1.1                          A bill for an act 
  1.2             relating to forfeiture; clarifying procedures under 
  1.3             the DWI forfeiture law; amending Minnesota Statutes 
  1.4             1998, sections 169.1217, subdivision 8; and 169.128; 
  1.5             Minnesota Statutes 1999 Supplement, section 169.1217, 
  1.6             subdivisions 1, 7, 7a, and 9. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   169.1217, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [DEFINITIONS.] As used in this section, the 
  1.11  following terms have the meanings given them: 
  1.12     (a) "Appropriate agency" means a law enforcement agency 
  1.13  that has the authority to make an arrest for a violation of a 
  1.14  designated offense or to require a test under section 169.123. 
  1.15     (b) "Designated license revocation" includes a license 
  1.16  revocation under section 169.123: 
  1.17     (1) within five years of two prior impaired driving 
  1.18  convictions, two prior license revocations, or a prior impaired 
  1.19  driving conviction and a prior license revocation, based on 
  1.20  separate incidents; ~~or~~ 
  1.21     (2) within 15 years of the first of three or more prior 
  1.22  impaired driving convictions, three or more prior license 
  1.23  revocations, or any combination of three or more prior impaired 
  1.24  driving convictions and prior license revocations, based on 
  1.25  separate incidents~~.~~; 
  1.26     (3) concerning a person whose driver's license or driving 
  2.1   privileges have been canceled as inimical to public safety under 
  2.2   section 171.04, subdivision 1; or 
  2.3      (4) concerning a person who is subject to a restriction on 
  2.4   the person's driver's license under section 171.09 that provides 
  2.5   that the person may not use or consume any amount of alcohol or 
  2.6   a controlled substance. 
  2.7      (c) "Designated offense" includes: 
  2.8      (1) a violation of section 169.121, subdivision 1, clause 
  2.9   (a), (b), (c), (d), (e), (g), or (h), subdivision 1a, an 
  2.10  ordinance in conformity with any of them, or section 169.129: 
  2.11     (i) within five years of two prior impaired driving 
  2.12  convictions, or two prior license revocations, or a prior 
  2.13  impaired driving conviction and a prior license revocation, 
  2.14  based on separate incidents; or 
  2.15     (ii) within 15 years of the first of three or more prior 
  2.16  impaired driving convictions, three or more prior license 
  2.17  revocations, or any combination of three or more impaired 
  2.18  driving convictions and prior license revocations, based on 
  2.19  separate incidents; 
  2.20     (2) a violation of section 169.121, subdivision 1, clause 
  2.21  (f), or a violation of section 169.121, subdivision 3, paragraph 
  2.22  (c), clause (4): 
  2.23     (i) within five years of a prior impaired driving 
  2.24  conviction or a prior license revocation; or 
  2.25     (ii) within 15 years of the first of two or more prior 
  2.26  impaired driving convictions, two or more prior license 
  2.27  revocations, or a prior impaired driving conviction and a prior 
  2.28  license revocation, based on separate incidents; or 
  2.29     (3) a violation of section 169.121, an ordinance in 
  2.30  conformity with it, or section 169.129: 
  2.31     (i) by a person whose driver's license or driving 
  2.32  privileges have been canceled as inimical to public safety under 
  2.33  section 171.04, subdivision 1~~, clause (10)~~; or 
  2.34     (ii) by a person who is subject to a restriction on the 
  2.35  person's driver's license under section 171.09 which provides 
  2.36  that the person may not use or consume any amount of alcohol or 
  3.1   a controlled substance. 
  3.2      (d) "Motor vehicle" and "vehicle" have the meaning given 
  3.3   "motor vehicle" in section 169.121, subdivision 11.  The terms 
  3.4   do not include a vehicle which is stolen or taken in violation 
  3.5   of the law. 
  3.6      (e) "Owner" means the registered owner of the motor vehicle 
  3.7   according to records of the department of public safety ~~and~~ or 
  3.8   any person, other than the registered owner, who is demonstrated 
  3.9   to be the actual owner of the vehicle under subdivision 8.  
  3.10  Owner also includes a lessee of a motor vehicle if the lease 
  3.11  agreement has a term of 180 days or more. 
  3.12     (f) "Prior impaired driving conviction" has the meaning 
  3.13  given it in section 169.121, subdivision 3.  A prior impaired 
  3.14  driving conviction also includes a prior juvenile adjudication 
  3.15  that would have been a prior impaired driving conviction if 
  3.16  committed by an adult. 
