Bill Text: MI HB4222 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Occupations; athletics; amateur mixed martial arts licensure; provide for. Creates new act.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2015-02-19 - Printed Bill Filed 02/19/2015 [HB4222 Detail]
Download: Michigan-2015-HB4222-Introduced.html
HOUSE BILL No. 4222
February 18, 2015, Introduced by Reps. Santana, Kosowski and Kivela and referred to the Committee on Regulatory Reform.
A bill to regulate amateur mixed martial arts; to establish
the powers and duties of the Michigan unarmed combat commission
under this act; to provide certain powers and duties for certain
state agencies and departments; to license and regulate promoters
of amateur mixed martial arts contests and events; to assess
certain fees and fines; to establish the amateur mixed martial arts
fund and provide for the use of the money in the fund; to authorize
the promulgation of rules; and to provide penalties and remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"amateur mixed martial arts regulatory act".
Sec. 3. As used in this act:
(a) "Amateur" means an individual mixed martial artist who is
not competing and has never competed in a mixed martial arts
contest for a prize or who is not competing and has never competed
with or against a professional in a mixed martial arts contest for
a prize.
(b) "Applicant" means an individual who applies for a license
under this act.
(c) "Commission" means the Michigan unarmed combat commission
created in section 20 of the Michigan unarmed combat regulatory
act, 2004 PA 403, MCL 338.3620.
(d) "Contest" does not include a mixed martial arts
exhibition.
(e) "Contestant" means an individual who competes in an
amateur mixed martial arts contest or event.
(f) "Department" means the department of licensing and
regulatory affairs.
(g) "Director" means the director of the department or his or
her designee.
(h) "Event" means a program of 1 or more individual amateur
mixed martial arts contests.
(i) "Fund" means the amateur mixed martial arts fund created
in section 9.
(j) "License" means the document issued to an individual under
this act that enables him or her to engage in an activity that
would otherwise be prohibited under this act. The term includes an
initial license and any renewal license issued to an individual.
(k) "Medical professional" means a physician as defined in
section 17001 or 17501 of the public health code, 1978 PA 368, MCL
333.17001 and 333.17501.
(l) "Mixed martial arts" means the general term that describes
the convergence of techniques from a variety of combative sports
disciplines. The term includes boxing, wrestling, judo, jujitsu,
kickboxing, and other combination of techniques from different
disciplines of the martial arts.
(m) "Mixed martial arts exhibition" means a performance or
demonstration of mixed martial arts that meets all of the
following:
(i) The performance or demonstration is held at a promoter's
gym, dojo, or similar training facility or at a training center.
(ii) Participants in the performance or demonstration do not
pay a fee to participate.
(iii) Spectators do not pay a fee to attend the performance or
demonstration.
(n) "Prize" means money or another form of compensation or
reward offered or given to a contestant. The term does not include
a watch, medal, article of jewelry, trophy, or ornament that is
suitably inscribed to show that it is given for participation in a
contest or event and costs $200.00 or less.
(o) "Professional" means an individual who is competing or has
competed in the past for a prize in any sport regulated under the
Michigan unarmed combat regulatory act, 2004 PA 403, MCL 338.3601
to 338.3663.
(p) "Promoter" means an individual who produces or stages an
amateur mixed martial arts contest or event. The term does not
include the venue where a contest or event is held unless the venue
contracts with the individual promoter to be a copromoter.
(q) "Proper medical clearance" means a certification by a
medical professional that a contestant is fit to compete in a
contest.
(r) "Training center" means an institution formed or operated
principally to provide instruction in mixed martial arts.
Sec. 5. This act does not apply to any of the following:
(a) Amateur wrestling.
(b) Amateur martial arts sports or activities held by and at a
public or private training center.
(c) A mixed martial arts exhibition.
(d) A contest or event conducted by or participated in
exclusively by an agency of the United States government, by a
school, college, or university, or by an organization composed
exclusively of those entities, if each contestant is an amateur.
Sec. 7. (1) The commission shall establish appropriate
disciplinary sanctions against licensees or other individuals who
violate this act or rules promulgated under this act.
