1.1                          A bill for an act 
  1.2             relating to crime prevention; making miscellaneous 
  1.3             changes to certain forfeiture provisions; amending 
  1.4             Minnesota Statutes 1998, sections 169.1217, 
  1.5             subdivisions 7 and 7a; and 609.5314, subdivisions 2 
  1.6             and 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 169.1217, 
  1.9   subdivision 7, is amended to read: 
  1.10     Subd. 7.  [LIMITATIONS ON FORFEITURE OF MOTOR VEHICLE.] (a) 
  1.11  A vehicle is subject to forfeiture under this section only if: 
  1.12     (1) the driver is convicted of the designated offense upon 
  1.13  which the forfeiture is based; 
  1.14     (2) the driver fails to appear with respect to the 
  1.15  designated offense charge in violation of section 609.49; or 
  1.16     (3) the driver's conduct results in a designated license 
  1.17  revocation and the driver either fails to seek administrative or 
  1.18  judicial review of the revocation in a timely manner as required 
  1.19  by section 169.123, subdivision 5b or 5c, or the revocation is 
  1.20  sustained under section 169.123, subdivision 5b or 6. 
  1.21     (b) A vehicle encumbered by a bona fide security interest, 
  1.22  or subject to a lease that has a term of 180 days or more, is 
  1.23  subject to the interest of the secured party or lessor unless 
  1.24  the party or lessor had knowledge of or consented to the act 
  1.25  upon which the forfeiture is based.  However, when the proceeds 
  1.26  of the sale of a seized vehicle do not equal or exceed the 
  2.1   outstanding loan balance, the appropriate agency shall remit all 
  2.2   proceeds of the sale to the secured party.  If the sale of the 
  2.3   vehicle is conducted in a commercially reasonable manner 
  2.4   consistent with the provisions of section 336.9-504, clause (3), 
  2.5   the agency is not liable to the secured party for any amount 
  2.6   owed on the loan in excess of the sale proceeds if the secured 
  2.7   party received notification of the time and place of the sale at 
  2.8   least three days prior to the sale. 
  2.9      (c) Notwithstanding paragraph paragraphs (b) and (d), the 
  2.10  secured party's or, lessor's, or owner's interest in a vehicle 
  2.11  is not subject to forfeiture based solely on the secured party's 
  2.12  or, lessor's, or owner's knowledge of the act or omission upon 
  2.13  which the forfeiture is based if the secured party or, lessor, 
  2.14  or owner took reasonable steps to terminate use of the vehicle 
  2.15  by the offender. 
  2.16     (d) A motor vehicle is subject to forfeiture under this 
  2.17  section only if its owner knew or should have known of the 
  2.18  unlawful use or intended use. 
  2.19     (e) A vehicle subject to a security interest, based upon a 
  2.20  loan or other financing arranged by a financial institution, is 
  2.21  subject to the interest of the financial institution.  
  2.22     Sec. 2.  Minnesota Statutes 1998, section 169.1217, 
  2.23  subdivision 7a, is amended to read: 
  2.24     Subd. 7a.  [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) A 
  2.25  motor vehicle used to commit a designated offense or used in 
  2.26  conduct resulting in a designated license revocation is subject 
  2.27  to administrative forfeiture under this subdivision. 
  2.28     (b) When a motor vehicle is seized under subdivision 2, the 
  2.29  appropriate agency shall serve the driver or operator of the 
  2.30  vehicle with a notice of the seizure and intent to forfeit the 
  2.31  vehicle.  Additionally, when a motor vehicle is seized under 
  2.32  subdivision 2, or within a reasonable time after that, all 
  2.33  persons known to have an ownership or, possessory, or security 
  2.34  interest in the vehicle must be notified of the seizure and the 
  2.35  intent to forfeit the vehicle.  The notification to a person 
  2.36  known to have a security interest in the vehicle is required 
  3.1   only if the vehicle is registered under chapter 168 and the 
  3.2   interest is listed on the vehicle's title.  Notice mailed by 
  3.3   certified mail to the address shown in department of public 
  3.4   safety records is sufficient notice to the registered owner of 
  3.5   the vehicle.  Otherwise, notice may be given in the manner 
  3.6   provided by law for service of a summons in a civil action. 
