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HB 5930

Property: land sales; property eligible for forfeiture; modify. Amends sec. 4702 of 1961 PA 236 (MCL 600.4702). TIE BAR WITH: HB 5928'26, HB 5929'26

2025-2026 Regular Session Introduced by Alabas Farhat and 6 co-sponsors

HB 5930 tightens crime-related forfeiture rules, preserves home and lienholder protections, and caps costs by linking effectiveness to companion bills.

bill electronically reproduced 04/30/2026
#crimes:other #housing:residential #property:landsales
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WeVote Research Nonpartisan
Bill Summary · HB 5930

Summary: House Bill 5930 (Michigan, 2025-2026)

Purpose and intent

HB 5930 proposes an amendment to the Michigan Revised Judicature Act (1961 PA 236), specifically to section 4702, to modify when and how certain property can be seized and forfeited by local units of government or the state. The bill appears to tighten or recalibrate rules governing forfeiture by crime, including real property, personal property, and proceeds, with attention to specific exemptions and protections for owners and lienholders. Notably, the bill includes a tie-bar signaling that its enactment is contingent on the passage of companion bills (HBs 5928 and 5929 in the 2025-26 session).

Key provisions and changes

  • Scope of forfeiture (Sec. 4702(1))

    • Personal property: All personal property that is proceeds of a crime, substituted proceeds, or an instrumentality of a crime is subject to seizure and forfeiture.
    • Real property: All real property that is proceeds, substituted proceeds, or an instrumentality of a crime is subject to forfeiture, with an important exception:
    • Real property that constitutes the primary residence of the owner’s spouse or dependent child is generally exempt, unless the spouse or dependent child had prior knowledge of and consented to the crime.
    • Crimes involving specified sections of the Michigan Penal Code (various sections under chapters LXVIIA and LXXXIII-A) have enhanced reach:
    • All property described in (a) and (b) can be forfeited, plus property that:
      • Contributed directly and materially to the crime,
      • Was used to conceal the crime,
      • Was used to escape the crime,
      • Was used to conceal the identities of the perpetrators.
    • Specific housing act reference:
    • A single-family home acquired in violation of section 5 of the “homes are for people” act (likely a reference to a local act; the exact act name appears truncated in the text).

  • Exemptions and defenses (Sec. 4702(2))

    • A property owner is not subject to forfeiture if:
    • The owner did not have prior knowledge of the crime and did not consent, and the lack of knowledge was not the result of willful blindness.
    • If the owner learns of the crime, they may avoid forfeiture by:
    • Providing written and timely notice of the crime to an appropriate law enforcement agency, and
    • Providing written and timely notice to quit to the person who committed the crime.

  • Interests and encumbrances (Sec. 4702(3)-(4))

    • Forfeiture of property encumbered by a security interest is subject to the interest holder’s rights if the holder did not have prior knowledge or consent to the crime.
    • Forfeiture of property encumbered by an unpaid balance on a land contract applies similarly to the land contract vendor if the vendor did not know or consent to the crime.

  • Proceeds and forfeiture costs (Sec. 4702(5))

    • The value of substituted proceeds is limited to:
    • The value of the proceeds of the crime plus:
      • The amount by which restitution or damages owed to the victim exceeds the value of the proceeds, and
      • The amount by which reasonable expenses of forfeiture (including custody, advertising, and prosecution costs) exceed the value of the proceeds.

  • Enacting condition (Enacting section 1)

    • The act’s effective date is contingent upon the enactment of companion bills in the 103rd Legislature:
    • Either Senate Bill S03324/House Bill 5928 or S03324’25;
    • And either Senate Bill S03816/House Bill 5929 or S03816’25.

Who and what is affected

  • Property subject to forfeiture: Real and personal property tied to criminal activity, including proceeds, substituted proceeds, and instruments of crime.
  • Residential protections: Primary residences of spouses or dependent children are generally protected, unless there is knowledge and consent to the crime.
  • Lienholders and contract vendors: Security interest holders and land contract vendors have protections; forfeiture cannot extinguish their interests if they did not know or consent to the crime.
  • Victims and costs: Restitution, damages, and forfeiture-related expenses impact how much of the property value can be forfeited.

Procedural and timeline aspects

  • Legislative conditions: The bill contains a tying provision requiring concurrent passage of HB 5928 and HB 5929 (or their Senate equivalents) for it to take effect.
  • Current status (as of the provided update):
    • Introduced and referred to the Committee on Regulatory Reform on April 30, 2026.
    • Reproduced publicly on May 12, 2026.
  • Effective date: Dependent on the passage and enactment of the specified companion bills in the same legislative session.

Notes

  • The bill preserves many core forfeiture concepts but emphasizes exemptions for certain residential property and protections for lienholders.
  • It modifies how certain crime-related property may be forfeited or defended, and it adds financial guardrails regarding costs and restitution offsets.

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

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