FORFEITED PROPERTY; DISTRIBUTION OF PROCEEDS                         H.B. 4240 & 4241:

                                                                                                                                                                                SUMMARY OF BILL

                                                                                                                                                REPORTED FROM COMMITTEE

House Bills 4240 and 4241 (as reported without amendment)

Sponsor:   Representative Jeff Yaroch

House Committee:   Judiciary

Senate Committee:   Judiciary and Public Safety

CONTENT

House Bill 4240 and House Bill 4241 would amend the Revised Judicature Act (RJA) and the Michigan Vehicle Code, respectively, to modify the distribution of proceeds from the sale of forfeited property or vehicles, as applicable.

Under the RJA and the Code, when property or a vehicle, as applicable, is forfeited, the local unit of government that seized the property or vehicle may sell the property or must sell the vehicle, and must dispose of the proceeds as prescribed in the RJA and the Code, respectively.

Seventy-five percent of the money received by a unit of government must be used to enhance enforcement of the criminal laws and 25% of the money must be used to implement the crime Victim's Rights Act.

Instead, under the bill, 75% of the money received by a unit of government would have to be used to enhance enforcement of the criminal laws as appropriated by the entity having budgetary authority over the unit or units of government substantially involved in effecting the forfeiture with not more than 30%, or in the alternative, an amount not exceeding an hourly rate agreed to by the seizing agency and the appropriate prosecutor, being directed to the prosecuting attorney for the county if the county were the unit, or one of the units of government substantially involved in effecting the forfeiture, and 25% of the money would have to be used to implement the Crime Victim's Rights Act.

MCL 600.4708 (H.B. 4240)                                         Legislative Analyst:   Stephen P. Jackson

           257.625n (H.B. 4241)

FISCAL IMPACT

The bills would have no fiscal impact on State government. The bills would provide guidance regarding the proceeds from the sale of forfeited property related to certain criminal activity.  It is not clear if the bills would generate more or less revenue for counties and the prosecuting attorney offices within those counties; however, the bills would provide more stability by providing not more than 30% of the proceeds from the sale of forfeited property, or an agreed-to hourly rate, to prosecuting attorney offices.

Date Completed:   12-6-22                                                                         Fiscal Analyst:   Robert Canell

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.