Bill Summary – FastDemocracy

HOUSE BILL NO. 5200
     October 24, 2023, Introduced by Reps. Liberati, Tsernoglou, Hope, Byrnes, Rheingans, Hood,
       Price, Morgan, Steckloff, McFall, MacDonell, Hill, Wilson and Breen and referred to the
       Committee on Regulatory Reform.
          A bill to amend 1976 PA 331, entitled
    "Michigan consumer protection act,"
    by amending section 15 (MCL 445.915) and by adding section 8a.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 8a. (1) If the attorney general or a prosecuting attorney
 has reasonable cause to believe that a person has information or is
 in possession, custody, or control of any documentary material or
 tangible object that is relevant to an investigation of a violation
 of this act, the attorney general, or a prosecuting attorney with
    KNC                                                                              H02680'23
                                         2
 the permission of the attorney general or at the request of the
 attorney general, may, before bringing any action under this act,
 serve the person with a written demand to do any of the following
 or a combination of any of the following:
       (a) Appear and be examined under oath.
       (b) Answer interrogatories.
       (c) Produce any documentary material or tangible object for
 inspection and copying.
       (2) A demand must contain all of the following:
       (a) A description of the conduct constituting the violation of
 this act being investigated by the attorney general or the
 prosecuting attorney.
       (b) A summary of subsections (3) and (4).
       (c) If the demand requires the appearance of the person, the
 demand must also include all of the following:
       (i) A reasonable time and place for the appearance.
       (ii) A notice that the person may file an objection to or
 reason for not complying with the demand with the serving entity on
 or before the time described in subparagraph (i).
       (d) If the demand requires written interrogatories, the demand
 must also include all of the following:
       (i) A copy of the written interrogatories.
       (ii) A reasonable time within which the person must answer the
 written interrogatories.
       (iii) A notice that the person may file an objection to or
 reason for not complying with the demand with the serving entity on
 or before the time described in subparagraph (ii).
       (e) If the demand requires the production of any documentary
 material or tangible object, the demand must also include all of
     KNC                                                          H02680'23
                                        3
 the following:
       (i) A description of the documentary material or tangible
 object with sufficient definiteness to permit the documentary
 material or tangible object to be fairly identified by the person.
       (ii) A reasonable time and place for production of the
 documentary material or tangible object.
       (iii) A notice that the person may file an objection to or
 reason for not complying with the demand with the serving entity on
 or before the time described in subparagraph (ii).
       (iv) The name of the person that will be the custodian of the
 documentary material or tangible object.
       (3) At any time before the return date or within 10 days after
 receiving the demand, whichever is earlier, a person subject to the
 demand may petition the circuit court of Ingham County for a
 protective order to do any of the following:
       (a) Extend the return date for a reasonable time.
       (b) Modify the demand.
       (c) Set aside the demand.
       (4) If a person files a petition under subsection (3), the
 person must give the serving entity at least 10 days' notice of any
 hearing on the petition and the serving entity must be given an
 opportunity to respond to the petition.
       (5) If a person does not secure a protective order under
 subsection (3) and the person does not comply with the demand by
 the return date, the serving entity, upon notice to the person, may
 apply to a court of competent jurisdiction for an order compelling
 the person's compliance with the demand.
       (6) If the court contemplating the order under subsection (5)
 finds that there is reasonable cause to believe that this act is
     KNC                                                            H02680'23
                                       4
 being, has been, or is about to be violated, that the person
 subject to the demand is the person that is committing, has
 committed, or is about to commit the violation or is the person
 that possesses information, documentary material, or a tangible
 object that is relevant to the investigation by the attorney
 general or prosecuting attorney, that the person has left the state
 or is about to leave the state, and that the order is necessary for
 the enforcement of this act, the court may do either or both of the
 following:
       (a) Require the person to comply with the demand.
       (b) Forbid the removal, concealment, withholding, destruction,
 mutilation, falsification, or alteration of any document or
 tangible object that is in the possession, custody, or control of
 the person.
       (7) A person subject to a demand or court order under this
 section, that with the intent to avoid, evade, or prevent
 compliance with the demand or order, in whole or in part, removes,
 conceals, withholds, destroys, mutilates, falsifies, or by any
 other means alters any documentary material or tangible object in
 the possession, custody, or control of the person may be ordered to
 pay a civil fine of not more than $10,000.00.
       (8) Except as otherwise provided in subsection (9), any
 testimony, answer, documentary material, or tangible object
 received by the attorney general or a prosecuting attorney in
 accordance with a demand or order under this section is
 confidential and not subject to disclosure until the time that an
 enforcement action is brought by the attorney general or
 prosecuting attorney under this act.
       (9) The attorney general or a prosecuting attorney may
     KNC                                                         H02680'23
                                          5
 disclose any testimony, answer, document, or tangible object
 described in subsection (8) in any of the following circumstances:
       (a) To a law enforcement official.
       (b) As the attorney general or a prosecuting attorney
 considers necessary to enforce this act.
       (c) If ordered by a court.
       (d) If the confidentiality requirements described in
 subsection (8) are waived by both of the following:
       (i) The person subject to the demand.
       (ii) The person being investigated by the attorney general or
 prosecuting attorney.
       (10) As used in this section:
       (a) "Demand" means a demand under subsection (1).
       (b) "Return date" means the date specified in subsection
 (2)(c)(ii), (d)(iii), or (e)(iii).
       (c) "Serving entity" means the attorney general or prosecuting
 attorney that served the demand.
       Sec. 15. A Except as otherwise provided in section 8a, a
 prosecuting attorney may conduct an investigation pursuant to under
 this act and may institute and prosecute an action under this act
 in the same manner as the attorney general.
     KNC                              Final Page                   H02680'23
Statutes affected: 
House Introduced Bill: 445.915