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Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 235-S.F.No. 388
An act relating to vehicle forfeiture; clarifying and
modifying certain definitions, standards, and
procedures for vehicle forfeitures associated with
driving while impaired; amending Minnesota Statutes
2002, sections 169A.60, subdivisions 1, 14; 169A.63,
subdivisions 1, 2, 7, 8, 9, 10.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2002, 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" has the meaning given in
section 169A.63, subdivision 1.
(c) "Motor vehicle" means a self-propelled motor vehicle
other than a motorboat in operation or an off-road recreational
vehicle.
(c) (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
a conforming ordinance from this state or a conforming statute
or ordinance from another state, 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 0.20 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; and
(5) a violation of section 171.24 (driving without valid
license) by a person whose driver's license or driving
privileges have been canceled under section 171.04, subdivision
1, clause (10) (persons not eligible for driver's license,
inimical to public safety).
(d) "Significant relationship" has the same meaning as
given in section 609.341, subdivision 15, and includes any
person with whom the actor regularly associates and communicates
outside of a workplace setting.
(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 2002, section 169A.60,
subdivision 14, is amended to read:
Subd. 14. [SALE OF VEHICLE SUBJECT TO IMPOUNDMENT ORDER.]
(a) A registered owner may not sell or transfer a motor vehicle
during the time its registration plates have been ordered
impounded or during the time its registration plates bear a
special series number, unless:
(1) the sale is for a valid consideration;
(2) the transferee and the registered owner:
(i) are not, and have not been, related by blood, adoption,
or marriage;
(ii) do not reside in the same household; and
(iii) do not have, and have not had at any time, a
significant relationship with one another are not family or
household members;
(3) the transferee signs an acceptable sworn statement with
the commissioner attesting that:
(i) the transferee and the violator do not have, and have
not had at any time, a significant relationship with one another
are not family or household members;
(ii) the transferee understands that the vehicle is subject
to an impoundment order; and
(iii) it is a crime under section 169A.37 to file a false
statement under this section or to allow the previously
registered owner to drive, operate, or be in control of the
vehicle during the impoundment period; and
(4) all elements of section 168A.10 (transfer of interest
by owner) are satisfied.
(b) If the conditions of paragraph (a) are satisfied, the
registrar may transfer the title to the new owner upon proper
application and issue new registration plates for the vehicle.
Sec. 3. Minnesota Statutes 2002, 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.
(d) (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) "Family or household member" means:
(1) a parent, stepparent, or guardian;
(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
(3) persons residing together or persons who regularly
associate and communicate with one another outside of a
workplace setting.
(e) (g) "Motor vehicle" and "vehicle" do not include a
vehicle which is stolen or taken in violation of the law.
(f) (h) "Owner" means the registered owner of the motor
vehicle according to records of the Department of Public Safety
and includes 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.
(g) (i) "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.
(j) "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. 4. Minnesota Statutes 2002, section 169A.63,
subdivision 2, is amended to read:
Subd. 2. [SEIZURE.] (a) A motor vehicle subject to
forfeiture under this section may be seized by the appropriate
agency upon process issued by any court having jurisdiction over
the vehicle.
(b) Property may be seized without process if:
(1) the seizure is incident to a lawful arrest or a lawful
search;
(2) the vehicle subject to seizure has been the subject of
a prior judgment in favor of the state in a criminal injunction
or forfeiture proceeding under this section; or
(3) the appropriate agency has probable cause to believe
that the delay occasioned by the necessity to obtain process
would result in the removal or destruction of the vehicle. If
property is seized without process under this clause, the
prosecuting authority must institute a forfeiture action under
this section as soon as is reasonably possible by serving a
notice of seizure and intent to forfeit at the address of the
owner as listed in the records of the department of public
safety.
Sec. 5. Minnesota Statutes 2002, 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
only 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 charge in
violation of section 609.49 (release; failure to appear) 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 either fails to seek administrative or
judicial review of the revocation in a timely manner as required
by section 169A.53, subdivision 2, (administrative and petition
for judicial review of license revocation), or the license
revocation is judicially reviewed and sustained under section
169A.53, subdivision 2.
