1.1                          A bill for an act 
  1.2             relating to vehicle forfeiture; clarifying and 
  1.3             modifying certain definitions, standards, and 
  1.4             procedures for vehicle forfeitures associated with 
  1.5             driving while impaired; amending Minnesota Statutes 
  1.6             2002, sections 169A.60, subdivisions 1, 14; 169A.63, 
  1.7             subdivisions 1, 2, 6, 7, 8, 9, 10, 11. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 169A.60, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
  1.12  the following terms have the meanings given in this subdivision. 
  1.13     (b) "Family or household member" has the meaning given in 
  1.14  section 169A.63, subdivision 1. 
  1.15     (c) "Motor vehicle" means a self-propelled motor vehicle 
  1.16  other than a motorboat in operation or an off-road recreational 
  1.17  vehicle. 
  1.18     ~~(c)~~ (d) "Plate impoundment violation" includes: 
  1.19     (1) a violation of section 169A.20 (driving while impaired) 
  1.20  or 169A.52 (license revocation for test failure or refusal), or 
  1.21  a conforming ordinance from this state or a conforming statute 
  1.22  or ordinance from another state, that results in the revocation 
  1.23  of a person's driver's license or driving privileges, within ten 
  1.24  years of a qualified prior impaired driving incident; 
  1.25     (2) a license disqualification under section 171.165 
  1.26  (commercial driver's license disqualification) resulting from a 
  2.1   violation of section 169A.52 within ten years of a qualified 
  2.2   prior impaired driving incident; 
  2.3      (3) a violation of section 169A.20 or 169A.52 while having 
  2.4   an alcohol concentration of 0.20 or more as measured at the 
  2.5   time, or within two hours of the time, of the offense; 
  2.6      (4) a violation of section 169A.20 or 169A.52 while having 
  2.7   a child under the age of 16 in the vehicle if the child is more 
  2.8   than 36 months younger than the offender; and 
  2.9      (5) a violation of section 171.24 (driving without valid 
  2.10  license) by a person whose driver's license or driving 
  2.11  privileges have been canceled under section 171.04, subdivision 
  2.12  1, clause (10) (persons not eligible for driver's license, 
  2.13  inimical to public safety). 
  2.14     ~~(d) "Significant relationship" has the same meaning as~~ 
  2.15  ~~given in section 609.341, subdivision 15, and includes any~~ 
  2.16  ~~person with whom the actor regularly associates and communicates~~ 
  2.17  ~~outside of a workplace setting.~~ 
  2.18     (e) "Violator" means a person who was driving, operating, 
  2.19  or in physical control of the motor vehicle when the plate 
  2.20  impoundment violation occurred.  
  2.21     Sec. 2.  Minnesota Statutes 2002, section 169A.60, 
  2.22  subdivision 14, is amended to read: 
  2.23     Subd. 14.  [SALE OF VEHICLE SUBJECT TO IMPOUNDMENT ORDER.] 
  2.24  (a) A registered owner may not sell or transfer a motor vehicle 
  2.25  during the time its registration plates have been ordered 
  2.26  impounded or during the time its registration plates bear a 
  2.27  special series number, unless: 
  2.28     (1) the sale is for a valid consideration; 
  2.29     (2) the transferee and the registered owner~~:~~ 
  2.30     ~~(i) are not, and have not been, related by blood, adoption,~~ 
  2.31  ~~or marriage;~~ 
  2.32     ~~(ii) do not reside in the same household; and~~ 
  2.33     ~~(iii) do not have, and have not had at any time, a~~ 
  2.34  ~~significant relationship with one another~~ are not family or 
  2.35  household members; 
  2.36     (3) the transferee signs an acceptable sworn statement with 
  3.1   the commissioner attesting that: 
  3.2      (i) the transferee and the violator ~~do not have, and have~~ 
  3.3   ~~not had at any time, a significant relationship with one another~~ 
  3.4   are not family or household members; 
  3.5      (ii) the transferee understands that the vehicle is subject 
  3.6   to an impoundment order; and 
  3.7      (iii) it is a crime under section 169A.37 to file a false 
  3.8   statement under this section or to allow the previously 
  3.9   registered owner to drive, operate, or be in control of the 
  3.10  vehicle during the impoundment period; and 
  3.11     (4) all elements of section 168A.10 (transfer of interest 
  3.12  by owner) are satisfied. 
