EMBEZZLEMENT FROM A VULNERABLE ADULT                                          S.B. 412 & 413:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bills 412 and 413 (as reported without amendment)  

Sponsor:  Senator Peter J. Lucido

Committee:  Judiciary and Public Safety

CONTENT

Senate Bill 412 would amend the Michigan Penal Code to prescribe enhanced penalties for embezzlement from a vulnerable adult.

The Penal Code prescribes penalties for a person who, through fraud, deceit, misrepresentation, coercion, or unjust enrichment obtains or uses or attempts to obtain or use a vulnerable adult's money or property to benefit himself or herself knowing or having reason to know the vulnerable adult is a vulnerable adult.

The Code includes a graduated sentencing structure that imposes more serious penalties for greater values of money or property or for repeat convictions, as shown in Table 1.

Table 1

Value of Money or Property	Offense	Maximum Sentence     Fine            Imprisonment
Under $200	Misdemeanor	$500	93 days
$200 or more but <$1,000; or <$200 + 1 or more prior convictions	Misdemeanor	$2,000	1 year
$1,000 or more but <$20,000; or $200 but <$1,000 + 1 or more prior convictions*	Felony	$10,000	5 years
$20,000 or more but < $50,000; or $1,000 or more but <$20,000 + 2 or more prior convictions*	Felony	$15,000	10 years
$50,000 or more but < $100,000; or $20,000 or more but < $50,000 + 2 or more prior convictions*	Felony	$15,000	15 years
$100,000 or more; or $50,000 or more but <$100,000 + 2 or more prior convictions*	Felony	$50,000	20 years
* For purposes of this sentence, a prior conviction does not include a conviction for a violation or attempted violation involving money or property valued at less than $200.

In all cases, the maximum fine is the amount specified or three times the value of the money or property used or obtained, or attempted to be used or obtained, whichever is greater.

The bill would increase the penalties for all offenses, as shown in Table 2.

Table 2

Value of Money or Property	Offense	Maximum Sentence   Fine           Imprisonment
Under $200	Misdemeanor	$1,000	1 year
$200 or more but <$1,000; or <$200 + 1 or more prior convictions	Misdemeanor	$4,000	1 year
$1,000 or more but <$20,000; or $200 but <$1,000 + 1 or more prior convictions*	Felony	$20,000	10 years
$20,000 or more but < $50,000; or $1,000 or more but <$20,000 + 2 or more prior convictions*	Felony	$30,000	15 years
$50,000 or more but < $100,000; or $20,000 or more but < $50,000 + 2 or more prior convictions*	Felony	$30,000	20 years
$100,000 or more; or $50,000 or more but <$100,000 + 2 or more prior convictions*	Felony	$100,000	25 years
* For purposes of this sentence, a prior conviction does not include a conviction for a violation or attempted violation involving money or property valued at less than $200.

Senate Bill 413 would amend the Code of Criminal Procedure to include the enhanced felony penalties proposed by Senate Bill 412 in the sentencing guidelines.

Senate Bill 413 is tie-barred to Senate Bill 412.

MCL 750.174a (S.B. 412)                                        Legislative Analyst:  Stephen Jackson

       777.16i (S.B. 413)

FISCAL IMPACT

Senate Bill 412 would have a negative fiscal impact on the State and local government. New misdemeanor and felony arrests and convictions under the bill could increase resource demands on law enforcement, court systems, community supervision, jails, and correctional facilities. However, it is unknown how many people would be prosecuted under the bill's provisions. The average cost to State government for felony probation supervision is approximately $3,024 per probationer per year. For any increase in prison intakes (for felony convictions), in the short term, the marginal cost to State government is approximately $5,315 per prisoner per year. Any additional revenue from imposed fines would go to local libraries.

Senate Bill 413 would have no fiscal impact on local government and an indeterminate fiscal impact on the State, in light of the Michigan Supreme Court's July 2015 opinion in People v. Lockridge, in which the Court ruled that the sentencing guidelines are advisory for all cases. This means that the addition to the guidelines under the bill would not be compulsory for the sentencing judge. As penalties for felony convictions vary, the fiscal impact of any given felony conviction depends on judicial decisions.

Date Completed:  9-9-19                                                     Fiscal Analyst:  Joe Carrasco

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.