SB-0046, As Passed Senate, October 8, 2003                                  

SUBSTITUTE FOR

SENATE BILL NO. 46

                                                                             A bill to amend 1994 PA 451, entitled                                             

"Natural resources and environmental protection act,"                       

by amending section 3115 (MCL 324.3115).                                    

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 3115.  (1) The department may request the attorney                     

2   general to commence a civil action for appropriate relief,                  

3   including a permanent or temporary injunction, for a violation of           

4   this part or a provision of a permit, order, rule, or stipulation           

5   of the department.  An action under this subsection may be                  

6   brought in the circuit court for the county of Ingham or for the            

7   county in which the defendant is located, resides, or is doing              

8   business.  The court has jurisdiction to restrain the violation             

9   and to require compliance.  In addition to any other relief                 

10  granted under this subsection, the court shall impose a civil               

11  fine of not less than  $2,500.00 and $2,750.00 or more than                

Senate Bill No. 46 as amended October 7, 2003                               

1   $27,500.00 per violation for each day the violation occurs or               

2   continues.  The court may also award reasonable attorney fees and           

3   costs to the prevailing party in an action brought under this               

4   subsection.   However, the maximum fine imposed by the court                

5   shall be not more than $25,000.00 per day of violation.

6   (2) Upon a finding by a court that a civil defendant caused                 

7   or contributed to a catastrophic discharge, the court shall                 

8   impose, in addition to the sanctions set forth in subsection (1),           

9   a civil fine of not less than $50,000.00 per violation for each             

10  day the violation occurs or continues.                                      

11      (3)  (2)  A person who at the time of the violation knew or                 

12  should have known that he or she discharged a substance contrary            

13  to this part, or contrary to a permit, order, rule, or                      

14  stipulation of the department, or who intentionally makes a false           

15  statement, representation, or certification in an application for           

16  or on a form pertaining to a permit or in a notice or report                

17  required by the terms and conditions of an issued permit, or who            

18  intentionally renders inaccurate a monitoring device or record              

19  required to be maintained by the department, <<or who fails to report a discharge in a timely manner when the person had a legal obligation to do so,>>is guilty of a                                                                     

20  felony and shall be fined not less than  $2,500.00 $2,750.00 or            

21  more than  $25,000.00 $27,500.00 per violation for each day the

22  violation occurs or continues.  The court may impose an                     

23  additional fine of not more than $25,000.00 for each day during             

24  which the unlawful discharge occurred.  If the conviction is for            

25  a violation committed after a first conviction of the person                

26  under this subsection, the court shall impose a fine of not less            

27  than $25,000.00 per day and not more than $50,000.00 per day of             

1   violation.  Upon conviction, in addition to a fine, the court in            

2   its discretion may sentence the defendant to imprisonment for not           

3   more than  2 4 years or impose probation upon a person for a               

4   violation of this part.  With the exception of the issuance of              

5   criminal complaints, issuance of warrants, and the holding of an            

6   arraignment, the circuit court for the county in which the                  

7   violation occurred has exclusive jurisdiction.  However,  the a

8   person  shall is not  be  subject to the penalties of this                 

9   subsection if the discharge of the effluent is in conformance               

10  with and obedient to a rule, order, or permit of the department.            

11  In addition to a fine, the attorney general may file a civil suit           

12  in a court of competent jurisdiction to recover the full value of           

13  the injuries done to the natural resources of the state and the             

14  costs of surveillance and enforcement by the state resulting from           

15  the violation.                                                              

16  (4)  (3)  Upon a finding by the court that the actions of a                 

17  civil defendant pose or posed a substantial endangerment to the             

18  public health, safety, or welfare, the court shall impose, in               

19  addition to the  penalties sanctions set forth in subsection               

20  (1), a civil fine of not less than $500,000.00 and not more than            

21  $5,000,000.00.                                                              

22  (5)  (4)  Upon a finding by the court that the actions of a                 

23  criminal defendant pose or posed a substantial endangerment to              

24  the public health, safety, or welfare, the court shall impose, in           

25  addition to the penalties set forth in subsection  (2) (3), a              

26  fine of not less than $1,000,000.00 and, in addition to a fine, a           

27  sentence of  5 10 years' imprisonment.                                     

Senate Bill No. 46 as amended October 8, 2003                               

1   (6)  (5)  To find a defendant <<civilly or>> criminally liable              

2   for substantial endangerment under <<subsections (3) and (4)

3   subsection>> (5), the court shall determine that the defendant knowingly or

4   recklessly acted in such a manner as to cause a danger of death             

5   or serious bodily injury and that either of the following                   

6   occurred:                                                                   

7       (a) The defendant had an actual awareness, belief, or                       

8   understanding that his or her conduct would cause a substantial             

9   danger of death or serious bodily injury.                                   

10      (b) The defendant acted in gross disregard of the standard of               

11  care that any reasonable person should observe in similar                   

12   circumstances.

    <<(7) To find a defendant civilly liable for substantial endangerment under subsection (4), the court shall determine that the defendant acted in careless disregard of the standard of care that a reasonable person should observe in similar circumstances.>>

13  <<(8)>>  (6)  Knowledge possessed by a person other than the                

14  defendant under subsection  (5) (6) <<or (7)>> may be attributable to the  

15  defendant if the defendant took affirmative steps to shield                 

16  himself or herself from the relevant information.                           

17  <<(9)>>  (7) Any All of the following apply to any fine or other           

18  award ordered paid pursuant to this section:  shall do both of              

19  the following:

20      (a)  Be The fine or award shall be payable to the state of                 

21  Michigan.  and

22  (b) The fine or award shall be credited to the general fund                 

23  if the fine or award was recovered in a civil action.  However,             

24  up to $10,000.00 annually of civil fines collected under this               

25  Section shall be available for the payment of awards under                  

26  Section 3115b.                                                              

27      (c)  (b) Constitute The fine or award constitutes a lien on                

Senate Bill No. 46, as amended October 8, 2003                              

1   any property, of any nature or kind, owned by the defendant.                

2   <<(10)>>  (8)  A lien under subsection  (7)(b) <<(9)(c)>> shall take       

3   effect and have priority over all other liens and encumbrances              

4   except those filed or recorded prior to the date of judgment, but

5   only if notice of the lien under subsection <<(9)(c)>> is filed or          

6   recorded as required by state or federal law.                               

7   <<(11)>>  (9)  A lien filed or recorded pursuant to subsection              

8   (8) <<(10)>> shall be terminated according to the procedures              

9   required by state or federal law within 14 days after the fine or           

10  other award ordered to be paid is paid.                                     

11  <<(12)>>  (10)  In addition to any other method of collection,              

12  any fine or other award ordered paid may be recovered by right of           

13  setoff to any debt owed to the defendant by the state of                    

14  Michigan, including the right to a refund of income taxes paid.             

15  <<(13)>> As used in this section, "catastrophic discharge" means            

16  any intentional or grossly negligent spilling, leaking, pumping,            

17  pouring, emitting, emptying, releasing, injecting, escaping,                

18  leaching, dumping, or disposing of a substance to waters of the             

19  state that causes a serious impairment to natural resources or to           

20  the public health, safety, or welfare or that would have caused a           

21  serious impairment to natural resources or to the public health,            

22  safety, or welfare but for some extraordinary intervention.

23      Enacting section 1.  This amendatory act does not take                      

24  effect unless Senate Bill No. 568 of the 92nd Legislature is                

25  enacted into law.