HB-4769, As Passed House, May 13, 2009

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4769

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

(MCL 333.1101 to 333.25211) by adding section 5498.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5498. (1) If a manufacturer or distributor fails to

 

comply with a requirement of this part, the department, on and

 

after the expiration of 90 days after the date of the requirement,

 

may take enforcement action, assess civil fines under subsection

 

(2), and request the attorney general to initiate immediate

 

injunction proceedings to prevent the sale of children's products

 

in this state by that manufacturer or distributor.

 

     (2) Notwithstanding section 5493 and subject to subsection

 

(3), a manufacturer or distributor that violates this part is

 

subject to the following:

 

     (a) If the violation is the manufacturer's or distributor's

 

first offense under this section, a civil fine of not more than

 

$5,000.00.

 

     (b) If the violation is the manufacturer's or distributor's

 

second offense under this section, a civil fine of not more than

 

$25,000.00.

 

     (c) If the violation is the manufacturer's or distributor's

 

third or subsequent offense under this section, a civil fine of not

 

more than $50,000.00.

 

     (d) If a manufacturer or distributor knowingly violates this

 

section, a civil fine equal to 3 times the amount in subdivision

 

(c).

 

     (3) The department shall waive a civil fine imposed under this

 

section if it is determined that the manufacturer or distributor

 

acted in good faith to be in compliance with this part, pursued

 

compliance with due diligence, and promptly corrected any

 

noncompliance after discovery of the violation.

 

     (4) The children's safe products fund is created within the

 

state treasury. The department shall transmit all civil fines

 

collected under this part to the state treasurer for deposit into

 

the fund. The state treasurer shall deposit into the fund all civil

 

fines received pursuant to this subsection and may receive money or

 

other assets from any source for deposit into the fund. The state

 

treasurer shall direct the investment of the fund and shall credit

 

to the fund interest earnings from fund investments. Money in the

 

fund at the close of the fiscal year shall remain in the fund and

 

shall not lapse to the general fund. The department shall expend

 

money from the fund, upon appropriation, for the purpose of

 

administering and carrying out those duties required by this part.

 

The department shall be the administrator of the fund for auditing

 

purposes.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) House Bill No. 4763.

 

     (b) House Bill No. 4764.

 

     (c) House Bill No. 4765.

 

     (d) House Bill No. 4766.

 

     (e) House Bill No. 4767.

 

     (f) House Bill No. 4768.