  3.7      (c) The notice must be in writing and contain:  
  3.8      (1) a description of the vehicle seized; 
  3.9      (2) the date of seizure; and 
  3.10     (3) notice of the right to obtain judicial review of the 
  3.11  forfeiture and of the procedure for obtaining that judicial 
  3.12  review, printed in English, Hmong, and Spanish.  Substantially 
  3.13  the following language must appear conspicuously:  "IF YOU DO 
  3.14  NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA 
  3.15  STATUTES, SECTION 169.1217, SUBDIVISION 7a, YOU LOSE THE RIGHT 
  3.16  TO A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY 
  3.17  RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY.  YOU MAY NOT 
  3.18  HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE 
  3.19  UNABLE TO AFFORD THE FEE.  IF THE PROPERTY IS WORTH $7,500 OR 
  3.20  LESS, YOU MAY FILE YOUR CLAIM IN CONCILIATION COURT.  YOU DO NOT 
  3.21  HAVE TO PAY THE CONCILIATION COURT FILING FEE IF THE PROPERTY IS 
  3.22  WORTH LESS THAN $500 AND YOU FILE YOUR CLAIM IN CONCILIATION 
  3.23  COURT." 
  3.24     (d) Within 30 days following service of a notice of seizure 
  3.25  and forfeiture under this subdivision, a claimant may file a 
  3.26  demand for a judicial determination of the forfeiture.  The 
  3.27  demand must be in the form of a civil complaint and must be 
  3.28  filed with the court administrator in the county in which the 
  3.29  seizure occurred, together with proof of service of a copy of 
  3.30  the complaint on the prosecuting authority having jurisdiction 
  3.31  over the forfeiture, and the standard filing fee for civil 
  3.32  actions unless the petitioner has the right to sue in forma 
  3.33  pauperis under section 563.01.  If the value of the seized 
  3.34  property is less than $500 $7,500 or less, the claimant may file 
  3.35  an action in conciliation court for recovery of the seized 
  3.36  vehicle without paying.  If the value of the seized property is 
  4.1   less than $500, the claimant does not have to pay the 
  4.2   conciliation court filing fee.  No responsive pleading is 
  4.3   required of the prosecuting authority and no court fees may be 
  4.4   charged for the prosecuting authority's appearance in the 
  4.5   matter.  Except as provided in this section, judicial reviews 
  4.6   and hearings are governed by section 169.123, subdivisions 5c 
  4.7   and 6, and shall take place at the same time as any judicial 
  4.8   review of the person's license revocation under section 
  4.9   169.123.  The proceedings may be combined with any hearing on a 
  4.10  petition filed under section 169.123, subdivision 5c, and are 
  4.11  governed by the rules of civil procedure.  
  4.12     (e) The complaint must be captioned in the name of the 
  4.13  claimant as plaintiff and the seized vehicle as defendant, and 
  4.14  must state with specificity the grounds on which the claimant 
  4.15  alleges the vehicle was improperly seized and the plaintiff's 
  4.16  interest in the vehicle seized.  Notwithstanding any law to the 
  4.17  contrary, an action for the return of a vehicle seized under 
  4.18  this section may not be maintained by or on behalf of any person 
  4.19  who has been served with a notice of seizure and forfeiture 
  4.20  unless the person has complied with this subdivision. 
  4.21     (f) If the claimant makes a timely demand for a judicial 
  4.22  determination under this subdivision, the appropriate agency 
  4.23  must conduct the forfeiture under subdivision 8.  
  4.24     (g) If a demand for judicial determination of an 
  4.25  administrative forfeiture is filed under this subdivision and 
  4.26  the court orders the return of the seized vehicle, the court 
  4.27  shall order that filing fees be reimbursed to the person who 
  4.28  filed the demand.  In addition, the court may order the payment 
  4.29  of reasonable costs, expenses, and attorney fees under section 
  4.30  549.21, subdivision 2.  
  4.31     Sec. 3.  Minnesota Statutes 1998, section 609.5314, 
  4.32  subdivision 2, is amended to read: 
  4.33     Subd. 2.  [ADMINISTRATIVE FORFEITURE PROCEDURE.] (a) 
  4.34  Forfeiture of property described in subdivision 1 is governed by 
  4.35  this subdivision.  When seizure occurs, or within a reasonable 
  4.36  time after that, all persons known to have an ownership or, 
  5.1   possessory, or security interest in seized property must be 
  5.2   notified of the seizure and the intent to forfeit the property.  
  5.3   In the case of a motor vehicle required to be registered under 
  5.4   chapter 168, notice mailed by certified mail to the address 
  5.5   shown in department of public safety records is deemed 
  5.6   sufficient notice to the registered owner.  The notification to 
  5.7   a person known to have a security interest in seized property 
  5.8   required under this paragraph applies only to motor vehicles 
  5.9   required to be registered under chapter 168 and only if the 
  5.10  security interest is listed on the vehicle's title. 
