SF 873

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 02/28/2014 09:50am

A bill for an act
relating to forfeiture; shifting the burden of proof to the prosecutor in an innocent
owner case involving off-highway vehicles, DWI, designated offenses, controlled
substance offenses, fleeing offenses, and prostitution offenses; codifying and
expanding the homestead exemption; allowing innocent owners to reclaim
vehicle if equipped with ignition interlock device; creating criminal penalties;
amending Minnesota Statutes 2012, sections 84.7741, subdivision 7; 169A.63,
subdivisions 4, 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 2012, section 84.7741, subdivision 7, is amended to read:

Subd. 7.

Presumptions; limitations on vehicle forfeiture.

(a) An off-highway
vehicle is presumed subject to forfeiture under this section if the driver:

(1) is convicted of the designated offense upon which the forfeiture is based; or

(2) 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.

(b) deleted text begin An off-highway 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 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 an
off-highway 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) An off-highway 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 off-highway vehicle convictions, the owner is presumed to know of any
vehicle use by the offender that is contrary to law deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2012, section 169A.63, subdivision 4, is amended to read:

Subd. 4.

Bond by owner for possession.

new text begin (a) new text end If the owner of a vehicle that has been
seized under this section seeks possession of the vehicle before the forfeiture action is
determined, the owner may give security or post bond payable to the appropriate agency
in an amount equal to the retail value of the seized vehicle. On posting the security or
bond, the seized vehicle deleted text begin may deleted text end new text begin shall new text end be returned to the owner only if a disabling device is
attached to the vehicle new text begin upon return or pursuant to paragraph (b) new text end . The forfeiture action must
proceed against the security as if it were the seized vehicle. This subdivision does not
apply to a vehicle being held for investigatory purposes.

new text begin (b) For purposes of paragraph (a), a disabling device includes a certified ignition
interlock device installed for use only by an owner of the vehicle with valid Minnesota
driving privileges. Installation must be completed and confirmed by an approved service
provider on the date the vehicle is returned. If confirmation is not timely received, the
appropriate agency may seize the vehicle and seek costs from the owner. The owner shall
bring the vehicle to an approved service provider for installation, device calibration, and
servicing according to the schedule established by the commissioner of public safety and
as indicated by the ignition interlock device. For purposes of this paragraph, section
171.306 applies as related to certification and approved service providers of ignition
interlock devices. It is a misdemeanor to tamper with, circumvent, or bypass an ignition
interlock device or assist another to tamper with, circumvent, or bypass a device installed
pursuant to this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2012, 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, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2012, 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) 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. deleted text begin A claimant bears the
burden of proving any affirmative defense raised.
deleted text end

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

new text begin (g) new text end 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.

deleted text begin (g) deleted text end new text begin (h) new text end If the lawful ownership of the vehicle used in the commission of a designated
offense or used in conduct resulting in a designated license revocation can be determined
and the deleted text begin owner makes the demonstration required under subdivision 7, paragraph (d)
deleted text end new text begin vehicle is not subject to forfeiture under section 609.531, subdivision 9 or 10 new text end , the
vehicle must be returned immediately upon the owner's compliance with the redemption
requirements of section 169A.42.

deleted text begin (h) deleted text end new text begin (i) new text end 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, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2012, 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 Division of Insurance Fraud Prevention, 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 chapter 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.

(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) "Willfully ignorant" means that a person intentionally avoided knowledge of a
crime by failing to make a reasonable inquiry about suspected wrongdoing despite being
aware of its high probability. Negligence or mistake is insufficient to establish that the
person was willfully ignorant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2012, 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) Notwithstanding any law to the contrary, for purposes of sections 84.7741,
169A.63, 609.5311, 609.5312, 609.5314, and 609.5318, unless the prosecuting authority
meets its burden under paragraph (c), property is not presumed or otherwise subject to
forfeiture if a claimant presents prima facie 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 (b) An off-highway or 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 unless the prosecutor meets
its burden under paragraph (c). 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 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 (c) 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 knowledge of the crime giving rise to the forfeiture or was willfully
ignorant to its commission; or
new text end

