May 31, 2012, Introduced by Senators CASPERSON, GREEN and BOOHER and referred to the Committee on Banking and Financial Institutions.




     A bill to provide for restitution for victims of certain


mortgage-related crimes; to provide funding for foreclosure-related


services, blight elimination, certain programs of the Michigan


state housing development authority, educational improvements, and


assistance to homeless children and certain veterans; and to


provide for the powers and duties of certain state governmental


officers and entities.




     Sec. 1. As used in this act:


     (a) "Achievement authority" means the education achievement


authority, the public body corporate and special authority


initially created under section 5 of article III and section 28 of


article VII of the state constitution of 1963 and the urban


cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to


124.512, by an interlocal agreement effective August 11, 2011,


between the school district of the city of Detroit and the board of


regents of eastern Michigan university, a state public university.


     (b) "Claim" means a request for restitution that meets all of


the following requirements:


     (i) Is on a form as prescribed by the attorney general.


     (ii) Specifies and provides evidence supporting the amount of


restitution sought and the basis for the request.


     (c) "Fund" means the homeowner protection fund created in


section 2.


     (d) "Qualifying crime" means a criminal offense resulting in a


conviction for conduct involving the exchange of money or services


for promised assistance with obtaining, servicing, modifying,


refinancing, negotiating, or stopping foreclosure of a mortgage on


a primary residence or with redeeming a mortgaged primary residence


after foreclosure.


     (e) "Qualifying victim" means a resident of this state to whom


1 of the following applies:


     (i) The resident was awarded restitution by a court in a


prosecution for a qualifying crime, but the defendant is unable to


pay the full amount of restitution.


     (ii) The resident is a victim of a qualifying crime and can


provide evidence of the amount of loss but was not awarded


restitution in court.


     Sec. 2. (1) The homeowner protection fund is created in the


state treasury. The state treasurer, in consultation with the


department of attorney general, shall be the administrator of the


fund for auditing purposes. The state treasurer may receive money


or other assets from any source for deposit into the fund. The


state treasurer shall direct the investment of the fund. The state


treasurer shall credit to the fund interest and earnings from fund


investments. Money in the fund at the close of the fiscal year


shall remain in the fund and shall not lapse to the general fund.


     (2) The department of treasury may expend money from the fund,


upon appropriation, for 1 or more of the following purposes:


     (a) Payments to qualifying victims pursuant to section 3.


     (b) Programs approved by the attorney general to assist


homeless children.


     (3) The department of attorney general may expend money from


the fund, upon appropriation, for operational and enforcement




     (4) The Michigan state housing development authority may


expend money from the fund, upon appropriation, for any of the




     (a) Foreclosure counseling approved by the attorney general


and foreclosure-related legal aid services approved by the attorney




     (b) Blight elimination.


     (c) The purposes of sections 58a to 58d of the state housing


and development authority act of 1966, 1966 PA 346, MCL 125.1458a


to 125.1458d.


     (5) The department of education may expend money from the


fund, upon appropriation, for any of the following:


     (a) Technology improvements for or renovation, rehabilitation,


or equipping of a building or facility in which an instructional


program is being operated, maintained, authorized, established, or


overseen by the achievement authority.


     (b) Programs approved by the attorney general to assist


homeless children.


     (6) The department of military and veterans affairs may expend


money from the fund, upon appropriation, for programs to assist


military service members who have been affected by the foreclosure




     Sec. 3. (1) To obtain restitution under this act for a


qualifying crime, a qualifying victim shall submit a claim to the


attorney general.


     (2) After receiving a claim under subsection (1), the attorney


general may direct the state treasurer in writing to pay to the


qualifying victim money from the fund in an amount determined by


the attorney general under subsection (3).


     (3) A payment under subsection (2) to a qualifying victim


shall not exceed the lesser of $3,000.00 and the following:


     (a) For a qualifying victim described in section 1(e)(i), the


amount of restitution awarded by the court that the defendant is


unable to pay.


     (b) For a qualifying victim described in section 1(e)(ii), the


amount of loss from a qualifying crime as supported by evidence


provided with the claim.


     (4) The determination of whether to direct the payment of a


claim and of the amount to be paid, subject to the limitations of


subsection (3), is in the sole discretion of the attorney general.


The determination is not judicial or quasi-judicial in nature, does


not create or affect a private right or license, and is not subject


to or reviewable under the revised judicature act of 1961, 1961 PA


236, MCL 600.101 to 600.9947, the administrative procedures act of


1969, 1969 PA 306, MCL 24.201 to 24.328, or any other law.