SB-0510, As Passed Senate, June 18, 2003                                    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           SENATE BILL NO. 510                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1994 PA 451, entitled                                             

                                                                                

    "Natural resources and environmental protection act,"                       

                                                                                

    by amending sections 3118 and 3119 (MCL 324.3118 and 324.3119),             

                                                                                

    section 3118 as amended by 1999 PA 35 and section 3119 as amended           

                                                                                

    by 1999 PA 106.                                                             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3118.  (1) Until October 1,  2003  2007, the department                

                                                                                

2   shall collect storm water discharge fees from persons who apply             

                                                                                

3   for or have been issued storm water discharge permits as                    

                                                                                

4   follows:                                                                    

                                                                                

5       (a)  The  A 1-time fee of $400.00 is required for a permit                  

                                                                                

6   related solely to a site of construction activity  is a 1-time              

                                                                                

7   fee of $125.00 per  for each permitted site.  The fee shall be              

                                                                                

8   submitted by the permit applicant with his or her application for           

                                                                                

9   a general or  an individual permit or for a certificate of                 

                                                                                


                                                                                

1   coverage under a general permit If rules promulgated under               

                                                                                

2   this part provide for  For a permit by rule, the fee shall be               

                                                                                

3   submitted by the construction site permittee along with his or              

                                                                                

4   her notice of coverage.  A person needing more than 1 permit may            

                                                                                

5   submit a single payment for more than 1 permit and receive                  

                                                                                

6   appropriate credit.  Payment of the fee under this subdivision or           

                                                                                

7   verification of prepayment is a necessary part of a valid permit            

                                                                                

8   application or notice of coverage under a permit by rule.                   

                                                                                

9       (b)  The fee for a permit not related solely to a site of                   

                                                                                

10  construction activity is $200.00.  For each fiscal year, a person           

                                                                                

11  possessing a permit not related solely to a site of construction            

                                                                                

12  activity as of January 1 of that fiscal year shall be assessed              

                                                                                

13  the fee.  The department shall notify those persons of their fee            

                                                                                

14  assessments by February 1 of that fiscal year.  Payment shall be            

                                                                                

15  postmarked no later than March 15 of that fiscal year.  An annual           

                                                                                

16  fee of $260.00 is required for a permit related solely to a storm           

                                                                                

17  water discharge associated with industrial activity or from a               

                                                                                

18  commercial site for which the department determines a permit is             

                                                                                

19  needed.                                                                     

                                                                                

20      (c) An annual fee of $500.00 is required for a permit for a                 

                                                                                

21  municipal separate storm sewer system, unless the permit is                 

                                                                                

22  issued to a city, a village, a township, or a county or is a                

                                                                                

23  single permit authorization for municipal separate storm sewer              

                                                                                

24  systems in multiple locations statewide.                                    

                                                                                

25      (d) An annual fee for a permit for a municipal separate storm               

                                                                                

26  sewer system issued to a city, village, or township shall be                

                                                                                

27  determined by its population in an urbanized area as defined by             


                                                                                

1   the United States bureau of the census.  The fee shall be based             

                                                                                

2   on the latest available decennial census as follows:                        

                                                                                

3                                                                                (i) For a population of 1,000 people or fewer, the annual fee                       

                                                                                

4   is $500.00.                                                                 

                                                                                

5       (ii) For a population of more than 1,000 people, but fewer                   

                                                                                

6   than 3,001 people, the annual fee is $1,000.00.                             

                                                                                

7       (iii) For a population of more than 3,000 people, but fewer                  

                                                                                

8   than 10,001 people, the annual fee is $2,000.00.                            

                                                                                

9       (iv) For a population of more than 10,000 people, but fewer                  

                                                                                

10  than 30,001 people, the annual fee is $3,000.00.                            

                                                                                

11      (v) For a population of more than 30,000 people, but fewer                  

                                                                                

12  than 50,001 people, the annual fee is $4,000.00.                            

