2002 Minnesota Statutes

     169A.63 Vehicle forfeiture. 

    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) "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) "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); 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. 

    (e) "Motor vehicle" and "vehicle" do not include a vehicle 
 which is stolen or taken in violation of the law. 

    (f) "Owner" means the registered owner of the motor vehicle 
 according to records of the department of public safety and 
 includes a lessee of a motor vehicle if the lease agreement has 
 a term of 180 days or more. 

    (g) "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. 

    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. 

    Subd. 3.    Right to possession vests immediately; 
 custody.  All right, title, and interest in a vehicle subject 
 to forfeiture under this section vests in the appropriate agency 
 upon commission of the conduct resulting in the designated 
 offense or designated license revocation giving rise to the 
 forfeiture.  Any vehicle seized under this section is not 
 subject to replevin, but is deemed to be in the custody of the 
 appropriate agency subject to the orders and decrees of the 
 court having jurisdiction over the forfeiture proceedings.  When 
 a vehicle is seized under this section, the appropriate agency 
 may: 

    (1) place the vehicle under seal; 

    (2) remove the vehicle to a place designated by it; 

    (3) place a disabling device on the vehicle; and 

    (4) take other steps reasonable and necessary to secure the 
 vehicle and prevent waste. 

    Subd. 4.    Bond by owner for possession.  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, subject to the approval of the 
 appropriate agency, 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 may be returned to the owner only if a disabling device 
 is attached to the vehicle.  The forfeiture action must proceed 
 against the security as if it were the seized vehicle. 

    Subd. 5.    Evidence.  Certified copies of court records 
 and motor vehicle and driver's license records concerning 
 qualified prior impaired driving incidents are admissible as 
 substantive evidence where necessary to prove the commission of 
 a designated offense or the occurrence of a designated license 
 revocation. 

    Subd. 6.    Vehicle subject to forfeiture.  A motor 
 vehicle is subject to forfeiture under this section if it was 
 used in the commission of a designated offense or was used in 
 conduct resulting in a designated license revocation. 

    Subd. 7.    Limitations on vehicle forfeiture.  (a) A 
 vehicle is 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 with respect to the 
 designated offense charge in violation of section 609.49 
 (release; failure to appear); 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 (administrative and judicial review of 
 license revocation), or the license revocation is sustained 
 under section 169A.53. 

    (b) A vehicle encumbered by a bona fide security interest, 
 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.  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. 

    (c) Notwithstanding paragraphs (b) and (d), the secured 
 party's, lessor's, or owner's interest in a vehicle is not 
 subject to forfeiture based solely on the secured party's, 
 lessor's, or owner's knowledge of the act or omission upon which 
 the forfeiture is based if the secured party, lessor, or owner 
 took reasonable steps to terminate use of the vehicle by the 
 offender. 

    (d) A motor vehicle is subject to forfeiture under this 
 section only if its owner knew or should have known of the 
 unlawful use or intended use. 

    (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. 

    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, 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.  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 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 
 interest in the vehicle seized.  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 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). 

    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. 

    (b) 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.  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.  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), the court shall dismiss the 
 complaint against the vehicle and order the property returned to 
 the person legally entitled to it.  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 
 vehicle must be returned immediately. 

    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, 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. 

    Subd. 11.    Sale of forfeited vehicle by secured party. 
  (a) A financial institution with a valid security interest in 
 or a valid lease covering a forfeited vehicle may choose to 
 dispose of the vehicle under this subdivision, in lieu of the 
 appropriate agency disposing of the vehicle under subdivision 
 9.  A financial institution wishing to dispose of a vehicle 
 under this subdivision shall notify the appropriate agency of 
 its intent, in writing, within 30 days after receiving notice of 
 the seizure and forfeiture.  The appropriate agency shall 
 release the vehicle to the financial institution or its agent 
 after the financial institution presents proof of its valid 
 security agreement or of its lease agreement and the financial 
 institution agrees not to sell the vehicle to a member of the 
 violator's household, unless the violator is not convicted of 
 the offense on which the forfeiture is based.  The financial 
 institution shall dispose of the vehicle in a commercially 
 reasonable manner as defined in section 336.9-610. 

    (b) After disposing of the forfeited vehicle, the financial 
 institution shall reimburse the appropriate agency for its 
 seizure, storage, and forfeiture costs.  The financial 
 institution may then apply the proceeds of the sale to its 
 storage costs, to its sale expenses, and to satisfy the lien or 
 the lease on the vehicle.  If any proceeds remain, the financial 
 institution shall forward the proceeds to the state treasury, 
 which shall credit the appropriate fund as specified in 
 subdivision 9. 

    HIST: 2000 c 466 s 3,4; 2000 c 478 art 1 s 37; art 2 s 7; 2000 
 c 495 s 46; 2001 c 195 art 2 s 8,9; 1Sp2001 c 8 art 11 s 11; art 
 12 s 12,13; 1Sp2001 c 9 art 19 s 12; 2002 c 379 art 1 s 113