HOUSE BILL No. 4107

 

 

January 29, 2019, Introduced by Reps. Farrington, Berman, Guerra, Marino, LaFave and Wittenberg and referred to the Committee on Financial Services.

 

     A bill to amend 1931 PA 328, entitled

 

"The Michigan penal code,"

 

by amending section 411j (MCL 750.411j), as amended by 2009 PA 82.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 411j. As used in this section and sections 411k to 411q:

 

     (a) "Controlled substance offense" means a felony violation of

 

part 74 of the public health code, 1978 PA 368, MCL 333.7401 to

 

333.7461, concerning controlled substances.

 

     (b) "Cryptocurrency" means digital currency in which

 

encryption techniques are used to regulate the generation of units

 

of currency and verify the transfer of funds, and that operates

 

independently of a central bank.

 

     (c) (b) "Knowingly", in the case of a corporation, means with

 

the approval or prior actual knowledge of the board of directors, a

 

majority of the directors, or persons who together hold a majority

 

of the voting ownership interests in the corporation. In

 

determining whether a majority of the directors approved of or had

 

knowledge of the activity, a director who was not aware of the

 

activity due to his or her own negligence or other fault is

 

regarded as having had knowledge of the activity. This subdivision

 

does not limit the liability of any individual officer, employee,

 

director, or stockholder of a corporation.

 

     (d) (c) "Financial transaction" means a purchase, sale, loan,

 

pledge, gift, transfer, delivery, exchange, or other disposition of

 

a monetary instrument or other property and, with respect to a

 

financial institution, includes a deposit, withdrawal, transfer

 

between accounts, exchange of currency, loan, extension of credit,

 

purchase or sale of any stock, bond, certificate of deposit, or

 

other monetary instrument, or any other payment, transfer, or

 

delivery by, through, or to a financial institution, by whatever

 

means effected.

 

     (e) (d) "Financial institution" means 1 or more of the

 

following, if located in or doing business in this state:

 

     (i) An insured bank, as defined in section 3(h) of the federal

 

deposit insurance act, 12 USC 1813(h).

 

     (ii) A commercial bank or trust company.

 

     (iii) A private banker.

 

     (iv) An agency or branch of a foreign bank.

 

     (v) A savings and loan institution.

 

     (vi) A thrift institution.

     (vii) A credit union.

 

     (viii) A broker or dealer registered with the securities and

 

exchange commission under the securities exchange act of 1934, 15

 

USC 78a to 78nn.

 

     (ix) A broker or dealer in securities or commodities.

 

     (x) An investment banker or investment company.

 

     (xi) A currency exchange.

 

     (xii) An insurer, redeemer, or cashier of traveler's checks,

 

checks, or money orders.

 

     (xiii) An operator of a credit card system.

 

     (xiv) An insurance company.

 

     (xv) A dealer in precious metals, stones, or jewels.

 

     (xvi) A pawnbroker.

 

     (xvii) A loan, finance, or mortgage company.

 

     (xviii) A travel agency.

 

     (xix) A licensed sender of money.

 

     (xx) A telegraph company.

 

     (f) (e) "Monetary instrument" means coin or currency of the

 

United States or another country, or group of countries, a

 

traveler's check, personal check, bank check, money order,

 

cryptocurrency, or investment security or negotiable instrument in

 

bearer form or in any other form such that delivery is sufficient

 

to pass title.

 

     (g) (f) "Proceeds of a specified criminal offense" means any

 

monetary instrument or other real, personal, or intangible property

 

obtained through the commission of a specified criminal offense,

 

including any appreciation in the value of the monetary instrument

or property.

 

     (h) (g) "Specified criminal offense" means any of the

 

following:

 

     (i) A felony violation of section 8 of the tobacco products

 

tax act, 1993 PA 327, MCL 205.428, or section 9 of former 1947 PA

 

265, concerning cigarette taxes.

 

     (ii) A violation of section 11151 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.11151, or

 

section 48(3) of former 1979 PA 64, concerning felonious disposal

 

of hazardous waste.

 

     (iii) A controlled substance offense.

 

     (iv) A felony violation of section 60 of the social welfare

 

act, 1939 PA 280, MCL 400.60, concerning welfare fraud.

 

     (v) A violation of section 4, 5, or 7 of the medicaid false

 

claim act, 1977 PA 72, MCL 400.604, 400.605, and 400.607,

 

concerning medicaid Medicaid fraud.

 

     (vi) A felony violation of section 18 of the Michigan gaming

 

control and revenue act, the Initiated Law of 1996, 1996 IL 1, MCL

 

432.218, concerning the business of gaming.

 

     (vii) A violation of section 409 of the uniform securities

 

act, former 1964 PA 265, MCL 451.809, or section 508 of the uniform

 

securities act (2002), 2008 PA 551, MCL 451.2508, concerning

 

securities fraud.

 

     (viii) A violation of section 5 or 7 of 1978 PA 33, MCL

 

722.675 and 722.677, concerning the display or dissemination of

 

obscene matter to minors.

 

     (ix) A felony violation of section 72, 73, 74, or 75,

concerning arson.

 

     (x) A violation of section 93, 94, 95, or 96, concerning bank

 

bonds, bills, notes, or property.

 

     (xi) A violation of section 117, 118, 119, 120, 121, or 124,

 

concerning bribery.

 

     (xii) A violation of section 120a, concerning jury tampering.

 

     (xiii) A violation of section 145c, concerning child sexually

 

abusive activity or material.

 

     (xiv) A felony violation of section 157n, 157p, 157q, 157r,

 

157s, 157t, or 157u, concerning credit cards or financial

 

transaction devices.

 

     (xv) A violation of section 159i, concerning racketeering.

 

     (xvi) A felony violation of section 174, 175, 176, 180, 181,

 

or 182, concerning embezzlement.

 

     (xvii) A felony violation of chapter XXXIII, concerning

 

explosives or bombs.

 

     (xviii) A violation of section 213, concerning extortion.

 

     (xix) A felony violation of section 218, concerning false

 

pretenses.

 

     (xx) A felony violation of chapter XLI, concerning forgery or

 

counterfeiting.

 

     (xxi) A violation of section 271, 272, 273, or 274, concerning

 

securities fraud.

 

     (xxii) A violation of section 301, 302, 303, 304, 305, 305a,

 

or 313, concerning gambling.

 

     (xxiii) A violation of section 316 or 317 concerning murder.

 

     (xxiv) A violation of section 330, 331, or 332, concerning

horse racing.

 

     (xxv) A violation of section 349, 349a, or 350, concerning

 

kidnapping.

 

     (xxvi) A felony violation of chapter LII, concerning larceny.

 

     (xxvii) A violation of section 422, 423, 424, or 425,

 

concerning perjury or subornation of perjury.

 

     (xxviii) A violation of section 452, 455, 457, 458, or 459,

 

concerning prostitution.

 

     (xxix) A violation of section 529, 530, or 531, concerning

 

robbery.

 

     (xxx) A felony violation of section 535 or 535a, concerning

 

stolen, embezzled, or converted property.

 

     (xxxi) A violation of chapter LXXXIII-A, concerning terrorism.

 

     (xxxii) A violation of section 5 of 1984 PA 343, MCL 752.365,

 

concerning obscenity.

 

     (xxxiii) A conspiracy, attempt, or solicitation to commit an

 

offense listed in subparagraphs (i) to (xxxii).

 

     (i) (h) "Substituted proceeds of a specified criminal offense"

 

means any monetary instrument or other real, personal, or

 

intangible property obtained or any gain realized by the sale or

 

exchange of proceeds of a specified criminal offense.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.