                                                                                

13      (vi) For a population of more than 50,000 people, but fewer                  

                                                                                

14  than 75,001 people, the annual fee is $5,000.00.                            

                                                                                

15      (vii) For a population of more than 75,000 people, but fewer                 

                                                                                

16  than 100,001 people, the annual fee is $6,000.00.                           

                                                                                

17      (viii) For a population of more than 100,000 people, the                      

                                                                                

18  annual fee is $7,000.00.                                                    

                                                                                

19      (e) An annual fee of $3,000.00 is required for a permit for a               

                                                                                

20  municipal separate storm sewer system issued to a county.                   

                                                                                

21      (f) An annual fee for a single municipal separate storm sewer               

                                                                                

22  systems permit authorizing a state or federal agency to operate             

                                                                                

23  municipal separate storm sewer systems in multiple locations                

                                                                                

24  statewide shall be determined in accordance with a memorandum of            

                                                                                

25  understanding between that state or federal agency and the                  

                                                                                

26  department and shall be based on the projected needs by the                 

                                                                                

27  department to administer the permit.                                        


                                                                                

1       (2) The permit fees identified in subsection (1) are                        

                                                                                

2   nonrefundable.                                                              

                                                                                

3       (3) A person possessing a permit not related solely to a site               

                                                                                

4   of construction activity as of January 1 shall be assessed a                

                                                                                

5   fee.  The department shall notify those persons of their fee                

                                                                                

6   assessments by February 1.  Payment shall be postmarked no later            

                                                                                

7   than March 15.  Failure by the department to send a fee                     

                                                                                

8   assessment notification by the deadline, or failure of a person             

                                                                                

9   to receive a fee assessment notification, does not relieve that             

                                                                                

10  person of his or her obligation to pay the fee.  If the                     

                                                                                

11  department does not meet the February deadline for sending the              

                                                                                

12  fee assessment, the fee assessment is due not later than 45 days            

                                                                                

13  after receiving a fee notification.                                         

                                                                                

14      (4)  (2)  The department shall assess interest on all fee                   

                                                                                

15  payments submitted under this section after the due date.  The              

                                                                                

16  permittee shall pay an additional amount equal to 0.75% of the              

                                                                                

17  payment due for each month or portion of a month the payment                

                                                                                

18  remains past due.                                                           

                                                                                

19      (5)  (3)  The department shall forward all fees and interest                

                                                                                

20  payments collected under this section to the state treasurer for            

                                                                                

21  deposit into the fund.                                                      

                                                                                

22      (6)  (4)  The department shall make payment of the required                 

                                                                                

23  fee assessed under this section a condition of issuance or                  

                                                                                

24  reissuance of a permit not related solely to a site of                      

                                                                                

25  construction activity.  at the time of permit issuance or                   

                                                                                

26  reissuance.                                                                 

                                                                                

27      (5) If a person fails to pay the fee required under this                    


                                                                                

1   section in full, plus any interest accrued, by October 1 of the             

                                                                                

2   year following the date of notification of the fee assessment,              

                                                                                

3   the department may revoke the permit held by that person.  The              

                                                                                

4   failure by a person to pay a fee imposed by this section is a               

                                                                                

5   violation of this part and subjects that person to the penalty              

                                                                                

6   provisions in section 3115.                                                 

                                                                                

7       (6) Within 1 year after the reauthorization of the clean                    

                                                                                

8   water act, the department shall convene a committee to review the           

                                                                                

9   storm water discharge fee system provided in this section.  The             

                                                                                

10  committee shall be composed of a member of the department and               

                                                                                

11  representatives of groups affected by the storm water discharge             

                                                                                

12  fee.  The committee shall make recommendations for changes in the           

                                                                                

13  fee system to the department and to the chairpersons of the house           

                                                                                

14  and senate appropriations committees.                                       

                                                                                

15      (7) In addition to any other penalty provided in this part,                 

                                                                                

16  if a person fails to pay the fee required under this section by             

                                                                                