  3.13     (b) If the conditions of paragraph (a) are satisfied, the 
  3.14  registrar may transfer the title to the new owner upon proper 
  3.15  application and issue new registration plates for the vehicle.  
  3.16     Sec. 3.  Minnesota Statutes 2002, section 169A.63, 
  3.17  subdivision 1, is amended to read: 
  3.18     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
  3.19  the following terms have the meanings given them. 
  3.20     (b) "Appropriate agency" means a law enforcement agency 
  3.21  that has the authority to make an arrest for a violation of a 
  3.22  designated offense or to require a test under section 169A.51 
  3.23  (chemical tests for intoxication). 
  3.24     (c) "Claimant" means an owner of a motor vehicle or a 
  3.25  person claiming a leasehold or security interest in a motor 
  3.26  vehicle. 
  3.27     (d) "Designated license revocation" includes a license 
  3.28  revocation under section 169A.52 (license revocation for test 
  3.29  failure or refusal) or a license disqualification under section 
  3.30  171.165 (commercial driver's license disqualification) resulting 
  3.31  from a violation of section 169A.52; within ten years of the 
  3.32  first of two or more qualified prior impaired driving incidents. 
  3.33     ~~(d)~~ (e) "Designated offense" includes: 
  3.34     (1) a violation of section 169A.20 (driving while impaired) 
  3.35  under the circumstances described in section 169A.24 
  3.36  (first-degree driving while impaired), or 169A.25 (second-degree 
  4.1   driving while impaired) if one of the aggravating factors is a 
  4.2   qualified prior impaired driving incident; or 
  4.3      (2) a violation of section 169A.20 or an ordinance in 
  4.4   conformity with it: 
  4.5      (i) by a person whose driver's license or driving 
  4.6   privileges have been canceled as inimical to public safety under 
  4.7   section 171.04, subdivision 1, clause (10), and not reinstated; 
  4.8   or 
  4.9      (ii) by a person who is subject to a restriction on the 
  4.10  person's driver's license under section 171.09 (commissioner's 
  4.11  license restrictions), which provides that the person may not 
  4.12  use or consume any amount of alcohol or a controlled substance. 
  4.13     (f) "Family or household member" means: 
  4.14     (1) a parent, stepparent, or guardian; 
  4.15     (2) any of the following persons related by blood, 
  4.16  marriage, or adoption:  brother, sister, stepbrother, 
  4.17  stepsister, first cousin, aunt, uncle, nephew, niece, 
  4.18  grandparent, great-grandparent, great-uncle, great-aunt; or 
  4.19     (3) persons residing together or persons who regularly 
  4.20  associate and communicate with one another outside of a 
  4.21  workplace setting. 
  4.22     ~~(e)~~ (g) "Motor vehicle" and "vehicle" do not include a 
  4.23  vehicle which is stolen or taken in violation of the law. 
  4.24     ~~(f)~~ (h) "Owner" means ~~the registered owner of the motor~~ 
  4.25  ~~vehicle according to records of the department of public safety~~ 
  4.26  ~~and includes~~ a person legally entitled to possession, use, and 
  4.27  control of a motor vehicle, including a lessee of a motor 
  4.28  vehicle if the lease agreement has a term of 180 days or more.  
  4.29  There is a rebuttable presumption that a person registered as 
  4.30  the owner of a motor vehicle according to the records of the 
  4.31  department of public safety is the legal owner.  For purposes of 
  4.32  this section, if a motor vehicle is owned jointly by two or more 
  4.33  people, each owner's interest extends to the whole of the 
  4.34  vehicle and is not subject to apportionment. 
  4.35     ~~(g)~~ (i) "Prosecuting authority" means the attorney in the 
  4.36  jurisdiction in which the designated offense occurred who is 
  5.1   responsible for prosecuting violations of a designated offense 
  5.2   or a designee.  If a state agency initiated the forfeiture, and 
  5.3   the attorney responsible for prosecuting the designated offense 
  5.4   declines to pursue forfeiture, the attorney general's office or 
  5.5   its designee may initiate forfeiture under this section. 
  5.6      (j) "Security interest" means a bona fide security interest 
  5.7   based on a loan or other financing that, if a vehicle is 
  5.8   required to be registered under chapter 168, is listed on the 
  5.9   vehicle's title. 
