This bill amends the Revised Judicature Act of 1961, specifically section 4702, to clarify the conditions under which property can be seized and forfeited by local governments or the state in relation to criminal activity. It specifies that personal and real property that is the proceeds or instrumentalities of a crime are subject to seizure, with the exception of a primary residence owned by a spouse or dependent child of the property owner, unless they had prior knowledge of the crime. Additionally, the bill introduces a new provision that allows for the forfeiture of a single-family home acquired in violation of the Homes Are for People Act.

The bill also outlines circumstances under which property cannot be seized, such as when the owner lacked prior knowledge of the crime or when they promptly notified law enforcement upon learning of the crime. It modifies the language regarding notification to law enforcement and the person who committed the crime. Furthermore, it establishes that the forfeiture of property encumbered by a security interest or land contract is subject to the interests of those who did not have prior knowledge of the crime. Lastly, the bill limits the forfeiture of substituted proceeds of a crime to the value of the proceeds, along with any restitution owed to the victim and reasonable expenses related to the forfeiture proceedings.

Statutes affected:
House Introduced Bill: 600.4702