17  its due date, the person is in violation of this part and the               

                                                                                

18  department may undertake enforcement actions as authorized under            

                                                                                

19  this part.  Additionally, the department may immediately suspend            

                                                                                

20  or revoke the person's permit in accordance with the                        

                                                                                

21  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to           

                                                                                

22  24.328.                                                                     

                                                                                

23      (8) If a permit is revoked under subsection (7), the person                 

                                                                                

24  is not eligible for a new permit before 3 years from the                    

                                                                                

25  effective date of the revocation.  The fee for obtaining a new              

                                                                                

26  permit following the revocation period is $500.00.  This fee is             

                                                                                

27  in addition to the annual fee assessment.                                   


                                                                                

1       (9) If the permit is for a municipal separate storm sewer                   

                                                                                

2   system and the population served by that system is different than           

                                                                                

3   the latest decennial census, the permittee may appeal the annual            

                                                                                

4   fee determination and submit written verification of actual                 

                                                                                

5   population served by the municipal separate storm sewer system.             

                                                                                

6       (10) A person who wishes to appeal either a fee or a penalty                

                                                                                

7   assessed under this section is limited to an administrative                 

                                                                                

8   appeal, in accordance with section 631 of the revised judicature            

                                                                                

9   act of 1961, 1961 PA 236, MCL 600.631.  The appeal shall be filed           

                                                                                

10  within 30 days of the department's fee notification under                   

                                                                                

11  subsection (3).                                                             

                                                                                

12      (11)  (7)  As used in this section and section 3119:                        

                                                                                

13      (a) "Certificate of coverage" means a document issued by the                

                                                                                

14  department that authorizes a discharge under a general permit.              

                                                                                

15      (b)  (a)  "Clean water act" means the federal water pollution               

                                                                                

16  control act, chapter 758, 86 Stat. 816, 33 U.S.C. 1251 to 1252,             

                                                                                

17  1253 to 1254, 1255 to 1257, 1258 to 1263, 1265 to 1270, 1273 to             

                                                                                

18  1274, 1281, 1282 to 1293, 1294 to  1299  1301, 1311 to 1313, 1314           

                                                                                

19  to 1330, 1341 to  1345  1346, 1361 to 1375, 1376 to 1377, and               

                                                                                

20  1381 to 1387.                                                               

                                                                                

21      (c)  (b)  "Construction activity" means a human-made earth                  

                                                                                

22  change or disturbance in the existing cover or topography of land           

                                                                                

23  that is 5 acres or more in size, for which a national permit is             

                                                                                

24  required pursuant to 40 C.F.R. 122.26(a), and which is described            

                                                                                

25  as a construction activity in 40 C.F.R. 122.26(b)(14)(x).                   

                                                                                

26  Construction activity includes clearing, grading, and excavating            

                                                                                

27  activities.  Construction activity does not include the practice            


                                                                                

1   of clearing, plowing, tilling soil, and harvesting for the                  

                                                                                

2   purpose of crop production.                                                 

                                                                                

3       (d)  (c)  "Fee" means a storm water discharge fee authorized                

                                                                                

4   under this section.                                                         

                                                                                

5       (d) "Fiscal year" means the state fiscal year beginning                     

                                                                                

6   October 1 and ending September 30.                                          

                                                                                

7       (e) "Fund" means the storm water fund created in section                    

                                                                                

8   3119.                                                                       

                                                                                

9       (f) "General permit" means a permit issued authorizing a                    

                                                                                

10  category of similar discharges.                                             

                                                                                

11      (g) "Individual permit" means a site-specific permit.                       

