February 14, 2012, Introduced by Rep. Opsommer and referred to the Committee on Judiciary.
A bill to amend 1978 PA 368, entitled
"Public health code,"
by amending sections 7524 and 7524a (MCL 333.7524 and 333.7524a),
section 7524 as amended by 2011 PA 161 and section 7524a as amended
by 1994 PA 8.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7524. (1) When property is forfeited under this article,
the local unit of government that seized the property may do any of
the following, or if the property is seized by or in the custody of
the state, the state may do any of the following, subject to
section 7523(1)(d):
(a) Retain it for official use.
(b) Sell that which is not required to be destroyed by law and
which
is not harmful to the public. The Subject to subsection (2),
the proceeds and any money, negotiable instruments, securities, or
any other thing of value as described in section 7521(1)(f) that
are forfeited under this article shall be deposited with the
treasurer of the entity having budgetary authority over the seizing
agency and applied as follows:
(i) For the payment of proper expenses of the proceedings for
forfeiture and sale, including expenses incurred during the seizure
process, maintenance of custody, advertising, and court costs,
except
as otherwise provided in subsection (4) (5).
(ii) The Subject to subsection (2), the balance
remaining after
the payment of expenses shall be distributed by the court having
jurisdiction over the forfeiture proceedings to the treasurer of
the entity having budgetary authority over the seizing agency. If
more than 1 agency was substantially involved in effecting the
forfeiture, the court having jurisdiction over the forfeiture
proceeding shall equitably distribute the money among the
treasurers of the entities having budgetary authority over the
seizing agencies. A seizing agency may direct that the funds or a
portion of the funds it would otherwise have received under this
subsection be paid to nonprofit organizations whose primary
activity is to assist law enforcement agencies with drug-related
criminal investigations and obtaining information for solving
crimes. The money received by a seizing agency under this
subparagraph and all interest and other earnings on money received
by the seizing agency under this subparagraph shall be used only
for law enforcement purposes, as appropriated by the entity having
budgetary authority over the seizing agency. A distribution made
under this subparagraph shall serve as a supplement to, and not a
replacement for, funds otherwise budgeted for law enforcement
purposes.
(c) Require the administrator to take custody of the property
and remove it for disposition in accordance with law.
(d) Forward it to the bureau for disposition.
(2) Beginning October 1, 2012, 5% of the funds collected under
subsection (1)(b) shall be forwarded by the court to the state
treasurer in the manner determined by the state treasurer. The
state treasurer shall deposit the funds collected under this
subsection into the domestic reimbursement utilization grant fund
for use as provided in the domestic reimbursement utilization grant
fund act.
(3) (2)
Notwithstanding subsection (1),
this state or local
units of government may donate lights for plant growth or scales
forfeited under this article to elementary or secondary schools or
institutions of higher education that request in writing to receive
those
lights or scales pursuant to under
this subsection, for
educational purposes. This state or local units of government shall
donate lights and scales under this subsection to elementary or
secondary schools or institutions of higher education in the order
in which the written requests are received. This state or local
units of government may limit the number of lights and scales
available to each requestor.
(4) (3)
In the course of selling real
property under
subsection (1)(b), the court that has entered an order of
forfeiture may, on motion of the agency to whom the property has
been forfeited, appoint a receiver to dispose of the real property
forfeited. The receiver shall be entitled to reasonable
compensation. The receiver shall have authority to do all of the
following:
(a) List the forfeited real property for sale.
(b) Make whatever arrangements are necessary for the
maintenance and preservation of the forfeited real property.
(c) Accept offers to purchase the forfeited real property.
(d) Execute instruments transferring title to the forfeited
real property.
(5) (4)
If a court enters an order of
forfeiture, the court
may order a person who claimed an interest in the forfeited
property under section 7523(1)(c) to pay the expenses of the
proceedings of forfeiture to the entity having budgetary authority
over the seizing agency.
Sec. 7524a. (1) Before February 1 of each year, each local
unit of government that had forfeiture proceedings pending in the
circuit
court pursuant to under section 7523; or effectuated a
forfeiture
of property pursuant to under
section 7523 without a
forfeiture proceeding in the circuit court; or received money,
negotiable instruments, securities, or any other thing of value
pursuant
to under section 7524 during the fiscal year for the local
unit of government ending in the immediately preceding calendar
year shall submit a report to the office of drug agencies for
analysis and transmittal to the secretary of the senate and the
clerk of the house of representatives. The annual report shall be a
summary of the local unit of government's activities regarding the
forfeiture
of property under this article and pursuant to section
17766a
for the fiscal year and shall
contain the following
information, as applicable:
(a) The number of forfeiture proceedings that were instituted
in the circuit court by the local unit of government.
(b) The number of forfeiture proceedings instituted by the
local unit of government that were concluded in the circuit court.
(c) The number of all forfeiture proceedings instituted by the
local unit of government that were pending in the circuit court at
the end of the year.
(d) The number of forfeitures accomplished by the local unit
of government without filing a forfeiture proceeding in the circuit
court.
(e) The net total proceeds of all property forfeited under
this
article and pursuant to section 17766a through forfeitures
instituted by the local unit of government that the local unit of
government is required to account for and report to the state
treasurer
pursuant to under either of the following, as applicable:
(i) Act No. 71 of the Public Acts of 1919, being
sections 21.41
to
21.53 of the Michigan Compiled Laws. 1919 PA 71, MCL 21.41 to
21.55.
(ii) The uniform budgeting and accounting act, Act
No. 2 of the
Public
Acts of 1968, being sections 141.421 to 141.440a of the
Michigan
Compiled Laws. 1968 PA 2, MCL
141.421 to 141.440a.
(f) An inventory of property received by the local unit of
government
pursuant to under section 7524, and section 17766a,
including, but not limited to, all of the following:
(i) all of the following real property:
(A) Single-family residential.
(B) Multiple-family residential.
(C) Industrial.
(D) Commercial.
(E) Agricultural.
(ii) Any type of conveyance described in section 7521(1)(d),
including the year, make, and model.
(iii) Money, negotiable instruments, and securities.
(iv) The total value of personal property, excluding personal
property described in subparagraphs (ii) and (iii).
(g) The amount of money forwarded to the state treasurer under
section 7524(2).
(h) (g)
A statement explaining how the
money received by the
local
unit of government pursuant to under
section 7524(1)(b)(ii)
has been used or is being used to enhance the law enforcement
efforts. pertaining
to this article or section 17766a.
(i) (h)
A statement of the number of lights
for plant growth
or
scales donated under section 7524(2), 7524(3), the total value
of those lights or scales, and the elementary or secondary schools
or institutions of higher education to which they were donated.
(2) The records of a local unit of government described in
subsection (1) regarding the forfeiture of property under this
article
or pursuant to section 17766a shall be audited in
accordance with 1 of the following, as applicable:
(a)
Act No. 71 of the Public Acts of 1919, being sections
21.41
to 21.53 of the Michigan Compiled Laws. 1919 PA 71, MCL 21.41
to 21.55.
(b)
The uniform budgeting and accounting act, Act No. 2 of the
Public
Acts of 1968, being sections 141.421 to 141.440a of the
Michigan
Compiled Laws. 1968 PA 2, MCL
141.421 to 141.440a.
(3) The records of a local unit of government described in
subsection (1) regarding the forfeiture of property under this
article
or pursuant to section 17766a may be audited by an auditor
of the local unit of government.
Enacting section 1. This amendatory act takes effect October
1, 2012.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No. ____ or House Bill No. 5394(request no.
03794'11).
(b) Senate Bill No. ____ or House Bill No. 5396(request no.
03794'11 b).