Subd. 1. Definitions.

1. (a) For purposes of this section, the following terms have the meanings given.
2. (b) "Violator" means a person who was driving, operating, or in physical control of the motor vehicle when the violation occurred.

3. (c) "Violation" includes:

   1. (1) a violation of section 169.121, subdivision 1, clause (a), (b), (c), (d), (e), (g), or (h); 169.121, subdivision 1a; or 169.123; or a conforming ordinance from this state or a conforming statute or ordinance from another state; that results in the revocation of a person's driver's license or driving privileges:

      1. (i) within five years of a prior impaired driving conviction or a prior license revocation; or
      2. (ii) within 15 years of two or more prior impaired driving convictions, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents;
   2. (2) a violation of section 169.121, subdivision 1, clause (f), or section 169.121, subdivision 3, paragraph (c), clause (4);
   3. (3) a violation of section 169.129; and
   4. (4) a violation of section 171.24 by a person whose driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (10).
4. (d) "Prior impaired driving conviction" has the meaning given it in section 169.121, subdivision 3.
5. (e) "Prior license revocation" has the meaning given it in section 169.121, subdivision 3.

Subd. 2. Violation; issuance of impoundment order.

The commissioner shall issue a registration plate impoundment order when:

1. (1) a person's driver's license or driving privileges are revoked for a violation; or

2. (2) a person is arrested for or charged with a violation described in subdivision 1, paragraph (c), clause (3) or (4).

   The order shall require the impoundment of the registration plates of the self-propelled motor vehicle involved in the violation and all self-propelled motor vehicles owned by, registered, or leased in the name of the violator, including self-propelled motor vehicles registered jointly or leased in the name of the violator and another. An impoundment order shall not be issued for the registration plates of a rental vehicle as defined in section 168.041, subdivision 10, or a vehicle registered in another state.

Subd. 3. Notice of impoundment.

An impoundment order is effective when the commissioner or a peace officer acting on behalf of the commissioner notifies the violator or the registered owner of the self-propelled motor vehicle of the intent to impound and order of impoundment. The notice must advise the violator of the duties and obligations set forth in subdivision 6 and of the right to obtain administrative and judicial review. The notice to the registered owner who is not the violator must include the procedure to obtain new registration plates under subdivision 8. If mailed, the notice and order of impoundment is deemed received three days after mailing to the last known address of the violator or the registered owner.

Subd. 4. Peace officer as agent for notice of impoundment.

On behalf of the commissioner, a peace officer issuing a notice of intent to revoke and of revocation for a violation shall also serve a notice of intent to impound and an order of impoundment. On behalf of the commissioner, a peace officer who is arresting a person for or charging a person with a violation described in subdivision 1, paragraph (c), clause (3) or (4), shall also serve a notice of intent to impound and an order of impoundment. If the vehicle involved in the violation is accessible to the officer at the time the impoundment order is issued, the officer shall seize the registration plates subject to the impoundment order. The officer shall destroy all plates seized or impounded under this section. The officer shall send to the commissioner copies of the notice of intent to impound and the order of impoundment and a notice that registration plates impounded and seized under this section have been destroyed.

Subd. 5. Temporary permit.

If the self-propelled motor vehicle is registered to the violator, the officer shall issue a temporary vehicle permit that is valid for seven days when the officer issues the notices under subdivision 4. If the self-propelled motor vehicle is registered in the name of another, the officer shall issue a temporary vehicle permit that is valid for 45 days when the notices are issued under subdivision 3. The permit must be in a form determined by the registrar and whenever practicable must be posted on the left side of the inside rear window of the vehicle. A permit is valid only for the vehicle for which it is issued.

Subd. 6. Surrender of plates.

Within seven days after issuance of the impoundment notice, a person who receives a notice of impoundment and impoundment order shall surrender all registration plates subject to the impoundment order that were not seized by a peace officer under subdivision 4. Registration plates required to be surrendered under this subdivision must be surrendered to a Minnesota police department, sheriff, or the state patrol, along with a copy of the impoundment order. A law enforcement agency receiving registration plates under this subdivision shall destroy the plates and notify the commissioner that they have been destroyed. The notification to the commissioner shall also include a copy of the impoundment order.

Subd. 7. Vehicle not owned by violator.

A violator may file a sworn statement with the commissioner within seven days of the issuance of an impoundment order stating any material information relating to the impoundment order, including that the vehicle has been sold or destroyed and supplying the date, name, location, and address of the person or entity that purchased or destroyed the vehicle. The commissioner shall rescind the impoundment order if the violator shows that the impoundment order was not properly issued.

Subd. 8. Reissuance of registration plates.

1. (a) The commissioner shall rescind the impoundment order of a person subject to an order under this section, other than the violator, if:

   1. (1) the violator had a valid driver's license on the date of the violation and the person files with the commissioner an acceptable sworn statement containing the following information:

      1. (i) that the person is the registered owner of the vehicle from which the plates have been impounded under this section;
      2. (ii) that the person is the current owner and possessor of the vehicle used in the violation;
      3. (iii) the date on which the violator obtained the vehicle from the registered owner;
      4. (iv) the residence addresses of the registered owner and the violator on the date the violator obtained the vehicle from the registered owner;
      5. (v) that the person was not a passenger in the vehicle at the time of the violation; and
      6. (vi) that the person knows that the violator may not drive, operate, or be in physical control of a vehicle without a valid driver's license; or
   2. (2) the violator did not have a valid driver's license on the date of the violation and the person made a report to law enforcement before the violation stating that the vehicle had been taken from the person's possession or was being used without permission.
2. (b) A person who has failed to make a report as provided in paragraph (a), clause (2), may be issued special registration plates under subdivision 12 for a period of one year from the effective date of the impoundment order. At the next registration renewal following this period, the person may apply for regular registration plates.
3. (c) If the order is rescinded, the owner shall receive new registration plates at no cost, if the plates were seized and destroyed.

