0402: FLOOR ANALYSIS - RAISE FELONY THRESHOLD

RAISE FELONY THRESHOLD - S.B. 402 (S-1)-411 (S-1): FLOOR ANALYSIS

Senate Bills 402 through 411 (Substitutes S-1 as reported)

Sponsor: Senator William Van Regenmorter (Senate Bill 402)

Senator Bev Hammerstrom (Senate Bill 403)

Senator Valde Garcia (Senate Bill 404)

Senator Christopher D. Dingell (Senate Bill 405)

Senator Bill Schuette (Senate Bill 406)

Senator Thaddeus G. McCotter (Senate Bill 407)

Senator Bill Bullard, Jr. (Senate Bill 408)

Senator Harry Gast (Senate Bill 409)

Senator Martha G. Scott (Senate Bill 410)

Senator Gary Peters (Senate Bill 411)

Committee: Judiciary

CONTENT

Senate Bills 402 (S-1), 404 (S-1), 406 (S-1), 408 (S-1), and 410 (S-1) would amend various acts to increase the felony threshold for various offenses in which money or property is illegally obtained; and establish graduated sanctions based upon the amount of money or value of property involved, and the defendant's prior convictions under the act that would be amended. (Except under Senate Bill 410 (S-1), the threshold would increase from $100 to $1,000.) Senate Bills 403 (S-1), 405 (S-1), 407 (S-1), 409 (S-1), and 411 (S-1) would amend the Code of Criminal Procedure to revise the sentencing guidelines consistent with the proposed increased felony thresholds and penalties; each of these bills is tie-barred to the corresponding penalty bill. All of the bills would take effect on September 1, 2001.

Table 1 shows the proposed penalties under Senate Bills 402 (S-1), 404 (S-1), 406 (S-1), and 408 (S-1).

Table 1

Amount Involved	Offense	Maximum Fine	Maximum Term
<$200; first offense	Misd.	$500 or 3x value^a)	93 days
$200 to <$1,000; or <$200 w/ 1 or more priors	Misd.	$2,000 or 3x value^b)	1 year
$1,000 to <$20,000; or $200 to <$1,000 w/ 1 or more priors^c)	Felony	$10,000 or 3x value^b)	5 years
$20,000 or more; or $1,000 to <$20,000 w/ 2 or more priors^c)	Felony	$15,000 or 3x value^b)	10 years
^a)Under Senate Bill 402 (S-1), the maximum fine would be $500; under the other bills, the maximum fine would be $500 or three times the value involved in the offense, whichever was greater. ^b) Under all four bills, the maximum fine would be the amount shown or three times the value involved in the offense, whichever was greater. ^c) A prior conviction would not include an offense involving less than $200.

Senate Bill 402 (S-1) would amend the crime victim's compensation law, which makes it a misdemeanor to present false information about a crime to the Crime Victim Services Commission, with intent to defraud or cheat, causing an award of money to be made to any person. Currently, if the award is less than $100, the violation is a misdemeanor punishable by up to three months' imprisonment and/or a maximum fine of $1,000. If the award is $100 or more, the violation is a felony punishable by up to 10 years' imprisonment and/or a maximum fine of $15,000. Under the bill, a violation would be punishable as shown in Table 1.

Under Senate Bill 403 (S-1), false presentation to the Crime Victim Services Commission to obtain $1,000 to $20,000, or $200 to less than $1,000 with prior convictions, would be a Class E property felony, with a statutory maximum sentence of five years' imprisonment. False presentation to obtain $20,000 or more, or $1,000 to less than $20,000 with prior convictions, would be a Class D property felony, with a statutory maximum of 10 years. (Currently, false presentation to the Commission to obtain more than $100 is a Class E property felony, with a statutory maximum sentence of 10 years' imprisonment.)

Senate Bill 404 (S-1) would amend the Michigan Family Farm Development Act, which prohibits obtaining any money, agricultural land or improvements, other real or personal property, or the use of any valuable thing or service provided under the Act, including participation in a program, with the intent to defraud or cheat and by false pretenses. If the violation involves $100 or less in value, the offense is a misdemeanor punishable by up to 90 days' imprisonment and/or a maximum fine of $100. A violation involving more than $100 in value is a felony punishable by 10 years' imprisonment and/or a maximum fine of $5,000. Under the bill, a violation would be punishable as shown in Table 1.

Under Senate Bill 405 (S-1), false pretenses under the Michigan Family Farm Development Act involving $1,000 to $20,000, or $200 to less than $1,000 with prior convictions, would be a Class G property felony, with a statutory maximum sentence of five years' imprisonment. False pretenses involving $20,000 or more, or $1,000 to less than $20,000 with prior convictions, would be a Class E property felony, with a statutory maximum of 10 years. (Currently, falsely obtaining money or agricultural land is a Class E felony against the public trust, with a statutory maximum sentence of 10 years' imprisonment.)

