SENATE BILL NO. 106 January 27, 1999, Introduced by Senators V. SMITH, CHERRY, YOUNG, SCHUETTE, HART and MC MANUS and referred to the Committee on Judiciary. A bill to amend 1931 PA 328, entitled "The Michigan penal code," by amending section 535a (MCL 750.535a), as amended by 1988 PA 140. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 535a. (1) As used in this section: 2 (a) "Bona fide purchaser for value" means a person who pur- 3 chases property for value in good faith and without notice of any 4 adverse claim to the property. 5 (b) "Chop shop" means any OF THE FOLLOWING: 6 (i) ANY area, building, storage lot, field, oranyother 7 premises or place where 1 or more persons are engaged or have 8 engaged in altering, dismantling, reassembling, or in any way 9 concealing or disguising the identity of a stolen motor vehicle 00414'99 TVD 2 1 or of any major component part of a stolen motor vehicle.; or2any3 (ii) ANY area, building, storage lot, field, oranyother 4 premises or place where there are 3 or more stolen motor vehicles 5 present or where there are major component parts from 3 or more 6 stolen motor vehicles present. 7 (c) "Major component part" means 1 of the following parts of 8 a motor vehicle: 9 (i) The engine. 10 (ii) The transmission. 11 (iii) The right or left front fender. 12 (iv) The hood. 13 (v) A door allowing entrance to or egress from the passenger 14 compartment of the vehicle. 15 (vi) The front or rear bumper. 16 (vii) The right or left rear quarter panel. 17 (viii) The deck lid, tailgate, or hatchback. 18 (ix) The trunk floor pan. 19 (x) The cargo box of a pickup. 20 (xi) The frame, or if the vehicle has a unitized body, the 21 supporting structure or structureswhichTHAT serve as the 22 frame. 23 (xii) The cab of a truck. 24 (xiii) The body of a passenger vehicle. 25 (xiv) Any other part of a motor vehiclewhichTHAT the 26 secretary of state determines is comparable in design or function 27 to any of the parts listed in subparagraphs (i) to (xiii). 00414'99 3 1 (d) "Motor vehicle" meansaEITHER OF THE FOLLOWING: 2 (i) A device in, upon, or by which a person or property is 3 or may be transported or drawn upon a highway that is 4 self-propelled or that may be connected to and towed by a 5 self-propelled device., and a6 (ii) A land-based device that is self-propelled butisnot 7 designed for use upon a highway, including, but not limited to, 8 farm machinery, a bulldozer,andOR a steam shovel. 9 (2) Except as provided in subsection (3), a person who know- 10 ingly owns, operates, or conducts a chop shop or who knowingly 11 aids and abets another person in owning, operating, or conducting 12 a chop shop is guilty of a felony,punishable by imprisonment 13 for not more than515 years,orbya fine of not more 14 than$5,000.00$250,000.00, or both. 15 (3) Upon a second or subsequent conviction under this sec- 16 tion, the person convicted may be imprisoned for not more than 17515 years and shall be fined not less than $10,000.00 OR MORE 18 THAN $250,000.00, OR BOTH. 19 (4)A person who violatesIN ADDITION TO ANY OTHER PUNISH- 20 MENT, A PERSON CONVICTED OF VIOLATING this section, upon con-21viction, in addition to any other punishment,may be ordered to 22 make restitution to the rightful owner of a stolen motor vehicle 23 or of a stolen major component part, or to the owner's insurer if 24 the owner has already been compensated for the loss by the insur- 25 er, for any financial loss sustained as a result of the theft of 26 the motor vehicle or a major component part. Restitution may be 00414'99 4 1 imposed in addition to, but not instead of, any imprisonment or 2 fine imposed. 3 (5) All of the following are subject to seizure and, if a 4 person is charged with a violation or attempted violation of sub- 5 section (2) and is convicted of a violation or attempted viola- 6 tion of subsection (2) or section 415, 416, 535, or 536a,all of7the following aresubject to forfeiture: 8 (a) An engine, tool, machine, implement, device, chemical, 9 or substance used or designed for altering, dismantling, reassem- 10 bling, or in any other way concealing or disguising the identity 11 of a stolen motor vehicle or any major component part. 12 (b) A stolen motor vehicle or major component part found at 13 the site of a chop shop or a motor vehicle or major component 14 part for which there is probable cause to believe that it is 15 stolen. 16 (c) A wrecker, car hauler, or any other motor vehicle that 17 is used or has been used to convey or transport a stolen motor 18 vehicle or major component part. 19 (d)Books, recordsANY BOOK, RECORD, money, negotiable 20instrumentsINSTRUMENT, or other personal property or real 21 property, except real property that is the primary residence of 22 the spouse or a dependent child of the owner, that is or has been 23 used in a chop shop operation. 