Bill Text: MI HB4629 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Criminal procedure; forfeiture; requirement for property owner to provide cash bond to contest forfeiture proceedings and to pay costs and expenses of forfeiture proceedings under certain circumstances; eliminate. Amends secs. 7523 & 7524 of 1978 PA 368 (MCL 333.7523 & 333.7524).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-12-31 - Assigned Pa 418'16 With Immediate Effect [HB4629 Detail]
Download: Michigan-2015-HB4629-Engrossed.html
HB-4629, As Passed House, March 22, 2016
SUBSTITUTE FOR
HOUSE BILL NO. 4629
A bill to amend 1978 PA 368, entitled
"Public health code,"
by amending sections 7523 and 7524 (MCL 333.7523 and 333.7524),
section 7523 as amended by 2006 PA 130 and section 7524 as amended
by 2011 PA 161.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
7523. (1) If property is seized pursuant to under section
7522, forfeiture proceedings shall be instituted promptly. If the
property
is seized without process as provided under section 7522,
and the total value of the property seized does not exceed
$50,000.00, the following procedure shall be used:
(a) The local unit of government that seized the property or,
if
the property was seized by the this
state, the state shall
notify the owner of the property that the property has been seized,
and that the local unit of government or, if applicable, the state
intends to forfeit and dispose of the property by delivering a
written notice to the owner of the property or by sending the
notice to the owner by certified mail. If the name and address of
the owner are not reasonably ascertainable, or delivery of the
notice cannot be reasonably accomplished, the notice shall be
published in a newspaper of general circulation in the county in
which the property was seized, for 10 successive publishing days.
(b) Unless all criminal proceedings involving or relating to
the property have been completed, the seizing agency shall
immediately notify the prosecuting attorney for the county in which
the property was seized or, if the attorney general is actively
handling a case involving or relating to the property, the attorney
general of the seizure of the property and the intention to forfeit
and dispose of the property.
(c) Any person claiming an interest in property that is the
subject of a notice under subdivision (a) may, within 20 days after
receipt of the notice or of the date of the first publication of
the notice, file a written claim signed by the claimant with the
local unit of government or the state expressing his or her
interest
in the property. Upon the filing of the claim, and the
giving
of a bond to the local unit of government or the state in
the
amount of 10% of the value of the claimed property, but not
less
than $250.00 or greater than $5,000.00, with sureties approved
by
the local unit of government or the state containing the
condition
that if the property is ordered forfeited by the court
the
obligor shall pay all costs and expenses of the forfeiture
proceedings.
The the local unit of government or, if applicable,
the
state shall transmit the claim and bond with a list and
description of the property seized to the attorney general, the
prosecuting attorney for the county, or the city or township
attorney for the local unit of government in which the seizure was
made. The attorney general, the prosecuting attorney, or the city
or township attorney shall promptly institute forfeiture
proceedings after the expiration of the 20-day period. However,
unless all criminal proceedings involving or relating to the
property have been completed, a city or township attorney shall not
institute forfeiture proceedings without the consent of the
prosecuting attorney or, if the attorney general is actively
handling a case involving or relating to the property, the attorney
general.
(d)
If no claim is filed or bond given within the 20-day
period as described in subdivision (c), the local unit of
government
or the this state shall declare the property forfeited
and shall dispose of the property as provided under section 7524.
However, unless all criminal proceedings involving or relating to
the property have been completed, the local unit of government or
the state shall not dispose of the property under this subdivision
without the written consent of the prosecuting attorney or, if the
attorney general is actively handling a case involving or relating
to the property, the attorney general.
(2)
Property taken or detained under this article shall is not
be
subject to an action to recover
personal property, but is deemed
to be in the custody of the seizing agency subject only to this
section or an order and judgment of the court having jurisdiction
over the forfeiture proceedings. When property is seized under this
article, the seizing agency may do any of the following:
(a) Place the property under seal.
(b) Remove the property to a place designated by the court.
(c) Require the administrator to take custody of the property
and remove it to an appropriate location for disposition in
accordance with law.
