HB-4002, As Passed Senate, April 25, 2019

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4002

 

 

 

 

 

 

 

 

 

 

 

 

     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 Subject to section 7521a, 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, if

 

charges have been filed against a person for a crime, the person

 


charged, 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 on the local unit of government's or the

 

department of the attorney general's public website and 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 and any objection to forfeiture. A claim

 

or an objection under this subsection must be written, verified,

 

and signed by the claimant, and include a detailed description of

 

the property and the property interest asserted. The verification

 

must include a certification under the penalty of perjury stating


that the undersigned has examined the claim and believes it to be,

 

to the best of the claimant's knowledge, true and complete. A

 

written claim under this subsection must be made on the form

 

developed by the state court administrative office as required

 

under subsection (2). 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.

 

     (2) The state court administrative office shall develop and

 

make available to law enforcement agencies, courts, and the public

 

a form for asserting an ownership interest in seized property under

 

subsection (1)(c). The form must require a claimant to provide a

 

detailed description of the property, the claimant's ownership

 

interest in the property, and a signed attestation that the

 

claimant has a bona fide ownership interest in the property.

 

     (3) (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.


     (4) (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.

 

     (5) (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). (3)(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).(3)(d).

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 100th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 2.

 

     (b) House Bill No. 4001.