Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 217-H.F.No. 388 
           An act relating to crimes; providing for attachment of 
          financial assets of persons charged with committing a 
          felony; updating the wiretap law; prohibiting persons 
          from defrauding insurers by concealing or removing 
          property for the purpose of making a fraudulent 
          insurance claim; amending Minnesota Statutes 1986, 
          sections 609.611; and 626A.05, subdivision 2; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 609. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [609.532] [ATTACHMENT OF DEPOSITED FUNDS.] 
    Subdivision 1.  [ATTACHMENT.] Upon application by the 
prosecuting authority, a court may issue an attachment order 
directing a financial institution to freeze some or all of the 
funds or assets deposited with or held by the financial 
institution by or on behalf of an account holder charged with 
the commission of a felony.  
    Subd. 2.  [APPLICATION.] The application of the prosecuting 
authority required by this section must contain: 
    (1) a copy of a criminal complaint issued by a court of 
competent jurisdiction that alleges the commission of a felony 
by the account holder; 
    (2) a statement of the actual financial loss caused by the 
account holder in the commission of the alleged felony, if not 
already stated in the complaint; and 
    (3) identification of the account holder's name and 
financial institution account number. 
    Subd. 3.  [ISSUANCE OF A COURT ORDER.] If the court finds 
that (1) there is probable cause that the account holder was 
involved in the commission of a felony; (2) the accounts of the 
account holder are specifically identified; (3) there was a loss 
of $10,000 or more as a result of the commission of the alleged 
felony; and (4) it is necessary to freeze the account holder's 
funds or assets to ensure eventual restitution to victims of the 
alleged offense, the court may order the financial institution 
to freeze all or part of the account holder's deposited funds or 
assets so that the funds or assets may not be withdrawn or 
disposed of until further order of the court. 
    Subd. 4.  [DUTY OF FINANCIAL INSTITUTIONS.] Upon receipt of 
the order authorized by this section, a financial institution 
must not permit any funds or assets that were frozen by the 
order to be withdrawn or disposed of until further order of the 
court. 
    Subd. 5.  [RELEASE OF FUNDS.] (a) The account holder may, 
upon notice and motion, have a hearing to contest the freezing 
of funds or assets and to seek the release of all or part of 
them. 
    (b) The account holder is entitled to an order releasing 
the freeze by showing: 
    (1) that the account holder has posted a bond or other 
adequate surety, guaranteeing that, upon conviction, adequate 
funds or assets will be available to pay complete restitution to 
victims of the alleged offense; 
    (2) that there is no probable cause to believe that the 
account holder was involved in the alleged offense; 
    (3) that the amount of funds or assets frozen is more than 
is necessary to pay complete restitution to all victims of the 
alleged offense;  
    (4) that a joint account holder who is not involved in the 
alleged criminal activity has deposited all or part of the funds 
or assets; or 
    (5) that the funds or assets should be returned in the 
interests of justice.  
    (c) It is not grounds for the release of funds or assets 
that the particular accounts frozen do not contain funds or 
assets that were proceeds from or used in the commission of the 
alleged offense.  
    Subd 6.  [DISPOSITION OF FUNDS.] (a) If the account holder 
is convicted of a felony or a lesser offense, the funds or 
assets may be used to pay complete restitution to victims of the 
offense.  The court may order the financial institution to remit 
all or part of the frozen funds or assets to the court. 
    (b) If the account holder is acquitted or the charges are 
dismissed, the court must issue an order releasing the freeze on 
the funds or assets.  
    Subd. 7.  [TIME LIMIT.] The freeze permitted by this 
section expires 24 months after the date of the court's initial 
attachment order unless the time limit is extended by the court 
in writing upon a showing of good cause by the prosecution. 
    Subd. 8.  [NOTICE.] Within ten days after a court issues an 
attachment order under this section, the prosecutor shall send a 
copy of the order to the account holder's last known address or 
to the account holder's attorney, if known. 
    Sec. 2.  Minnesota Statutes 1986, section 609.611, is 
amended to read:  
    609.611 [DEFRAUDING INSURER.] 
    Whoever with intent to injure or defraud an insurer, 
damages, removes, or conceals any property real or personal, 
whether the actor's own or that of another, which is at the time 
insured by any person, firm or corporation against loss or 
damage; 
    (a) May be sentenced to imprisonment for not more than 
three years or to payment of fine of not more than $5,000, or 
both if the value insured for is less than $20,000; or 
    (b) May be sentenced to imprisonment for not more than five 
years or to payment of fine of not more than $10,000, or both if 
the value insured for is $20,000 or greater; 
    (c) Proof that the actor recovered or attempted to recover 
on a policy of insurance by reason of the fire is relevant but 
not essential to establish the actor's intent to defraud the 
insurer. 
    Sec. 3.  Minnesota Statutes 1986, section 626A.05, 
subdivision 2, is amended to read:  
    Subd. 2.  [OFFENSES FOR WHICH INTERCEPTION OF WIRE OR ORAL 
COMMUNICATION MAY BE AUTHORIZED.] A warrant authorizing 
interception of wire or oral communications by investigative or 
law enforcement officers may only be issued when the 
interception may provide evidence of the commission of gambling 
or any criminal, or of an attempt or conspiracy to commit, any 
of the following offenses:  
    (1) a felony offense involving murder, manslaughter, 
aggravated assault in the first, second, and third degrees, 
aggravated robbery, kidnapping, aggravated rape criminal sexual 
conduct in the first, second, and third degrees, prostitution, 
bribery, perjury, escape from custody, theft, receiving stolen 
property, embezzlement, burglary in the first, second, and third 
degrees, forgery, or aggravated forgery, and offenses relating 
to controlled substances, or an attempt or conspiracy to commit 
any of these offenses, as punishable under sections 609.185, 
609.19, 609.195, 609.20, 609.225 609.221, 609.222, 609.223, 
609.2231, 609.245, 609.25, 609.291, 609.321 to 609.324, 609.342, 
609.343, 609.344, 609.42, 609.48, 609.485, subdivision 4, clause 
(1), 609.52, 609.53, 609.54, 609.58 609.582, 609.625, 609.63, 
609.76, and 609.825, and ; or 
    (2) an offense relating to gambling or controlled 
substances, as punishable under section 609.76 or chapter 152. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective August 1, 1987, and apply to 
crimes committed on or after that date. 
    Approved May 26, 1987