  5.10     Sec. 4.  Minnesota Statutes 2002, section 169A.63, 
  5.11  subdivision 2, is amended to read: 
  5.12     Subd. 2.  [SEIZURE.] (a) A motor vehicle subject to 
  5.13  forfeiture under this section may be seized by the appropriate 
  5.14  agency upon process issued by any court having jurisdiction over 
  5.15  the vehicle. 
  5.16     (b) Property may be seized without process if: 
  5.17     (1) the seizure is incident to a lawful arrest or a lawful 
  5.18  search; 
  5.19     (2) the vehicle subject to seizure has been the subject of 
  5.20  a prior judgment in favor of the state in a criminal injunction 
  5.21  or forfeiture proceeding under this section; or 
  5.22     (3) the appropriate agency has probable cause to believe 
  5.23  that the delay occasioned by the necessity to obtain process 
  5.24  would result in the removal or destruction of the vehicle.  If 
  5.25  property is seized without process under this clause, the 
  5.26  prosecuting authority must institute a forfeiture action under 
  5.27  this section as soon as is reasonably possible by serving a 
  5.28  notice of seizure and intent to forfeit at the address of the 
  5.29  owner as listed in the records of the department of public 
  5.30  safety. 
  5.31     Sec. 5.  Minnesota Statutes 2002, section 169A.63, 
  5.32  subdivision 6, is amended to read: 
  5.33     Subd. 6.  [VEHICLE SUBJECT TO FORFEITURE.] (a) A motor 
  5.34  vehicle is subject to forfeiture under this section if it was 
  5.35  used in the commission of a designated offense or was used in 
  5.36  conduct resulting in a designated license revocation. 
  6.1      (b) A trailer used to transport a motorboat or off-road 
  6.2   recreational vehicle is also subject to seizure and forfeiture 
  6.3   if the motorboat or off-road recreational vehicle was used in 
  6.4   the commission of a designated offense or was used in conduct 
  6.5   resulting in a designated license revocation. 
  6.6      Sec. 6.  Minnesota Statutes 2002, section 169A.63, 
  6.7   subdivision 7, is amended to read: 
  6.8      Subd. 7.  [LIMITATIONS ON VEHICLE FORFEITURE.] (a) A 
  6.9   vehicle is presumed subject to forfeiture under this section 
  6.10  ~~only~~ if: 
  6.11     (1) the driver is convicted of the designated offense upon 
  6.12  which the forfeiture is based; 
  6.13     (2) the driver fails to appear for a scheduled court 
  6.14  appearance with respect to the designated offense ~~charge in~~ 
  6.15  ~~violation of section 609.49 (release; failure to appear)~~ charged 
  6.16  and fails to voluntarily surrender within 48 hours after the 
  6.17  time required for appearance; or 
  6.18     (3) the driver's conduct results in a designated license 
  6.19  revocation and the driver ~~either~~ fails to seek ~~administrative or~~ 
  6.20  judicial review of the revocation in a timely manner as required 
  6.21  by section 169A.53, subdivision 2, (~~administrative and~~ petition 
  6.22  for judicial review ~~of license revocation~~), or the license 
  6.23  revocation is judicially reviewed and sustained under section 
  6.24  169A.53, subdivision 2. 
  6.25     (b) A vehicle encumbered by a ~~bona fide~~ security interest, 
  6.26  or subject to a lease that has a term of 180 days or more, is 
  6.27  subject to the interest of the secured party or lessor unless 
  6.28  the party or lessor had knowledge of or consented to the act 
  6.29  upon which the forfeiture is based.  However, when the proceeds 
  6.30  of the sale of a seized vehicle do not equal or exceed the 
  6.31  outstanding loan balance, the appropriate agency shall remit all 
  6.32  proceeds of the sale to the secured party after deducting the 
  6.33  agency's costs for the seizure, tow, storage, forfeiture, and 
  6.34  sale of the vehicle.  If the sale of the vehicle is conducted in 
  6.35  a commercially reasonable manner consistent with the provisions 
  6.36  of section 336.9-610, the agency is not liable to the secured 
  7.1   party for any amount owed on the loan in excess of the sale 
  7.2   proceeds ~~if the secured party received notification of the time~~ 
  7.3   ~~and place of the sale at least three days prior to the~~ 
  7.4   ~~sale~~.  The validity and amount of a security interest must be 
  7.5   established by its holder by clear and convincing evidence. 
