SF 76

1st Unofficial Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to crime prevention; eliminating requirement 
  1.3             to hold DWI-related vehicle forfeiture proceeding at 
  1.4             same time as implied consent hearing; authorizing 
  1.5             secured parties to sell forfeited vehicles under 
  1.6             certain conditions; amending Minnesota Statutes 1998, 
  1.7             section 169.1217, subdivisions 7a, 9, and by adding a 
  1.8             subdivision. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 169.1217, 
  1.11  subdivision 7a, is amended to read: 
  1.12     Subd. 7a.  [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A 
  1.13  motor vehicle used to commit a designated offense or used in 
  1.14  conduct resulting in a designated license revocation is subject 
  1.15  to administrative forfeiture under this subdivision. 
  1.16     (b) When a motor vehicle is seized under subdivision 2, the 
  1.17  appropriate agency shall serve the driver or operator of the 
  1.18  vehicle with a notice of the seizure and intent to forfeit the 
  1.19  vehicle.  Additionally, when a motor vehicle is seized under 
  1.20  subdivision 2, or within a reasonable time after that, all 
  1.21  persons known to have an ownership or possessory interest in the 
  1.22  vehicle must be notified of the seizure and the intent to 
  1.23  forfeit the vehicle.  Notice mailed by certified mail to the 
  1.24  address shown in department of public safety records is 
  1.25  sufficient notice to the registered owner of the vehicle.  
  1.26  Otherwise, notice may be given in the manner provided by law for 
  1.27  service of a summons in a civil action. 
  2.1      (c) The notice must be in writing and contain:  
  2.2      (1) a description of the vehicle seized; 
  2.3      (2) the date of seizure; and 
  2.4      (3) notice of the right to obtain judicial review of the 
  2.5   forfeiture and of the procedure for obtaining that judicial 
  2.6   review, printed in English, Hmong, and Spanish.  Substantially 
  2.7   the following language must appear conspicuously:  "IF YOU DO 
  2.8   NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA 
  2.9   STATUTES, SECTION 169.1217, SUBDIVISION 7a, YOU LOSE THE RIGHT 
  2.10  TO A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY 
  2.11  RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY.  YOU MAY NOT 
  2.12  HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE 
  2.13  UNABLE TO AFFORD THE FEE.  YOU DO NOT HAVE TO PAY THE FILING FEE 
  2.14  IF THE PROPERTY IS WORTH LESS THAN $500 AND YOU FILE YOUR CLAIM 
  2.15  IN CONCILIATION COURT." 
  2.16     (d) Within 30 days following service of a notice of seizure 
  2.17  and forfeiture under this subdivision, a claimant may file a 
  2.18  demand for a judicial determination of the forfeiture.  The 
  2.19  demand must be in the form of a civil complaint and must be 
  2.20  filed with the court administrator in the county in which the 
  2.21  seizure occurred, together with proof of service of a copy of 
  2.22  the complaint on the prosecuting authority having jurisdiction 
  2.23  over the forfeiture, and the standard filing fee for civil 
  2.24  actions unless the petitioner has the right to sue in forma 
  2.25  pauperis under section 563.01.  If the value of the seized 
  2.26  property is less than $500, the claimant may file an action in 
  2.27  conciliation court for recovery of the seized vehicle without 
  2.28  paying the conciliation court filing fee.  No responsive 
  2.29  pleading is required of the prosecuting authority and no court 
  2.30  fees may be charged for the prosecuting authority's appearance 
  2.31  in the matter.  Except as provided in this section, judicial 
  2.32  reviews and hearings are governed by section 169.123, 
  2.33  subdivisions 5c and 6, and shall at the option of the 
  2.34  prosecuting authority, may take place at the same time as any 
  2.35  judicial review of the person's license revocation under section 
  2.36  169.123.  If the judicial review and hearing under this section 
  3.1   do not take place at the same time as the judicial review of the 
  3.2   person's license revocation under section 169.123, the review 
  3.3   and hearing must take place at the earliest practicable date.  
  3.4   The proceedings may be combined with any hearing on a petition 
  3.5   filed under section 169.123, subdivision 5c, and are governed by 
  3.6   the rules of civil procedure.  
  3.7      (e) The complaint must be captioned in the name of the 
  3.8   claimant as plaintiff and the seized vehicle as defendant, and 
  3.9   must state with specificity the grounds on which the claimant 
  3.10  alleges the vehicle was improperly seized and the plaintiff's 
  3.11  interest in the vehicle seized.  Notwithstanding any law to the 
  3.12  contrary, an action for the return of a vehicle seized under 
  3.13  this section may not be maintained by or on behalf of any person 
  3.14  who has been served with a notice of seizure and forfeiture 
  3.15  unless the person has complied with this subdivision. 
  3.16     (f) If the claimant makes a timely demand for a judicial 
  3.17  determination under this subdivision, the appropriate agency 
  3.18  must conduct the forfeiture under subdivision 8. 
  3.19     (g) If a demand for judicial determination of an 
  3.20  administrative forfeiture is filed under this subdivision and 
  3.21  the court orders the return of the seized vehicle, the court 
  3.22  shall order that filing fees be reimbursed to the person who 
  3.23  filed the demand.  In addition, the court may order the payment 
  3.24  of reasonable costs, expenses, and attorney fees under section 
  3.25  549.21, subdivision 2. 