(b) A vehicle encumbered by a bona fide 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 if the secured party received notification of the time
and place of the sale at least three days prior to the
sale. The validity and amount of a nonperfected security
interest must be established by its holder by clear and
convincing evidence.
(c) Notwithstanding paragraphs paragraph (b) and (d), the
secured party's, or lessor's, or owner's interest in a vehicle
is not subject to forfeiture based solely on the secured
party's, or lessor's, or owner's knowledge of the act or
omission upon which the forfeiture is based if the secured
party, or lessor, or owner demonstrates by clear and convincing
evidence that the party or lessor took reasonable steps to
terminate use of the vehicle by the offender.
(d) A motor vehicle is not subject to forfeiture under this
section only if its owner knew or should have known of the
unlawful use or intended use. 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:
(1) section 171.24 (violations; driving without valid
license);
(2) section 169.791 (criminal penalty for failure to
produce proof of insurance);
(3) section 171.09 (driving restrictions; authority,
violations);
(4) section 169A.20 (driving while impaired);
(5) section 169A.33 (underage drinking and driving); and
(6) section 169A.35 (open bottle law).
(e) A vehicle subject to a security interest, based upon a
loan or other financing arranged by a financial institution, is
subject to the interest of the financial institution.
Sec. 6. Minnesota Statutes 2002, section 169A.63,
subdivision 8, is amended to read:
Subd. 8. [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A
motor vehicle used to commit a designated offense or used in
conduct resulting in a designated license revocation is subject
to administrative forfeiture under this subdivision.
(b) When a motor vehicle is seized under subdivision 2, or
within a reasonable time after seizure, the appropriate agency
shall serve the driver or operator of the vehicle with a notice
of the seizure and intent to forfeit the vehicle. Additionally,
when a motor vehicle is seized under subdivision 2, or within a
reasonable time after that, all persons known to have an
ownership, possessory, or security interest in the vehicle must
be notified of the seizure and the intent to forfeit the
vehicle. For those vehicles required to be registered under
chapter 168, the notification to a person known to have a
security interest in the vehicle is required only if the vehicle
is registered under chapter 168 and the interest is listed on
the vehicle's title. Notice mailed by certified mail to the
address shown in Department of Public Safety records is
sufficient notice to the registered owner of the vehicle. For
motor vehicles not required to be registered under chapter 168,
notice mailed by certified mail to the address shown in the
applicable filing or registration for the vehicle is sufficient
notice to a person known to have an ownership, possessory, or
security interest in the vehicle. Otherwise, notice may be
given in the manner provided by law for service of a summons in
a civil action.
(c) The notice must be in writing and contain:
(1) a description of the vehicle seized;
(2) the date of seizure; and
(3) notice of the right to obtain judicial review of the
forfeiture and of the procedure for obtaining that judicial
review, printed in English, Hmong, and Spanish. Substantially
the following language must appear conspicuously: "IF YOU DO
NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA
STATUTES, SECTION 169A.63, SUBDIVISION 8, YOU LOSE THE RIGHT TO
A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY
RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY. YOU MAY NOT
HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE
UNABLE TO AFFORD THE FEE. IF THE PROPERTY IS WORTH $7,500 OR
LESS, YOU MAY FILE YOUR CLAIM IN CONCILIATION COURT. YOU DO NOT
HAVE TO PAY THE CONCILIATION COURT FILING FEE IF THE PROPERTY IS
WORTH LESS THAN $500."
