"RACKETEERING"; ORGANIZED RETAIL CRIME                                                                         S.B. 691:

                                                                                                                                                                  SUMMARY AS ENACTED

Senate Bill 691 (as enacted)                                                                       PUBLIC ACT 174 of 2022

Sponsor:   Senator Jim Runestad

Senate Committee:   Judiciary and Public Safety

House Committee:   Judiciary

Date Completed:   12-15-22

CONTENT

The bill amended the Michigan Penal Code to include a violation of Section 4 of the Organized Retail Crime Act as a predicate offense of racketeering.

Section 159i of the Code prohibits a person from engaging in certain activities through a "pattern of racketeering activity" (at least two incidents of racketeering that have interrelated characteristics and amount to or pose a threat of continuing criminal activity). "Racketeering" means committing, attempting to commit, conspiring to commit, or aiding or abetting, soliciting, coercing, or intimidating a person to commit an offense for financial gain by obtaining money, property, or any other thing of value, involving certain violations specified in the Code.

The bill includes among those specified violations a violation of Section 4 of the Organized Retail Crime Act (see BACKGROUND for more information on that section).

(Under the Code, a person who violates Section 159i is guilty of a felony punishable by up to 20 years' imprisonment or a maximum fine of $100,000, or both. In addition, a court may order the person to pay court costs and the costs of investigation and prosecution. A court must order a person convicted of violating Section 159i to criminally forfeit to the State any real, personal, or intangible property in which he or she has an interest and that was used in the course of, intended for use in the course of, derived from, or realized through conduct in the violation. Also, all property of a person convicted of violating Section 159i that is the proceeds, substitute proceeds, or an instrumentality of racketeering is subject to civil in rem forfeiture.)

The bill took effect on October 19, 2022.

MCL 750.159g                                                                                                                                                                                            

BACKGROUND

Under Section 4 of the Organized Retail Crime Act, a person is guilty of organized retail crime when that person, alone or in association with another person, does any of the following:

 --     Knowingly commits an organized retail crime.

 --     Organizes, supervises, finances, or otherwise manages or assists another person in committing an organized retail crime.

 --     Removes, destroys, deactivates, or knowingly evades any component of an antishoplifting or inventory control device to prevent the activation of that device or to facilitate another person in committing an organized retail crime.

 --     Conspires with another person to commit an organized retail crime.

 --     Receives, purchases, or possesses retail merchandise for sale or resale knowing or believing the retail merchandise to