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

new text begin (d) Notwithstanding paragraph (c), property is not subject to forfeiture if the claimant
demonstrates by a preponderance of the evidence that the claimant took reasonable steps
under the circumstances to prohibit, abate, or terminate the illegal use of the property
including, but not limited to:
new text end

new text begin (1) providing immediate notice to an appropriate law enforcement agency that a
crime was occurring;
new text end

new text begin (2) revoking or making a good faith attempt to revoke permission to use the property
by a person engaging in illegal conduct; or
new text end

new text begin (3) taking reasonable actions in consultation with a law enforcement agency to
discourage or prevent the illegal use of the property.
new text end

new text begin A claimant is not required to take steps that the claimant reasonably believes would likely
subject the claimant to physical danger.
new text end

new text begin (e) If the court finds that the property is not subject to forfeiture, all claims of right,
title, and interest to the property that vested in the state shall be relinquished.
new text end

new text begin (f) For purposes of this subdivision and subdivisions 10 and 11, and any provision
governed by these subdivisions, "claimant" means any of the following persons claiming
an ownership or security interest in forfeited property: an owner, lessor, secured party,
common carrier in the business as a common carrier, or good faith purchaser for value.
A person claiming a security interest bears the burden of establishing the validity and
amount of that interest by clear and convincing evidence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2012, 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) Notwithstanding any law to the contrary, for purposes of sections
84.7741, 169A.63, 609.5311, 609.5312, 609.5314, and 609.5318, unless the prosecuting
authority meets its burden under paragraph (b), property is not presumed or otherwise
subject to forfeiture if a claimant presents prima facie 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 (b) 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 knowledge of the crime giving rise to the forfeiture or was willfully
ignorant to its commission; or
new text end

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

new text begin (c) If the court finds that the property is not subject to forfeiture, all claims of right,
title, and interest to the property that vested in the state shall be relinquished.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2012, section 609.531, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Return of property; fees and sanctions. new text end

new text begin (a) Except as provided in
paragraph (b), if the court finds that property is not subject to forfeiture under subdivision
9 or 10, the property shall be returned to the claimant legally entitled to it within a
reasonable amount of time.
new text end

new text begin (b) If the court finds that the offender has access to a vehicle used in the commission
of a designated offense under section 169A.63, the court shall order the owner to equip the
vehicle with an ignition interlock device certified by the commissioner of public safety
for a period not to exceed one year. Once the vehicle is equipped with the device, it shall
be returned to the owner. The owner must have valid Minnesota driving privileges and
bring the vehicle to an approved service provider for installation, device calibration, and
servicing according to the schedule established by the commissioner of public safety
and as indicated by the ignition interlock device. For purposes of this paragraph, the
provisions of section 171.306 apply as related to certification and approved service
providers of ignition interlock devices. It is a misdemeanor to tamper with, circumvent, or
bypass an ignition interlock device or assist another to tamper with, circumvent, or bypass
a device installed pursuant to this paragraph.
new text end

new text begin (c) If the court orders the return of a seized property under this subdivision, it must
order that filing fees be reimbursed to the person who filed the demand for judicial
determination or contested the forfeiture. 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 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, 2013, and applies to
offenses committed on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2012, 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 Notwithstanding any law to the
contrary, for purposes of sections 609.5311 and 609.5312, real property that falls within
the homestead exemption under section 510.01 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, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2012, 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 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) deleted text end Notwithstanding deleted text begin paragraphs (d), (e), and (f), deleted text end new text begin section 609.531, subdivision 9 or
12, new text end property is not subject to forfeiture deleted text begin 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) deleted text end new text begin if new text end 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.

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) to deleted text begin (g) deleted text end new text begin (c) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2012, 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, subdivision 9, 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, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2012, 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 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, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2012, 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 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, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2012, 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, subdivision 9, 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, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 15. new text begin CONSTRUCTION OF TERM.
new text end

new text begin A court construing the term "willfully ignorant" as used in this act shall consider
the term as being synonymous with the term "willfully blind" as that term is used in
federal forfeiture law.
new text end