  3.17     (g) "Prior license revocation" has the meaning given it in 
  3.18  section 169.121, subdivision 3. 
  3.19     (h) "Prosecuting authority" means the attorney in the 
  3.20  jurisdiction in which the designated offense occurred who is 
  3.21  responsible for prosecuting violations of a designated offense. 
  3.22     (i) "Security interest" means a bona fide security interest 
  3.23  based on a loan or other financing arranged by a financial 
  3.24  institution that, if the vehicle is required to be registered 
  3.25  under chapter 168, is listed on the vehicle's title. 
  3.26     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  3.27  169.1217, subdivision 7, is amended to read: 
  3.28     Subd. 7.  [LIMITATIONS ON FORFEITURE OF MOTOR VEHICLE.] (a) 
  3.29  A vehicle is subject to forfeiture under this section only if: 
  3.30     (1) the driver is convicted of the designated offense upon 
  3.31  which the forfeiture is based; 
  3.32     (2) the driver fails to appear with respect to the 
  3.33  designated offense charge in violation of section 609.49; or 
  3.34     (3) the driver's conduct results in a designated license 
  3.35  revocation and the driver either fails to seek administrative or 
  3.36  judicial review of the revocation in a timely manner as required 
  4.1   by section 169.123, subdivision 5b or 5c, or the revocation is 
  4.2   sustained under section 169.123, subdivision 5b or 6. 
  4.3      (b) The forfeiture of a vehicle encumbered by a bona fide 
  4.4   security interest, or subject to a lease that has a term of 180 
  4.5   days or more, is subject to the interest of the secured party or 
  4.6   lessor unless the party or lessor had knowledge of or consented 
  4.7   to (1) the act upon which the forfeiture is based, or (2) the 
  4.8   vehicle's unlawful use, including that the offender did not have 
  4.9   a valid driver's license or driving privileges at the time the 
  4.10  offender used the vehicle.  However, when the proceeds of the 
  4.11  sale of a seized vehicle do not equal or exceed the outstanding 
  4.12  loan balance, the appropriate agency shall remit all proceeds of 
  4.13  the sale to the secured party.  If the sale of the vehicle is 
  4.14  conducted in a commercially reasonable manner consistent with 
  4.15  the provisions of section 336.9-504, clause (3), the agency is 
  4.16  not liable to the secured party for any amount owed on the loan 
  4.17  in excess of the sale proceeds if the secured party received 
  4.18  notification of the time and place of the sale at least three 
  4.19  days prior to the sale. 
  4.20     (c) Notwithstanding paragraphs (b) and (d), the secured 
  4.21  party's, lessor's, or owner's interest in a vehicle is not 
  4.22  subject to forfeiture based solely on the secured party's, 
  4.23  lessor's, or owner's knowledge of the act or omission upon which 
  4.24  the forfeiture is based or of the vehicle's unlawful use if the 
  4.25  secured party, lessor, or owner took reasonable steps to 
  4.26  terminate use of the vehicle by the offender. 
  4.27     (d) A motor vehicle is subject to forfeiture under this 
  4.28  section only if its owner knew or should have known (1) of the 
  4.29  unlawful use or intended use, or (2) that the offender did not 
  4.30  have a valid driver's license or driving privileges at the time 
  4.31  the offender used the vehicle. 
  4.32     ~~(e) A vehicle subject to a security interest, based upon a~~ 
  4.33  ~~loan or other financing arranged by a financial institution, is~~ 
  4.34  ~~subject to the interest of the financial institution.~~ 
  4.35     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  4.36  169.1217, subdivision 7a, is amended to read: 
  5.1      Subd. 7a.  [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A 
  5.2   motor vehicle used to commit a designated offense or used in 
  5.3   conduct resulting in a designated license revocation is subject 
  5.4   to administrative forfeiture under this subdivision. 
  5.5      (b) When a motor vehicle is seized under subdivision 2, the 
  5.6   appropriate agency shall serve the driver or operator of the 
  5.7   vehicle with a notice of the seizure and intent to forfeit the 
  5.8   vehicle. Additionally, when a motor vehicle is seized under 
  5.9   subdivision 2, or within a reasonable time after that, all 
  5.10  persons known to have an ownership, possessory, or security 
  5.11  interest in the vehicle must be notified of the seizure and the 
  5.12  intent to forfeit the vehicle.  The notice must identify the 
  5.13  prosecuting agency that has jurisdiction over the forfeiture.  
