HB-4504, As Passed Senate, October 7, 2015
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4504
A bill to create the uniform forfeiture reporting act; to
require certain reports by reporting agencies regarding seized and
forfeited property; to prescribe the powers and duties of certain
local and state officials; to provide for certain fees and the
expenditure of those fees; to require certain audits; to require
certain reports by the department of state police; to provide for
the withholding of law enforcement funds under certain
circumstances; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"uniform forfeiture reporting act".
Sec. 2. (1) Subject to subsections (2) and (3), before
February 1 of each year, each reporting agency shall submit a
report to the department of state police summarizing the reporting
agency's activities for the preceding calendar year regarding the
forfeiture of property under sections 7521 to 7533 of the public
health code, 1978 PA 368, MCL 333.7521 to 333.7533, section 79d of
the identity theft protection act, 2004 PA 452, MCL 445.79d,
chapter 38 of the revised judicature act of 1961, 1961 PA 236, MCL
600.3801 to 600.3840, and chapter 47 of the revised judicature act
of 1961, 1961 PA 236, MCL 600.4701 to 600.4709. The annual report
shall be made on a form as prescribed by the department and shall
contain the following information, as applicable:
(a) The number of forfeiture proceedings that were instituted
in the circuit court by the reporting agency.
(b) The number of forfeiture proceedings instituted by the
reporting agency that were concluded in the circuit court.
(c) The number of all forfeiture proceedings instituted by the
reporting agency that were pending in the circuit court at the end
of the year.
(d) The number of forfeitures effectuated by the reporting
agency without a forfeiture proceeding in the circuit court.
(e) The number of forfeiture proceedings subject to a consent
judgment, settlement, or any other similar agreement involving the
property owner and reporting agency.
(f) The number of public nuisance proceedings instituted by
the reporting agency in the circuit court that concluded in an
order of abatement involving the forfeiture of property.
(g) An inventory of property received by the reporting agency.
Property shall be reported in accordance with each of the following
(i) Residential real property.
(ii) Industrial or commercial real property.
(iii) Agricultural real property.
(iv) Money, negotiable instruments, and securities.
(vi) Motor vehicles and other conveyances.
(vii) Other personal property of value.
(h) Each property inventoried under subdivision (g) shall
include a description that contains the following information, as
(i) The date the property was seized.
(ii) The final disposition of the property, including the date
the property was ordered forfeited or disposed of.
(iii) The estimated value of the property.
(iv) The violation or nuisance alleged to have been committed
for which forfeiture is authorized.
(v) Whether any person was charged with the violation for
which forfeiture is authorized and whether that person was
ultimately convicted of that violation.
(vi) Whether any person claimed an interest in the property
and the number of claimants to the property.
(vii) Whether the forfeiture resulted from an adoptive
seizure. As used in this subdivision, "adoptive seizure" means that
all of the following apply:
(A) The seizure resulted from a violation of state law and
there is a federal basis for the forfeiture action.
(B) All of the preseizure activity and related investigations
were performed by this state or the local reporting agency before a
request was made to the federal government for adoption.
(C) The seizure did not result from a joint investigation or
task force case.
(viii) Whether the property was seized pursuant to a search or
arrest warrant or incident to arrest.
(ix) Whether a controlled substance was found in the course of
the investigation that resulted in the forfeiture of the property.
(i) The net total proceeds of all property forfeited through
actions instituted by the reporting agency that the reporting
agency is required to account for and report to the state treasurer
under either of the following, as applicable:
(i) 1919 PA 71, MCL 21.41 to 21.55.
(ii) The uniform budgeting and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(j) For forfeiture proceedings instituted under the public
health code, 1978 PA 368, MCL 333.1101 to 333.25211:
(i) A statement explaining how any money received by the
reporting agency under section 7524(1)(b)(ii) of the public health
code, 1978 PA 368, MCL 333.7524, has been used or is being used for
law enforcement purposes.
(ii) A statement of the number of lights for plant growth or
scales donated under section 7524(2) of the public health code,
1978 PA 368, MCL 333.7524, the total value of those lights or
scales, and the elementary or secondary schools or institutions of
higher education to which they were donated.
(k) For nuisance proceedings instituted under chapter 38 of
the revised judicature act of 1961, 1961 PA 236, MCL 600.3801 to
600.3840, a statement explaining how net proceeds were directed
under section 3835 of the revised judicature act of 1961, 1961 PA
236, MCL 600.3835.
(l) For forfeiture proceedings instituted under chapter 47 of
the revised judicature act of 1961, 1961 PA 236, MCL 600.4701 to
600.4709, the amount of money received under section 4708(1)(f) of
the revised judicature act of 1961, 1961 PA 235, MCL 600.4708, that
was used to enhance enforcement of criminal laws and the amount of
money that was used to implement the William Van Regenmorter crime
victim's rights act, 1985 PA 87, MCL 780.751 to 780.834.
(2) Subsection (1) applies only to proceedings commenced on or
after the effective date of this act.
(3) Subsection (1)(h) through (l) applies only to proceedings
that have been finalized for purposes of appeal.
Sec. 3. A null report shall be filed under this act by a
reporting agency that did not engage in any forfeitures during the
Sec. 4. A reporting agency may use forfeiture proceeds to pay
the reasonable costs associated with compiling, analyzing, and
reporting data under this act.
Sec. 5. (1) The records of a reporting agency regarding the
forfeiture of any property that is required to be reported under
this act shall be audited in accordance with 1 of the following, as
(a) 1919 PA 71, MCL 21.41 to 21.55.
(b) The uniform budgeting and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(2) The records of a reporting agency regarding the forfeiture
of any property required to be reported under this act may be
audited by an auditor of the local unit of government.
Sec. 6. The department of state police shall compile the
information reported to the department under sections 2 and 3.
Beginning January 1, 2017, the department shall file an annual
report of its findings under this section with the secretary of the
senate and with the clerk of the house of representatives and shall
place a copy of the report on its departmental website. The report
shall be filed not later than July 1 of each year. The report shall
identify any state departments or agencies or local units of
government that have failed to properly report the information
required under sections 2 and 3 with the department of state
Sec. 7. As used in this act:
(a) "Local unit of government" means a village, city,
township, or county.
(b) "Reporting agency" means 1 of the following:
(i) If property is seized by or forfeited to a local unit of
government, that local unit of government.
(ii) If property is seized by or forfeited to this state, the
state department or agency effectuating the seizure or forfeiture.
Enacting section 1. Section 7524a of the public health code,
1978 PA 368, MCL 333.7524a, is repealed.
Enacting section 2. This act takes effect February 1, 2016.
Enacting section 3. This act does not take effect unless all
of the following bills of the 98th Legislature are enacted into
(a) House Bill No. 4503.
(b) House Bill No. 4506.
(c) House Bill No. 4507.