Minnesota

Minnesota earns a D+ for its civil forfeiture laws

State Forfeiture Laws

Minnesota has taken several steps to improve its civil forfeiture laws, but the laws still present law enforcement with a dangerous financial incentive to seize property and thus earn a D+ grade. Most promising among recent reforms, all forfeitures in Minnesota now require that the property owner be convicted in criminal court. A guilty owner’s property may then be forfeited in civil court if the government can tie it to the crime by clear and convincing evidence. Unfortunately, in innocent owner cases, the burden remains on property owners to prove that they had nothing to do with the alleged criminal activity involving their property. And in drunken-driving cases, a joint owner of a seized vehicle who is not charged with a crime cannot raise an innocent owner defense at all if the other owner is convicted of drunken driving. Most troubling of all, Minnesota law continues to give law enforcement agencies a compelling reason to seize: In all but a few cases, they get to keep 90 percent of all forfeiture proceeds.

Minnesota agencies must report their forfeitures to the state auditor each month. These monthly reports are aggregated into an annual forfeiture report published on the auditor’s website. State law could improve transparency by requiring reporting on how forfeiture funds are spent and ensuring that agencies report as required. As it stands, dozens of agencies fail to report each year. Between 2000 and 2013, Minnesota agencies reported forfeiting more than $62 million. Prior to 2010, the auditor’s reports did not include vehicles forfeited in relation to drunken-driving offenses. It is therefore impossible to tell how much of the increase in forfeiture proceeds after 2010 was due to additional reporting requirements versus an increase in forfeiture activity.

State Law Sources

Standard of proof	A criminal conviction is required for civil forfeiture and government must connect property to a crime by clear and convincing evidence. Minn. Stat. § 609.531, subd. 6(a), (b), (d).
Innocent owner burden	Owner. Minn. Stat. § 609.5311, subd. 3; Jacobson v. $55,900 in U.S. Currency, 728 N.W.2d 510, 520 & n.6 (Minn. 2007); Blanche v. 1995 Pontiac Grand Prix, 599 N.W.2d 161, 167 (Minn. 1999). NB: In DWI/DUI cases, a vehicle’s joint owner may not raise an innocent owner defense if the vehicle’s other owner is guilty. Minn. Stat. § 169A.63, subd. 7(d); Laase v. 2007 Chevrolet Tahoe, 776 N.W.2d 431, 439–40 (Minn. 2009).
Profit incentive	90 percent, except in cases involving prostitution or human trafficking, when 60 percent goes to law enforcement. Minn. Stat. § 609.5315, subds. 5, 5a, 5b.
Reporting requirements	Agencies are required to report their forfeitures to the state auditor on a monthly basis, and the auditor must then make annual reports to the state Legislature. Minn. Stat. § 609.5315, subd. 6. http://www.osa.state.mn.us/default.aspx?page=CriminalForfeitures

Minnesota ranks 19th for federal forfeiture, with nearly $26 million in Department of Justice equitable sharing proceeds from 2000 to 2013.

State Forfeiture Data

Year	Reported Forfeiture Proceeds
2000	$1,448,462
2001	$1,433,278
2002	$1,697,945
2003	$2,806,891
2004	$3,130,577
2005	$3,709,487
2006	$3,918,321
2007	$4,866,485
2008	$3,823,464
2009	$4,778,457
2010	$5,367,197
2011	$8,348,910
2012	$8,393,164
2013	$8,777,183
Total	$62,499,821
Average per year	$4,464,273

Federal Equitable Sharing

Minnesota ranks 19^th on equitable sharing. Between 2000 and 2013, law enforcement agencies received $25.9 million in Department of Justice equitable sharing proceeds, averaging nearly $1.9 million per calendar year. The vast majority of those proceeds—71 percent—came via joint task forces and investigations, suggesting that 2015 DOJ reforms that left such equitable sharing activity largely intact will have little effect in Minnesota. Minnesota agencies also took in over $1.6 million in Treasury Department equitable sharing proceeds between the 2000 and 2013 fiscal years.

Year	DOJ (calendar years)	Treasury (fiscal years)
2000	$965,139	$71,000
2001	$1,467,249	$19,000
2002	$1,714,825	$2,000
2003	$1,188,553	$24,000
2004	$1,308,685	$7,000
2005	$1,361,625	$0
2006	$2,286,719	$434,000
2007	$2,215,532	$46,000
2008	$2,276,567	$7,000
2009	$2,827,271	$71,000
2010	$2,644,155	$235,000
2011	$1,885,715	$192,000
2012	$1,854,540	$81,000
2013	$1,905,826	$457,000
Total	$25,902,398	$1,646,000
Average Per Year	$1,850,171	$117,571