HF 1439

Subd. 3.

Inventory; judicial determination; appeal; disposition of seized
property.

(a) Within ten days after the seizure of any alleged contraband, the person
making the seizure shall serve by certified mail an inventory of the property seized on the
person from whom the seizure was made, if known, and on any person known or believed
to have any right, title, interest, or lien in the property, at the last known address, and file
a copy with the commissioner. The notice must include an explanation of the right to
demand a judicial forfeiture determination.

(b) Within 60 days after the date of service of the inventory, which is the date of
mailing, the person from whom the property was seized or any person claiming an interest
in the property may file a demand for a judicial determination of the question as to whether
the property was lawfully subject to seizure and 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 commissioner of revenue, 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 property. If the value of the seized property is less than $500, the claimant
does not have to pay the conciliation court filing fee.

(c) The complaint must be captioned in the name of the claimant as plaintiff and
the seized property as defendant, and must state with specificity the grounds on which
the claimant alleges the property was improperly seized and the plaintiff's interest in the
property seized. No responsive pleading is required of the commissioner, and no court
fees may be charged for the commissioner's appearance in the matter. The proceedings
are governed by the Rules of Civil Procedure. Notwithstanding any law to the contrary,
an action for the return of property seized under this section may not be maintained by
or on behalf of any person who has been served with an inventory unless the person has
complied with this subdivision. The court shall decide whether the alleged contraband is
contraband, as defined in subdivision 1. The court shall hear the action without a jury and
shall try and determine the issues of fact and law involved.

(d) When a judgment of forfeiture is entered, deleted text begin the commissioner may,deleted text end unless the
judgment is stayed pending an appeal, deleted text begin eitherdeleted text end new text begin the commissionernew text end :

(1) deleted text begin deliver thedeleted text end new text begin may use thenew text end forfeited deleted text begin cigarette packages or tobacco products to the
commissioner of human services for use by patients in state institutionsdeleted text end new text begin property in an
ongoing civil or criminal investigationnew text end ;

(2) new text begin shall new text end cause deleted text begin the property in clause (1)deleted text end new text begin forfeited cigarette packages or tobacco
products not used under clause (1)new text end to be destroyed; deleted text begin ordeleted text end new text begin and
new text end

(3) new text begin may new text end cause the forfeited propertynew text begin , other than forfeited cigarette packages or
tobacco products,new text end to be sold at public auction as provided by law.

The person making a sale, after deducting the expense of keeping the property, the fee
for seizure, and the costs of the sale, shall pay all liens according to their priority, which
are established as being bona fide and as existing without the lienor having any notice
or knowledge that the property was being used or was intended to be used for or in
connection with the violation. The balance of the proceeds must be paid 75 percent to the
Department of Revenue for deposit as a supplement to its operating fund or similar fund
for official use, and 25 percent to the county attorney or other prosecuting agency that
handled the court proceeding, if there is one, for deposit as a supplement to its operating
fund or similar fund for prosecutorial purposes. If there is no prosecuting authority
involved in the forfeiture, the 25 percent of the proceeds otherwise designated for the
prosecuting authority must be deposited into the general fund.

(e) If no demand for judicial determination is made, the property seized is considered
forfeited to the state by operation of law and may be disposed of by the commissioner as
provided in the case of a judgment of forfeiture.