October 15, 2008, Introduced by Rep. Leland and referred to the Committee on Judiciary.
A bill to amend 1978 PA 368, entitled
"Public health code,"
by amending section 7523 (MCL 333.7523), as amended by 2006 PA 130.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7523. (1) If property is seized pursuant to section 7522,
forfeiture proceedings shall be instituted promptly. If the
property is seized without process as provided under section 7522,
and the total value of the property seized does not exceed
$50,000.00, the following procedure shall be used:
(a) The local unit of government that seized the property or,
if the property was seized by the state, the state shall notify the
owner of the property that the property has been seized, and that
the local unit of government or, if applicable, the state intends
to forfeit and dispose of the property, by delivering a written
notice to the owner of the property or by sending the notice to the
owner by certified mail. If the name and address of the owner are
not reasonably ascertainable, or delivery of the notice cannot be
reasonably accomplished, the notice shall be published in a
newspaper of general circulation in the county in which the
property was seized, for 10 successive publishing days.
(b) Unless all criminal proceedings involving or relating to
the property have been completed, the seizing agency shall
immediately notify the prosecuting attorney for the county in which
the property was seized or, if the attorney general is actively
handling a case involving or relating to the property, the attorney
general of the seizure of the property and the intention to forfeit
and dispose of the property.
(c) Any person claiming an interest in property that is the
subject of a notice under subdivision (a) may, within 20 days after
receipt of the notice or of the date of the first publication of
the notice, file a written claim signed by the claimant with the
local unit of government or the state expressing his or her
interest
in the property. Upon the filing of the claim, and the
giving
of the person claiming the
interest shall provide a bond to
the local unit of government or the state in the amount of 10% of
the value of the claimed property, but not less than $250.00 or
greater than $5,000.00, with sureties approved by the local unit of
government or the state containing the condition that if the
property is ordered forfeited by the court the obligor shall pay
all costs and expenses of the forfeiture proceedings. The local
unit of government or, if applicable, the state shall transmit the
claim and bond with a list and description of the property seized
to the attorney general, the prosecuting attorney for the county,
or the city or township attorney for the local unit of government
in which the seizure was made. The attorney general, the
prosecuting attorney, or the city or township attorney shall
promptly institute forfeiture proceedings after the expiration of
the 20-day period. However, unless all criminal proceedings
involving or relating to the property have been completed, a city
or township attorney shall not institute forfeiture proceedings
without the consent of the prosecuting attorney or, if the attorney
general is actively handling a case involving or relating to the
property, the attorney general.
(d) If no claim is filed or bond given within the 20-day
period as described in subdivision (c), the local unit of
government or the state shall declare the property forfeited and
shall dispose of the property as provided under section 7524.
However, unless all criminal proceedings involving or relating to
the property have been completed, the local unit of government or
the state shall not dispose of the property under this subdivision
without the written consent of the prosecuting attorney or, if the
attorney general is actively handling a case involving or relating
to the property, the attorney general.
(2) Property taken or detained under this article shall not be
subject
to an action to recover personal property, but is deemed
considered to be in the custody of the seizing agency subject only
to this section or an order and judgment of the court having
jurisdiction over the forfeiture proceedings. When property is
seized under this article, the seizing agency may do any of the
following:
(a) Place the property under seal.
(b) Remove the property to a place designated by the court.
(c) Require the administrator to take custody of the property
and remove it to an appropriate location for disposition in
accordance with law.
(d) Deposit money seized under this article into an interest-
bearing account in a financial institution. As used in this
subdivision, "financial institution" means a state or nationally
chartered bank or a state or federally chartered savings and loan
association, savings bank, or credit union whose deposits are
insured by an agency of the United States government and that
maintains a principal office or branch office located in this state
under the laws of this state or the United States.
(3) Title to real property forfeited under this article shall
be determined by a court of competent jurisdiction. A forfeiture of
real property encumbered by a bona fide security interest is
subject
to the interest of if the secured party who neither had
knowledge of nor consented to the act or omission.
(4) An attorney for a person who is charged with a crime
involving or related to the money seized under this article shall
be afforded a period of 60 days within which to examine that money.
This 60-day period shall begin to run after notice is given under
subsection (1)(a) but before the money is deposited into a
financial institution under subsection (2)(d). If the attorney
general, prosecuting attorney, or city or township attorney fails
to sustain his or her burden of proof in forfeiture proceedings
under this article, the court shall order the return of the money,
including any interest earned on money deposited into a financial
institution under subsection (2)(d).
(5) Section 2977 of the revised judicature act of 1961, 1961
PA 236, MCL 600.2977, applies to a motor vehicle that has been
seized under this article but not finally forfeited.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6557(request no.
01941'07) of the 94th Legislature is enacted into law.