Michigan 2023-2024 Regular Session

Michigan House Bill HB4598

Introduced
5/18/23  

Caption

Probate: powers of attorney; reference to powers of attorney in natural resources and environmental protection act; revise to reflect adoption of uniform power of attorney act. Amends sec. 20101b of 1994 PA 451 (MCL 324.20101b). TIE BAR WITH: HB 4597'23

Impact

The impact of HB4598 would be significant as it changes how fiduciaries and lenders engage with properties that may harbor environmental liabilities. By clarifying that these parties are not personally responsible as owners or operators, the bill attempts to alleviate the potential financial burden that could arise from hazardous issues. This could lead to increased willingness among lenders to take on properties which, while environmentally burdened, could now be brought back into use without the fear of personal liability for past contamination.

Summary

House Bill 4598 seeks to amend the Natural Resources and Environmental Protection Act as established by the Public Act 451 of 1994. This amendment specifically introduces alterations to section 20101b, relating to the liability of lenders and fiduciaries concerning properties they have not managed prior to assuming control. The primary goal of the bill is to ensure that lenders, who take on properties in a fiduciary capacity, are not held personally liable for environmental issues associated with those properties, especially if they did not manage them before assuming control.

Conclusion

Overall, while House Bill 4598 aims to provide clarity and protection for fiduciaries involved in property management, it raises important questions about environmental accountability and the potential long-term implications for public health and safety. The dialogue surrounding this bill reflects ongoing tensions between economic development perspectives and environmental protection considerations.

Contention

Notably, there is potential contention surrounding the implementation of HB4598. Critics may express concerns that by shielding fiduciaries from liability, the bill could reduce the incentives for proper environmental oversight and remediation of polluted sites. Opponents might argue that such protections could lead to negligence, allowing hazardous conditions to persist without accountability. On the other hand, proponents view this as a necessary measure to foster economic activity and property use, stating that it encourages responsible management of properties that might otherwise remain dormant due to fear of litigation.

Companion Bills

MI HB4597

Same As Probate: powers of attorney; uniform power of attorney act; create. Creates new act & repeals secs. 5501 - 5505 of 1998 PA 386 (MCL 700.5501 - 700.5505). TIE BAR WITH: HB 4598'23, HB 4599'23

Similar Bills

MI HB4645

Probate: powers of attorney; reference to powers of attorney in natural resources and environmental protection act; revise to reflect adoption of uniform power of attorney act. Amends sec. 20101b of 1994 PA 451 (MCL 324.20101b). TIE BAR WITH: HB 4644'23

CA SB522

Uniform Fiduciary Income and Principal Act.

CA SB1159

Uniform Fiduciary Income and Principal Act.

CA SB909

Uniform Trust Decanting Act.

TX HB2428

Relating to the adoption of the Texas Uniform Disclaimer of Property Interests Act.

TX SB994

Relating to the adoption of the Texas Uniform Disclaimer of Property Interests Act.

DC B25-0224

Uniform Trust Decanting Act of 2023

MA S1112

Establishing the Massachusetts Uniform Trust Decanting Act