MI SB0265

Amends the Tobacco Products Tax Act to define unmarked or illegally held tobacco products as contraband subject to seizure and confiscation by the department.

Authorizes department inspectors and police officers to search vehicles and inspect places of business when there is reasonable cause to believe tobacco products are being acquired, possessed, or sold in violation of the act or fire safety marking requirements.

Establishes a seizure notification process requiring written inventory statements delivered within 5 business days to the person from whom property was seized, with opportunity to request a hearing within 10 business days.

Allows the department to destroy all forfeited cigarettes, but requires notice to manufacturers before destruction of unmarked cigarettes to allow for inspection.

Permits sale of non-cigarette tobacco products at public auction with proceeds split between the seizing law enforcement agency (up to 25%) and the state general fund, and allows informants to receive compensation of up to 10% of net sale proceeds not to exceed $5,000.

Takes effect January 1, 2010, contingent on enactment of Senate Bill 264.