(d) Deposit money seized under this article into an interest-
bearing account in a financial institution. As used in this
subdivision, "financial institution" means a state or nationally
chartered bank or a state or federally chartered savings and loan
association, savings bank, or credit union whose deposits are
insured by an agency of the United States government and that
maintains a principal office or branch office located in this state
under the laws of this state or the United States.
(3) Title to real property forfeited under this article shall
be determined by a court of competent jurisdiction. A forfeiture of
real property encumbered by a bona fide security interest is
subject to the interest of the secured party who neither had
knowledge of nor consented to the act or omission.
(4) An attorney for a person who is charged with a crime
involving or related to the money seized under this article shall
be afforded a period of 60 days within which to examine that money.
This
60-day period shall begin begins
to run after notice is given
under subsection (1)(a) but before the money is deposited into a
financial institution under subsection (2)(d). If the attorney
general, prosecuting attorney, or city or township attorney fails
to sustain his or her burden of proof in forfeiture proceedings
under this article, the court shall order the return of the money,
including any interest earned on money deposited into a financial
institution under subsection (2)(d).
Sec. 7524. (1) When property is forfeited under this article,
the local unit of government that seized the property may do any of
the following, or if the property is seized by or in the custody of
the
this state, the state may do any of the following,
subject to
section 7523(1)(d):
(a)
Retain it the property for official use.
(b)
Sell that which is the
property that is not required to be
destroyed
by law and which that is not harmful to the public. The
proceeds and any money, negotiable instruments, securities, or any
other thing of value as described in section 7521(1)(f) that are
forfeited under this article shall be deposited with the treasurer
of the entity having budgetary authority over the seizing agency
and applied as follows:
(i) For the payment of proper expenses of the proceedings for
forfeiture and sale, including expenses incurred during the seizure
process,
maintenance of custody, advertising, and court costs. ,
except
as otherwise provided in subsection (4).
(ii) The balance remaining after the payment of expenses shall
be distributed by the court having jurisdiction over the forfeiture
proceedings to the treasurer of the entity having budgetary
authority over the seizing agency. If more than 1 agency was
substantially involved in effecting the forfeiture, the court
having jurisdiction over the forfeiture proceeding shall equitably
distribute the money among the treasurers of the entities having
budgetary authority over the seizing agencies. A seizing agency may
direct that the funds or a portion of the funds it would otherwise
have received under this subsection be paid to nonprofit
organizations whose primary activity is to assist law enforcement
agencies with drug-related criminal investigations and obtaining
information for solving crimes. The money received by a seizing
agency under this subparagraph and all interest and other earnings
on money received by the seizing agency under this subparagraph
shall be used only for law enforcement purposes, as appropriated by
the entity having budgetary authority over the seizing agency. A
distribution made under this subparagraph shall serve as a
supplement to, and not a replacement for, funds otherwise budgeted
for law enforcement purposes.
(c) Require the administrator to take custody of the property
and remove it for disposition in accordance with law.
(d) Forward it to the bureau for disposition.
(2) Notwithstanding subsection (1), this state or local units
of government may donate lights for plant growth or scales
forfeited under this article to elementary or secondary schools or
institutions of higher education that request in writing to receive
those
lights or scales pursuant to under
this subsection, for
educational purposes. This state or local units of government shall
donate lights and scales under this subsection to elementary or
secondary schools or institutions of higher education in the order
in which the written requests are received. This state or local
units of government may limit the number of lights and scales
available to each requestor.
(3) In the course of selling real property under subsection
(1)(b), the court that has entered an order of forfeiture may, on
motion of the agency to whom the property has been forfeited,
appoint a receiver to dispose of the real property forfeited. The
receiver
shall be is entitled to reasonable compensation. The
receiver
shall have has authority to do all of the following:
(a) List the forfeited real property for sale.
(b) Make whatever arrangements are necessary for the
maintenance and preservation of the forfeited real property.
(c) Accept offers to purchase the forfeited real property.
(d) Execute instruments transferring title to the forfeited
real property.
(4)
If a court enters an order of forfeiture, the court may
order
a person who claimed an interest in the forfeited property
under
section 7523(1)(c) to pay the expenses of the proceedings of
forfeiture
to the entity having budgetary authority over the
seizing
agency.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
