HB-6416, As Passed House, November 30, 2006

HOUSE BILL No. 6416

September 6, 2006, Introduced by Rep. Hildenbrand and referred to the Committee on Judiciary.

A bill to amend 1978 PA 368, entitled

"Public health code,"

by amending section 7524 (MCL 333.7524), as amended by 1994 PA 8.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7524. (1) When property is forfeited under this article,

~~or pursuant to section 17766a,~~ the local unit of government that

seized the property may do any of the following, or if the property

is seized by or in the custody of the state, the state may do any

of the following, subject to section 7523(1)(d):

(a) Retain it for official use.

(b) Sell that which is not required to be destroyed by law and

which is not harmful to the public. The proceeds and any money,

House Bill No. 6416 as amended November 30, 2006

negotiable instruments, securities, or any other thing of value as

described in section 7521(1)(f) that are forfeited pursuant to this

article shall be deposited with the treasurer of the entity having

budgetary authority over the seizing agency and applied as follows:

(i) For the payment of proper expenses of the proceedings for

forfeiture and sale, including expenses incurred during the seizure

process, maintenance of custody, advertising, and court costs,

except as otherwise provided in subsection (4).

(ii) The balance remaining after the payment of expenses shall

be distributed by the court having jurisdiction over the forfeiture

proceedings to the treasurer of the entity having budgetary

authority over the seizing agency. If more than 1 agency was

substantially involved in effecting the forfeiture, the court

having jurisdiction over the forfeiture proceeding shall equitably

distribute the money among the treasurers of the entities having

budgetary authority over the seizing agencies. A seizing agency may

direct that the funds or a portion of the funds it would otherwise

have received under this subsection be paid to [nonprofit organizations

whose primary activity is to assist law enforcement agencies with drug-

related criminal investigations and obtaining information for solving crimes.] The money

received by a seizing agency under this subparagraph and all

interest and other earnings on money received by the seizing agency

under this subparagraph shall be used to enhance law enforcement

efforts pertaining to this article, ~~or section 17766a,~~ as

appropriated by the entity having budgetary authority over the

seizing agency. A distribution made under this subparagraph shall

serve as a supplement to, and not a replacement for, the funds

budgeted on January 1, 1991, for law enforcement efforts pertaining

to this article. ~~or section 17766a.~~

and remove it for disposition in accordance with law.

(d) Forward it to the bureau for disposition.

(2) Notwithstanding subsection (1), this state or local units

of government may donate lights for plant growth or scales

forfeited under this article ~~or section 17766a~~ to elementary or

secondary schools or institutions of higher education that request

in writing to receive those lights or scales pursuant to this

subsection, for educational purposes. This state or local units of

government shall donate lights and scales pursuant to this

subsection to elementary or secondary schools or institutions of

higher education in the order in which the written requests are

received. This state or local units of government may limit the

number of lights and scales available to each requestor.

(3) In the course of selling real property pursuant to

subsection (1)(b), the court that has entered an order of

forfeiture may, on motion of the agency to whom the property has

been forfeited, appoint a receiver to dispose of the real property

forfeited. The receiver shall be entitled to reasonable

compensation. The receiver shall have authority to do all of the

following:

(a) List the forfeited real property for sale.

(b) Make whatever arrangements are necessary for the

maintenance and preservation of the forfeited real property.

(d) Execute instruments transferring title to the forfeited