defendant is responsible for paying any costs associated with the
seizure or storage of the vehicle.

(d) A vehicle leased or rented under section 168.27, subdivision 4, for a period of
180 days or less is not subject to forfeiture under this subdivision.

(e) A motor vehicle that is an off-road recreational vehicle as defined in section
169A.03, subdivision 16, or a motorboat as defined in section 169A.03, subdivision 13,
is not subject to paragraph (b).

(f) For purposes of this subdivision, seizure occurs either:

(1) at the date at which personal service of process upon the registered owner is
made; or

(2) at the date when the registered owner has been notified by certified mail at the
address listed in the Minnesota Department of Public Safety computerized motor vehicle
registration records.

(g) The Department of Corrections Fugitive Apprehension Unit shall not seize a
motor vehicle for the purposes of forfeiture under paragraphs (a) to (f).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2014, section 609.5318, subdivision 5, is amended to read:

Subd. 5.

Limitations.

deleted text begin (a) A vehicle used by a 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 is a consenting party to, or is privy to, the commission of the act giving rise
to the forfeiture. deleted text end new text begin The limitations and defenses in section 609.531, subdivisions 9 and
10, apply to forfeitures under this section.
new text end

deleted text begin (b) A vehicle is subject to forfeiture under this section only if the registered owner
was privy to the act upon which the forfeiture is based, the act occurred with the owner's
knowledge or consent, or the act occurred due to the owner's gross negligence in allowing
another to use the vehicle.
deleted text end

deleted text begin (c) A vehicle encumbered by a bona fide security interest is subject to the interest of
the secured party unless the party had knowledge of or consented to the act upon which the
forfeiture is based. A person claiming a security interest bears the burden of establishing
that interest by clear and convincing evidence.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
new text end