  5.14  If the vehicle is required to be registered under chapter 168, 
  5.15  the notification to a person known to have a security interest 
  5.16  in the vehicle is required only if the vehicle is registered 
  5.17  under chapter 168 and the interest is listed on the vehicle's 
  5.18  title.  Notice mailed by certified mail to the address shown in 
  5.19  department of public safety records is sufficient notice to the 
  5.20  registered owner of the vehicle and to holders of a security 
  5.21  interest.  Otherwise, notice may be given in the manner provided 
  5.22  by law for service of a summons in a civil action. 
  5.23     (c) The notice must be in writing and contain: 
  5.24     (1) a description of the vehicle seized; 
  5.25     (2) the date of seizure; and 
  5.26     (3) notice of the right to obtain judicial review of the 
  5.27  forfeiture and of the procedure for obtaining that judicial 
  5.28  review, printed in English, Hmong, and Spanish.  Substantially 
  5.29  the following language must appear conspicuously:  "IF YOU DO 
  5.30  NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA 
  5.31  STATUTES, SECTION 169.1217, SUBDIVISION 7a, OR IF YOU FAIL TO 
  5.32  SEEK ADMINISTRATIVE OR JUDICIAL REVIEW OF YOUR LICENSE 
  5.33  REVOCATION IN A TIMELY MANNER AS REQUIRED BY MINNESOTA STATUTES, 
  5.34  SECTION 169.123, SUBDIVISION 5b OR 5c, YOU LOSE THE RIGHT TO A 
  5.35  JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY RIGHT 
  5.36  YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY.  YOU MAY NOT HAVE 
  6.1   TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE 
  6.2   UNABLE TO AFFORD THE FEE.  IF THE PROPERTY IS WORTH $7,500 OR 
  6.3   LESS, YOU MAY FILE YOUR CLAIM IN CONCILIATION COURT.  YOU DO NOT 
  6.4   HAVE TO PAY THE CONCILIATION COURT FILING FEE IF THE PROPERTY IS 
  6.5   WORTH LESS THAN $500.  THE PROSECUTING AUTHORITY HAVING 
  6.6   JURISDICTION OVER THIS FORFEITURE IS ............" 
  6.7      (d) Within 30 days following service of a notice of seizure 
  6.8   and forfeiture under this subdivision, a claimant may file a 
  6.9   demand for a judicial determination of the forfeiture~~.  The~~ 
  6.10  ~~demand must be in the form of~~ by filing a civil complaint ~~and~~ 
  6.11  ~~must be filed~~ with the court administrator in the county in 
  6.12  which the seizure occurred~~, together with~~.  The complaint must 
  6.13  be accompanied by proof of service of a copy of the complaint on 
  6.14  the prosecuting authority having jurisdiction over the 
  6.15  forfeiture~~,~~ and by the standard filing fee for civil actions 
  6.16  unless the petitioner has the right to sue in forma pauperis 
  6.17  under section 563.01.  If the value of the seized property is 
  6.18  $7,500 or less, the claimant may file an action in conciliation 
  6.19  court for ~~recovery of the seized vehicle~~ a judicial 
  6.20  determination of the forfeiture.  If the value of the seized 
  6.21  property is less than $500, the claimant does not have to pay 
  6.22  the conciliation court filing fee.  No responsive pleading to 
  6.23  the complaint is required of the prosecuting authority and no 
  6.24  court fees may be charged for the prosecuting authority's 
  6.25  appearance in the matter.  ~~Except as provided in this section,~~ 
  6.26  ~~judicial reviews and hearings are governed by section 169.123,~~ 
  6.27  ~~subdivisions 5c and 6, and shall take place at the same time as~~ 
  6.28  ~~any judicial review of the person's license revocation under~~ 
  6.29  ~~section 169.123.  The proceedings may be combined with any~~ 
  6.30  ~~hearing on a petition filed under section 169.123, subdivision~~ 
  6.31  ~~5c, and are governed by the rules of civil procedure.~~  However, 
  6.32  any responsive pleading that a prosecuting authority chooses to 
  6.33  file must be in the form of an answer that conforms with the 
  6.34  rules of civil procedure. 
