HOUSE BILL No. 6560

October 15, 2008, Introduced by Rep. Leland 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 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 subsection.

(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.

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 William

Van Regenmorter 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 William Van Regenmorter 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