(2) The commission shall meet as often as necessary to fulfill
its duties under this act.
(3) While serving as a member of the commission, an individual
shall not promote or sponsor any contest or event of amateur mixed
martial arts or have any financial interest in an entity that
promotes or sponsors any amateur mixed martial arts contests or
events.
Sec. 9. (1) Except as provided in section 7(1) concerning the
authority of the commission, the department is responsible for
administering and enforcing this act. All of the following apply to
the department's enforcement of this act:
(a) In enforcing this act, the department may initiate an
administrative or court action against an applicant or licensee or
take any other action against a licensee or his or her license that
is authorized under this act for a violation of this act.
(b) The department shall not take any action against an
applicant, licensee, or license under subdivision (a) more than 1
year after the occurrence of the violation of this act that is the
subject of the department's action.
(2) The amateur mixed martial arts fund is created in the
state treasury. All of the following apply to the fund:
(a) The department shall deposit into the fund all money
received from application fees, registration fees, license fees,
and administrative fines imposed under this act.
(b) The state treasurer shall direct the investment of the
fund. The state treasurer shall credit to the fund interest and
earnings from fund investments.
(c) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(d) The department is the administrator of the fund for
auditing purposes.
(e) The department shall expend money from the fund, upon
appropriation, to administer and enforce this act and for its
expenditures under this act.
(3) The director shall promulgate rules to set standards for
mixed martial arts exhibitions and to protect the health and safety
of contestants participating in contests and exhibitions. The
director may promulgate any additional rules he or she considers
necessary to administer and enforce this act. The director shall
promulgate any rules described in this subsection under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
Sec. 11. (1) An individual shall not hold or conduct an
amateur mixed martial arts contest or event in this state or engage
in any other activity regulated under this act unless the
individual holds a promoter's license under this act or the
individual is exempt from licensure under this act.
(2) An individual seeking a license under this act shall
submit a license application to the department, in writing and
under oath, accompanied by a nonrefundable application processing
fee and an annual license fee. The application shall be made on a
form provided by the department and shall include the legal name,
street address, and telephone number of the applicant and any other
information reasonably required by the department.
(3) An annual license under this act shall expire on September
30 of the calendar year following the year the license was issued.
(4) Beginning on the effective date of this act, the
nonrefundable application fee required under this section is
$100.00 and the annual license fee required under this section is
$300.00. Beginning 1 year after the effective date of this act, the
director may biannually adjust the amount of the fees described in
this section based on the increase or decrease for the immediately
preceding 6-month period in the Detroit consumer price index as
reported by the United States Department of Labor.
Sec. 13. By filing an application for a license under this
act, an applicant does both of the following:
(a) Certifies his or her general suitability, character,
integrity, and ability to participate in, engage in, or be
associated with amateur mixed martial arts contests or events. The
burden of proof is on the applicant to establish that the applicant
possesses suitability, character, and integrity and is qualified to
promote and participate in mixed martial arts amateur contests or
events.
(b) Accepts the risk of adverse public notice, embarrassment,
criticism, financial loss, or other action with respect to his or
her application and expressly waives any claim for damages as a
result of any adverse public notice, embarrassment, criticism,
financial loss, or other action.
Sec. 15. (1) An applicant is ineligible to receive a
promoter's license under this act if he or she meets any of the
following:
(a) He or she was convicted of a felony that involved
violence, theft, fraud, or an element of financial dishonesty under
the laws of this state or any other jurisdiction in the United
States in the 5-year period preceding the application.
(b) He or she has an unsatisfied tax lien in the amount of at
least $5,000.00 under any federal, state, or local law at the time
of the application.
(c) He or she submitted an application for a license under
this act that contained false information.
(2) If the department does not issue an initial or renewal
license to an individual under this act, he or she may petition the
department and the commission for a review. The petition must be in
writing and set forth the reasons the petitioner believes that the
department should issue a license to him or her. The department may
issue a license to the petitioner if, based on a review of the
qualifications of the individual who submitted the petition, the
department and the commission determine that the individual could
perform as a promoter with competence.
