MI SB1213

Amends the Tobacco Products Tax Act to clarify seizure and forfeiture procedures for tobacco products, vending machines, vehicles, and related property held in violation of the act.

Authorizes department inspectors and police officers to search vehicles and conduct inspections when there is reasonable cause to believe tobacco products are being unlawfully acquired, possessed, transported, or sold for which the penalty is a felony.

Establishes a 5 business day deadline to deliver an inventory statement to the seized property owner and requires notice that property will be forfeited within 10 business days unless a hearing is demanded.

Requires the department to hold a hearing within 15 business days of a demand and issue a written decision within 10 business days after the hearing to determine whether property was lawfully subject to seizure and forfeiture.

Allows for appeals to circuit court within 20 days of the department's determination; requires destruction of forfeited cigarettes and public sale of other forfeited tobacco products and property, with up to 25% of proceeds going to the local law enforcement agency that performed the seizure.

Provides that retailers possessing untaxed cigarettes face purchasing prohibitions of 6 months for first violation, 6-36 months for second violation within 5 years, and 1-5 years for third or subsequent violation within 5 years.