STOLEN & ABANDONED PROPERTY, DONATE                                            H.B. 5718 (H-2):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5718 (Substitute H-2 as reported without amendment)

Sponsor:  Representative Jim Lilly

House Committee:  Law and Justice

Senate Committee:  Judiciary

CONTENT

The bill would amend Public Act 214 of 1979, which governs the disposition and sale of certain stolen or abandoned property, to allow a law enforcement agency to request authority from the governing board of a local unit of government to donate stolen or abandoned property recovered or discovered within a county, city, village, or township to an eligible recipient, such as a school district or a private nonprofit organization, and prescribe the manner in which the property would have to be donated.

If the governing board of a local unit authorized a law enforcement agency to dispose of property through donation, the law enforcement agency would have to publish a notice in a newspaper of general circulation of the county at least five days before the proposed donation of the property. The notice would have to describe the property, and provide the address of the law enforcement agency's office and the date the property would be donated. Before the date provided in the notice, the property could be claimed at the law enforcement agency's office. If ownership of the property were proved, it would have to be turned over the owner and the donation of the property would have to be canceled.

The bill also would repeal Public Act 54 of 1959, which generally governs the recovery, disposition, and sale of unclaimed stolen property found within a county.

MCL 434.181 et al.                                                  Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on the State and could have a negative fiscal impact on local governments. The option to donate property could decrease the frequency with which sales of property were considered, which could reduce revenue to the local unit's general fund. The magnitude of the reduction would depend on the actions of local units, the value of the donated property, and the recipients of the donations.

Date Completed:  12-18-18                                                   Fiscal Analyst:  Bruce Baker

                                                                                                            Ryan Bergan

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.