Michigan House Passes Tougher Penalties for Cargo Theft as Organized Crime Rises

House Bill Would Allow Up to 10 Additional Years in Prison for Stolen Cargo Convictions

LANSING — Michigan lawmakers have moved to crack down on cargo theft with a plan that would allow prosecutors to seek up to 10 additional years in prison for certain theft convictions tied to stolen goods.

The two companion bills, House Bills 5125 and 5126, passed the House on March 10 by a vote of 87-20 and are now in the Senate Committee on Transportation and Infrastructure.

Enhanced Sentencing for Organized Crime

Under the trucker-backed legislation, anyone convicted of cargo theft could face an additional prison sentence of up to 10 years when applied consecutively to any other prison term given for a violation in the same judicial transaction.

HB 5125 would amend the Michigan Penal Code to allow prosecutors to seek tougher prison sentencing for larceny involving stolen cargo. The companion bill, HB 5126, sponsored by Rep. Steve Frisbie, R-Battle Creek, would classify cargo theft as a Class D property felony with a maximum 10 years imprisonment upon conviction.

HB 5126 cannot take effect without the Legislature approving the other bill.

"Cargo theft isn't a crime of opportunity. Breaking into rail cars or shipping containers to steal vehicles or high-value goods requires planning, coordination, and organized criminal support," said state Rep. Mike Harris, R-Waterford, who sponsored HB 5125. "Treating these crimes the same as ordinary theft fails to recognize their scale and complexity."

Criminal Networks Targeting Michigan

State officials and business leaders say international criminal networks have identified Michigan as a prime target for cargo theft, particularly in Detroit and Wayne County.

"International criminal networks have identified Michigan as a prime target for cargo theft, and law enforcement needs stronger tools to fight back," Harris said. "This plan increases penalties for cargo theft so we can bring the full force of our justice system against anyone targeting Michigan businesses or consumers."

A Michigan House Republicans statement noted that the state has experienced a boom in cargo theft from railcars and storage facilities linked "specifically to criminal activity tied to international gangs," especially in Detroit and surrounding Wayne County.

Trucking Industry Support

Trucking groups testified in favor of the proposals during a February 25 House Judiciary Committee hearing.

Michigan Trucking Association CEO Jill Sokacz said nationally, cargo theft losses are about $18 million a day, which equates to about $521,000 annually per trucking company.

"Most Michigan carriers are small family-owned businesses. They are working hard to make a living, and they can't absorb that kind of cost day after day annually," Sokacz said. "Ultimately, it's passed on to the consumer."

Sokacz noted her company has experienced two similar cargo thefts within the past year involving spoiled cargo that was unsellable and an insurance deductible of $75,000 per incident.

Ashley Kordish, CEO of Ralph Moyle Inc., a third-generation family-owned trucking company that runs 60 trucks, told lawmakers her company sustains losses from cases where thieves decide their loads aren't worth stealing but still compromise the cargo.

Next Steps

Both bills passed the House and were referred to the Senate on March 17. They currently sit in the Senate Committee on Transportation and Infrastructure.

If passed by the Senate, both proposed bills would take effect 90 days after becoming law.

The legislation responds to a surge in organized theft activity, with business and law enforcement officials reporting millions of dollars in losses each year from cargo theft.