HOUSE BILL No. 5877

 

May 12, 2004, Introduced by Reps. Emmons, Richardville, Shackleton, Palsrok, Stahl, Voorhees, Amos, Taub, LaJoy, Meyer, Garfield, Nitz, DeRoche, Milosch, Pumford, Hummel, Koetje, Steil, Bisbee, Hune, Tabor, Shaffer, DeRossett, Ehardt, Gaffney, Newell, Caswell, Walker, Moolenaar, Acciavatti, Kooiman, Hoogendyk, Huizenga, Caul, Nofs and Sheen and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1984 PA 44, entitled                                              

                                                                                

    "Motor fuels quality act,"                                                  

                                                                                

    by amending sections 6 and 9i (MCL 290.646 and 290.649i), as                

                                                                                

    amended by 2002 PA 13.                                                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 6.  (1) Before a distributor or retail dealer engages                  

                                                                                

2   in transferring, selling, dispensing, or  the  offering for sale            

                                                                                

3   gasoline in this state, the distributor or retail dealer shall              

                                                                                

4   obtain a license from the department for each retail outlet                 

                                                                                

5   operated by that person.  In administering the licensing under              

                                                                                

6   this section, the department may attempt to coordinate  such  the           

                                                                                

7   licensing with the licensing applicable to gasoline administered            

                                                                                

8   by the department of treasury pursuant to the motor fuel tax act,           

                                                                                

9   2000 PA 403, MCL 207.1001 to 207.1170, and the general sales tax            

                                                                                

10  act, 1933 PA 167, MCL 205.51 to 205.78.                                     

                                                                                


                                                                                

1       (2) A license expires annually on November 30 unless renewed                

                                                                                

2   before December 1 of each year or unless suspended, denied, or              

                                                                                

3   revoked by the department.                                                  

                                                                                

4       (3) The fee for a license is $15.00 for each year or portion                

                                                                                

5   of a year through July 31, 2002, $50.00 for each year or portion            

                                                                                

6   of a year through July 31, 2003, $75.00 for each year or portion            

                                                                                

7   of a year through July 31, 2004, and $100.00 beginning August 1,            

                                                                                

8   2004 and each year or portion of a year thereafter.  A license              

                                                                                

9   shall not be issued or renewed until the fee and any                        

                                                                                

10  administrative fines issued under section 10a have been paid.  A            

                                                                                

11  hearing is not required before the refusal to issue or renew a              

                                                                                

12  license under this subsection.  Fees collected shall be deposited           

                                                                                

13  in the gasoline inspection and testing fund.   The department               

                                                                                

14  shall conduct a review of the fee structure provided by this                

                                                                                

15  subsection and the status of the gasoline inspection and testing            

                                                                                

16  fund in the 2003 calendar year and report its recommendations for           

                                                                                

17  any change or adjustment in the fee schedule to the house and               

                                                                                

18  senate transportation committees not later than January 1, 2004.            

                                                                                

19      (4) An application for a license shall be made to the                       

                                                                                

20  department upon a form furnished by the department.  The                    

                                                                                

21  completed form shall contain the information requested by the               

                                                                                

22  department and shall be accompanied by the fee specified in                 

                                                                                

23  subsection (3).                                                             

                                                                                

24      (5) The director may suspend, deny, or revoke a license                     

                                                                                

25  issued pursuant to this act for failure to comply with the                  

                                                                                

26  requirements provided for in section 3, for failure to provide              

                                                                                

27  notice as provided in section 4, for violating section 31 of the            


                                                                                

1   weights and measures act of 1964, 1964 PA 283, MCL 290.631, if              

                                                                                

2   that violation occurs at any of the licensee's retail outlets and           

                                                                                

3   involves the transferring, selling, dispensing, or the offering             

                                                                                

4   for sale of gasoline in this state, or for otherwise failing to             

                                                                                

5   comply with this act or a rule promulgated under this act or an             

                                                                                

6   order issued under this act.                                                

                                                                                

7       (6) This section does not apply until June 29, 1985.                        

                                                                                

8       (7) If a person licensed under this act is convicted of a                   

                                                                                

9   willful violation under section 31 of the weights and measures              

                                                                                

10  act of 1964, 1964 PA 283, MCL 290.631, any license issued                   

                                                                                

11  pursuant to this act shall be revoked for 2 years.                          