  7.6      (c) Notwithstanding ~~paragraphs~~ paragraph (b) ~~and (d)~~, the 
  7.7   secured party's~~,~~ or lessor's~~, or owner's~~ interest in a vehicle 
  7.8   is not subject to forfeiture based solely on the secured 
  7.9   party's~~,~~ or lessor's~~, or owner's~~ knowledge of the act or 
  7.10  omission upon which the forfeiture is based if the secured 
  7.11  party~~,~~ or lessor~~, or owner~~ demonstrates by clear and convincing 
  7.12  evidence that the party or lessor took reasonable steps to 
  7.13  terminate use of the vehicle by the offender. 
  7.14     (d) A motor vehicle is not subject to forfeiture under this 
  7.15  section ~~only~~ if its owner ~~knew or should have known of the~~ 
  7.16  ~~unlawful use or intended use.~~ can demonstrate by clear and 
  7.17  convincing evidence that the owner did not have actual or 
  7.18  constructive knowledge that the vehicle would be used or 
  7.19  operated in any manner contrary to law or that the owner took 
  7.20  reasonable steps to prevent use of the vehicle by the offender.  
  7.21  If the offender is a family or household member of the owner and 
  7.22  has three or more prior impaired driving convictions, the owner 
  7.23  is presumed to know of any vehicle use by the offender that is 
  7.24  contrary to law.  "Vehicle use contrary to law" includes, but is 
  7.25  not limited to, violations of the following statutes: 
  7.26     (1) section 171.24 (violations; driving without valid 
  7.27  license); 
  7.28     (2) section 169.791 (criminal penalty for failure to 
  7.29  produce proof of insurance); 
  7.30     (3) section 171.09 (driving restrictions; authority, 
  7.31  violations); 
  7.32     (4) section 169A.20 (driving while impaired); 
  7.33     (5) section 169A.33 (underage drinking and driving); and 
  7.34     (6) section 169A.35 (open bottle law). 
  7.35     ~~(e) A vehicle subject to a security interest, based upon a~~ 
  7.36  ~~loan or other financing arranged by a financial institution, is~~ 
  8.1   ~~subject to the interest of the financial institution.~~ 
  8.2      Sec. 7.  Minnesota Statutes 2002, section 169A.63, 
  8.3   subdivision 8, is amended to read: 
  8.4      Subd. 8.  [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A 
  8.5   motor vehicle used to commit a designated offense or used in 
  8.6   conduct resulting in a designated license revocation is subject 
  8.7   to administrative forfeiture under this subdivision. 
  8.8      (b) When a motor vehicle is seized under subdivision 2, or 
  8.9   within a reasonable time after seizure, the appropriate agency 
  8.10  shall serve the driver or operator of the vehicle with a notice 
  8.11  of the seizure and intent to forfeit the vehicle.  Additionally, 
  8.12  when a motor vehicle is seized under subdivision 2, or within a 
  8.13  reasonable time after that, all persons known to have an 
  8.14  ownership, possessory, or security interest in the vehicle must 
  8.15  be notified of the seizure and the intent to forfeit the 
  8.16  vehicle.  For those vehicles required to be registered under 
  8.17  chapter 168, the notification to a person known to have a 
  8.18  security interest in the vehicle is required only if the vehicle 
  8.19  is registered under chapter 168 and the interest is listed on 
  8.20  the vehicle's title.  Notice mailed by certified mail to the 
  8.21  address shown in department of public safety records is 
  8.22  sufficient notice to the registered owner of the vehicle.  For 
  8.23  motor vehicles not required to be registered under chapter 168, 
  8.24  notice mailed by certified mail to the address shown in the 
  8.25  applicable filing or registration for the vehicle is sufficient 
  8.26  notice to a person known to have an ownership, possessory, or 
  8.27  security interest in the vehicle. Otherwise, notice may be given 
  8.28  in the manner provided by law for service of a summons in a 
  8.29  civil action. 