Sec. 17. (1) An individual who fails to renew a license on or
before its expiration date shall not hold or conduct an amateur
mixed martial arts contest or event or advertise, operate, or use
the title "promoter" or "amateur promoter" after the expiration
date printed on the license.
(2) An individual who fails to renew a license on or before
its expiration date is permitted to renew the license within 60
days after the expiration date by meeting all requirements for
licensure under this act, paying the required license fee, and
paying a late renewal fee in the amount of $30.00. After that 60-
day period, the individual may only obtain a license under this act
by complying with the requirements of section 11.
(3) Except as provided in subsection (4) or otherwise provided
in this act, an individual may seek reinstatement of a license
under this act by filing an application on a form provided by the
department, paying the application processing fee and annual
license fee, and filing a petition with the department that states
the reasons reinstatement is appropriate and includes evidence that
the individual can and is likely to serve the public in the
regulated activity with competence and in conformance with all
other requirements prescribed by law, rule, or an order of the
department.
(4) If a license is revoked or suspended by the department
under this act, the department may reinstate the revoked license or
lift a suspension if it receives an application for reinstatement
and is paid any administrative fine assessed by the commission.
Sec. 19. (1) In addition to the fees described in section 11,
a licensee shall pay a regulatory and enforcement fee of $200.00
for each amateur mixed martial arts event presented by the
promoter. The department shall deposit regulatory and enforcement
fees it receives under this section in the fund. By December 1 of
each year, the department shall report to the legislature the
amount of revenue generated by the regulatory and enforcement fee
in the preceding state fiscal year.
(2) A licensee who presents an amateur mixed martial arts
event in this state must comply with all of the following:
(a) At least 5 business days before the event, pay the
regulatory and enforcement fee described in subsection (1) and
provide notice to the department that describes the event. The
department shall prescribe the form and contents of the notice
described in this subdivision.
(b) Pay all obligations related to the normal course of
promoting an amateur mixed martial arts event, including, but not
limited to, venue rent and judge, medical professional, referee,
and timekeeper fees.
(c) Arrange for a medical professional to attend the event for
purposes of subsection (3)(k), and arrange for an alternate medical
professional to attend the event if the original medical
professional is unable to attend the event. The licensee shall
include the name of the medical professional and alternate medical
professional described in this subdivision in the notice provided
to the department under subdivision (a).
(d) Maintain records of the amateur mixed martial arts event
for at least 1 year after the date of the scheduled event and make
those records available to the department or law enforcement
officials on request.
(3) A licensee presenting an amateur mixed martial arts event
in this state shall ensure that all of the following are met in the
conduct of the event:
(a) Except as provided in subdivision (b), each individual
contest consists of not more than 3 rounds, of not more than 3
minutes' duration, with at least a 1-minute rest period between
each round.
(b) Each individual national or international championship
contest consists of not more than 5 rounds, of not more than 5
minutes' duration, with at least a 1-minute rest period between
each round.
(c) Each contestant wears gloves, supplied by the promoter,
that weigh at least 4 ounces and not more than 8 ounces.
(d) The referee examines the gloves worn by each contestant
before and during a contest. If the referee finds that a glove is
misplaced, lumpy, broken, roughed, or otherwise unfit, the
contestant must change the glove before the start of the contest.
(e) Before a contestant participates in a contest, he or she
is weighed and placed in the appropriate weight class. As used in
this subdivision and subdivision (f), "weight class" means 1 of the
following:
(i) Flyweight, if he or she weighs 125.9 pounds or less.
(ii) Bantamweight, if he or she weighs 126 pounds or more and
not more than 135 pounds.
(iii) Featherweight, if he or she weighs 135.1 pounds or more
and not more than 145 pounds.
(iv) Lightweight, if he or she weighs 145.1 pounds or more and
not more than 155 pounds.
(v) Welterweight, if he or she weighs 155.1 pounds or more and
not more than 170 pounds.
(vi) Middleweight, if he or she weighs 170.1 pounds or more and
not more than 185 pounds.