  5.11     (b) Notice may otherwise be given in the manner provided by 
  5.12  law for service of a summons in a civil action.  The notice must 
  5.13  be in writing and contain: 
  5.14     (1) a description of the property seized; 
  5.15     (2) the date of seizure; 
  5.16     (3) notice of the right to obtain judicial review of the 
  5.17  forfeiture and of the procedure for obtaining that judicial 
  5.18  review, printed in English, Hmong, and Spanish.  Substantially 
  5.19  the following language must appear conspicuously:  "IF YOU DO 
  5.20  NOT DEMAND JUDICIAL REVIEW EXACTLY AS PRESCRIBED IN MINNESOTA 
  5.21  STATUTES, SECTION 609.5314, SUBDIVISION 3, YOU LOSE THE RIGHT TO 
  5.22  A JUDICIAL DETERMINATION OF THIS FORFEITURE AND YOU LOSE ANY 
  5.23  RIGHT YOU MAY HAVE TO THE ABOVE DESCRIBED PROPERTY.  YOU MAY NOT 
  5.24  HAVE TO PAY THE FILING FEE FOR THE DEMAND IF DETERMINED YOU ARE 
  5.25  UNABLE TO AFFORD THE FEE.  IF THE PROPERTY IS WORTH $7,500 OR 
  5.26  LESS, YOU MAY FILE YOUR CLAIM IN CONCILIATION COURT.  YOU DO NOT 
  5.27  HAVE TO PAY THE CONCILIATION COURT FILING FEE IF THE PROPERTY IS 
  5.28  WORTH LESS THAN $500 AND YOU FILE YOUR CLAIM IN CONCILIATION 
  5.29  COURT."  
  5.30     Sec. 4.  Minnesota Statutes 1998, section 609.5314, 
  5.31  subdivision 3, is amended to read: 
  5.32     Subd. 3.  [JUDICIAL DETERMINATION.] (a) Within 60 days 
  5.33  following service of a notice of seizure and forfeiture under 
  5.34  this section, a claimant may file a demand for a judicial 
  5.35  determination of the forfeiture.  The demand must be in the form 
  5.36  of a civil complaint and must be filed with the court 
  6.1   administrator in the county in which the seizure occurred, 
  6.2   together with proof of service of a copy of the complaint on the 
  6.3   county attorney for that county, and the standard filing fee for 
  6.4   civil actions unless the petitioner has the right to sue in 
  6.5   forma pauperis under section 563.01.  If the value of the seized 
  6.6   property is less than $500 $7,500 or less, the claimant may file 
  6.7   an action in conciliation court for recovery of the seized 
  6.8   property without paying.  If the value of the seized property is 
  6.9   less than $500, the claimant does not have to pay the 
  6.10  conciliation court filing fee.  No responsive pleading is 
  6.11  required of the county attorney and no court fees may be charged 
  6.12  for the county attorney's appearance in the matter.  The 
  6.13  proceedings are governed by the Rules of Civil Procedure. 
  6.14     (b) The complaint must be captioned in the name of the 
  6.15  claimant as plaintiff and the seized property as defendant, and 
  6.16  must state with specificity the grounds on which the claimant 
  6.17  alleges the property was improperly seized and the plaintiff's 
  6.18  interest in the property seized.  Notwithstanding any law to the 
  6.19  contrary, an action for the return of property seized under this 
  6.20  section may not be maintained by or on behalf of any person who 
  6.21  has been served with a notice of seizure and forfeiture unless 
  6.22  the person has complied with this subdivision. 
  6.23     (c) If the claimant makes a timely demand for judicial 
  6.24  determination under this subdivision, the appropriate agency 
  6.25  must conduct the forfeiture under section 609.531, subdivision 
  6.26  6a.  The limitations and defenses set forth in section 609.5311, 
  6.27  subdivision 3, apply to the judicial determination. 
  6.28     (d) If a demand for judicial determination of an 
  6.29  administrative forfeiture is filed under this subdivision and 
  6.30  the court orders the return of the seized property, the court 
  6.31  shall order that filing fees be reimbursed to the person who 
  6.32  filed the demand.  In addition, the court may order sanctions 
  6.33  under section 549.211.  If the court orders payment of these 
  6.34  costs, they must be paid from forfeited money or proceeds from 
  6.35  the sale of forfeited property from the appropriate law 
  6.36  enforcement and prosecuting agencies in the same proportion as 
  7.1   they would be distributed under section 609.5315, subdivision 5. 
  7.2      Sec. 5.  [EFFECTIVE DATE.] 
  7.3      Sections 1 to 4 are effective August 1, 1999, and apply to 
  7.4   forfeitures initiated on or after that date.