                                                                                

12      (8) A suspension, revocation, or denial of a license of a                   

                                                                                

13  person who is an individual shall result in the suspension,                 

                                                                                

14  revocation, or denial of any other license held or applied for by           

                                                                                

15  that individual under this act.  The license of a corporation,              

                                                                                

16  partnership, or other association shall be suspended when a                 

                                                                                

17  license or license application of a partner, trustee, director,             

                                                                                

18  or officer, member, or a person exercising control of the                   

                                                                                

19  corporation, partnership, or other association is suspended,                

                                                                                

20  revoked, or denied.  The suspension shall remain in force until             

                                                                                

21  the director determines that the disability created by the                  

                                                                                

22  suspension, revocation, or denial has been removed.                         

                                                                                

23      (9) Beginning the effective date of the amendatory act that                 

                                                                                

24  added this subsection, the department shall issue an initial or             

                                                                                

25  renewal license not later than 180 days after the applicant files           

                                                                                

26  a completed application.  If the application is considered                  

                                                                                

27  incomplete by the department, the department shall notify the               


                                                                                

1   applicant in writing within 10 days after receipt of the                    

                                                                                

2   incomplete application, describing the deficiency and requesting            

                                                                                

3   the additional information.  The 180-day period is tolled upon              

                                                                                

4   notification by the department of a deficiency until the date all           

                                                                                

5   of the information requested during the 10-day period is received           

                                                                                

6   by the department.  Requests for new or additional information by           

                                                                                

7   the department that fall outside the 10-day period do not toll              

                                                                                

8   the 180-day period.  The department shall not discriminate                  

                                                                                

9   against an applicant in the processing of an application based on           

                                                                                

10  the fact that the application fee was refunded or discounted                

                                                                                

11  under this subsection.                                                      

                                                                                

12      (10) If the department does not issue or deny a license                     

                                                                                

13  within 180 days after the receipt of a completed application, the           

                                                                                

14  department shall return the license fee and shall reduce the                

                                                                                

15  license fee for the applicant's next renewal application, if any,           

                                                                                

16  by 15%.                                                                     

                                                                                

17      (11) Beginning January 31, 2005, the director of the                        

                                                                                

18  department shall submit a report by January 31 of each year to              

                                                                                

19  the standing committees and appropriations subcommittees of the             

                                                                                

20  senate and house of representatives concerned with motor fuel               

                                                                                

21  quality issues.  The director shall include all of the following            

                                                                                

22  information in the report concerning the state calendar year that           

                                                                                

23  ended the preceding December 31:                                            

                                                                                

24      (a) The number of initial and renewal applications the                      

                                                                                

25  department received and completed within the 180-day time period            

                                                                                

26  described in subsection (9).                                                

                                                                                

27      (b) The number of applications requiring a request for                      


                                                                                

1   additional information.                                                     

                                                                                

2       (c) The average time for an applicant to respond to a request               

                                                                                

3   for additional information.                                                 

                                                                                

4       (d) The number of applications rejected, categorized by                     

                                                                                

5   reason for rejection.                                                       

                                                                                

6       (e) The amount of money returned to licensees and registrants               

                                                                                

7   under subsection (10).                                                      

                                                                                

8       (f) The number of applications not issued within the 180-day                

                                                                                

9   period.                                                                     

                                                                                

10      (g) The average processing time for initial and renewal                     

                                                                                

11  licenses and registrations granted after the 180-day period.                

                                                                                

12      (12)  (9)  Before a blender engages in the transferring,                    

                                                                                

13  selling, dispensing, or offering for sale blended gasoline in               

                                                                                

14  this state, the blender shall register the finished product with            

                                                                                

15  the department and provide to the department test results as the            

                                                                                

16  department considers necessary.  If the product does not comply             

                                                                                

17  with the requirements of section 3, the blender shall provide the           

                                                                                

18  department with a written list of the business names and                    

                                                                                

19  addresses to whom the blended product is sold.                              

