HOUSE BILL No. 5702

 

 

March 8, 2018, Introduced by Reps. Runestad, Hornberger, Tedder, Glenn, Leutheuser, Reilly, Bizon, Howrylak, Vaupel, Lucido, Howell and LaFave 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 2016 PA 418.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7523. (1) If property is seized under section 7522,

 

forfeiture proceedings shall must be instituted promptly. If the

 

property is seized without process under section 7522, and the

 

total value of the property seized does not exceed $50,000.00, the

 

following procedure shall must be used:

 

     (a) The local unit of government that seized the property or,

 

if the property was seized by 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 must 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, the local

 

unit of government or, if applicable, this state shall transmit the

 

claim 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 within the 20-day period as described

 

in subdivision (c), the local unit of government or 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.the following procedure must be used:

 

     (i) The seizing agency shall immediately provide a second

 

notice to 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, and the owner of the property in the same manner as

 

provided under subdivision (a) of the seizure of the property and

 

the intention to forfeit and dispose of the property.

 

     (ii) The seizing agency shall provide a list of the property

 

seized to 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, and the owner of the property in the same manner as the


owner was provided notice under subdivision (a).

 

     (iii) 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, shall review the list of the property seized. If after a

 

review of the seizure the prosecuting attorney or attorney general

 

determines that all or some of the property seized is lawfully

 

subject to seizure and forfeiture under this article, the

 

prosecutor or attorney general shall seek a court order approving

 

the seizure and forfeiture and affirming that the property will not

 

be moved, sold, transferred, or destroyed while forfeiture

 

proceedings are pending.

 

     (iv) After obtaining an order under subparagraph (iii), the

 

prosecutor or attorney general shall notify the seizing agency of

 

the determination under subparagraph (iii) and the local unit of

 

government or this state shall declare the property forfeited and

 

shall dispose of the property as provided under section 7524.

 

     (v) Except as to property that is required to be destroyed by

 

law, that is harmful to the public, or that is evidence in a

 

criminal investigation or proceeding, if the prosecuting attorney

 

or attorney general does not approve the seizure of the property

 

under subparagraph (iii), the seizing agency shall return the

 

property to the person from whom it was seized.

 

     (2) Property taken or detained under this article is not

 

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

 

must 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

 

must be afforded a period of 60 days within which to examine that

 

money. This 60-day period 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).

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.