Michigan 2023-2024 Regular Session

Michigan House Bill HB5801

Introduced
12/10/24  
Refer
6/6/24  
Engrossed
12/12/24  

Caption

Criminal procedure: sentencing guidelines; sentencing guidelines for money transmission violations; revise. Amends sec. 14p, ch. XVII of 1927 PA 175 (MCL 777.14p). TIE BAR WITH: HB 5798'24

Impact

If passed, HB 5801 would impose stricter sentencing guidelines on offenses associated with money transmission fraud, thus potentially deterring such criminal activities. The change would establish clearer accountability for individuals or entities involved in fraudulent practices within this sector. Supporters of the bill believe that it is a necessary step towards better regulatory oversight and, by doing so, it will protect consumers and promote integrity within the money transmission industry.

Summary

House Bill 5801 aims to amend Michigan's 1927 Criminal Procedure Code by revising section 14p, which pertains to the establishment of sentencing guidelines for felonies related to money transmission violations. This bill specifically targets areas where fraudulent activities can occur in the money transmission services sector, which could include making false statements, misrepresentations, and conducting unauthorized business without proper licensing. By updating these guidelines, the bill seeks to enhance the legal framework governing how such crimes are categorized and sentenced within the state of Michigan.

Sentiment

The general sentiment surrounding HB 5801 appears to be positive among policymakers and stakeholders in the consumer protection and financial services sectors. Advocates argue that by tightening the sentencing guidelines, the bill will discourage criminal activities associated with money transmission and instill public trust in the financial system. Conversely, there are concerns from civil rights groups that such stringent measures could lead to disproportionately severe sentences for non-violent offenders, sparking a debate about the balance between public safety and fair justice.

Contention

One notable point of contention surrounding the bill involves the broader implications it may have for existing legal precedents and consumer rights. Critics contend that while increasing penalties for fraud is essential, the bill should also consider the potential for overreach within the regulatory framework that governs money transmission services. They emphasize the need for comprehensive educational initiatives for businesses and consumers to understand the legal landscape rather than merely punitive measures.

Companion Bills

MI HB5798

Same As Financial institutions: money transmitters; money transmission modernization act; create. Creates act & repeals 2006 PA 250 (MCL 487.1001 - 487.1047).

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