May 8, 2014, Introduced by Reps. Townsend, Nesbitt, Dianda and Yonker and referred to the Committee on Energy and Technology.
A bill to amend 1969 PA 165, entitled
"An act to authorize the public service commission to establish and
enforce gas safety standards; and to provide penalties for
violations thereof,"
by amending sections 4, 9, and 11 (MCL 483.154, 483.159, and
483.161), section 11 as amended by 1992 PA 11.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. Any person who engages in the transportation of gas or
who
owns or operates pipeline facilities shall file do both of the
following:
(a) File with the commission a plan for inspection and
maintenance of each pipeline facility owned or operated by the
person and any changes in the plan, in accordance with rules
prescribed by the commission. If at any time the commission finds
that the plan is inadequate to achieve pipeline safety, after
notice and opportunity for a hearing, it shall require the plan to
be revised. In determining the adequacy of any plan the commission
shall consider:
(i) (a)
Relevant available pipeline safety
data.
(ii) (b)
Whether the plan is appropriate for
the particular
type of pipeline transportation.
(iii) (c)
The extent to which such plan will
contribute to the
public safety.
(b) Communicate annually with county and local emergency
management coordinators in the local units of government where the
person's pipeline facilities are located to review the person's
public education program under 49 CFR 192.616.
Sec. 9. (1) The commission may conduct research, testing,
development, and training necessary to carry out the provisions of
this act.
(2) Upon request, the commission shall furnish to the federal
department
of transportation any information it the commission has
concerning the safety of any materials, operations, devices, or
processes relating to the transportation of gas or the operation of
pipeline facilities.
(3) The commission is authorized to advise, assist, and
cooperate with other state departments and agencies and other
interested public and private agencies and persons, in the planning
and development of safety standards, and methods for inspecting and
testing to determine compliance with safety standards.
(4) The commission shall post on the commission's website the
report the commission is required to submit under 49 USC 60105. The
commission shall not post any state employee information required
by federal law with that report.
Sec. 11. (1) A person who violates this act or a rule
promulgated
under this act is subject to a an
administrative fine
of
not more than $10,000.00 $20,000.00
for each violation for each
day
that the violation persists, except that the maximum civil
penalty
administrative fine shall not exceed $500,000.00
$800,000.00 for any related series of violations.
(2) Before issuing a fine under this section, the commission
shall do both of the following:
(a) Provide notice of a probable violation and proposed fine
to the person that the commission concludes has committed a
probable violation of this act or a rule promulgated under this
act.
(b) Provide an opportunity to the person that has received a
notice of probable violation to informally discuss the probable
violation and the proposed fine on a mutually agreeable date. After
a meeting held under this subdivision, 1 of the following may
occur:
(i) The commission may adjust the commission's initial
recommendation to reduce or eliminate the probable violation and
decrease or eliminate the proposed fine.
(ii) The commission and the person that has received a notice
of probable violation may mutually agree on an adjustment to the
probable violation and fine.
(iii) The probable violation and fine remain unchanged.
(3) A person that has received the notice of probable
violation under subsection (2) may file a petition for review with
the commission to initiate a formal proceeding in accordance with
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
(4) (2)
In determining the amount of the administrative fine
under subsection (1), the commission shall consider all of the
following:
(a) The effect on the ability of the person charged to
continue in business.
(b) The nature, circumstances, and gravity of the violation.
(c)
Any good-faith effort by the person charged to comply
with
the requirements of this act.
(d)
The degree of culpability of the person. charged.
(e)
The history of prior violations of the person. charged.
(f)
The ability of the person charged to pay.
(g) Other matters as justice may require.
(5) (3)
The amount of the penalty
stipulated administrative
fine assessed under this section may be deducted from a sum the
state
owes the person charged responsible
for the violation or may
be recovered in a civil action in the Ingham county circuit court.
(6) (4)
A person who willfully and
knowingly defaces, damages,
removes, or destroys a pipeline sign or right-of-way marker
required by this act is guilty of a misdemeanor punishable by
imprisonment for not more than 1 year, or by a fine of not more
than $5,000.00, or both, for each offense.