24 (6) Except as provided in subsection (7), property described 25 in subsection (5) may be seized by a state or local law enforce- 26 ment agency upon process issued by the recorder's court of the 27 city of Detroit or the district or circuit court having 00414'99 5 1 jurisdiction over the property. Seizure without process may be 2 made in any of the following cases: 3 (a) The seizure is incident to an arrest or pursuant to a 4 search warrant or an inspection under an administrative inspec- 5 tion warrant. 6 (b) The property subject to seizure has been the subject of 7 a prior judgment in favor of this state in a forfeiture proceed- 8 ing based upon this section. 9 (c) Exigent circumstances exist that precludetheobtain- 10 ingofprocess and there is probable cause to believe that the 11 property was used or is intended to be used in violation of this 12 section. 13 (7)In order to retain, pending the forfeiture hearing,TO 14 RETAIN property for which seizure and forfeitureisARE sought 15 under this section PENDING THE FORFEITURE HEARING, a licensed 16 used or secondhand vehicle parts dealer or the owner may post a 17 bond in the amount of 1-1/2 times the value of the property. 18 This subsection does not apply to a motor vehicle or major compo- 19 nent part that is to be used as evidence in a criminal 20 proceeding. 21 (8)In the event of a seizure ofIF property other than 22 real propertypursuant toIS SEIZED UNDER subsection (6), the 23 seizing law enforcement agency shall do 1 or more of the follow- 24 ing, subject to subsection (9): 25 (a) Place the property under seal. 26 (b) Remove the property to a designated storage area. 00414'99 6 1 (c) Petition the recorder's court of the city of Detroit or 2 the district or circuit court to appoint a custodian to take 3 custody of the property and to remove it to an appropriate loca- 4 tion for disposition in accordance with law. 5 (9) If property is seized without process under 6 subsection (6), within 14 days after the seizure, the seizing 7 agency shall return the property to the person from whom it was 8 seized unless a hearing has been scheduled to determine whether 9 the seizure was proper and reasonable notice of the hearing has 10 been given. 11 (10) The rightful owner of any property THAT IS TO BE 12 FORFEITED under subsection (5)that is to be forfeitedshall be 13 served notice at least 10 days before the matter is to be heard 14 regarding the forfeiture,and, if the rightful owner did not 15 know of and did not consent to the commission of the crime, the 16 property shall be returned to the rightful owner. If the right- 17 ful owner of the property is not known or cannot be found, notice 18 may be served by publishing notice of the forfeiture hearing not 19 less than 10 days before the date of the hearing in a newspaper 20 of general circulation in the county where the hearing is to be 21 held. The notice shall contain a general description of the 22 property and any serial or registration numbers on the property. 23 (11) A forfeiture of property encumbered by a bona fide 24 security interest is subject to the interest of the secured party 25 whoneither had knowledge of nor consentedDID NOT KNOW OF OR 26 CONSENT to the act or omission in violation of this section. 00414'99 7 1 (12) Any property seized under subsection (6) that was 2 stolen shall be returned to its rightful owner if that ownership 3 can be established to the satisfaction of the seizing law 4 enforcement agency. Any stolen property that is unclaimed after 5 seizure may be soldpursuant toAS PROVIDED BY law. 6 (13) Any property forfeited under this section may be sold 7 pursuant to an order of the court. The proceeds of the sale 8 shall be distributed by the court having jurisdiction over the 9 forfeiture proceeding to the entity having budgetary authority 10 over the seizing law enforcement agency. If more than 1 law 11 enforcement agency was substantially involved in effecting the 12 forfeiture, the court having jurisdiction over the forfeiture 13 proceeding shall distribute equitably the proceeds of the sale 14 among the entities having budgetary authority over the seizing 15 law enforcement agencies. Twenty-five percent of the money 16 received by an entity under this subsection shall be used to 17 enhance law enforcement efforts pertaining to this section. 18 (14) This section does not apply to a person who is a bona 19 fide purchaser for value of the motor vehicle or major component 20 parts described in subsection (1). 00414'99 Final page. TVD