HB-5843, As Passed House, November 28, 2012



























     A bill to prohibit organized retail crime and to provide


penalties for that crime; to provide for forfeiture of and


restitution for stolen retail merchandise in certain circumstances;


to create the organized retail crime advisory board and to


prescribe its powers and duties; and to provide for the


administration of this act.




     Sec. 1. This act shall be known and may be cited as the


"organized retail crime act".


     Sec. 2. It is the intent of the legislature to protect the


public health, safety, and welfare of the citizens of the state by


recognizing the negative impact of persons who engage in planned,


organized, and methodical theft of retail merchandise for resale in


unregulated retail commerce, including, but not limited to,


medications, infant formula, and pharmaceutical items; the


potential use of the proceeds of the sale of that merchandise to


support other crimes and criminal enterprises and the nature,


extent, and impact of those activities upon commerce and public


safety; and to take appropriate actions to prevent and punish those


who engage in those activities.


     Sec. 3. As used in this act:


     (a) "Board" means the organized retail crime advisory board


created under section 6.


     (b) "Department" means the department of state police.


     (c) "Organized retail crime" means the theft of retail


merchandise from a retail merchant with the intent or purpose of


reselling, distributing, or otherwise reentering the retail


merchandise in commerce, including the transfer of the stolen


retail merchandise to another retail merchant or to any other


person personally, through the mail, or through any electronic


medium, including the internet, in exchange for anything of value.


     (d) "Person" means an individual, sole proprietorship,


partnership, cooperative, association, corporation, limited


liability company, personal representative, receiver, trustee,


assignee, or other entity.


     (e) "Retail merchant" means any person that is in the business


of selling retail merchandise at retail.


     (f) "Retail merchandise" means any new article, product,


commodity, item, or component intended to be sold in retail




     Sec. 4. (1) A person is guilty of organized retail crime when


that person, alone or in association with another person, does any


of the following:


     (a) Knowingly commits an organized retail crime.


     (b) Organizes, supervises, finances, or otherwise manages or


assists another person in committing an organized retail crime.


     (c) Removes, destroys, deactivates, or knowingly evades any


component of an antishoplifting or inventory control device to


prevent the activation of that device or to facilitate another


person in committing an organized retail crime.


     (d) Conspires with another person to commit an organized


retail crime.


     (e) Receives, purchases, or possesses retail merchandise for


sale or resale knowing or believing the retail merchandise to be


stolen from a retail merchant.


     (f) Uses any artifice, instrument, container, device, or other


article to facilitate the commission of an organized retail crime




     (g) Knowingly causes a fire exit alarm to sound or otherwise


activate, or deactivates or prevents a fire exit alarm from


sounding, in the commission of an organized retail crime or to


facilitate the commission of an organized retail crime by another




     (h) Knowingly purchases a wireless telecommunication device


using fraudulent credit, knowingly procures a wireless


telecommunications service agreement with the intent to defraud


another person or to breach that agreement, or uses another person


to obtain a wireless telecommunications service agreement with the


intent to defraud another person or to breach that agreement.


     (2) Organized retail crime is a felony punishable by


imprisonment for not more than 5 years or a fine of $5,000.00, or




     (3) If the true owner of stolen retail merchandise cannot be


identified, the retail merchandise, and any proceeds from the sale


or resale of that merchandise, is subject to forfeiture to the


state for use by the board in the performance of its duties. The


court shall order forfeiture of the retail merchandise in the


manner and upon terms and conditions as determined by the court to


be appropriate.


     (4) The court shall order a person who is found guilty of


organized retail crime to make restitution to any retail merchant


victim in the manner provided in the crime victim's rights act,


1985 PA 87, MCL 780.751 to 780.834, and to reimburse the


governmental entity for its expenses incurred as a result of the


violation of this act in the manner provided in section 1f of


chapter IX of the code of criminal procedure, 1927 PA 175, MCL




     (5) It is not a defense to a charge under this section that


the property was not stolen, embezzled, or converted property at


the time of the violation if the property was explicitly


represented to the accused person as being stolen, embezzled, or


converted property.


     Sec. 5. This act does not prohibit a person from being charged


with, convicted of, or sentenced for any violation of law arising


out of the same criminal transaction that violates this act.


     Sec. 6. (1) There is created within the department of state


police an organized retail crime advisory board. The board shall


consist of the following members:


     (a) One member who is a county prosecuting attorney or an


assistant county prosecuting attorney.


     (b) One member who is a representative of law enforcement.


     (c) The state attorney general or his or her designated




     (d) One member who is recommended by the Michigan retailers




     (e) One member who is a member of the general public.


     (f) The director of the department of state police or his or


her designated representative.


     (2) All members of the board, other than the attorney general


and the director of the department of state police, shall be


appointed by the governor by and with the advice and consent of the


senate for terms of 4 years.


     (3) A vacancy on the board shall be filled in the same manner


as the original appointment for the remainder of any unexpired




     (4) The duties of the board shall be to develop a database of


organized retail crimes, to compile annual statistics on organized


retail crime acts, to recommend actions to be taken by the


department and law enforcement to further combat organized retail


crime, and to submit an annual report to the director of the


department on the effectiveness of this act in reducing organized


retail crime.


     (5) The director of the department of state police or his or


her designee shall serve as chairperson of the board. The board


shall meet not less often than 4 times each year. Special meetings


may be called by the chairperson, or upon written request of not


fewer than 3 board members. Meetings shall be held at a location


designated by the chairperson.


     (6) The board shall keep minutes of its proceedings. A record


of board action and business shall be made and maintained.


     (7) The board members shall not be compensated for their


service but may be reimbursed for their actual and reasonable




     (8) The board shall not retain a staff.


     (9) The business performed by the board shall be conducted at


a public meeting of the board held in compliance with the open


meetings act, 1976 PA 267, MCL 15.261 to 15.275.


     (10) A writing prepared, owned, used, in the possession of, or


retained by the board in the performance of an official function


shall be made available to the public in compliance with the


freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.


     Sec. 7. This act shall be administered by the director of the




     Enacting section 1. This act takes effect January 1, 2013.