SF 3172

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to crime prevention; amending the DWI vehicle 
  1.3             forfeiture law as it pertains to lessors and secured 
  1.4             parties; amending Minnesota Statutes 1999 Supplement, 
  1.5             section 169.1217, subdivisions 7 and 9. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.8   169.1217, subdivision 7, is amended to read: 
  1.9      Subd. 7.  [LIMITATIONS ON FORFEITURE OF MOTOR VEHICLE.] (a) 
  1.10  A vehicle is subject to forfeiture under this section only if: 
  1.11     (1) the driver is convicted of the designated offense upon 
  1.12  which the forfeiture is based; 
  1.13     (2) the driver fails to appear with respect to the 
  1.14  designated offense charge in violation of section 609.49; or 
  1.15     (3) the driver's conduct results in a designated license 
  1.16  revocation and the driver either fails to seek administrative or 
  1.17  judicial review of the revocation in a timely manner as required 
  1.18  by section 169.123, subdivision 5b or 5c, or the revocation is 
  1.19  sustained under section 169.123, subdivision 5b or 6. 
  1.20     (b) A vehicle encumbered by a bona fide security interest, 
  1.21  or subject to a lease that has a term of 180 days or more, is 
  1.22  subject to the interest of the secured party or lessor unless 
  1.23  the party or lessor had knowledge of or consented to the act 
  1.24  upon which the forfeiture is based.  However,.  When the 
  1.25  proceeds of the sale of a seized vehicle do not equal or exceed 
  2.1   the outstanding loan balance, the appropriate agency shall remit 
  2.2   all proceeds of the sale to the secured party.  If the sale of 
  2.3   the vehicle is conducted in a commercially reasonable manner 
  2.4   consistent with the provisions of section 336.9-504, clause (3), 
  2.5   the agency is not liable to the secured party for any amount 
  2.6   owed on the loan in excess of the sale proceeds if the secured 
  2.7   party received notification of the time and place of the sale at 
  2.8   least three days prior to the sale. 
  2.9      (c) Notwithstanding paragraphs (b) and (d), the secured 
  2.10  party's, lessor's, or owner's interest in a vehicle is not 
  2.11  subject to forfeiture based solely on the secured party's, 
  2.12  lessor's, or owner's knowledge of the act or omission upon which 
  2.13  the forfeiture is based if the secured party, lessor, or owner 
  2.14  took reasonable steps to terminate use of the vehicle by the 
  2.15  offender. 
  2.16     (d) A motor vehicle is subject to forfeiture under this 
  2.17  section only if its owner knew or should have known of the 
  2.18  unlawful use or intended use. 
  2.19     (e) (d) A vehicle subject to a security interest, based 
  2.20  upon a loan or other financing arranged by a financial 
  2.21  institution, is subject to the interest of the financial 
  2.22  institution and must be released to the financial institution or 
  2.23  its authorized agent, within 30 days following notice of seizure 
  2.24  and forfeiture if the financial institution presents proof of a 
  2.25  valid security agreement, lease, or other financing arrangement 
  2.26  and agrees it will not return the vehicle to the violator or 
  2.27  knowingly sell the vehicle to a member of the violator's 
  2.28  household, unless the violator is not convicted of the offense 
  2.29  on which the forfeiture is based.  
  2.30     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.31  169.1217, subdivision 9, is amended to read: 
  2.32     Subd. 9.  [DISPOSITION OF FORFEITED VEHICLE.] (a) If the 
  2.33  vehicle is administratively forfeited under subdivision 7a, or 
  2.34  if the court finds under subdivision 8 that the vehicle is 
  2.35  subject to forfeiture under subdivisions 6 and 7, the 
  2.36  appropriate agency shall: 
  3.1      (1) in the case of a vehicle subject to a security interest 
  3.2   based upon a loan or other financing arranged by a financial 
  3.3   institution, release the vehicle to the financial institution or 
  3.4   its authorized agent upon receiving proof of a valid security 
  3.5   agreement, lease, or other financing arrangement and a signed 
  3.6   agreement stating that the financial institution will not return 
  3.7   the vehicle to the violator or knowingly sell the vehicle to a 
  3.8   member of the violator's household; 
  3.9      (2) sell the vehicle and distribute the proceeds under 
  3.10  paragraph (b); or 
  3.11     (2) (3) keep the vehicle for official use after 
  3.12  satisfaction of valid liens against the vehicle.  If the agency 
  3.13  keeps a forfeited motor vehicle for official use, it shall make 
  3.14  reasonable efforts to ensure that the motor vehicle is available 
  3.15  for use by the agency's officers who participate in the drug 
  3.16  abuse resistance education program. 
  3.17     (b) The proceeds from the sale of forfeited vehicles, after 
  3.18  payment of seizure, storage, forfeiture, and sale expenses, and 
  3.19  satisfaction of valid liens against the property, must be 
  3.20  forwarded to the treasury of the political subdivision that 
  3.21  employs the appropriate agency responsible for the forfeiture 
  3.22  for use in DWI-related enforcement, training and education.  If 
  3.23  the appropriate agency is an agency of state government, the net 
  3.24  proceeds must be forwarded to the state treasury and credited to 
  3.25  the following funds: 
  3.26     (1) if the forfeited vehicle is a motorboat, the net 
  3.27  proceeds must be credited to the water recreation account in the 
  3.28  natural resources fund; 
  3.29     (2) if the forfeited vehicle is a snowmobile, the net 
  3.30  proceeds must be credited to the snowmobile trails and 
  3.31  enforcement account in the natural resources fund; 
  3.32     (3) if the forfeited vehicle is an all-terrain vehicle, the 
  3.33  net proceeds must be credited to the all-terrain vehicle account 
  3.34  in the natural resources fund; 
  3.35     (4) if the forfeited vehicle is an off-highway motorcycle, 
  3.36  the net proceeds must be credited to the off-highway motorcycle 
  4.1   account in the natural resources fund; 
  4.2      (5) if the forfeited vehicle is an off-road vehicle, the 
  4.3   net proceeds must be credited to the off-road vehicle account in 
  4.4   the natural resources fund; and 
  4.5      (6) if otherwise, the net proceeds must be credited to the 
  4.6   general fund. 
  4.7      Sec. 3.  [EFFECTIVE DATE.] 
  4.8      Sections 1 and 2 are effective August 1, 2000.