MI SB1138

Prohibits law enforcement agencies from selling or trading forfeited firearms to federally licensed dealers and eliminates the ability to retain proceeds from such sales for law enforcement purposes.

Requires all forfeited firearms to be destroyed by the Department of State Police, with mandatory destruction of all firearm parts, eliminating the previous option for public auction sales.

Limits law enforcement agency retention of seized firearms to official use by employed peace officers only, with no sales permitted under any circumstances.

Requires law enforcement agencies to check if firearms are reported lost or stolen and provide 30-day written notice to owners and public notice on their website before disposal, allowing authorized owners to reclaim firearms.

Adds requirement that law enforcement agencies submit firearms with altered, removed, or obliterated serial numbers to the Department of State Police or forensic laboratory for verification to determine legal ownership before disposal.