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HB 4598

Crimes: organized; violations of the organized retail crime act; expand. Amends sec. 4 of 2012 PA 455 (MCL 752.1084).

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

HB 4598 expands the Organized Retail Crime Act to treat gift card fraud as organized crime, enabling felony charges (up to 5 years, $5,000 fine) and restitution.

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Bill Summary · HB 4598

Summary — HB 4598 (Organized Retail Crime: gift card fraud)

Bill number: HB 4598
Sponsor: Rep. Mike Harris
Subject: Crimes — Organized retail crime (amend MCL 752.1084)
Filed/Introduced: Filed March 12, 2025; House introduced text dated June 10, 2025
Status (latest): Passed by the Michigan House (Sept. 9–11, 2025, given immediate effect by vote); referred to Senate Committee on Civil Rights, Judiciary, and Public Safety
Effective date if enacted: 90 days after enactment

Purpose

HB 4598 expands the state Organized Retail Crime Act to expressly classify certain acts involving gift cards and gift card redemption information as organized retail crime. The intent is to give prosecutors an additional organized-crime tool to address growing, organized gift-card fraud schemes that harm retailers, issuers, and consumers.

Key provisions

  • Adds a new subsection to MCL 752.1084 making a person guilty of organized retail crime if, knowingly and with intent to defraud, the person:
    • Acquires possession of a gift card or gift card redemption information;
    • Alters or tampers with a gift card or gift card redemption information, or exploits a gift card holder, issuer, or seller;
    • Obtains money, goods, services, or any other thing of value using a gift card or gift card redemption information that was acquired in violation of the provision.
  • Retains existing organized retail crime provisions (e.g., removing/evading antishoplifting devices, receiving stolen retail merchandise, conspiracy, use of devices to facilitate offenses).
  • Restitution and forfeiture provisions in the act remain applicable: courts must order restitution to retail victims and may forfeit unidentified stolen merchandise/proceeds to the state for board use.

Penalties and enforcement

  • Classified as a felony: up to 5 years imprisonment, a fine of up to $5,000, or both.
  • Courts must order restitution to victims; government expenses may be reimbursed.
  • Existing enforcement tools under the Organized Retail Crime Act (forfeiture, restitution, related criminal processes) apply.

Definitions and related bill

  • HB 4598 was considered together with HB 4599. HB 4599 (tie-barred to HB 4598) would add statutory definitions for terms used in HB 4598, including:
    • “Gift card” (physical or digital; closed‑loop or open‑loop; activated or inactivated),
    • “Gift card redemption information” (unique information permitting access/transfer/spending of funds),
    • plus definitions for closed‑loop/open‑loop cards, issuer, seller, and value.
  • Committee analysis indicates the bills are tied — HB 4598 would not take effect unless HB 4599 is also enacted.

Fiscal impact

  • Indeterminate. Potential increases in felony convictions could raise state costs for incarceration (FY2024 average cost ~ $46,200 per prisoner) and for parole/felony probation supervision (~ $5,500 per supervised offender). Effects on court caseloads and local governments are uncertain. Penal fines would increase funding for public and county law libraries.

Parties affected

  • Persons who engage in organized gift-card fraud (criminalized conduct).
  • Retailers, gift-card sellers and issuers, and consumers (potentially greater legal remedies/protections).
  • Law enforcement, prosecutors, courts, and corrections (possible increased caseloads and costs).
  • Supporters/testimony: Michigan Retailers Association, Department of Attorney General, Meijer, Walgreens, The Home Depot, International Council of Shopping Centers, Gift Card Fraud Prevention Alliance.

Procedural notes

  • Passed the Michigan House in September 2025 (roll call 103–1); transmitted to the Senate and referred to the Senate Committee on Civil Rights, Judiciary, and Public Safety. Both HB 4598 and HB 4599 must be enacted for the gift-card provisions to become effective.

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

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