February 9, 2006, Introduced by Reps. Leland, Accavitti, Tobocman, Lipsey, Condino, Adamini, Hunter, McConico, Virgil Smith, Meisner and Alma Smith and referred to the Committee on Judiciary.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 625n (MCL 257.625n), as amended by 1998 PA 349.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 625n. (1) Except as otherwise provided in this section
and in addition to any other penalty provided for in this act, the
judgment of sentence for a conviction for a violation of section
625(1)
described in section 625(8)(b) or (c) 625(9)(b) or (c), a
violation
of section 625(3) described in section
625(10)(b) or (c)
625(11)(b) or (c), a violation of section 625(4), (5), or (7), or a
violation of section 904(4) or (5) may require 1 of the following
with regard to the vehicle used in the offense if the defendant
owns the vehicle in whole or in part or leases the vehicle:
(a) Forfeiture of the vehicle if the defendant owns the
vehicle in whole or in part.
(b) Return of the vehicle to the lessor if the defendant
leases the vehicle.
(2)
The A vehicle
described in subsection (1) may be
seized
pursuant to an order of seizure issued by the court having
jurisdiction upon a showing of probable cause that the vehicle is
subject to forfeiture or return to the lessor. Section 2975 of the
revised judicature act of 1961, 1961 PA 236, MCL 600.2975, applies
to a motor vehicle that has been seized.
(3) The forfeiture of a vehicle under this section is subject
to the interest of the holder of a security interest who did not
have prior knowledge of or consent to the violation.
(4) Within 14 days after the defendant's conviction for a
violation described in subsection (1), the prosecuting attorney may
file a petition with the court for the forfeiture of the vehicle or
to have the court order return of a leased vehicle to the lessor.
The prosecuting attorney shall give notice by first-class mail or
other process to the defendant and his or her attorney, to all
owners of the vehicle, and to any person holding a security
interest in the vehicle that the court may require forfeiture or
return of the vehicle.
(5) If a vehicle is seized before disposition of the criminal
proceedings, a defendant who is an owner or lessee of the vehicle
may move the court having jurisdiction over the proceedings to
require the seizing agency to file a lien against the vehicle and
to return the vehicle to the owner or lessee pending disposition of
the criminal proceedings. The court shall hear the motion within 7
days after the motion is filed. If the defendant establishes at the
hearing that he or she holds the legal title to the vehicle or that
he or she has a leasehold interest and that it is necessary for him
or her or a member of his or her family to use the vehicle pending
the outcome of the forfeiture action, the court may order the
seizing agency to return the vehicle to the owner or lessee. If the
court orders the return of the vehicle to the owner or lessee, the
court shall order the defendant to post a bond in an amount equal
to the retail value of the vehicle, and shall also order the
seizing agency to file a lien against the vehicle.
(6) Within 14 days after notice by the prosecuting attorney is
given under subsection (4), the defendant, an owner, lessee, or
holder of a security interest may file a claim of interest in the
vehicle with the court. Within 21 days after the expiration of the
period for filing claims, but before or at sentencing, the court
shall hold a hearing to determine the legitimacy of any claim, the
extent of any co-owner's equity interest, the liability of the
defendant to any co-lessee, and whether to order the vehicle
forfeited or returned to the lessor. In considering whether to
order forfeiture, the court shall review the defendant's driving
record to determine whether the defendant has multiple convictions
under section 625 or a local ordinance substantially corresponding
to section 625, or multiple suspensions, restrictions, or denials
under section 904, or both. If the defendant has multiple
convictions under section 625 or multiple suspensions,
restrictions, or denials under section 904, or both, that factor
shall weigh heavily in favor of forfeiture.
(7) If a vehicle is forfeited under this section, the unit of
government that seized the vehicle shall sell the vehicle and
dispose of the proceeds in the following order of priority:
(a) Pay any outstanding security interest of a secured party
who did not have prior knowledge of or consent to the commission of
the violation.
(b) Pay the equity interest of a co-owner who did not have
prior knowledge of or consent to the commission of the violation.
(c) Satisfy any order of restitution entered in the
prosecution for the violation.
(d) Pay the claim of each person who shows that he or she is a
victim of the violation to the extent that the claim is not covered
by an order of restitution.
(e) Pay any outstanding lien against the property that has
been imposed by a governmental unit.
(f) Pay the proper expenses of the proceedings for forfeiture
and sale, including, but not limited to, expenses incurred during
the seizure process and expenses for maintaining custody of the
property, advertising, and court costs.
(g) The balance remaining after the payment of items (a)
through (f) shall be distributed by the court having jurisdiction
over the forfeiture proceedings to the unit or units of government
substantially involved in effecting the forfeiture. Seventy-five
percent of the money received by a unit of government under this
subdivision shall be used to enhance enforcement of the criminal
laws and 25% of the money shall be used to implement the crime
victim's rights act, 1985 PA 87, MCL 780.751 to 780.834. A unit of
government receiving money under this subdivision shall report
annually to the department of management and budget the amount of
money received under this subdivision that was used to enhance
enforcement of the criminal laws and the amount that was used to
implement the crime victim's rights act, 1985 PA 87, MCL 780.751 to
780.834.
(8) The court may order the defendant to pay to a co-lessee
any liability to the co-lessee determined under subsection (6). The
order may be enforced in the same manner as a civil judgment.
(9) The return of a vehicle to the lessor under this section
does not affect or impair the lessor's rights or the defendant's
obligations under the lease.
(10) A person who knowingly conceals, sells, gives away, or
otherwise transfers or disposes of a vehicle with the intent to
avoid forfeiture or return of the vehicle to the lessor under this
section is guilty of a misdemeanor punishable by imprisonment for
not more than 1 year or a fine of not more than $1,000.00, or both.
(11) The failure of the court or prosecutor to comply with any
time limit specified in this section does not preclude the court
from ordering forfeiture of a vehicle or its return to a lessor,
unless the court finds that the owner or claimant suffered
substantial prejudice as a result of that failure.
(12) The forfeiture provisions of this section do not preclude
the prosecuting attorney from pursuing a forfeiture proceeding
under any other law of this state or a local ordinance
substantially corresponding to this section.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5665 (request no.
04010'05) of the 93rd Legislature is enacted into law.