                                                                                

12      (h) "Municipal separate storm sewer system" means all                       

                                                                                

13  separate storm sewers that are owned or operated by the United              

                                                                                

14  States or a state, city, village, township, county, district,               

                                                                                

15  association, or other public body created by or pursuant to state           

                                                                                

16  law, having jurisdiction over disposal of sewage, industrial                

                                                                                

17  wastes, storm water, or other wastes, including special districts           

                                                                                

18  under state law, such as a sewer district, flood control                    

                                                                                

19  district, or drainage district or similar entity, or a designated           

                                                                                

20  or approved management agency under section 208 of the clean                

                                                                                

21  water act, 33 U.S.C. 1288, that discharges to waters of the                 

                                                                                

22  state.  Municipal separate storm sewer system includes systems              

                                                                                

23  similar to separate storm sewer systems in municipalities, such             

                                                                                

24  as systems at military bases, large hospital or prison complexes,           

                                                                                

25  and highways and other thoroughfares.  Municipal separate storm             

                                                                                

26  sewer system does not include separate storm sewers in very                 

                                                                                

27  discrete areas, such as individual buildings.                               


                                                                                

1       (i) "Notice of coverage" means a notice that a person                       

                                                                                

2   engaging in construction activity agrees to comply with a permit            

                                                                                

3   by rule for that activity.                                                  

                                                                                

4       (j)  (f)  "Permit" or "storm water discharge permit" means a                

                                                                                

5   permit authorizing the discharge of wastewater or any other                 

                                                                                

6   substance to surface waters of the state under the national                 

                                                                                

7   pollutant discharge elimination system, pursuant to the clean               

                                                                                

8   water act or this part and the rules and regulations promulgated            

                                                                                

9   under that act or this part.                                                

                                                                                

10      (k) "Public body" means the United States, the state of                     

                                                                                

11  Michigan, a city, village, township, county, school district,               

                                                                                

12  public college or university, or single purpose governmental                

                                                                                

13  agency, or any other body which is created by federal or state              

                                                                                

14  statute or law.                                                             

                                                                                

15                                                                               (l) "Separate storm sewer system" means a system of drainage,                       

                                                                                

16  including, but not limited to, roads, catch basins, curbs,                  

                                                                                

17  gutters, parking lots, ditches, conduits, pumping devices, or               

                                                                                

18  man-made channels, which has the following characteristics:                 

                                                                                

19                                                                               (i) The system is not a combined sewer where storm water                            

                                                                                

20  mixes with sanitary wastes.                                                 

                                                                                

21      (ii) The system is not part of a publicly owned treatment                    

                                                                                

22  works.                                                                      

                                                                                

23      (m)  (g)  "Storm water" means storm water runoff, snowmelt                  

                                                                                

24  runoff, and surface runoff and drainage.                                    

                                                                                

25      (n) "Storm water discharge associated with industrial                       

                                                                                

26  activity" means a point source discharge of storm water from a              

                                                                                

27  facility which is defined as an industrial activity under 40                


                                                                                

1   C.F.R. 122.26(b)(14)(i-ix and xi).                                          

                                                                                

2       Sec. 3119.  (1) The storm water fund is created within the                  

                                                                                

3   state treasury.                                                             

                                                                                

4       (2) The state treasurer may receive money or other assets                   

                                                                                

5   from any source for deposit into the fund.  The state treasurer             

                                                                                

6   shall direct the investment of the fund.  The state treasurer               

                                                                                

7   shall credit to the fund interest and earnings from fund                    

                                                                                

8   investments.                                                                

                                                                                

9       (3) Money in the fund at the close of the fiscal year shall                 

                                                                                

10  remain in the fund and shall not lapse to the general fund.                 

                                                                                

11      (4) The department shall expend money from the fund, upon                   

                                                                                

12  appropriation, only for 1 or more of the following purposes:                

                                                                                

13      (a) Review of storm water permit applications.                              

                                                                                

14      (b) Storm water permit development, issuance, reissuance,                   

                                                                                

15  modification, and termination.                                              

                                                                                

16      (c) Surface water monitoring to support the storm water                     

                                                                                

17  permitting process.                                                         

                                                                                

18      (d) Assessment of compliance with storm water permit                        

                                                                                

19  conditions.                                                                 

                                                                                

20      (e) Enforcement against storm water permit violations.                      