(vii) Light heavyweight, if he or she weighs 185.1 pounds or
more and not more than 205 pounds.
(viii) Heavyweight, if he or she weighs 205.1 pounds or more and
not more than 265 pounds.
(ix) Super heavyweight, if he or she weighs more than 265
pounds.
(f) a contestant only participates in a contest with another
contestant who meets 1 of the following:
(i) The second contestant is in the same weight class.
(ii) The second contestant is in the next higher weight class,
if the first contestant agrees to participate with that heavier
contestant.
(g) Professional mixed martial artists who are subject to the
Michigan unarmed combat regulatory act, 2004 PA 403, MCL 338.3601
to 338.3663, do not participate as contestants in a contest.
(h) A contestant does not participate in a contest unless the
contestant has submitted medical certification of negative results
for hepatitis B and C and HIV tests conducted within the 180-day
period preceding the scheduled contest or event.
(i) A female contestant does not participate in a contest
unless the contestant has submitted the results of a pregnancy test
performed on the contestant within the 7-day period preceding the
event and the results of that pregnancy test are negative.
(j) An individual is not allowed to participate as a
contestant without proper medical clearance.
(k) The event does not take place or continue without a
medical professional and an ambulance at the event.
(l) The event does not take place or continue without a trained
and competent referee.
(m) An individual is not allowed to participate in a contest
if there is any reason to suspect that he or she is impaired or has
used or uses performance-enhancing drugs. As used in this
subdivision:
(i) "Impaired" means the inability or immediately impending
inability of an individual to safely participate in an amateur
mixed martial arts contest or event due to his or her substance
abuse, chemical dependency, or use of drugs or alcohol that does
not constitute substance abuse or chemical dependency.
(ii) "Chemical dependency" means that term as defined in
section 16106a of the public health code, 1978 PA 368, MCL
333.16106a.
(iii) "Substance abuse" means that term as defined in section
16106a of the public health code, 1978 PA 368, MCL 333.16106a.
(n) A professional is not allowed to participate as a
contestant in the event.
(o) If an individual lost a mixed martial arts contest or
exhibition by a technical knockout in the 30-day period preceding
the event, he or she is not allowed to participate as a contestant
unless he or she submits the results of a physical examination to
the promoter that indicate that he or she is fit to compete.
(p) The medical professional at the event determines the
status of a contestant who is knocked out in an amateur mixed
martial arts contest or whose fight is stopped by the referee
because he or she received hard blows to the head that made him or
her defenseless or incapable of continuing immediately after the
knockout or stoppage. The medical professional may recommend post-
fight neurological examinations, which may include performing
computerized axial tomography (CAT) scans or magnetic resonance
imaging (MRI) on the contestant immediately after the contestant
leaves the event venue.
(q) A contestant described in subdivision (p) does not compete
in another contest without proper medical clearance.
(r) If a medical professional recommended further neurological
examinations of a contestant under subdivision (p), the contestant
does not compete in another contest until the promoter receives
copies of the examination reports and the reports demonstrate that
the contestant is fit to compete.
(s) A contestant who sustains a severe injury or knockout in a
contest is examined by a medical professional and is not permitted
to compete in another contest until a medical professional
certifies that the contestant is fully recovered.
(t) An individual who meets all of the following does not
participate as a contestant:
(i) He or she participated in a contest or exhibition in the
60-day period preceding the event.
(ii) In the contest or exhibition described in subparagraph (i),
he or she was knocked out or the contest or exhibition was stopped
because he or she received excessive hard blows to the head.
(u) An individual who meets all of the following does not
participate as a contestant:
(i) He or she participated in multiple contests or exhibitions
before the event.
(ii) In any 90-day period, he or she was knocked out twice or 2
of his or her contests or exhibitions were stopped because he or
she received excessive hard blows to the head.
(iii) The second knockout or stoppage described in subparagraph
(ii) occurred in the 120-day period preceding the event.
(v) An individual who meets all of the following does not
participate as a contestant:
(i) He or she participated in multiple contests or exhibitions
before the event.