  8.30     (c) The notice must be in writing and contain: 
  8.31     (1) a description of the vehicle seized; 
  8.32     (2) the date of seizure; and 
  8.33     (3) notice of the right to obtain judicial review of the 
  8.34  forfeiture and of the procedure for obtaining that judicial 
  8.35  review, printed in English, Hmong, and Spanish.  Substantially 
  8.36  the following language must appear conspicuously:  "IF YOU DO 
  9.1   NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA 
  9.2   STATUTES, SECTION 169A.63, SUBDIVISION 8, YOU LOSE THE RIGHT TO 
  9.3   A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY 
  9.4   RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY.  YOU MAY NOT 
  9.5   HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE 
  9.6   UNABLE TO AFFORD THE FEE.  IF THE PROPERTY IS WORTH $7,500 OR 
  9.7   LESS, YOU MAY FILE YOUR CLAIM IN CONCILIATION COURT.  YOU DO NOT 
  9.8   HAVE TO PAY THE CONCILIATION COURT FILING FEE IF THE PROPERTY IS 
  9.9   WORTH LESS THAN $500." 
  9.10     (d) Within 30 days following service of a notice of seizure 
  9.11  and forfeiture under this subdivision, a claimant may file a 
  9.12  demand for a judicial determination of the forfeiture.  The 
  9.13  demand must be in the form of a civil complaint and must be 
  9.14  filed with the court administrator in the county in which the 
  9.15  seizure occurred, together with proof of service of a copy of 
  9.16  the complaint on the prosecuting authority having jurisdiction 
  9.17  over the forfeiture, and the standard filing fee for civil 
  9.18  actions unless the petitioner has the right to sue in forma 
  9.19  pauperis under section 563.01.  If the value of the seized 
  9.20  property is $7,500 or less, the claimant may file an action in 
  9.21  conciliation court for recovery of the seized vehicle.  A copy 
  9.22  of the conciliation court statement of claim must be served 
  9.23  personally or by mail on the prosecuting authority having 
  9.24  jurisdiction over the forfeiture within 30 days following 
  9.25  service of the notice of seizure and forfeiture under this 
  9.26  subdivision.  If the value of the seized property is less than 
  9.27  $500, the claimant does not have to pay the conciliation court 
  9.28  filing fee.  No responsive pleading is required of the 
  9.29  prosecuting authority and no court fees may be charged for the 
  9.30  prosecuting authority's appearance in the matter.  ~~Except as~~ 
  9.31  ~~provided in this section, judicial reviews and hearings are~~ 
  9.32  ~~governed by section 169A.53, subdivisions 2 and 3, and, at the~~ 
  9.33  ~~option of the prosecuting authority, may take place at the same~~ 
  9.34  ~~time as any judicial review of the person's license revocation~~ 
  9.35  ~~under section 169A.53.  If the judicial review and hearing under~~ 
  9.36  ~~this section do not take place at the same time as the judicial~~ 
 10.1   ~~review of the person's license revocation under section 169A.53,~~ 
 10.2   ~~the review and hearing must take place at the earliest~~ 
 10.3   ~~practicable date.  The proceedings may be combined with any~~ 
 10.4   ~~hearing on a petition filed under section 169A.53, subdivision~~ 
 10.5   ~~2, and~~ Pleadings, filings, and methods of service are governed 
 10.6   by the Rules of Civil Procedure. 
 10.7      (e) The complaint must be captioned in the name of the 
 10.8   claimant as plaintiff and the seized vehicle as defendant, and 
 10.9   must state with specificity the grounds on which the claimant 
 10.10  alleges the vehicle was improperly seized ~~and~~, the ~~plaintiff's~~ 
 10.11  claimant's interest in the vehicle seized, and any affirmative 
 10.12  defenses the claimant may have.  Notwithstanding any law to the 
 10.13  contrary, an action for the return of a vehicle seized under 
 10.14  this section may not be maintained by or on behalf of any person 
 10.15  who has been served with a notice of seizure and forfeiture 
 10.16  unless the person has complied with this subdivision. 
 10.17     (f) If the claimant makes a timely demand for a judicial 
 10.18  determination under this subdivision, the ~~appropriate agency~~ 
 10.19  ~~must conduct the~~ forfeiture proceedings must be conducted as 
 10.20  provided under subdivision 9. 