                                                                                

21      (f) Classification of storm water control facilities.                       

                                                                                

22      (g) Not more than 10% of the money in the fund for training                 

                                                                                

23  for certification of storm water operators and educational                  

                                                                                

24  material to assist persons regulated under this part.                       

                                                                                

25      (h) Regional or statewide public education to enhance the                   

                                                                                

26  effectiveness of storm water permits.                                       

                                                                                

27      (5) Money in the fund shall not be used to support the direct               


                                                                                

1   costs of litigation undertaken to enforce this part.                        

                                                                                

2       (6) Upon the expenditure or appropriation of money raised in                

                                                                                

3   section 3118 for any other purpose than those specifically listed           

                                                                                

4   in this section, authorization to collect fees under section 3118           

                                                                                

5   shall be suspended until such time as the money expended or                 

                                                                                

6   appropriated for purposes other than those listed in this section           

                                                                                

7   is returned to the fund.                                                    

                                                                                

8       (7) By January 1, 2006 and by January 1 of each year                        

                                                                                

9   thereafter, the department shall prepare and submit to the                  

                                                                                

10  governor, the legislature, the chairs of the standing committees            

                                                                                

11  of the senate and house of representatives with primary                     

                                                                                

12  responsibility for issues related to natural resources and the              

                                                                                

13  environment, and the chairs of the subcommittees of the senate              

                                                                                

14  and house appropriations committees with primary responsibility             

                                                                                

15  for appropriations to the department a report that details the              

                                                                                

16  departmental activities of the previous fiscal year in                      

                                                                                

17  administering the department's storm water program that were                

                                                                                

18  funded by the fund.  This report shall include, at a minimum, all           

                                                                                

19  of the following:                                                           

                                                                                

20      (a) The number of full-time equated positions performing each               

                                                                                

21  of the following functions:                                                 

                                                                                

22                                                                               (i) Permit issuance and development.                                                

                                                                                

23      (ii) Compliance.                                                             

                                                                                

24      (iii) Enforcement.                                                           

                                                                                

25      (b) The number of new permit applications received by the                   

                                                                                

26  department in the preceding year.                                           

                                                                                

27      (c) The number of renewal permits in the preceding year.                    


                                                                                

1       (d) The number of permit modifications requested in the                     

                                                                                

2   preceding year.                                                             

                                                                                

3       (e) The number of staff hours dedicated to each of the fee                  

                                                                                

4   categories listed in section 3118.                                          

                                                                                

5       (f) The number of permits issued for fee categories listed in               

                                                                                

6   section 3118.                                                               

                                                                                

7       (g) The average number of days required for review of a                     

                                                                                

8   permit from the date the permit application is determined to be             

                                                                                

9   administratively complete.                                                  

                                                                                

10      (h) The number of permit applications denied.                               

                                                                                

11      (i) The number of permit applications withdrawn by the                      

                                                                                

12  applicant.                                                                  

                                                                                

13      (j) The percentage and number of permit applications that                   

                                                                                

14  were reviewed for administrative completeness within 10 days of             

                                                                                

15  receipt by the department.                                                  

                                                                                

16      (k) The percentage and number of permit applications                        

                                                                                

17  submitted to the department that were administratively complete             

                                                                                

18  as received.                                                                

                                                                                

19                                                                               (l) The percentage and number of new permit applications for                        

                                                                                

20  which a final action was taken by the department within 180                 

                                                                                

21  days.                                                                       

                                                                                

22      (m) The percentage and number of permit renewals and                        

                                                                                

23  modifications processed within the required time.                           

                                                                                

24      (n) The number of permits reopened by the department.                       

                                                                                

25      (o) The number of unfilled positions dedicated to the                       

                                                                                

26  department's storm water program.                                           

                                                                                

27      (p) The amount of revenue in the fund at the end of the                     


    Senate Bill No. 510 as amended June 18, 2003                                

1    fiscal year.

    <<Enacting section 1. This amendatory act takes effect October 1, 2003.>>