(ii) In any 12-month period, he or she was knocked out in 3
consecutive contests or exhibitions or 3 consecutive contests or
exhibitions were stopped because he or she received excessive hard
blows to the head.
(iii) The third knockout or stoppage described in subparagraph
(ii) occurred in the 1-year period preceding the event.
(w) If an individual was not allowed to participate as a
contestant in an earlier event because he or she met the
requirements of subdivision (t), (u), or (v) at the time of that
earlier event, he or she does not participate as a contestant
unless he or she provides the promoter with proper medical
clearance.
(x) Each contestant is insured for at least $10,000.00 for any
medical and hospital expenses, including deductibles paid by the
contestant, to cover injuries sustained in a contest and for at
least $10,000.00 to be paid in accordance with the statutes of
descent and distribution of individual property if the contestant
dies as a result of injuries received in a contest.
(y) Each contestant is at least 18 years of age.
(z) A contestant does not participate at more than 1 contest
at an event.
(aa) Each contestant in a contest is the same sex.
(bb) An individual does not participate as a contestant if he
or she participated in another contest in the 7-day period
preceding the event.
(cc) The results of each contest are reported to the
department within 48 hours after the conclusion of the event.
Sec. 20. (1) Before he or she participates in a contest or
exhibition, a contestant shall register with the department by
submitting a registration form with the department, that includes
his or her name, address, date of birth, and social security
number, accompanied by a nonrefundable registration processing fee
in the amount of $25.00 and an annual registration fee in the
amount of $25.00. A registration under this section expires at the
end of the calendar year in which the contestant submitted the
registration form. The department may prescribe the form and
contents of the registration form.
(2) The department shall assign a registration number to each
contestant that submits a registration form under subsection (1).
(3) In any notice, report, or other communication with the
department or commission that identifies or refers to a specific
contestant, including, but not limited to, the report of the
results of each contest under section 19(3)(cc), a licensee shall
include the registration number of that contestant assigned under
subsection (2).
(4) The department may revoke a contestant's registration if
he or she violates this section or provides false information in
his or her registration form.
Sec. 21. (1) An individual who does any of the following is
subject to the remedies and penalties described in this section:
(a) Violates this act or a rule promulgated or order issued
under this act.
(b) Practices fraud or deceit in obtaining a license.
(c) Practices fraud, deceit, or dishonesty in performing his
or her duties as a promoter.
(d) Practices false advertising.
(e) Fails to comply with a subpoena issued under this act.
(f) Fails to provide requested documents or records to the
department.
(g) Violates or fails to comply with a stipulation or
settlement agreement with or a final order issued by the department
or commission.
(h) Aids or abets another individual in promoting an amateur
mixed martial arts contest without a license.
(i) Fails to pay any obligation related to the normal course
of promoting an amateur mixed martial arts event, including, but
not limited to, venue rent or judge, medical professional, referee,
or timekeeper fees.
(j) Enters into a contract for an amateur mixed martial arts
contest or event in bad faith.
(k) Gambles on the outcome of an amateur mixed martial arts
contest or event of which he or she is a promoter.
(l) Fails to file current address information with the
department.
(m) Assaults another licensee, a commission member, or an
employee of the department.
(n) Tampers with or coerces another promoter's contestants.
(2) If a licensee violates this act or a rule or order
promulgated or issued under this act, the department may take 1 or
more of the following actions:
(a) Place a limitation on his or her license.
(b) Suspend his or her license.
(c) Deny him or her a license or renewal of a license.
(d) Revoke his or her license.
(e) Assess an administrative fine under section 33.
(f) Censure the licensee.
(g) Require that he or she pay restitution, based on proofs
submitted to and findings made by the hearings examiner after a
contested case. If restitution is required and the individual is a
licensee, the department may suspend his or her license until the
restitution is paid.
(3) An individual who violates this act is guilty of a
misdemeanor punishable by imprisonment for not more than 93 days or
a fine of not more than $500.00, or both.
(4) An individual who violates this act a second or any
subsequent time is guilty of a misdemeanor punishable by
imprisonment for not more than 1 year or a fine of not more than
$1,000.00, or both.
