HB-5824, As Passed Senate, April 25, 2006
March 2, 2006, Introduced by Rep. David Law and referred to the Committee on Judiciary.
A bill to amend 1978 PA 368, entitled
"Public health code,"
by amending section 7523 (MCL 333.7523), as amended by 1990 PA 336.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7523. (1) If property is seized pursuant to 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 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 which 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 conditioned
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 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 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
pursuant to 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 or pursuant
to
section 17766a shall 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, or
pursuant
to section 17766a, 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 or
pursuant
to section 17766a 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 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).