SENATE BILL No. 631

June 28, 2007, Introduced by Senator KAHN and referred to the Committee on Commerce and Tourism.

A bill to amend 1976 PA 331, entitled

"Michigan consumer protection act,"

by amending section 5 (MCL 445.905), as amended by 2006 PA 508.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 5. (1) If the attorney general has probable cause to

believe that a person has engaged, is engaging, or is about to

engage in a method, act, or practice that ~~is unlawful pursuant to~~

violates section 3, and gives notice ~~in accordance with~~ under this

section, the attorney general may bring an action ~~in accordance~~

~~with principles of equity~~ to restrain the defendant by temporary or

permanent injunction from engaging in the method, act, or practice.

The action may be brought in the circuit court of the county where

the defendant is established or conducts business or, if the

defendant is not established in this state, in the circuit court of

Ingham county. The court may award costs to the prevailing party.

For a persistent and knowing violation of section 3, the court may

assess the defendant a civil fine of not more than $25,000.00. For

a violation of section 3(1)(kk), each performance or production is

a separate violation.

(2) All of the following apply to an action by the attorney

general under subsection (1) for a violation of section 3(1)(z) in

connection with a retail sale of motor fuel, as defined in section

4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004:

(a) For a violation of section 3(1)(z), the court may award a

civil fine of not more than $1,500.00 for the first violation and

$3,000.00 for the second or subsequent violation. The availability

of a civil fine under this subdivision is in addition to the civil

fine available under subsection (1) if the violation of section

3(1)(z) is a persistent and knowing violation.

(b) A person who provides information that materially

contributes to the imposition of a civil fine or fines against a

person, under this subsection or subsection (1), for a violation of

section 3(1)(z) in connection with that retail sale of motor fuel

shall be paid a reward. All of the following apply to a reward

under this subdivision:

(i) The reward shall be paid pursuant to rules adopted by the

attorney general under subparagraph (vii).

(ii) The amount of the reward shall not exceed 50% of the civil

fine or fines assessed for the violation.

(iii) A person is not eligible for a reward under this

subdivision for a violation previously known to the attorney

general unless the information materially contributes to the

assessment of the civil fine or fines.

(iv) If there is more than 1 person who provides information

pursuant to this subdivision for a single violation, the first

person to notify the attorney general is eligible for the reward.

If more than 1 notification is received on the same day, the reward

shall be divided equally among those persons providing the

information.

(v) Public officers and employees of any local, state, or

federal governmental entity are not eligible for a reward under

this subdivision unless reporting those violations does not relate

in any manner to their responsibilities as public officers or

employees.

(vi) An employee of a retail seller of motor fuel who provides

information that the seller violated section 3(1)(z) is not

eligible for a reward if the employee intentionally caused the

violation.

(vii) The attorney general shall promulgate rules that

establish procedures for the receipt and review of claims for

payment of rewards. All decisions concerning the eligibility for a

reward and the materiality of the provided information shall be

made pursuant to these rules.

(viii) The attorney general shall periodically publicize the

availability of the rewards provided for in this section to the

public.

(ix) A person may submit a claim for a reward under this

subdivision only for information provided on or after the effective

date of the amendatory act that added this subdivision.

(3) ~~(2)~~ Unless waived by the court on good cause shown not

less than 10 days before the commencement of an action under this

section, the attorney general shall notify the person of his or her

intended action and give the person an opportunity to cease and

desist from the alleged unlawful method, act, or practice or to

confer with the attorney general in person, by counsel, or by other

representative as to the proposed action before the proposed filing

date. The notice may be given the person by mail, postage prepaid,

to his or her usual place of business or, if the person does not

have a usual place of business, to his or her last known address,

or, if the person is a corporation, only to a resident agent who is

designated to receive service of process or to an officer of the

corporation.

(4) ~~(3)~~ A prosecuting attorney or law enforcement officer

receiving notice of an alleged violation of this act, or of a

violation of an injunction, order, decree, or judgment issued in an

action brought ~~pursuant to~~ under this section, or of an assurance

under this act, shall immediately forward written notice of the

violation together with any information he or she may have to the

office of the attorney general.

(5) ~~(4)~~ A person who knowingly violates the terms of an

injunction, order, decree, or judgment issued pursuant to this

section shall forfeit and pay to the state a civil fine of not more

than $5,000.00 for each violation. For the purposes of this