 10.21     ~~(g) If a demand for judicial determination of an~~ 
 10.22  ~~administrative forfeiture is filed under this subdivision and~~ 
 10.23  ~~the court orders the return of the seized vehicle, the court~~ 
 10.24  ~~shall order that filing fees be reimbursed to the person who~~ 
 10.25  ~~filed the demand.  In addition, the court may order sanctions~~ 
 10.26  ~~under section 549.211 (sanctions in civil actions).~~ 
 10.27     Sec. 8.  Minnesota Statutes 2002, section 169A.63, 
 10.28  subdivision 9, is amended to read: 
 10.29     Subd. 9.  [JUDICIAL FORFEITURE PROCEDURE.] (a) This 
 10.30  subdivision governs judicial determinations of the forfeiture of 
 10.31  a motor vehicle used to commit a designated offense or used in 
 10.32  conduct resulting in a designated license revocation.  An action 
 10.33  for forfeiture is a civil in rem action and is independent of 
 10.34  any criminal prosecution.  All proceedings are governed by the 
 10.35  Rules of Civil Procedure. 
 10.36     (b) If no demand for judicial determination of the 
 11.1   forfeiture is pending, the prosecuting authority may, in the 
 11.2   name of the jurisdiction pursuing the forfeiture, file a 
 11.3   separate complaint ~~must be filed~~ against the vehicle, describing 
 11.4   it, specifying that it was used in the commission of a 
 11.5   designated offense or was used in conduct resulting in a 
 11.6   designated license revocation, and specifying the time and place 
 11.7   of its unlawful use.  
 11.8      (c) The prosecuting authority may file an answer to a 
 11.9   properly served demand for judicial determination, including an 
 11.10  affirmative counterclaim for forfeiture.  The prosecuting 
 11.11  authority is not required to file an answer. 
 11.12     (d) A judicial determination under this subdivision must 
 11.13  not precede adjudication in the criminal prosecution of the 
 11.14  designated offense without the consent of the prosecuting 
 11.15  authority.  The district court administrator shall schedule the 
 11.16  hearing as soon as practicable after adjudication in the 
 11.17  criminal prosecution.  The district court administrator shall 
 11.18  establish procedures to ensure efficient compliance with this 
 11.19  subdivision.  The hearing is to the court without a jury. 
 11.20     (e) There is a presumption that a vehicle seized under this 
 11.21  section is subject to forfeiture if the prosecuting authority 
 11.22  establishes that the vehicle was used in the commission of a 
 11.23  designated offense or designated license revocation.  A claimant 
 11.24  bears the burden of proving any affirmative defense raised. 
 11.25     (f) If the forfeiture is based on the commission of a 
 11.26  designated offense and the person charged with the designated 
 11.27  offense appears in court as required and is not convicted of the 
 11.28  offense, the court shall ~~dismiss the complaint against the~~ 
 11.29  ~~vehicle and~~ order the property returned to the person legally 
 11.30  entitled to it upon that person's compliance with the redemption 
 11.31  requirements of section 169A.42.  If the forfeiture is based on 
 11.32  a designated license revocation, and the license revocation is 
 11.33  rescinded under section 169A.53 ~~(administrative and judicial~~ 
 11.34  ~~review of license revocation)~~, subdivision 3 (judicial review 
 11.35  hearing, issues, order, appeal), the court shall ~~dismiss the~~ 
 11.36  ~~complaint against the vehicle and~~ order the property returned to 
 12.1   the person legally entitled to it upon that person's compliance 
 12.2   with the redemption requirements of section 169A.42.  
 12.3      (g) If the lawful ownership of the vehicle used in the 
 12.4   commission of a designated offense or used in conduct resulting 
 12.5   in a designated license revocation can be determined and ~~it is~~ 
 12.6   ~~found the owner was not privy to commission of a designated~~ 
 12.7   ~~offense or was not privy to the conduct resulting in the~~ 
 12.8   ~~designated license revocation,~~ the owner makes the demonstration 
 12.9   required under subdivision 7, paragraph (d), the vehicle must be 
 12.10  returned immediately upon the owner's compliance with the 
 12.11  redemption requirements of section 169A.42. 
 12.12     (h) If the court orders the return of a seized vehicle 
 12.13  under this subdivision it must order that filing fees be 
 12.14  reimbursed to the person who filed the demand for judicial 
 12.15  determination.  In addition, the court may order sanctions under 
 12.16  section 549.211 (sanctions in civil actions).  Any reimbursement 
 12.17  fees or sanctions must be paid from other forfeiture proceeds of 
 12.18  the law enforcement agency and prosecuting authority involved 
 12.19  and in the same proportion as distributed under subdivision 10, 
 12.20  paragraph (b). 
