The Michigan House this week overwhelmingly approved two proposals offered by state Rep. Ryan Berman protecting those wishing to repurchase their foreclosed properties and updating the Michigan Penal Code to reflect technological advancements.

House Bill 4105, part of a bipartisan package, expands the embezzlement definition within state law to include cryptocurrency to protect Michigan consumers.

Cryptocurrency first started to appear in the United States in the early 1990s, but its popularity has taken off due to a surge in online business and the ease and unregulated nature of online exchange. Several major merchants across the country now accept digital forms of currency.

Cryptocurrency is not officially recognized as a form of money, so loopholes have naturally arisen within the law – which specifically defines a transfer of money in certain crimes.

“It’s important to note that this bill does not add any additional crimes or penalties. It is an update to reflect the rise in this technology as people are doing business,” said Berman, of Commerce Township, who serves on the House Financial Services Committee. “It’s not meant to hamper the ease that comes with these newer forms of currency, but merely offers protections to residents and consumers when bad actors are present. It’s a simple premise – if you engage in embezzlement with something like Bitcoin, the law should treat you the same as if you were doing it with cash.”

Berman’s other bill, HB 4226, sets a fee limit that can be charged to original owners of foreclosed properties when assisting with calculating the amount needed to redeem the property.

Current law allows for a redemption period for a property sold at foreclosure during which a former owner may regain ownership. This is done by paying a fee to the person who bought the property at a foreclosure sale. That total takes into account the entire amount of the original sale, mortgage interest accrued since the sale, assessments of liens, existing back taxes and other miscellaneous fees.

A third party can be hired to calculate the fee with the exclusive ability to set fees for the service.

“It can be any amount and that amount has to be paid for the process of reattaining the property to continue,” Berman said. “When there’s no way to negotiate the amount and a financial hardship is already present, this can be a case of holding a homeowner hostage.”

Berman’s plan sets an upfront limit of $250 for the assistance fee.

The plans now move to the Senate for consideration.