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HB 5599

Property: recording; penalties for knowingly drafting or submitting false documents to the register of deeds; provide for. Amends sec. 15b, ch. XVII of 1927 PA 175 (MCL 777.15b).

2023-2024 Regular Session Introduced by Brenda Carter and 9 co-sponsors

Adds a new felony for drafting or submitting real estate documents with intent to defraud, punishable up to 10 years, aligning with a companion fraud statute.

assigned PA 155'24
#property:recording
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Bill Summary · HB 5599

Summary — HB 5599 (Enacted as Public Act 155 of 2024)

Status: Enacted (Public Act 155 of 2024). Approved by Governor Nov 13, 2024. Effective: Sine Die (91st day after final adjournment of the 2024 Regular Session).
Primary sponsor: Rep. Tullio Liberati. Tie‑bar: HB 5599 is tied to HB 5598 (enacted as PA 154 of 2024).

Purpose

HB 5599 amends the sentencing‑guidelines chapter of the Code of Criminal Procedure to incorporate a new felony created by companion legislation (HB 5598 / PA 154) that targets fraudulent land‑recording activity. The bill assigns the new offense to a sentencing class and establishes its statutory maximum penalty.

Key provisions

  • Adds the new offense created in MCL 565.371(2) to the sentencing guidelines list (chapter XVII, sec. 15b; MCL 777.15b).
  • Designates the offense of drafting or submitting a document to be filed with a register of deeds with intent to defraud (as defined in the companion act) as a Class D felony against property with a statutory maximum term of imprisonment of 10 years.
  • The chapter listing also retains related provisions for fraudulent conveyances recorded with intent to deceive (MCL 565.371(1)) and aligns sentencing references to the companion act.

(Note: HB 5599 is tie‑barred to HB 5598 / PA 154; it does not take effect unless the companion act creating the underlying offense is enacted.)

Offense created by companion bill (context)

HB 5598 / PA 154 amends the 1883 fraudulent conveyances statute (MCL 565.371) to:
- Replace the existing language about recording a conveyance “to deceive as to the identity of the grantor” with language criminalizing placing a conveyance of real estate on record “with intent to deceive any person as to the veracity of the document” — felony, up to 3 years’ imprisonment or a fine up to $5,000, or both (Class G in the listing).
- Create a separate felony for a person who knowingly and willfully drafts or submits a document to be filed and recorded with intent to defraud the owner of real estate or an interest in real estate — punishable by up to 10 years’ imprisonment, fine up to $5,000, or both (Class D).

Registers of deeds who believe a document violates these prohibitions may provide evidence to the local county prosecutor.

Who is affected

  • Individuals who intentionally draft or submit forged, fraudulent, or otherwise deceitful property record documents with intent to defraud (exposed to new felony penalties).
  • Registers of deeds (given explicit authority to pass suspected fraud evidence to prosecutors).
  • Potentially title companies, notaries, attorneys or others involved in preparing or recording documents — though the enacted H‑1 substitute focused criminal liability on persons acting with intent to defraud (intent mens rea) to reduce risk of prosecuting honest third parties.

Fiscal and policy considerations

  • Fiscal impact is indeterminate but likely to increase state costs if new felony convictions result (estimated average annual incarceration cost ~ $48,700 per prisoner; felony probation supervision ~$5,400–$5,600 per offender). Any penal fine revenue is directed to public and county law libraries.
  • Supporters argued the change deters property‑file fraud that can displace homeowners and creates a reporting pathway for registers of deeds. Opponents raised concerns about overcriminalization of intermediaries and the administrative burden on registers of deeds; the H‑1 substitute narrowed the mens rea to “intent to defraud” to address those concerns.

Procedural history (selected)

  • Introduced in House: March 2024 (HB 5599).
  • Passed House: June 13, 2024. Passed Senate: Oct 23, 2024.
  • Enrolled and presented to Governor; approved and filed Nov 13, 2024.
  • Enacted as Public Act 155 of 2024 (effective per statute language noted above).

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

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