 12.21     Sec. 9.  Minnesota Statutes 2002, section 169A.63, 
 12.22  subdivision 10, is amended to read: 
 12.23     Subd. 10.  [DISPOSITION OF FORFEITED VEHICLE.] (a) If the 
 12.24  vehicle is administratively forfeited under subdivision 8, or if 
 12.25  the court finds under subdivision 9 that the vehicle is subject 
 12.26  to forfeiture under subdivisions 6 and 7, the appropriate agency 
 12.27  shall: 
 12.28     (1) sell the vehicle and distribute the proceeds under 
 12.29  paragraph (b); or 
 12.30     (2) keep the vehicle for official use.  If the agency keeps 
 12.31  a forfeited motor vehicle for official use, it shall make 
 12.32  reasonable efforts to ensure that the motor vehicle is available 
 12.33  for use by the agency's officers who participate in the drug 
 12.34  abuse resistance education program. 
 12.35     (b) The proceeds from the sale of forfeited vehicles, after 
 12.36  payment of seizure, towing, storage, forfeiture, and sale 
 13.1   expenses, and satisfaction of valid liens against the property, 
 13.2   must be distributed as follows: 
 13.3      (1) 70 percent of the proceeds must be forwarded to the 
 13.4   appropriate agency for deposit as a supplement to the state or 
 13.5   local agency's operating fund or similar fund for use in 
 13.6   DWI-related enforcement, training, and education; and 
 13.7      (2) 30 percent of the money or proceeds must be forwarded 
 13.8   to the prosecuting authority that handled the forfeiture for 
 13.9   deposit as a supplement to its operating fund or similar fund 
 13.10  for prosecutorial purposes. 
 13.11     Sec. 10.  Minnesota Statutes 2002, section 169A.63, 
 13.12  subdivision 11, is amended to read: 
 13.13     Subd. 11.  [SALE OF FORFEITED VEHICLE BY SECURED PARTY.] 
 13.14  (a) A financial institution with a valid security interest in or 
 13.15  a valid lease covering a forfeited vehicle may choose to dispose 
 13.16  of the vehicle under this subdivision, in lieu of the 
 13.17  appropriate agency disposing of the vehicle under subdivision 
 13.18  ~~9~~ 10.  A financial institution wishing to dispose of a vehicle 
 13.19  under this subdivision shall notify the appropriate agency of 
 13.20  its intent, in writing, within 30 days after receiving notice of 
 13.21  the seizure and forfeiture.  Upon successful conclusion of the 
 13.22  forfeiture action, the appropriate agency shall release the 
 13.23  vehicle to the financial institution or its agent after the 
 13.24  financial institution: 
 13.25     (1) presents proof of the existence and amount of its ~~valid~~ 
 13.26  security agreement or of its lease agreement; 
 13.27     (2) reimburses the appropriate agency for seizure, towing, 
 13.28  storage, and other costs of conducting the forfeiture; and ~~the~~ 
 13.29  ~~financial institution agrees~~ 
 13.30     (3) enters into a written agreement not to sell the vehicle 
 13.31  to ~~a member of the violator's household, unless the violator is~~ 
 13.32  ~~not convicted of the offense on which the forfeiture is~~ 
 13.33  ~~based~~ the offender, the owner at the time the designated offense 
 13.34  was committed, or to a family or household member of the 
 13.35  offender or owner.  The financial institution shall dispose of 
 13.36  the vehicle in a commercially reasonable manner as defined in 
 14.1   section 336.9-610. 
 14.2      (b) After disposing of the forfeited vehicle, the financial 
 14.3   institution ~~shall reimburse the appropriate agency for its~~ 
 14.4   ~~seizure, storage, and forfeiture costs.  The financial~~ 
 14.5   ~~institution~~ may ~~then~~ apply the proceeds of the sale to its 
 14.6   towing and storage costs, to its sale expenses, and to satisfy 
 14.7   the lien or the lease on the vehicle.  If any proceeds remain, 
 14.8   the financial institution shall forward the proceeds to 
 14.9   the ~~state treasury, which shall credit the appropriate~~ 
 14.10  ~~fund~~ appropriate agency within ten days of the conclusion of the 
 14.11  sale for distribution as specified in subdivision ~~9~~ 10.