(5) An individual who knowingly allows a professional to
participate as a contestant in an amateur mixed martial arts
contest with an amateur is guilty of a felony punishable by
imprisonment for not more than 3 years or a fine of $10,000.00 per
incident, or both.
(6) The department may bring an injunctive action in a court
of competent jurisdiction to restrain or prevent an individual from
violating this act. If successful in obtaining injunctive relief,
the department is entitled to its costs and reasonable attorney
fees.
(7) The department may conduct an investigation to enforce
this act. An individual who violates this act is subject to the
penalties and remedies described in this section.
(8) The penalties and remedies under this section are
independent and cumulative. The imposition of a remedy or penalty
against an individual under this section does not bar the pursuit
of any lawful remedy by that individual or the pursuit of a lawful
remedy by any other person against that individual.
Sec. 23. (1) Any person may file a written complaint with the
department alleging that an individual has violated this act or a
rule promulgated or an order issued under this act.
(2) If the department receives a complaint described in
subsection (1), the department immediately shall begin and pursue
an investigation of the allegations of the complaint. The
department shall acknowledge the complaint in writing within 15
days after it receives the complaint.
(3) For purposes of its investigation under this section, the
department may administer oaths; take testimony under oath; require
the appearance and testimony of witnesses, including the production
of books, records, or other documents; or request that the attorney
general petition a court of competent jurisdiction to issue a
subpoena requiring a person to appear before the department and be
examined with reference to any matter within the scope of the
investigation and to produce books, papers, or documents pertaining
to the investigation.
(4) If the department determines after conducting an
investigation under this section that there is not sufficient
evidence that there was a violation of this act or a rule
promulgated or an order issued under this act by the respondent,
the department shall close the complaint. The department shall
provide its reasons for closing the complaint to the complainant,
who then may provide additional information to reopen the
complaint, and to the respondent.
(5) If the department determines after conducting an
investigation under this section that there is sufficient evidence
that there was a violation of this act or a rule promulgated or an
order issued under this act by the respondent, the department or
the department of attorney general shall take appropriate action
against the respondent, which may include any of the following:
(a) Issuing a formal complaint.
(b) Obtaining a cease and desist order.
(c) Issuing an order of summary suspension under section 25.
(d) Seeking injunctive relief under section 21(6).
(6) At any time during its investigation or after it issues a
formal complaint, the department may meet with the complainant and
the respondent for an informal conference. At the meeting, the
department shall attempt to resolve issues raised in the complaint
and may attempt to aid the parties in reaching a formal settlement
or stipulation.
Sec. 25. (1) After it conducts an investigation under section
23, the department may issue an order summarily suspending a
license based on an affidavit by a person familiar with the facts
set forth in the affidavit or, if appropriate, based on an
affidavit on information and belief that an imminent threat to the
integrity of the sport of amateur mixed martial arts, the public
interest, or the welfare and safety of a contestant exists.
(2) If a promoter's license is summarily suspended under this
section, the promoter may petition the department to dissolve the
suspension order. After receiving a petition to dissolve a
suspension order, the department shall immediately schedule a
hearing to decide whether to grant or deny the requested relief.
(3) After the hearing concerning a petition to dissolve a
suspension order under subsection (2), the administrative law
hearings examiner shall dissolve the summary suspension order
unless sufficient evidence is presented that an imminent threat to
the integrity of the sport, the public interest, or the welfare and
safety of a contestant exists that requires emergency action and
continuation of the department's summary suspension order.
(4) The record created at a hearing to dissolve a summary
suspension order is considered part of the record of the complaint
at any subsequent hearing in a contested case.
Sec. 27. (1) If the department conducts an investigation under
section 23, the department after the investigation may order a
person to cease and desist violating this act or a rule promulgated
or order issued under this act.
(2) A person ordered to cease and desist under subsection (1)
may request a hearing on that order by filing a written request for
a hearing with the department within 30 days after the effective
date of the order.
(3) If a person violates a cease and desist order issued under
this act, the department of attorney general may apply to a court
of competent jurisdiction to restrain and enjoin, temporarily or
permanently, or both, the person from further violating the cease
and desist order.