Senate Bill 406 (S-1) would amend the Construction Lien Act, which prohibits a contractor or subcontractor who desires to draw money from giving or causing to be given to any owner or lessee a false sworn statement, with intent to defraud. The violation is a misdemeanor if the statement involved is for $100 or less and a felony if it is for more than $100. Under the bill, a violation would be punishable as shown in Table 1.

Under Senate Bill 407 (S-1), a false sworn statement by a contractor involving $1,000 to $20,000, or $200 to less than $1,000 with prior convictions, would be a Class E property felony, with a statutory maximum sentence of five years' imprisonment. A violation involving $20,000 or more, or $1,000 to less than $20,000 with prior convictions, would be a Class D property felony, with a statutory maximum of 10 years. (Currently, a false sworn statement by a contractor is a Class F property felony, with a statutory maximum sentence of four years' imprisonment.)

Senate Bill 408 (S-1) would amend the State Housing Development Authority Act, which prohibits obtaining money, real or personal property, or the use of an instrument, facility, article, or other valuable thing or service including participation in a program initiated under the Act, with intent to defraud or cheat by false pretense. If the value involved is $100 or less, the violation is a misdemeanor. If the value is more than $100, the violation is a felony punishable by up to 10 years' imprisonment and/or a maximum fine of $5,000. Under the bill, a violation would be punishable as shown in Table 1.

Under Senate Bill 409 (S-1), false pretenses under the State Housing Development Authority Act involving $1,000 to $20,000, or $200 to less than $1,000 with prior convictions, would be a Class E property felony, with a statutory maximum of five years. A violation involving more than $20,000, or $1,000 to less than $20,000 with prior convictions, would be a Class D property felony, with a statutory maximum of 10 years. (Currently, a violation involving over $100 is a Class G property felony, with a statutory maximum of 10 years.)

Senate Bill 410 (S-1) would amend provisions of the Natural Resources and Environmental Protection Act that prohibit the unauthorized removal of forest products or property from State-owned land, and the unauthorized removal or transport of Christmas trees, boughs, and certain other plants. The current penalties are based on the damages resulting from a violation and the offender's prior convictions for the particular offense, as shown in Table 2.

Table 2

Damages	Offense	Fine	Max. Term
$100 or less; 1st offense	Civil	$500 max	NA
$100 or less; repeat offense	Misd.	$50 min/$500 max	90 days
>$100 but <$1,000	Misd.	$500 min/$5,000 max	180 days
$1,000 or more	Felony	$1,000 min/$10,000 max	180 days
Note: The sentence for a criminal offense also may include the costs of prosecution.

The Act also prohibits recovering, altering, or destroying abandoned property that is in, on, under, or over the bottomlands of the Great Lakes, including those within a Great Lakes bottomlands preserve, except with a permit issued jointly by the Secretary of State and the Department of Natural Resources. Currently, a violation involving property with a fair market value of $100 or more is a felony punishable by up to two years' imprisonment and/or a maximum fine of $5,000.

The bill would create a new penalty structure for these offenses, as shown in Table 3.

Table 3

Damages /Value	Offense	Max. Fine	Max. Term
<$100; 1st offense	Misd.	$500	93 days
<$100; repeat offense	Misd.	$1,000	1 year
$100 to <$500; 1st or 2nd offense	Misd.	$1,000 or 3x value^a)	1 year
$100 to <$500; 3rd offense or more^b)	Felony	$2,000	2 years
$500 or more	Felony	$2,000 or 3x value^a)	2 years
^a) The maximum fine would be the amount shown or three times the value, whichever was greater ^b) A prior conviction would not include an offense involving less than $100.

Under Senate Bill 411 (S-1), damage to State property involving $100 to $500, with a prior conviction, or involving $500 or more, would be a Class G property felony, with a statutory maximum sentence of two years' imprisonment. Damage to a plant involving $100 to $500, with a prior conviction, or involving $500 or more, would be a Class G property felony, with a statutory maximum of two years. Recovering abandoned property in the Great Lakes having a value of $100 to $500 with a prior conviction, without a permit, or recovering abandoned property in the Great Lakes having a value of $500 or more, without a permit, would be a Class G property felony, with a statutory maximum of two years. (Currently, removal of or damage to State-owned property resulting in damages of $1,000 or more is a Class H property felony, with a statutory maximum of 180 days. Illegally cutting, removing, or transporting a tree or other plant, involving a value of $1,000 or more, is a Class H property felony with a statutory maximum of 180 days. Recovering abandoned property in the Great Lakes without a permit is a Class G felony against the public trust, with a statutory maximum of two years.)

