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HB 4599

Crimes: organized; gift card fraud; provide for. Amends 2012 PA 455 (MCL 752.1081 - 752.1087) by adding sec. 3a. TIE BAR WITH: HB 4598'25

2025-2026 Regular Session Introduced by Joe Aragona and 51 co-sponsors

HB 4599 defines gift card terms needed to make gift card fraud part of organized retail crime under HB 4598.

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Bill Summary · HB 4599

Summary — HB 4599 (103rd Legislature)

Status: Passed House (9/9/2025); referred to Committee on Civil Rights, Judiciary, and Public Safety
Introduced: March 12 / June 10, 2025 (sponsor Rep. Samantha Steckloff)
Subject: Crimes — Organized retail crime; gift card fraud (amend 2012 PA 455)

Purpose

HB 4599 amends the Organized Retail Crime Act to add statutory definitions for terms used in a companion bill (HB 4598) that would make certain gift‑card–related conduct prosecutable as organized retail crime. The bills are tie‑barred: HB 4599 does not take effect unless HB 4598 is also enacted.

Key provisions

  • Adds a new section (sec. 3a) to the Organized Retail Crime Act (2012 PA 455, MCL 752.1081–752.1087) containing definitions used in section 4:
    • "Gift card" — a physical or digital closed‑loop or open‑loop gift card, activated or inactivated.
    • "Gift card redemption information" — information unique to each gift card allowing access/transfer/spending of funds.
    • "Closed‑loop gift card" — prepaid card/code/device redeemable at a single merchant or affiliated merchants.
    • "Open‑loop gift card" — prepaid card/code/device redeemable at multiple unaffiliated merchants via a payment network.
    • "Issuer" — person issuing the gift card or agent of that person.
    • "Seller" — merchant selling gift cards to consumers.
    • (In earlier drafts) "Value" — the greatest amount of economic loss the owner might reasonably suffer (including full face value or potential value for variable‑load cards).
  • Effective date: 90 days after enactment, but contingent on enactment of HB 4598.

Relationship to HB 4598

HB 4599 supplies the definitions necessary for HB 4598, which would designate specified acts involving gift cards (possession/acquisition of cards or redemption information, altering/tampering, exploiting holders/issuers/sellers, and using fraudulently acquired gift card data to obtain value) as organized retail crime. Under HB 4598, organized retail crime is a felony punishable by up to 5 years imprisonment, a fine up to $5,000, and restitution.

Who is affected

  • Consumers (gift‑card holders) and retailers (issuers/sellers) — protections and potential for restitution.
  • Individuals involved in organized gift‑card fraud — subject to felony prosecution if both bills are enacted.
  • Law enforcement, prosecutors, courts, and corrections — potential increase in investigations, prosecutions, and related costs.
  • Retail and merchant stakeholders — among bill supporters (e.g., Michigan Retailers Association, Meijer, Walgreens, The Home Depot).

Fiscal impact

  • HB 4599 (definitions only): no fiscal impact.
  • HB 4598 (substantive offense): indeterminate fiscal impact — potential increases in prison, probation, and court costs if convictions rise; fines would increase funding for public/county law libraries.

Legislative notes

  • Substitute (H‑1) adopted in committee; House passed the substitute version with immediate effect (roll call 103–1).
  • Bill will not become operative unless HB 4598 is also enacted.

Compiled from official sources — confirm details with the bill’s official record.

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