  6.35     (e) ~~The~~ A complaint filed under paragraph (d) must be 
  6.36  captioned in the name of the claimant as plaintiff and the 
  7.1   seized vehicle as defendant, and must state with specificity the 
  7.2   grounds on which the claimant alleges the vehicle was improperly 
  7.3   seized and the plaintiff's interest in the vehicle seized.  
  7.4   Notwithstanding any law to the contrary, an action for the 
  7.5   return of a vehicle seized under this section may not be 
  7.6   maintained by or on behalf of any person who has been served 
  7.7   with a notice of seizure and forfeiture unless the person has 
  7.8   complied with this ~~subdivision~~ paragraph and paragraph (d). 
  7.9      (f) If the claimant makes a timely demand for a judicial 
  7.10  determination under this subdivision, the ~~appropriate agency~~ 
  7.11  prosecuting authority must conduct the forfeiture under 
  7.12  subdivision 8.  
  7.13     (g) If a demand for judicial determination of an 
  7.14  administrative forfeiture is filed under this subdivision and 
  7.15  the court orders the return of the seized vehicle, the court 
  7.16  shall order that filing fees be reimbursed to the person who 
  7.17  filed the demand.  In addition, the court may order sanctions 
  7.18  under section 549.211. 
  7.19     Sec. 4.  Minnesota Statutes 1998, section 169.1217, 
  7.20  subdivision 8, is amended to read: 
  7.21     Subd. 8.  [JUDICIAL FORFEITURE PROCEDURE.] (a) This 
  7.22  subdivision governs judicial determinations of the forfeiture of 
  7.23  a motor vehicle used to commit a designated offense or used in 
  7.24  conduct resulting in a designated license revocation.  The 
  7.25  district court in which the civil complaint was filed under 
  7.26  subdivision 7a shall make the final forfeiture determination as 
  7.27  provided in this subdivision and shall not refer the action to 
  7.28  arbitration.  All proceedings conducted under this subdivision 
  7.29  are governed by the rules of civil procedure. 
  7.30     (b) ~~A separate complaint shall be filed against the~~ 
  7.31  ~~vehicle, describing it, specifying that it was used in the~~ 
  7.32  ~~commission of a designated offense or was used in conduct~~ 
  7.33  ~~resulting in a designated license revocation, and specifying the~~ 
  7.34  ~~time and place of its unlawful use.  If the forfeiture was based~~ 
  7.35  ~~on the commission of a designated offense and the person charged~~ 
  7.36  ~~with the designated offense appears in court as required and is~~ 
  8.1   ~~not convicted of the offense, the court shall dismiss the~~ 
  8.2   ~~complaint against the vehicle and order the property returned to~~ 
  8.3   ~~the person legally entitled to it.~~  If the forfeiture is based 
  8.4   on a designated license revocation, and the designated license 
  8.5   revocation is rescinded under section 169.123, subdivision 5a or 
  8.6   6, the ~~court shall dismiss the complaint against the vehicle and~~ 
  8.7   ~~order the property returned to the person legally entitled to it~~ 
  8.8   forfeiture determination must await the disposition of the 
  8.9   criminal prosecution for the designated offense, if any. 
  8.10     (c) If the forfeiture is based on the commission of a 
  8.11  designated offense and the person charged with the designated 
  8.12  offense appears in court as required and is not convicted of the 
  8.13  offense, the court shall dismiss the complaint against the 
  8.14  vehicle and order the property returned to the person legally 
  8.15  entitled to it. 
  8.16     (d) If the lawful ownership of the vehicle used in the 
  8.17  commission of a designated offense or used in conduct resulting 
  8.18  in a designated license revocation can be determined and it is 
  8.19  found the owner ~~was not privy to commission of a designated~~ 
  8.20  ~~offense or was not privy to the conduct resulting in the~~ 
  8.21  ~~designated license revocation~~ did not know or have reason to 
  8.22  know of the vehicle's unlawful use or intended use, including 
  8.23  the offender's use of the vehicle without a valid driver's 
  8.24  license or driving privileges, the vehicle ~~shall~~ must be 
  8.25  returned immediately.  In determining lawful ownership of the 
  8.26  vehicle, there is a rebuttable presumption that the vehicle's 
  8.27  registered owner or lessee, as described in subdivision 1, 
  8.28  paragraph (e), is the lawful owner.  The prosecuting agency may 
  8.29  rebut this presumption by establishing that a person other than 
  8.30  the registered owner or lessee is the actual owner of the 
  8.31  vehicle, as demonstrated by the person's possession, use, and 
  8.32  control of the vehicle. 