  3.26     Sec. 2.  Minnesota Statutes 1998, section 169.1217, 
  3.27  subdivision 9, is amended to read: 
  3.28     Subd. 9.  [DISPOSITION OF FORFEITED VEHICLE.] (a) Except as 
  3.29  otherwise provided in subdivision 10, if the vehicle is 
  3.30  administratively forfeited under subdivision 7a, or if the court 
  3.31  finds under subdivision 8 that the vehicle is subject to 
  3.32  forfeiture under subdivisions 6 and 7, the appropriate agency 
  3.33  shall: 
  3.34     (1) sell the vehicle and distribute the proceeds under 
  3.35  paragraph (b); or 
  3.36     (2) keep the vehicle for official use.  If the agency keeps 
  4.1   a forfeited motor vehicle for official use, it shall make 
  4.2   reasonable efforts to ensure that the motor vehicle is available 
  4.3   for use by the agency's officers who participate in the drug 
  4.4   abuse resistance education program. 
  4.5      (b) The proceeds from the sale of forfeited vehicles, after 
  4.6   payment of seizure, storage, forfeiture, and sale expenses, and 
  4.7   satisfaction of valid liens against the property, must be 
  4.8   forwarded to the treasury of the political subdivision that 
  4.9   employs the appropriate agency responsible for the forfeiture 
  4.10  for use in DWI-related enforcement, training and education.  If 
  4.11  the appropriate agency is an agency of state government, the net 
  4.12  proceeds must be forwarded to the state treasury and credited to 
  4.13  the general fund. 
  4.14     (c) The proceeds from the sale of forfeited off-road 
  4.15  recreational vehicles and motorboats, after payment of seizure, 
  4.16  storage, forfeiture, and sale expenses, and satisfaction of 
  4.17  valid liens against the property, must be forwarded to the state 
  4.18  treasury and credited to the following funds: 
  4.19     (1) if the forfeited vehicle is a motorboat, the net 
  4.20  proceeds must be credited to the water recreation account in the 
  4.21  natural resources fund; 
  4.22     (2) if the forfeited vehicle is a snowmobile, the net 
  4.23  proceeds must be credited to the snowmobile trails and 
  4.24  enforcement account in the natural resources fund; 
  4.25     (3) if the forfeited vehicle is an all-terrain vehicle, the 
  4.26  net proceeds must be credited to the all-terrain vehicle account 
  4.27  in the natural resources fund; 
  4.28     (4) if the forfeited vehicle is an off-highway motorcycle, 
  4.29  the net proceeds must be credited to the off-highway motorcycle 
  4.30  account in the natural resources fund; 
  4.31     (5) if the forfeited vehicle is an off-road vehicle, the 
  4.32  net proceeds must be credited to the off-road vehicle account in 
  4.33  the natural resources fund; and 
  4.34     (6) if otherwise, the net proceeds must be credited to the 
  4.35  general fund. 
  4.36     Sec. 3.  Minnesota Statutes 1998, section 169.1217, is 
  5.1   amended by adding a subdivision to read: 
  5.2      Subd. 10.  [SALE OF FORFEITED VEHICLE BY SECURED 
  5.3   PARTY.] (a) In lieu of disposing of the vehicle under 
  5.4   subdivision 9, and subject to the conditions provided in 
  5.5   paragraph (b), the appropriate agency shall release a forfeited 
  5.6   vehicle encumbered by a bona fide security interest to the 
  5.7   secured party, on request, for foreclosure and sale pursuant to 
  5.8   its security interest. 
  5.9      (b) The appropriate agency may release a forfeited vehicle 
  5.10  to a requesting secured party under paragraph (a) only if the 
  5.11  following conditions are met: 
  5.12     (1) the secured party must agree to complete the necessary 
  5.13  foreclosure proceedings to terminate the debtor's ownership 
  5.14  interest as soon as reasonably possible or, alternatively, must 
  5.15  agree to a written surrender of interest executed by the debtor 
  5.16  as to the vehicle and agree to sell the vehicle in a 
  5.17  commercially reasonable manner; 
  5.18     (2) the secured party must agree that, due to the 
  5.19  forfeiture proceedings, the debtor has no right to redeem the 
  5.20  vehicle under the security agreement in accordance with chapter 
  5.21  336, article 9; 
  5.22     (3) the secured party must agree that neither the debtor 
  5.23  nor any member of the debtor's household may regain ownership or 
  5.24  possession of the vehicle and must agree not to release, 
  5.25  deliver, or assign the vehicle to the debtor or any member of 
  5.26  the debtor's household; and 
  5.27     (4) the secured party must agree to pay the appropriate 
  5.28  agency the greater of: 
  5.29     (i) the total cost incurred by the appropriate agency in 
  5.30  connection with the forfeiture of the vehicle, including 
  5.31  seizure, storage, towing, and other related expenses; or 
  5.32     (ii) the difference between the amount owed to the secured 
  5.33  party under the security agreement on the date of the forfeiture 
  5.34  and the net proceeds received from the sale of the vehicle. 
  5.35     Sec. 4.  [EFFECTIVE DATE.] 
  5.36     Sections 1 to 3 are effective the day following final 
  6.1   enactment.