NFIB backed legislation that would begin the reform process
for government seizures of private property were signed into law on October 20th by Governor Snyder. The bills passed both chambers with strong bi-partisan support. The reform
package includes new reporting provisions to track “civil asset forfeiture”
seizures and also raises the standard of proof for seizing assets from a
“preponderance of the evidence” to a “clear and convincing” standard.
Nationwide, many law enforcement agencies have abused the
broad “civil asset forfeiture” rules as a means to self-fund their departments
and budgets. In many cases police departments have made it a priority to seize
cash during routine traffic stops and federal authorities have used customary
electronic funds transfer activity as a basis for seizing assets. The current
laws allow the government to seize private property from a citizen or small
business owner without ever charging them with a crime or providing evidence
prior to seizing assets. The government then pockets the proceeds while
providing no prompt way to get a court to review the seizure. There is no
incentive or requirement for the government to charge the business owner with a
crime. Once the property is seized, the government is free to keep the property
until the business owner pursues return of the property, which is often a
costly and lengthy legal process.
Many small business owners carry large cash sums to the bank
and to other business locations for use in making change or deposits and other
small business owners still use cash to make large supply purchases. All of
these and other scenarios create a situation where small business is exposed to
the potential of civil forfeiture seizures.
A recent survey of NFIB small business owners found
overwhelming support for requiring law enforcement to provide a judge with
clear and convincing evidence of a crime before seizing a small business’
assets. The bills supported by NFIB are House Bills: HB 4499, HB
4500, HB 4503, HB 4504, HB 4506, and HB4507.
NFIB will be sending Michigan members the 2016 State Ballot that will ask if reforms should be carried further by requiring a criminal conviction in a court of law before property can be seized. If members support this position, then NFIB will be pursuing follow up legislation to make this change in the law.