  8.33     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  8.34  169.1217, subdivision 9, is amended to read: 
  8.35     Subd. 9.  [DISPOSITION OF FORFEITED VEHICLE.] (a) If the 
  8.36  vehicle is administratively forfeited under subdivision 7a, or 
  9.1   if the court finds under subdivision 8 that the vehicle is 
  9.2   subject to forfeiture under subdivisions 6 and 7, the 
  9.3   appropriate agency shall: 
  9.4      (1) sell the vehicle and distribute the proceeds under 
  9.5   paragraph (b); or 
  9.6      (2) keep the vehicle for official use.  If the agency keeps 
  9.7   a forfeited motor vehicle for official use, it shall make 
  9.8   reasonable efforts to ensure that the motor vehicle is available 
  9.9   for use by the agency's officers who participate in the drug 
  9.10  abuse resistance education program. 
  9.11     (b) The proceeds from the sale of forfeited vehicles, after 
  9.12  satisfaction of valid security interests against the property, 
  9.13  and payment of seizure, storage, forfeiture, and sale 
  9.14  expenses, ~~and satisfaction of valid liens against the property,~~ 
  9.15  must be forwarded to the treasury of the political subdivision 
  9.16  that employs the appropriate agency responsible for the 
  9.17  forfeiture for use in DWI-related enforcement, training and 
  9.18  education.  If the appropriate agency is an agency of state 
  9.19  government, the net proceeds ~~must be forwarded to the state~~ 
  9.20  ~~treasury and credited to the following funds:~~ 
  9.21     ~~(1) if the forfeited vehicle is a motorboat, the net~~ 
  9.22  ~~proceeds must be credited to the water recreation account in the~~ 
  9.23  ~~natural resources fund;~~ 
  9.24     ~~(2) if the forfeited vehicle is a snowmobile, the net~~ 
  9.25  ~~proceeds must be credited to the snowmobile trails and~~ 
  9.26  ~~enforcement account in the natural resources fund;~~ 
  9.27     ~~(3) if the forfeited vehicle is an all-terrain vehicle, the~~ 
  9.28  ~~net proceeds must be credited to the all-terrain vehicle account~~ 
  9.29  ~~in the natural resources fund;~~ 
  9.30     ~~(4) if the forfeited vehicle is an off-highway motorcycle,~~ 
  9.31  ~~the net proceeds must be credited to the off-highway motorcycle~~ 
  9.32  ~~account in the natural resources fund;~~ 
  9.33     ~~(5) if the forfeited vehicle is an off-road vehicle, the~~ 
  9.34  ~~net proceeds must be credited to the off-road vehicle account in~~ 
  9.35  ~~the natural resources fund; and~~ 
  9.36     ~~(6) if otherwise, the net proceeds must be credited to the~~ 
 10.1   ~~general fund~~ are appropriated annually to that agency to pay 
 10.2   costs associated with conducting forfeitures under this section. 
 10.3      Sec. 6.  Minnesota Statutes 1998, section 169.128, is 
 10.4   amended to read: 
 10.5      169.128 [DWI-RELATED RULES.] 
 10.6      The commissioner of public safety may promulgate rules to 
 10.7   carry out the provisions of sections 169.121, 169.1217, and 
 10.8   169.123.  The rules may include forms for notice of intention to 
 10.9   revoke, which shall describe clearly the right to a hearing, the 
 10.10  procedure for requesting a hearing, and the consequences of 
 10.11  failure to request a hearing; forms for revocation and notice of 
 10.12  reinstatement of driving privileges as provided in section 
 10.13  169.1261; forms for notices of seizure and intent to forfeit a 
 10.14  motor vehicle and for transferring titles of forfeited vehicles; 
 10.15  and forms for temporary licenses. 
 10.16     Rules promulgated pursuant to this section are subject to 
 10.17  sections 14.01 to 14.20 and 14.365 to 14.69. 
 10.18     Sec. 7.  [EFFECTIVE DATE.] 
 10.19     Sections 1 to 6 are effective August 1, 2000, and apply to 
 10.20  forfeitures initiated or conducted on or after that date.