Subd. 9. Administrative review.

At any time during the effective period of an impoundment order, a person may request in writing a review of the impoundment order by the commissioner. On receiving a request, the commissioner or the commissioner's designee shall review the order, the evidence upon which the order was based, and any other material information brought to the attention of the commissioner, and determine whether sufficient cause exists to sustain the order. The commissioner shall report in writing the results of the review within 15 days of receiving the request. The review provided in this subdivision is not subject to the contested case provisions of the Administrative Procedure Act in sections 14.01 to 14.69. As a result of this review, the commissioner may authorize the issuance at no cost of new registration plates to the registered owner of the vehicle if the registered owner's license or driving privileges were not revoked as a result of the violation.

Review under this subdivision shall take place, if possible, at the same time as any administrative review of the person's license revocation under section 169.123, subdivision 5b.

Subd. 10. Petition for judicial review.

1. (a) Within 30 days following receipt of a notice and order of impoundment under this section, a person may petition the court for review. The petition must include the petitioner's date of birth, driver's license number, and date of the violation. The petition shall state with specificity the grounds upon which the petitioner seeks rescission of the order for impoundment. The petition may be combined with any petition filed under section 169.123, subdivision 5c.
2. (b) Except as otherwise provided in this section, the judicial review and hearing are governed by section 169.123, subdivisions 5c and 6, and shall take place at the same time as any judicial review of the person's license revocation under section 169.123. The filing of the petition shall not stay the impoundment order. The reviewing court may order a stay of the balance of the impoundment period if the hearing has not been conducted within 60 days after filing of the petition upon terms the court deems proper. The court shall order either that the impoundment be rescinded or sustained, and forward the order to the commissioner of public safety. The court shall file its order within 14 days following the hearing.

3. (c) In addition to the issues described in section 169.123, subdivision 6, the scope of a hearing under this subdivision is limited to:

   1. (1) whether the violator owns, is the registered owner of, possesses, or has access to the vehicle used in the violation;
   2. (2) whether a member of the violator's household has a valid driver's license, the violator or registered owner has a limited license issued under section 171.30, the registered owner is not the violator and the registered owner has a valid or limited driver's license, or a member of the registered owner's household has a valid driver's license; and
   3. (3) if the impoundment is based on a violation described in subdivision 1, paragraph (c), clause (2) or (3), whether the peace officer had probable cause to believe the violator committed the violation and whether the evidence demonstrates that the violation occurred.

4. (d) In a hearing under this subdivision, the following shall be admissible in evidence:

   1. (1) certified copies of the violator's driving record; and
   2. (2) certified copies of vehicle registration records bearing the violator's name.

Subd. 11. Rescission of revocation; dismissal or acquittal; new plates.

If:

1. (1) the driver's license revocation that is the basis for an impoundment order is rescinded;
2. (2) the charges for the violation have been dismissed with prejudice; or

3. (3) the violator has been acquitted of the violation;

   then the registrar of motor vehicles shall issue new registration plates for the vehicle at no cost, when the registrar receives an application that includes a copy of the order rescinding the driver's license revocation, the order dismissing the charges, or the judgment of acquittal.

Subd. 11a. Charge for reinstatement of plates in certain situations.

When the registrar of motor vehicles reinstates a person's registration plates after impoundment for reasons other than those described in subdivision 11, the registrar shall charge the person $50 for each vehicle for which the registration plates are being reinstated.

Subd. 12. Special registration plates.

A violator or registered owner may apply to the commissioner for new registration plates, which must bear a special series of numbers or letters so as to be readily identified by traffic law enforcement officers. The commissioner may authorize the issuance of special plates if:

1. (1) the violator has a qualified licensed driver whom the violator must identify;
2. (2) the violator or registered owner has a limited license issued under section 171.30;
3. (3) the registered owner is not the violator and the registered owner has a valid or limited driver's license; or

4. (4) a member of the registered owner's household has a valid driver's license.

   The commissioner may issue the special plates on payment of a $50 fee for each vehicle for which special plates are requested.

Subd. 13. Sale of vehicle subject to impoundment order.

A registered owner may not sell a self-propelled motor vehicle during the time its registration plates have been ordered impounded or during the time its registration plates bear a special series number, unless:

1. (1) the sale is for a valid consideration;
2. (2) the transferee does not reside in the same household as the registered owner; and

3. (3) all elements of section 168A.10 are satisfied.

   The registrar may then transfer the title to the new owner upon proper application and issue new registration plates.

Subd. 13a. Acquiring another vehicle.

If during the effective period of the plate impoundment the violator applies to the commissioner for registration plates for any vehicle, the commissioner shall not issue registration plates unless the violator qualifies for special registration plates under subdivision 12 and unless the plates issued are special plates as described in subdivision 12.

Subd. 14. Misdemeanor offenses.

A person is guilty of a misdemeanor who:

1. (1) fails to comply with an impoundment order under this section;
2. (2) files a false statement under subdivision 5 or 6;
3. (3) operates a self-propelled motor vehicle on a street or highway when the vehicle is subject to an impoundment order issued under this section; or
4. (4) fails to notify the commissioner of the impoundment order when requesting new plates.

Subd. 15. Fees credited to highway user fund.

Fees collected from the sale or reinstatement of license plates under this section must be paid into the state treasury and credited one-half to the highway user tax distribution fund and one-half to the general fund.