MCL 18.366 (S.B. 402) - Legislative Analyst: P. Affholter

777.11 (S.B. 403)

285.279 (S.B. 404)

777.12 (S.B. 405)

570.1110 (S.B. 406)

777.15 (S.B. 407)

125.1447 (S.B. 408)

777.11 (S.B. 409)

324.2157 et al. (S.B. 410)

777.13 (S.B. 411) -

FISCAL IMPACT

The bills would have an indeterminate fiscal impact on State and local government. There are no data available to indicate how many offenders a year are convicted of the misdemeanors subject to the bills. To the extent that Senate Bills 402 (S-1), 404 (S-1), 406 (S-1), and 408 (S-1) would increase the misdemeanor ceiling from $100 to $1,000 by forming two misdemeanor offenses, more offenders could be convicted of a misdemeanor. More offenders also could be convicted of a misdemeanor to the extent that two misdemeanors would be formed by Senate Bill 410 (S-1). An increase in the number of offenders convicted of a misdemeanor would reduce the number of offenders sentenced to State incarceration or supervision. However, costs of incarceration or supervision for local government would increase, especially as the penalty would increase in certain circumstances to a maximum of one year. The daily costs of incarceration vary among the counties from $27 to $65 per prisoner.

The potential fiscal impact of the bills' felony penalties is described below.

Senate Bills 402 (S-1) and 403 (S-1). According to the 1998 Department of Corrections (DOC) Statistical Report, no offenders were convicted of the felony offense of falsely presenting facts and circumstances of a crime to cause an award of money from the Crime Victim Services Commission. To the extent that the felony dollar threshold would increase from $100 to $1,000, more offenders could be convicted a misdemeanor. Also, in certain circumstances the maximum penalty for the felony would be reduced from 10 years' incarceration to five years. However, the cost of incarceration is determined by the length of minimum sentence, and the incorporation of these offenses in the sentencing guidelines would increase the 10-year maximum felony from a Class E felony with a minimum sentencing guideline range from 0-3 months to 24-38 months, to a Class D felony with a minimum sentencing guideline range from 0-6 months to 43-76 months. The five-year felony would be incorporated in the sentencing guidelines as a Class E felony.

Senate Bills 404 (S-1) and 405 (S-1). According to the 1998 DOC Statistical Report, no offenders were convicted of the felony violation of the Michigan Family Farm Development Act. To the extent that the felony dollar threshold would increase from $100 to $1,000, more offenders could be convicted a misdemeanor. Also, in certain circumstances the maximum penalty for the felony would be reduced from 10 years' incarceration to five years. However, the cost of incarceration is determined by the length of minimum sentence. The 10-year maximum felony would be a Class E felony with a minimum sentencing guideline range from 0-3 months to 24-38 months and the five-year felony would be incorporated in the sentencing guidelines as a Class G felony with a minimum sentencing guideline range from 0-3 months to 7-23 months.

To the extent that the crime would be changed from public trust to property, one additional offense variable concerning the lethal potential of a weapon involved would be considered. Additional offense variable points would tend to increase the length of minimum sentence.

Senate Bills 406 (S-1) and 407 (S-1). According to the 1998 DOC Statistical Report, one offender was convicted of the felony of a sworn false statement by a contractor and the offender received a probation sentence. To the extent that the felony dollar threshold would increase from $100 to $1,000, more offenders could be convicted a misdemeanor. However, based on the circumstance of the crime, the maximum length of incarceration for this felony would be increased from four years to five or 10 years. The 10-year maximum felony would be a Class D felony with a minimum sentencing guideline range from 0-6 months to 43-76 months and the five-year felony would be incorporated in the sentencing guidelines as a Class E felony with a minimum sentencing guideline range from 0-3 months to 24-38 months, while under current law the four-year felony is a Class F with a minimum sentencing guideline range from 0-3 months to 17-30 months. The minimum sentence is determinate of the cost of incarceration. Assuming that one offender a year would be sentenced for the longest minimum sentence, then the cost of incarceration for this crime would increase by $14,000 per year for the five-year offense or $84,000 for the 10-year offense.

Senate Bills 408 (S-1) and 409 (S-1). According to the 1998 DOC Statistical Report, no offenders were convicted of the felony violation of the State Housing Development Authority Act. To the extent that the felony dollar threshold would increase from $100 to $1,000, more offenders could be convicted a misdemeanor. Also, in certain circumstances the maximum penalty for the felony would be reduced from 10 years' incarceration to five years. However, the cost of incarceration is determined by the length of minimum sentence. The 10-year maximum felony would decrease from a Class C felony with a minimum sentencing guideline range from 0-11 months to 62-114 months, to a Class D felony with a minimum sentencing guideline range from 0-6 months to 43-76 months, and the five-year felony would be incorporated in the sentencing guidelines as a Class E felony with a minimum sentencing guideline range from 0-3 months to 24-38 months.

Senate Bills 410 (S-1) and 411 (S-1). There are no data available to determine how many offenders a year are convicted of the felony of damaging State property, illegally cutting, removing, or transporting trees or other plants, or recovering abandoned property in the Great Lakes. Under the bill, the maximum penalty for these felonies would be increased from 180 days to two years and their minimum sentence would increase from a Class H felony with a minimum sentencing guideline range from 0-1 month to 5-17 months, to a Class G felony with a minimum sentencing guideline range from 0-3 months to 7-23 months. In most cases, the minimum sentence would not be long enough to qualify for a State prison sentence and offenders would serve a term of probation or incarceration in a county jail.

Date Completed: 5-8-01 - Fiscal Analyst: K. FirestoneFloor\sb402

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.