(d) Within 30 days following service of a notice of seizure
and forfeiture under this subdivision, a claimant may file a
demand for a judicial determination of the forfeiture. The
demand must be in the form of a civil complaint and must be
filed with the court administrator in the county in which the
seizure occurred, together with proof of service of a copy of
the complaint on the prosecuting authority having jurisdiction
over the forfeiture, and the standard filing fee for civil
actions unless the petitioner has the right to sue in forma
pauperis under section 563.01. If the value of the seized
property is $7,500 or less, the claimant may file an action in
conciliation court for recovery of the seized vehicle. A copy
of the conciliation court statement of claim must be served
personally or by mail on the prosecuting authority having
jurisdiction over the forfeiture within 30 days following
service of the notice of seizure and forfeiture under this
subdivision. If the value of the seized property is less than
$500, the claimant does not have to pay the conciliation court
filing fee. No responsive pleading is required of the
prosecuting authority and no court fees may be charged for the
prosecuting authority's appearance in the matter. Except as
provided in this section, judicial reviews and hearings are
governed by section 169A.53, subdivisions 2 and 3, and, at the
option of the prosecuting authority, may take place at the same
time as any judicial review of the person's license revocation
under section 169A.53. If the judicial review and hearing under
this section do not take place at the same time as the judicial
review of the person's license revocation under section 169A.53,
the review and hearing must take place at the earliest
practicable date. The proceedings may be combined with any
hearing on a petition filed under section 169A.53, subdivision
2, and Pleadings, filings, and methods of service are governed
by the Rules of Civil Procedure.
(e) The complaint must be captioned in the name of the
claimant as plaintiff and the seized vehicle as defendant, and
must state with specificity the grounds on which the claimant
alleges the vehicle was improperly seized and, the plaintiff's
claimant's interest in the vehicle seized, and any affirmative
defenses the claimant may have. Notwithstanding any law to the
contrary, an action for the return of a vehicle seized under
this section may not be maintained by or on behalf of any person
who has been served with a notice of seizure and forfeiture
unless the person has complied with this subdivision.
(f) If the claimant makes a timely demand for a judicial
determination under this subdivision, the appropriate agency
must conduct the forfeiture proceedings must be conducted as
provided under subdivision 9.
(g) If a demand for judicial determination of an
administrative forfeiture is filed under this subdivision and
the court orders the return of the seized vehicle, the court
shall order that filing fees be reimbursed to the person who
filed the demand. In addition, the court may order sanctions
under section 549.211 (sanctions in civil actions).
Sec. 7. Minnesota Statutes 2002, 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 must be filed 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
not precede adjudication in the criminal prosecution of the
designated offense without the consent of the prosecuting
authority. The district court administrator shall schedule the
hearing as soon as practicable after adjudication in 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. A claimant
bears the burden of proving any affirmative defense raised.
(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 dismiss the complaint against the
vehicle and 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 (administrative and judicial
review of license revocation), subdivision 3 (judicial review
hearing, issues, order, appeal), the court shall dismiss the
complaint against the vehicle and 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) 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 it is
found the owner was not privy to commission of a designated
offense or was not privy to the conduct resulting in the
designated license revocation, the owner makes the demonstration
required under subdivision 7, paragraph (d), 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).
Sec. 8. Minnesota Statutes 2002, section 169A.63,
subdivision 10, is amended to read:
Subd. 10. [DISPOSITION OF FORFEITED VEHICLE.] (a) If the
vehicle is administratively forfeited under subdivision 8, or if
the court finds under subdivision 9 that the vehicle is subject
to forfeiture under subdivisions 6 and 7, the appropriate agency
shall:
(1) sell the vehicle and distribute the proceeds under
paragraph (b); or
(2) keep the vehicle for official use. If the agency keeps
a forfeited motor vehicle for official use, it shall make
reasonable efforts to ensure that the motor vehicle is available
for use by the agency's officers who participate in the drug
abuse resistance education program.
(b) The proceeds from the sale of forfeited vehicles, after
payment of seizure, towing, storage, forfeiture, and sale
expenses, and satisfaction of valid liens against the property,
must be distributed as follows:
(1) 70 percent of the proceeds must be forwarded to the
appropriate agency for deposit as a supplement to the state or
local agency's operating fund or similar fund for use in
DWI-related enforcement, training, and education; and
(2) 30 percent of the money or proceeds must be forwarded
to the prosecuting authority that handled the forfeiture for
deposit as a supplement to its operating fund or similar fund
for prosecutorial purposes.
Presented to the governor May 18, 2004
Signed by the governor May 26, 2004, 9:45 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes