HOUSE BILL No. 4698 May 18, 1999, Introduced by Reps. Hale, Bogardus, Vaughn, Jamnick, Spade, DeHart, Basham, Wojno, Pappageorge, Thomas and Brewer and referred to the Committee on Criminal Law and Corrections. A bill to amend 1931 PA 328, entitled "The Michigan penal code," by amending sections 412, 413, 415, 416, and 535a (MCL 750.412, 750.413, 750.415, 750.416, and 750.535a), section 535a as amended by 1988 PA 140, and by adding section 535c. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 412.Definition--The term "motor vehicle" asAS used 2 in this chapter:shall include all vehicles3 (A) "MAJOR COMPONENT PART" MEANS THAT TERM AS DEFINED IN 4 SECTION 535A. 5 (B) EXCEPT AS OTHERWISE PROVIDED, "MOTOR VEHICLE" MEANS ANY 6 VEHICLE impelled on thepublichighwaysof this stateby 7 mechanical power, except traction engines, road rollers, and 8suchvehiclesasTHAT run only upon rails or tracks. 00595'99 DRM 2 1 Sec. 413. (1)Taking possession of and driving away a2motor vehicle--AnyEXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, 3 A person whoshall, wilfullyWILLFULLY and without authority 4, takeTAKES possession of anddriveDRIVES ortakeTAKES 5 away, and any person shall assist in or be a party to such6taking possession, driving or taking away of any motor vehicle,7belonging to another, shall beA MOTOR VEHICLE BELONGING TO 8 ANOTHER PERSON IS guilty of a felony,punishable by imprison- 9 mentin the state prisonfor not more than 5 years OR A FINE OF 10 NOT MORE THAN $20,000.00, OR BOTH. 11 (2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A PERSON 12 WHO STEALS OR ATTEMPTS TO STEAL A MAJOR COMPONENT PART IS GUILTY 13 OF A FELONY PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 5 YEARS 14 OR A FINE OF NOT MORE THAN $20,000.00, OR BOTH. 15 (3) A SECOND CONVICTION UNDER THIS SECTION IS PUNISHABLE BY 16 IMPRISONMENT FOR NOT MORE THAN 7 YEARS OR A FINE OF NOT MORE THAN 17 $20,000.00, OR BOTH. 18 (4) A THIRD OR SUBSEQUENT CONVICTION UNDER THIS SECTION IS 19 PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 10 YEARS OR A FINE 20 OF NOT MORE THAN $20,000.00, OR BOTH. 21 (5) AS USED IN THIS SECTION, "MOTOR VEHICLE" MEANS THAT TERM 22 AS DEFINED IN SECTION 535A. 23 Sec. 415. (1) A person who, without the intent to mislead 24 another PERSON as to the identity of the vehicle, conceals or 25 misrepresents the identity of a motor vehicle, MAJOR COMPONENT 26 PART, orof amechanical device, byremoving or defacing the27manufacturer's serial number or the engine or motor number on the00595'99 3 1motor vehicle, or by replacing a part of the motor vehicle or2mechanical device bearing the serial number or engine or motor3number of the vehicle with a new part, upon which the proper4serial number or engine or motor number has not been stamped,5 DOING ANY OF THE FOLLOWING is guilty of a misdemeanor PUNISHABLE 6 BY IMPRISONMENT FOR NOT MORE THAN 93 DAYS OR A FINE OF NOT MORE 7 THAN $100.00, OR BOTH: 8 (A) REMOVING OR DEFACING THE MANUFACTURER'S SERIAL NUMBER, 9 THE ENGINE OR MOTOR NUMBER, OR ANY OTHER NUMBER PLACED ON THE 10 MOTOR VEHICLE, MAJOR COMPONENT PART, OR MECHANICAL DEVICE BY THE 11 MANUFACTURER TO IDENTIFY THE MOTOR VEHICLE, MAJOR COMPONENT PART, 12 OR MECHANICAL DEVICE. 13 (B) REPLACING A PART OF THE MOTOR VEHICLE, MAJOR COMPONENT 14 PART, OR MECHANICAL DEVICE BEARING THE SERIAL NUMBER, THE ENGINE 15 OR MOTOR NUMBER, OR ANY OTHER NUMBER PLACED ON THE MOTOR VEHICLE, 16 MAJOR COMPONENT PART, OR MECHANICAL DEVICE BY THE MANUFACTURER TO 17 IDENTIFY THE MOTOR VEHICLE, MAJOR COMPONENT PART, OR MECHANICAL 18 DEVICE WITH A NEW OR REPLACEMENT PART UPON WHICH THE SERIAL 19 NUMBER, ENGINE OR MOTOR NUMBER, OR OTHER NUMBER DESCRIBED IN THIS 20 SUBDIVISION HAS NOT BEEN STAMPED. 21 (2) A person who, with the intent to mislead another as to 22 the identity of a vehicle,conceals or misrepresents the iden-23tity of a motor vehicle or of a mechanical device, by removing or24defacing the manufacturer's serial number or the engine or motor25number on the motor vehicle, or by replacing a part of the motor26vehicle or mechanical device bearing the serial number or engine27or motor number of the vehicle, with a new part, upon which the00595'99 4 1proper serial number or engine or motor number has not been2stamped,DOES AN ACT DESCRIBED IN SUBSECTION (1)(A) OR (B) is 3 guilty of a felony, and if the person is a licensed dealer, the4license shall be revokedPUNISHABLE BY IMPRISONMENT FOR NOT MORE 5 THAN 5 YEARS OR A FINE OF NOT MORE THAN $20,000.00, OR BOTH. 6 (3) In all prosecutions under this section, possessionby a7personof a motor vehicle, MAJOR COMPONENT PART, orof a8 mechanical device with the manufacturer's serial number,or the9 engine or motor number, OR OTHER NUMBER DESCRIBED IN 10 SUBSECTION (1) removed, defaced, destroyed, or altered or with a 11 part bearingtheA numberor numbersreplaced byone1 on 12 which the proper number does not appear, shall beIS prima 13 facie evidence of A violation of this section. 14 (4) If the identification of a motor vehicle, MAJOR COMPO- 15 NENT PART, oramechanical device has been removed, defaced, or 16 altered asprovidedDESCRIBED in this section,and the real 17 identity of the motor vehicle, MAJOR COMPONENT PART, or mechani- 18 cal device cannot be determined, the motor vehicle, MAJOR COMPO- 19 NENT PART, or mechanical deviceshall beIS subject to confis- 20 cation by the state,andshallMAY be DESTROYED OR sold at 21 public auction.If the items are confiscated from a licensed22vehicle dealer, the dealer's license shall be revoked.23 (5) AS USED IN THIS SECTION, "MOTOR VEHICLE" MEANS THAT TERM 24 AS DEFINED IN SECTION 535A. 25 Sec. 416. (1)Damaging or unauthorized tampering or meddl-26ing with motor vehicle--AnyA personshall beWHO DOES ANY OF 27 THE FOLLOWING IS guilty of amisdemeanor, who shallFELONY 00595'99 5 1 PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 2 YEARS OR A FINE OF 2 NOT MORE THAN $1,000.00, OR BOTH: 3 (A) Intentionally and without THE OWNER'S authorityfrom4the owner, start or causeSTARTS OR CAUSES to be started the 5 motor of any motor vehicle., or maliciously shift or change6 (B) MALICIOUSLY SHIFTS OR CHANGES the starting device or 7 gears of a standing motor vehicle to a position other than that 8 in which it was left by the MOTOR VEHICLE'S owner or driver.of9said motor vehicle; or10Intentionally cut, mark, scratch or damage the chassis, run-11ning gear, body, sides, top, covering or upholstering of any12motor vehicle, the property of another, or intentionally cut,13mash, mark, destroy or damage such motor vehicle, or any of the14accessories, equipment, appurtenances or attachments thereof, or15any spare or extra parts thereon being or thereto attached, with-16out the permission of the owner thereof; or17 (C) IntentionallyreleaseRELEASES the brake uponanyA 18 standing motor vehicle,with intent toinjure said machine19 DAMAGE IT or causethe sameIT to be removed without the 20 OWNER'S consent.of the owner: Provided, That this21 (2) A PERSON WHO INTENTIONALLY AND WITHOUT THE OWNER'S 22 AUTHORITY BREAKS, CUTS, MARKS, SCRATCHES, DESTROYS, OR OTHERWISE 23 DAMAGES A MOTOR VEHICLE OR ANY MAJOR COMPONENT PART, EQUIPMENT, 24 ACCESSORY, ATTACHMENT, OR OTHER PART OF A MOTOR VEHICLE IS GUILTY 25 OF A FELONY PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 2 YEARS 26 OR A FINE OF NOT MORE THAN $1,000.00, OR BOTH. 00595'99 6 1 (3) THIS sectionshallDOES not applyin case ofTO 2 moving or startingofA motorvehiclesVEHICLE bythe3policeA LAW ENFORCEMENT OFFICER underauthority ofA local 4 ordinance or by members of fire departments in case of emergency 5 in the vicinity of a fire. 6 (4) AS USED IN THIS SECTION, "MOTOR VEHICLE" MEANS THAT TERM 7 AS DEFINED IN SECTION 535A. 8 Sec. 535a. (1) As used in this section AND SECTION 535C: 9 (a) "Bona fide purchaser for value" means a person who pur- 10 chases property for value in good faith and without notice of any 11 adverse claim to the property. 12 (b) "Chop shop" means any area, building, storage lot, 13 field, or any other premises or place where 1 or more persons are 14 engaged or have engaged in altering, dismantling, reassembling, 15 or in any way concealing or disguising the identity of a stolen 16 motor vehicle orof anyA major component part of a stolen 17 motor vehicle;orany area, building, storage lot, field, or18any other premises or placewherethere are3 or more stolen 19 motor vehiclespresent or where there areOR major component 20 parts from 3 or more stolen motor vehicles ARE present. 21 (C) "CONVERTED MAJOR COMPONENT PART" MEANS A MAJOR COMPONENT 22 PART THAT HAS BEEN THE SUBJECT OF A FALSE OR FRAUDULENT CLAIM TO 23 AN INSURANCE COMPANY. 24 (D) "CONVERTED MOTOR VEHICLE" MEANS A MOTOR VEHICLE THAT HAS 25 BEEN THE SUBJECT OF A FALSE OR FRAUDULENT CLAIM TO AN INSURANCE 26 COMPANY. 00595'99 7 1 (E)(c)"Major component part" means1ANY of the 2 following parts of a motor vehicle: 3 (i) The engine. 4 (ii) The transmission. 5 (iii) The right or left front fender. 6 (iv) The hood. 7 (v) A door allowing entrance to or egress from the VEHICLE'S 8 passenger compartment.of the vehicle.9 (vi) The front or rear bumper. 10 (vii) The right or left rear quarter panel. 11 (viii) The deck lid, tailgate, or hatchback. 12 (ix) The trunk floor pan. 13 (x) The cargo box of a pickup. 14 (xi) The frame,or, if the vehicle has a unitized body, 15 the supporting structure or structureswhichTHAT serve as the 16 frame. 17 (xii) The cab of a truck. 18 (xiii) The body of a passenger vehicle. 19 (xiv) AN AIR BAG. 20 (xv) THE TRANSFER CASE. 21 (xvi) A WHEEL. 22 (xvii)(xiv)Any other part of a motor vehiclewhichthe 23 secretary of state determines is comparable in design or function 24 to any of the parts listed in subparagraphs (i) to(xiii)25 (xvi). 26 (F)(d)"Motor vehicle" means a device in, upon, or by 27 which a person or property is or may be transported or drawn upon 00595'99 8 1 a highway that is self-propelled or that may be connected to and 2 towed by a self-propelled device, andOR a land-based device 3 that is self-propelled butisnot designed for use upon a high- 4 way, including, but not limited to, farm machinery,OR a bull- 5 dozer,and asteam shovel, OR OTHER HEAVY CONSTRUCTION 6 EQUIPMENT. 7 (2) Except as provided insubsectionSUBSECTIONS (3) AND 8 (4), a person who knowingly owns, operates, or conducts a chop 9 shop or who knowingly aids and abets another person in owning, 10 operating, or conducting a chop shop is guilty of a felony,11 punishable by imprisonment for not more than 5 years,orby12 a fine of not LESS THAN $10,000.00 OR more than$5,000.0013 $100,000.00, or both. 14 (3) Upon a secondor subsequentconviction under this sec- 15 tion, the person convicted may be imprisoned for not more than 16510 years and shall be fined not less than $10,000.00 OR MORE 17 THAN $100,000.00, OR BOTH. 18 (4) IF A PERSON CONVICTED UNDER THIS SECTION HAS 2 OR MORE 19 PRIOR CONVICTIONS FOR VIOLATIONS OR ATTEMPTED VIOLATIONS OF THIS 20 SECTION OR SECTION 413, 414, 415, 535, OR 535C, THE PERSON MAY BE 21 PUNISHED BY IMPRISONMENT FOR NOT MORE THAN 20 YEARS OR A FINE OF 22 NOT LESS THAN $10,000.00 OR MORE THAN $100,000.00, OR BOTH. 23 (5)(4)A personwho violatesCONVICTED OF VIOLATING 24 this section, upon conviction, in addition to any other25punishment,may be ordered to make restitution to the rightful 26 owner of a stolen motor vehicle orofa stolen major component 27 part, or to the owner's insurer if the owner has already been 00595'99 9 1 compensated for the loss by the insurer, for any financial loss 2 sustained as a result of the theft of the motor vehicle or a 3 major component part. Restitution may be imposed in addition to, 4 but not instead of, any imprisonment or fine imposed. 5 (6)(5)All of the following are subject to seizure and, 6 if a person is charged with a violation or attempted violation of 7 subsection (2) andisconvicted of a violation or attempted 8 violation of subsection (2) or section 415, 416, 535, or 536a, 9all of the following aresubject to forfeiture: 10 (a) An engine, tool, machine, implement, device, chemical, 11 or substance used or designed for altering, DESTROYING, 12 SECRETING, dismantling, reassembling, or in any other way con- 13 cealing or disguising the identity of a stolen OR CONVERTED motor 14 vehicle oranymajor component part. 15 (b) A stolen OR CONVERTED motor vehicle or major component 16 part found atthe site ofa chop shop or a motor vehicle or 17 major component part for which there is probable cause to believe 18 that it is stolen. 19 (c) A wrecker, car hauler, or any other motor vehicle that 20 isusedBEING or has been used to convey or transport a stolen 21 OR CONVERTED motor vehicle or major component part. 22 (d) Books, records, money, negotiable instruments, or other 23 personal property or real property THAT ARE BEING OR HAVE BEEN 24 USED IN A CHOP SHOP OPERATION, except real property that is the 25 primary residence of the spouse or a dependent child of the 26 owner., that is or has been used in a chop shop operation.00595'99 10 1 (7)(6)Except as provided in subsection(7)(8), 2 property described in subsection(5)(6) may be seized by a 3 state or local law enforcement agency upon process issued by the 4 recorder's court of the city of Detroit or the district or cir- 5 cuit court having jurisdiction over the property. Seizure with- 6 out process may be made in any of the following cases: 7 (a) The seizure is incident to an arrest or pursuant to a 8 search warrant or an inspection under an administrative inspec- 9 tion warrant. 10 (b) The property subject to seizure has been the subject of 11 a prior judgment in favor of this state in a forfeiture proceed- 12 ing based upon this section. 13 (c) Exigent circumstances exist that precludetheobtain- 14 ingofprocess and there is probable cause to believethat15 the property was used or is intended to be used in violation of 16 this section. 17 (8)(7) In order to retain, pending the forfeiture18hearing,TO RETAIN property for which seizure and forfeiture is 19 sought under this section PENDING THE FORFEITURE HEARING, a 20 licensed used or secondhand vehicle parts dealer or the owner may 21 post a bond in the amount of 1-1/2 times the value of the 22 property. This subsection does not apply to a motor vehicle or 23 major component part that is to be used as evidence in a criminal 24 proceeding. 25 (9)(8) In the event ofFOR a seizure of property other 26 than real property pursuant to subsection(6)(7), the seizing 00595'99 11 1 law enforcement agency shall do 1 or more of the following, 2 subject to subsection(9)(10): 3 (a) Place the property under seal. 4 (b) Remove the property to a designated storage area. 5 (c) Petition the recorder's court of the city of Detroit or 6 the district or circuit court to appoint a custodian to take cus- 7 tody of the property and to remove it to an appropriate location 8 for disposition in accordance with law. 9 (10)(9)If property is seized without process under 10 subsection(6)(7),within 14 days after the seizure,the 11 seizing agency shall return the property to the person from whom 12 it was seized WITHIN 14 DAYS AFTER THE SEIZURE unless a hearing 13 has been scheduled to determine whether the seizure was proper 14 and reasonable notice of the hearing has been given. 15(10) The rightful owner of any property under16subsection (5) that is to be forfeited shall be served notice at17least 10 days before the matter is to be heard regarding the for-18feiture, and if the rightful owner did not know of and did not19consent to the commission of the crime, the property shall be20returned to the rightful owner. If the rightful owner of the21property is not known or cannot be found, notice may be served by22publishing notice of the forfeiture hearing not less than 10 days23before the date of the hearing in a newspaper of general circula-24tion in the county where the hearing is to be held. The notice25shall contain a general description of the property and any26serial or registration numbers on the property.00595'99 12 1 (11) IF PROPERTY IS SEIZED UNDER SUBSECTION (7), FORFEITURE 2 PROCEEDINGS SHALL BE INSTITUTED PROMPTLY. IF SEIZURE IS MADE 3 WITHOUT PROCESS AS PROVIDED UNDER SUBSECTION (7) AND THE TOTAL 4 VALUE OF THE PROPERTY SEIZED DOES NOT EXCEED $100,000.00, THE 5 FOLLOWING PROCEDURE SHALL BE USED: 6 (A) THE LOCAL UNIT OF GOVERNMENT SEIZING THE PROPERTY OR, IF 7 THE PROPERTY IS SEIZED BY THE STATE, THE STATE SHALL CAUSE NOTICE 8 OF THE SEIZURE AND THE INTENTION TO FORFEIT AND DISPOSE OF THE 9 PROPERTY ACCORDING TO THIS SECTION TO BE GIVEN TO THE PROPERTY'S 10 OWNER BY DELIVERING THE NOTICE TO THE OWNER OR SENDING THE NOTICE 11 TO THE OWNER BY CERTIFIED MAIL. IF THE OWNER'S NAME AND ADDRESS 12 ARE NOT REASONABLY ASCERTAINABLE, OR DELIVERY OF THE NOTICE 13 CANNOT REASONABLY BE ACCOMPLISHED, THE NOTICE SHALL BE PUBLISHED 14 IN A NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY IN WHICH THE 15 PROPERTY WAS SEIZED FOR 10 SUCCESSIVE PUBLISHING DAYS. 16 (B) WITHIN 20 DAYS AFTER RECEIVING THE NOTICE OR OF THE DATE 17 OF THE FIRST PUBLICATION OF THE NOTICE, A PERSON CLAIMING AN 18 INTEREST IN PROPERTY THAT IS THE SUBJECT OF THE NOTICE MAY FILE A 19 CLAIM WITH THE LOCAL UNIT OF GOVERNMENT OR THE STATE EXPRESSING 20 HIS OR HER INTEREST IN THE PROPERTY. THE LOCAL UNIT OF GOVERN- 21 MENT OR THE STATE SHALL TRANSMIT THE CLAIM WITH A LIST AND 22 DESCRIPTION OF THE PROPERTY SEIZED TO THE ATTORNEY GENERAL, THE 23 PROSECUTING ATTORNEY FOR THE COUNTY, OR THE ATTORNEY FOR THE 24 LOCAL UNIT OF GOVERNMENT IN WHICH THE SEIZURE WAS MADE. THE 25 ATTORNEY GENERAL, PROSECUTING ATTORNEY, OR ATTORNEY FOR THE LOCAL 26 UNIT OF GOVERNMENT SHALL PROMPTLY INSTITUTE FORFEITURE 27 PROCEEDINGS AFTER THE 20-DAY PERIOD EXPIRES. 