LIMIT LIABILITY FOR PROPANE RETAILERS

House Bill 5994

Sponsor:  Rep. Michael Sak

Committee:  Judiciary

Complete to 6-20-08

A SUMMARY OF HOUSE BILL 5994 AS INTRODUCED 4-16-08

The bill would add a new section to the Revised Judicature Act (MCL 600.2977) to limit an action for damages for personal injury, death, or property damage against a person engaged in the liquefied petroleum gas (LPG or propane) business.  The bill would take effect July 1, 2009.

In cases where propane gas equipment or a propane appliance was altered, modified, or repaired, an action could not be brought against a person engaged in the propane business unless the alteration, modification, or repair had been made with the knowledge and consent of the propane retailer.

Similarly, an action to recover damages could not be begun against a propane retailer if the injury, death, or property damage was from the use of propane equipment or appliance in a manner or for a purpose other than that for which it was intended.  An action could go forward if the use could reasonably have been expected by the person engaged in the propane business.

FISCAL IMPACT:

To the extent that House Bill 5994 reduces the number of claims for damages, it would have a positive fiscal impact on the judiciary through a reduction in caseloads.  

                                                                                           Legislative Analyst:   Susan Stutzky

                                                                                                  Fiscal Analyst:   Ben Gielczyk

                                                                                                                           Bethany Wicksall

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.