HOUSE BILL No. 5876

March 15, 2006, Introduced by Reps. Leland, Accavitti, Tobocman, Lipsey, Condino, Adamini, Hunter, McConico, Virgil Smith, Meisner and Alma Smith and referred to the Committee on Judiciary.

 

     A bill to amend 2000 PA 403, entitled

 

"Motor fuel tax act,"

 

by amending section 130 (MCL 207.1130).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 130. (1) As soon as possible, but not more than 5

 

business days after seizure of a motor vehicle and its cargo under

 

section 129, the person making the seizure shall deliver personally

 

or by registered mail to the last known address of the person from

 

whom the seizure was made, if known, an inventory statement of the

 

motor vehicle, motor fuel, or other property seized. A copy of the

 

inventory statement shall also be filed with the department.

 

     (2) In addition to notice of the property seized, the

 

inventory statement required by subsection (1) shall contain a


 

notice that unless demand for a hearing as provided in this section

 

is made within 10 business days after the date the inventory

 

statement was delivered, the property is forfeited to the state.

 

     (3) If the person from whom  the  a seizure described in

 

subsection (1) was made is not known, the person making the seizure

 

shall  cause  have a copy of the inventory statement  , together

 

with the notice provided for in this section, to be  required by

 

subsection (1) and the notice under subsection (2) published not

 

less than 3 times in a newspaper of general circulation in the

 

county where the seizure was made.

 

     (4) Within 10 business days after the date of service of the

 

inventory statement required under subsection (1) or,  in the case

 

of publication  if the notice is published under subsection (3),

 

within 10 business days after the date of last publication, the

 

person from whom the property was seized or any person claiming an

 

interest in the property may by registered mail, facsimile

 

transmission, or personal service file with the department a demand

 

for a hearing before the commissioner for a determination  as to  

 

whether the property was lawfully subject to seizure and

 

forfeiture. The person shall verify a request for hearing filed by

 

facsimile transmission by also providing a copy of the original

 

request for hearing by registered mail or personal service.

 

     (5)  The  A person  or persons are  who demands a hearing

 

under subsection (4) is entitled to appear at  a  the hearing

 

before the department, to be represented by counsel, and to present

 

testimony and argument.

 

     (6)  Upon receipt of a request for hearing, the  The


 

department shall hold  the  a hearing requested under subsection

 

(4) within 15 business days after receiving the request. The

 

hearing is not a contested case proceeding and is not subject to

 

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

to 24.328.

 

     (7)  After the hearing, the  The department shall render  its  

 

a decision in writing within 10 business days after the hearing

 

held under subsection (4) and, by order, shall either declare the

 

seized property subject to seizure and forfeiture, or declare the

 

property returnable in whole or in part to the person entitled to

 

possession.

 

     (8) If, within 10 business days after the date of service of

 

the inventory statement required by subsection (1), the person from

 

whom the property was seized or any person claiming an interest in

 

the property does not file with the department a demand for a

 

hearing before the department, the property seized shall be

 

considered forfeited to the state by operation of law and may be

 

disposed of by the department as provided in this section.

 

     (9) If, after a hearing, the department determines that the

 

property described in subsection (1) is lawfully subject to seizure

 

and forfeiture and the person from whom the property was seized or

 

any persons claiming an interest in the property do not take an

 

appeal to the circuit court of the county in which the seizure was

 

made within the time prescribed in this section, the property

 

seized shall be considered forfeited to the state by operation of

 

law and may be disposed of by the department as provided in this

 

section.


 

     (10)  If a person is aggrieved by the  A person aggrieved by a

 

decision of the department  , that person  under this section may

 

appeal to the circuit court of the county where the seizure was

 

made to obtain a judicial determination of the lawfulness of the

 

seizure and forfeiture. The action shall be commenced within 20

 

days after notice of the department's determination is sent to the

 

person or persons claiming an interest in the seized property. The

 

court shall hear the action and determine the issues of fact and

 

law involved in accordance with rules of practice and procedure as

 

in other in rem proceedings. If a judicial determination of the

 

lawfulness of the seizure and forfeiture cannot be made before

 

deterioration of any of the property seized, the court shall order

 

the sale of the property with public notice as determined by the

 

court and require the proceeds to be deposited with the court until

 

the lawfulness of the seizure and forfeiture is finally

 

adjudicated.

 

     (11) Section 2975 of the revised judicature act of 1961, 1961

 

PA 236, MCL 600.2975, applies to a motor vehicle that has been

 

seized under this act but not finally forfeited.

 

     (12)   (11)  During the pendency of any  filing for  appeal,

 

hearing, or  rendering of  decision, the aggrieved person and the

 

department may by mutual consent agree to sale of the fuel in order

 

to facilitate release of the vehicle containing the fuel. The

 

proceeds from the sale shall be held in escrow by the department

 

pending the department's decision and an appeal, if any, from the

 

department's decision.

 

     (13)   (12)  The department may sell fuel forfeited under this


 

act at public sale. Public notice of the sale shall be given at

 

least 5 days before the date of sale. The department may pay an

 

amount not to exceed 25% of the proceeds of the sale to the local

 

governmental unit whose law enforcement agency performed the

 

seizure. The balance of the proceeds derived from the sale by the

 

department shall be credited to the Michigan transportation fund.

 

     Enacting section 1.  This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5665(request no.

 

04010'05) of the 93rd Legislature is enacted into law.