SENATE BILL No. 500

 

 

September 17, 2013, Introduced by Senators ANDERSON, HOPGOOD, ANANICH, JONES, BIEDA, JOHNSON, WHITMER, HUNTER, GREGORY and YOUNG and referred to the Committee on Families, Seniors and Human Services.

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending section 4708 (MCL 600.4708), as amended by 2006 PA 128.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4708. (1) When property is forfeited under this chapter,

 

the unit of government that seized or filed a lien against the

 

property may sell the property that is not required to be destroyed

 

by law and that is not harmful to the public and may dispose of the

 

proceeds and any money, including any interest earned on money

 

deposited in a financial institution as described in section

 

4703(6), negotiable instrument, security, or other thing of value

 

that is forfeited pursuant to this chapter 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 crime.

 

     (b) Satisfy any order of restitution in the prosecution for

 

the crime.

 

     (c) Pay the claim of each person who shows that he or she is a

 

victim of the crime to the extent that the claim is not covered by

 

an order of restitution.

 

     (d) Pay any outstanding lien against the property that has

 

been imposed by a governmental unit.

 

     (e) 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.

 

     (f) The balance remaining after the payment of restitution,

 

the claims of victims, outstanding liens, and expenses 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 as

 

follows:

 

     (i) Subject to subparagraph (ii), 75% 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 William Van Regenmorter crime victim's rights act,

 

1985 PA 87, MCL 780.751 to 780.834.

 

     (ii) If the property was forfeited for a violation of chapter

 


LXVIIA of the Michigan penal code, 1931 PA 328, MCL 750.462a to

 

750.462j (human trafficking), 50% of the money received by a unit

 

of government under this subdivision shall be forwarded to the

 

state treasurer for deposit in the human trafficking prevention

 

fund created in the human trafficking and reporting act for use only

 

as provided in that act, 25% of the money received by a local unit

 

of government under this subdivision shall be forwarded to the

 

crime victim's rights fund created in section 4 of 1989 PA 196, MCL

 

780.904, and 25% of the money received by a unit of government

 

under this subdivision shall be used to enhance enforcement of

 

chapter LXVIIA of the Michigan penal code, 1931 PA 328, MCL

 

750.462a to 750.462j (human trafficking).

 

     (2) A unit of government receiving money under this

 

subdivision subsection (1)(f)(i) shall report annually to the

 

department of technology, management, and budget the amount of

 

money received under this subdivision that subparagraph that was

 

used to enhance enforcement of the criminal laws and the amount

 

that was used to implement the William Van Regenmorter crime

 

victim's rights act, 1985 PA 87, MCL 780.751 to 780.834. A unit of

 

government receiving money under subsection (1)(f)(ii) shall report

 

annually to the department of technology, management, and budget

 

the amount of money received under that subparagraph that was

 

forwarded to the state treasurer for deposit in the human

 

trafficking prevention fund and the amount that was used to enhance

 

enforcement of chapter LXVIIA of the Michigan penal code, 1931 PA

 

328, MCL 750.462a to 750.462j (human trafficking).

 

     (3) (2) In the course of selling real property pursuant to

 


under subsection (1), the court that enters an order of forfeiture,

 

on motion of the unit of government to whom the property is

 

forfeited, may appoint a receiver to dispose of the real property

 

forfeited. The receiver is entitled to reasonable compensation. The

 

receiver has 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.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 499                                    

 

          of the 97th Legislature is enacted into law.