Bill Text: MI HB5602 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Criminal procedure; forfeiture; disposition of forfeited property; expand to include state police forensic science division and provide penalties for noncompliance with reporting requirements. Amends secs. 7524 & 7524a of 1978 PA 368 (MCL 333.7524 & 333.7524a).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-11-18 - Printed Bill Filed 11/13/2009 [HB5602 Detail]

Download: Michigan-2009-HB5602-Introduced.html

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HOUSE BILL No. 5602

 

November 12, 2009, Introduced by Rep. LeBlanc and referred to the Committee on Judiciary.

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 7524 and 7524a (MCL 333.7524 and 333.7524a),

 

section 7524 as amended by 2006 PA 558 and section 7524a as amended

 

by 1994 PA 8.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 state, the state may do any of the following, subject to

 

section 7523(1)(d):

 

     (a) Retain it for official use.

 

     (b) Sell that which is not required to be destroyed by law and

 

which 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 pursuant to

 

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 Of the balance remaining after the payment of

 

expenses, 10% shall be deposited in the Michigan forensic fund

 

created in subsection (5). The remainder 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 to

 

enhance law enforcement efforts pertaining to this article, 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, the funds

 

budgeted on January 1, 1991, for law enforcement efforts pertaining

 

to this article.

 

     (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 pursuant to 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 pursuant to 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 entitled to reasonable

 

compensation. The receiver shall have 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

 

pursuant to section 7523(1)(c) to pay the expenses of the

 

proceedings of forfeiture to the entity having budgetary authority

 

over the seizing agency.

 

     (5) The Michigan forensic fund is created within the state

 

treasury.

 

     (6) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments.

 

     (7) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (8) The department of state police shall be the administrator

 

of the fund for auditing purposes.

 

     (9) The department of state police shall expend money from the

 

fund, upon appropriation, only to support the operations of the

 

forensic science division of the department of state police.

 

     Sec. 7524a. (1) Before February 1 of each year, each local

 

unit of government that had forfeiture proceedings pending in the

 

circuit court pursuant to under section 7523; or effectuated a

 

forfeiture of property pursuant to under section 7523 without a

 

forfeiture proceeding in the circuit court; or received money,

 

negotiable instruments, securities, or any other thing of value

 

pursuant to under section 7524 during the fiscal year for the local

 

unit of government ending in the immediately preceding calendar

 

year shall submit a report to the office of drug agencies bureau of

 

substance abuse and addiction services for analysis and transmittal

 

to the secretary of the senate and the clerk of the house of

 

representatives. The annual report shall be a summary of the local

 

unit of government's activities regarding the forfeiture of

 

property under this article and pursuant to section 17766a for the

 

fiscal year and shall contain the following information, as

 

applicable:

 

     (a) The number of forfeiture proceedings that were instituted

 

in the circuit court by the local unit of government.

 

     (b) The number of forfeiture proceedings instituted by the

 

local unit of government that were concluded in the circuit court.

 

     (c) The number of all forfeiture proceedings instituted by the

 

local unit of government that were pending in the circuit court at

 

the end of the year.

 

     (d) The number of forfeitures accomplished by the local unit

 

of government without filing a forfeiture proceeding in the circuit

 

court.

 

     (e) The net total proceeds of all property forfeited under

 

this article and pursuant to section 17766a through forfeitures

 

instituted by the local unit of government that the local unit of

 

government is required to account for and report to the state

 

treasurer pursuant to either of the following, as applicable:

 

     (i) Act No. 71 of the Public Acts of 1919, being sections 21.41

 

to 21.53 of the Michigan Compiled Laws 1919 PA 71, MCL 21.41 to

 

21.55.

 

     (ii) The uniform budgeting and accounting act, Act No. 2 of the

 

Public Acts of 1968, being sections 141.421 to 141.440a of the

 

Michigan Compiled Laws 1968 PA 2, MCL 141.421 to 141.440a.

 

     (f) An inventory of property received by the local unit of

 

government pursuant to under section 7524, and section 17766a,

 

including, but not limited to, all of the following:

 

     (i) all All of the following real property:

 

     (A) Single-family residential.

 

     (B) Multiple-family residential.

 

     (C) Industrial.

 

     (D) Commercial.

 

     (E) Agricultural.

 

     (ii) Any type of conveyance described in section 7521(1)(d),

 

including the year, make, and model.

 

     (iii) Money, negotiable instruments, and securities.

 

     (iv) The total value of personal property, excluding personal

 

property described in subparagraphs (ii) and (iii).

 

     (g) A statement explaining how the money received by the local

 

unit of government pursuant to under section 7524(1)(b)(ii) has been

 

used or is being used to enhance the law enforcement efforts

 

pertaining to this article. or section 17766a.

 

     (h) A statement of the number of lights for plant growth or

 

scales donated under section 7524(2), the total value of those

 

lights or scales, and the elementary or secondary schools or

 

institutions of higher education to which they were donated.

 

     (2) The records of a local unit of government described in

 

subsection (1) regarding the forfeiture of property under this

 

article or pursuant to section 17766a shall be audited in

 

accordance with 1 of the following, as applicable:

 

     (a) Act No. 71 of the Public Acts of 1919, being sections

 

21.41 to 21.53 of the Michigan Compiled Laws 1919 PA 71, MCL 21.41

 

to 21.55.

 

     (b) The uniform budgeting and accounting act, Act No. 2 of the

 

Public Acts of 1968, being sections 141.421 to 141.440a of the

 

Michigan Compiled Laws 1968 PA 2, MCL 141.421 to 141.440a.

 

     (3) The records of a local unit of government described in

 

subsection (1) regarding the forfeiture of property under this

 

article or pursuant to section 17766a may be audited by an auditor

 

of the local unit of government.

 

     (4) If a local unit of government fails to submit records

 

required under subsection (1), the bureau of substance abuse and

 

addiction services shall conduct an audit of the local unit of

 

government to determine whether there were any forfeiture

 

proceedings by that local unit of government. The local unit of

 

government shall pay the expense of an audit under this subsection.

 

If the audit reveals that the local unit of government seized

 

property subject to forfeiture and failed to report that seizure,

 

the local unit of government shall remit that property, or the

 

value of that property, to the bureau of substance abuse and

 

addiction services.