Sec. 29. (1) A summary suspension order under section 25, a
cease and desist order under section 27, or injunctive relief
issued or granted in an action under section 21(6) concerning a
license is in addition to and not in place of an informal
conference; criminal prosecution; proceeding to impose a remedy
described in section 21(2); or any other action authorized under
this act.
(2) If the department conducts an investigation and prepares
or receives a formal complaint under section 23, the department
shall serve the formal complaint on the respondent and the
complainant. At the same time, the department shall serve the
respondent with a notice describing the compliance conference and
hearing process and offering the respondent a choice of 1 of the
following options:
(a) An opportunity to meet with the department to negotiate a
settlement of the matter.
(b) If the respondent is a licensee under this act, an
opportunity to demonstrate compliance before the department holds a
contested case hearing.
(c) An opportunity to proceed to a contested case hearing.
(3) A respondent who is served with a formal complaint under
this section may select, within 15 days after receiving the notice,
1 of the options described in subsection (2). If the respondent
does not notify the department of the selection of 1 of those
options within the time period described in this subsection, the
department shall proceed with a contested case hearing as described
in subsection (2)(c).
(4) At the discretion of the department, a member of the
commission may attend an informal conference described in
subsection (2)(a). The conference may result in a settlement,
consent order, waiver, default, or other method of settlement
agreed on by the parties and the department. A settlement may
include any remedy under section 21(2) or any other remedy
authorized under this act. The commission may reject a settlement
and require a contested case hearing.
(5) An employee of the department may represent the department
in any contested case hearing.
(6) This section does not prevent a person against whom a
complaint is filed from showing compliance with this act or a rule
promulgated or order issued under this act.
(7) The department or the department of the attorney general
may petition a court of competent jurisdiction to issue a subpoena
to require the person subpoenaed to appear or testify or produce
relevant documentary material for examination at a proceeding.
Sec. 31. (1) At the conclusion of a contested case hearing
conducted under section 29, the administrative law hearings
examiner shall submit a hearing report that includes findings of
fact and conclusions of law to the department, the department of
attorney general, and the commission. The examiner may recommend in
the hearing report the assessment of a penalty or remedy under this
act.
(2) An administrative law hearings examiner shall submit a
copy of a hearing report prepared under subsection (1) to the
complainant and to the respondent.
(3) Within 60 days after it receives an administrative law
hearings examiner's hearing report, the commission shall meet and
determine what penalty or remedy is appropriate. The commission
shall make its determination based on the administrative law
hearings examiner's report. The examiner shall make a transcript of
a hearing or a portion of the transcript available to the
commission on request. If a transcript or a portion of the
transcript is requested, the commission shall make its
determination of the penalty or remedy to assess under this act at
a meeting held within 60 days after it receives the transcript or
portion of the transcript.
(4) If the commission does not determine which penalty or
remedy to assess within the time period described in subsection
(3), the director may determine the appropriate remedy or penalty
and issue a final order.
(5) A member of the commission who has participated in an
investigation or administrative hearing on a complaint filed with
the department or who has attended an informal conference shall not
participate in making a final determination in a proceeding on that
complaint.
Sec. 33. (1) If a licensee violates this act or a rule or
order promulgated or issued under this act, the department may
impose an administrative fine on the licensee, in an amount of not
more than $10,000.00 per violation. The commission may impose the
administrative fine in addition to, or in lieu of, any other
penalty or remedy under this act, including, but not limited to,
the penalties and remedies described in section 21, based on proofs
submitted to and findings made by the hearings examiner after a
contested case.
(2) If the department imposes an administrative fine under
this section, the department may also recover the costs of the
proceeding, including investigative costs, court costs, and
reasonable attorney fees. The department or the attorney general
may bring an action in a court of competent jurisdiction to recover
any administrative fines, investigative and other allowable costs,
court costs, and reasonable attorney fees. The filing of an action
to recover administrative fines and costs does not bar the
imposition of other penalty or remedy under this act.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.
