Criminal procedure: sentencing guidelines; sentencing guidelines for money transmission violations; revise. Amends sec. 14p, ch. XVII of 1927 PA 175 (MCL 777.14p).

2023-2024 Regular Session Introduced by John Fitzgerald and 3 co-sponsors

Expands Michigan sentencing guidelines to cover listed money-transmission and finance offenses, applying guideline ranges to these felonies (contingent on a companion bill).

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS

#criminalprocedure:sentencingguidelines #financialinstitutions:moneytransmitters

Purpose

HB 5801 amends section 14p of chapter XVII of Michigan’s Code of Criminal Procedure (MCL 777.14p) to expressly include a set of offenses found in chapters 482–499 of the Michigan Compiled Laws within the scope of the state sentencing guidelines. The practical effect is to ensure those enumerated money-transmission, finance-related, and certain consumer-finance offenses are covered by Michigan’s sentencing guidelines framework.

Key provisions

Modifies MCL 777.14p to list specific felony offenses (by MCL citation) to which chapter XVII (the sentencing guidelines) applies.

The bill explicitly lists offenses including (but not limited to):

Money Transmission Services Act violations: MCL 487.1042(1) (false statements), (2) (criminal fraud), (3) (license violations)
BIDCO Act usury provision: MCL 487.1505(6) (knowingly receiving money/property at >25% interest)
Money Transmission Modernization Act provisions: MCL 487.2281(1)–(3) (false statements, fraud, license violations)
Other finance-related offenses in chapters 482–499 such as certain bills of lading crimes (482.44–482.50), installment sales of motor vehicles (492.137(a)), and false statement in secondary mortgage reports (493.56a(13))

The bill’s text assigns the existing class designations shown in the bill (for example, Class E, H, C where noted) consistent with the underlying statutory offenses.

Enacting section 1 sets an effective date of January 1, 2025.

Enacting section 2 makes the act contingent on enactment of a companion bill (Senate Bill ___ or House Bill 5798, request no. 04440'23).

Who is affected

Criminal defendants charged with the listed offenses (individuals and corporate officers)

Prosecutors and defense attorneys who will use the sentencing guidelines when negotiating or litigating sentences

Judges who will apply the sentencing guidelines to those convictions

Regulated entities in the money-transmission and consumer finance sectors (money transmitters, lenders, mortgage entities) — because criminal offenses related to their operations will be governed by guideline sentencing

Regulatory agencies involved in enforcement (for example, Department of Insurance and Financial Services)

Procedural status & timeline

Introduced June 6, 2024 (Rep. Tsernoglou; referred to Insurance and Financial Services)

Passed by the Michigan House December 12, 2024 (Roll Call #464; Yeas 56 — Nays 53); passed with “immediate effect” in House

Referred to Committee on Government Operations (12/18/2024)

Referred to Joint Committee on Appropriations (01/22/2025)

The bill’s own effective date is January 1, 2025, but it will not take effect unless the specified companion bill (SB ___ or HB 5798) also becomes law.

Potential impact

Formalizes application of Michigan’s sentencing guidelines to a defined set of financial- and money-transmission-related felonies, which may change recommended sentence ranges and increase uniformity in sentencing for these offenses.

Could affect plea bargaining, post-conviction remedies, and sentencing outcomes for persons and entities convicted under the listed statutes.

The contingency on a companion bill means the ultimate effect depends on passage of related legislative changes.

Bill