00595'99 13 1 (C) IF NO CLAIM IS FILED WITHIN THE 20-DAY PERIOD AS 2 DESCRIBED IN SUBDIVISION (B), THE LOCAL UNIT OF GOVERNMENT OR THE 3 STATE SHALL DECLARE THE PROPERTY FORFEITED AND SHALL DISPOSE OF 4 THE PROPERTY ACCORDING TO SUBSECTIONS (13) AND (14). 5 (12)(11)A forfeiture of property encumbered by a bona 6 fide security interest is subject to the interest of the secured 7 party who neither had knowledge of nor consented to the act or 8 omission in violation of this section. 9 (13)(12)Any STOLEN property seized under subsection(6)10that was stolen(7) shall be returned to its rightful owner if 11 that ownership can be established to the satisfaction of the 12 seizing law enforcement agency. Any stolen propertythat is13 unclaimed after seizure may be sold pursuant to law. 14 (14)(13)Any property forfeited under this section may be 15 sold pursuant to an order of the court. The proceeds of the sale 16 shall be distributed by the court having jurisdiction over the 17 forfeiture proceeding to the entity having budgetary authority 18 over the seizing law enforcement agency. If more than 1 law 19 enforcement agency was substantially involved in effecting the 20 forfeiture, the court having jurisdiction over the forfeiture 21 proceeding shall distribute equitably the proceeds of the sale 22 among the entities having budgetary authority over the seizing 23 law enforcement agencies. Twenty-five percent of the money 24 received by an entity under this subsection shall be used to 25 enhance law enforcement efforts pertaining to this section. 00595'99 14 1 (15)(14)This section does not apply to a person who is a 2 bona fide purchaser for value of the motor vehicle or major 3 component parts.described in subsection (1).4 SEC. 535C. (1) A PERSON WHO KNOWS THAT A MOTOR VEHICLE IS 5 STOLEN OR CONTAINS 1 OR MORE STOLEN OR CONVERTED MAJOR COMPONENT 6 PARTS AND WHO BUYS, RECEIVES, POSSESSES, CONCEALS, OR AIDS IN THE 7 CONCEALMENT OF THAT MOTOR VEHICLE IS GUILTY OF A FELONY PUNISH- 8 ABLE BY IMPRISONMENT FOR NOT MORE THAN 5 YEARS OR A FINE OF NOT 9 MORE THAN $5,000.00, OR BOTH. 10 (2) A SECOND CONVICTION UNDER THIS SECTION IS PUNISHABLE BY 11 IMPRISONMENT FOR NOT MORE THAN 7 YEARS OR A FINE OF NOT MORE THAN 12 $10,000.00, OR BOTH. 13 (3) A PERSON WHO IS CONVICTED UNDER THIS SECTION AND HAS 2 14 OR MORE PRIOR CONVICTIONS FOR VIOLATIONS OR ATTEMPTED VIOLATIONS 15 OF THIS SECTION OR SECTION 413, 414, 415, 535, OR 535A MAY BE 16 PUNISHED BY IMPRISONMENT FOR NOT MORE THAN 10 YEARS OR A FINE OF 17 NOT MORE THAN $20,000.00, OR BOTH. 18 Enacting section 1. This amendatory act takes effect 19 January 1, 2000. 20 Enacting section 2. This amendatory act does not take 21 effect unless all of the following bills of the 90th Legislature 22 are enacted into law: 23 (a) Senate Bill No. ________ or House Bill No. ________ 24 (request no. 00595'99 a). 25 (b) Senate Bill No. ________ or House Bill No. ________ 26 (request no. 00595'99 b). 00595'99 Final page. DRM