                                                                                

20      Sec. 9i.  (1) A dispensing facility constructed after                       

                                                                                

21  November 15, 1990  ,  shall obtain a dispensing permit.  The fee            

                                                                                

22  for a dispensing permit is $25.00 for each year or portion of a             

                                                                                

23  year.                                                                       

                                                                                

24      (2) Before a dispensing permit is issued, a dispensing                      

                                                                                

25  facility shall install an approved stage I and, if required,                

                                                                                

26  stage II vapor-recovery system and, in addition to the fee for              

                                                                                

27  the dispensing permit, shall pay a registration fee for each                


                                                                                

1   dispensing unit located at the dispensing facility.  A permit               

                                                                                

2   shall not be issued or renewed until all fees and administrative            

                                                                                

3   fines issued under section 10a are paid.  A hearing shall not be            

                                                                                

4   required before the refusal to issue or renew a permit under this           

                                                                                

5   subsection.                                                                 

                                                                                

6       (3) A dispensing permit expires annually on November 30                     

                                                                                

7   unless renewed before December 1 of each year or unless                     

                                                                                

8   suspended, denied, or revoked by the department.  Application for           

                                                                                

9   a dispensing permit shall be made on a form furnished by the                

                                                                                

10  department.  The completed form shall contain the information               

                                                                                

11  requested by the department and shall be accompanied by the fees            

                                                                                

12  specified.                                                                  

                                                                                

13      (4) The director may suspend, deny, or revoke a dispensing                  

                                                                                

14  permit issued pursuant to this act for failure to pay the fee               

                                                                                

15  required by subsection (1) or (2)  ,  or for failure to comply              

                                                                                

16  with the requirements of sections 9a to 10c.                                

                                                                                

17      (5) A fee shall be charged to the operator of stage I and                   

                                                                                

18  stage II vapor-recovery or gasoline-dispensing equipment for its            

                                                                                

19  inspection if any of the following occur:                                   

                                                                                

20      (a) The inspection is a reinspection of equipment that has                  

                                                                                

21  already been tested and found to contain a substantial defect as            

                                                                                

22  defined under section 9c.                                                   

                                                                                

23      (b) The inspection is performed at the request of the                       

                                                                                

24  operator.                                                                   

                                                                                

25      (6) The department shall establish the fees and expenses for                

                                                                                

26  special services, including the fee for an operator requested               

                                                                                

27  inspection or reinspection, for registrations, for training                 


                                                                                

1   courses, and for accreditation of a trainer, to provide that each           

                                                                                

2   fee is sufficient to cover the cost of an operator requested                

                                                                                

3   inspection, reinspection, registration, training, or trainer                

                                                                                

4   accreditation, respectively, and that the aggregate of all fees             

                                                                                

5   collected is sufficient to pay for all salaries and other                   

                                                                                

6   expenses connected with the activity.  The department shall                 

                                                                                

7   review and adjust the fees at the end of each year and have all             

                                                                                

8   fees approved by the director before they are adopted.  Fees                

                                                                                

9   collected under this section shall be deposited in the gasoline             

                                                                                

10  inspection and testing fund and reserved for conducting the                 

                                                                                

11  vapor-recovery program.                                                     

                                                                                

12      (7) Beginning the effective date of the amendatory act that                 

                                                                                

13  added this subsection, the department shall issue an initial or             

                                                                                

14  renewal permit not later than 180 days after the applicant files            

                                                                                

15  a completed application.  If the application is considered                  

                                                                                

16  incomplete by the department, the department shall notify the               

                                                                                

17  applicant in writing within 10 days after receipt of the                    

                                                                                

18  incomplete application, describing the deficiency and requesting            

                                                                                

19  the additional information.  The 180-day period is tolled upon              

                                                                                

20  notification by the department of a deficiency until the date all           

                                                                                

21  of the information requested during the 10-day period is received           

                                                                                

22  by the department.  Requests for new or additional information by           

                                                                                

23  the department that fall outside the initial 10-day period do not           

                                                                                

24  toll the 180-day period.  The department shall not discriminate             

                                                                                

25  against an applicant in the processing of an application based on           

                                                                                

26  the fact that the application fee was refunded or discounted                

                                                                                

27  under this subsection.                                                      


                                                                                

1       (8) If the department does not issue or deny a permit within                

                                                                                

2   180 days after the receipt of a completed application, the                  

                                                                                

3   department shall return the permit fee and shall reduce the                 

                                                                                

4   permit fee for the applicant's next renewal application, if any,            

                                                                                

5   by 15%.                                                                     

                                                                                

6       (9) Beginning January 31, 2005, the director of the                         

                                                                                

7   department shall submit a report by January 31 of each year to              

                                                                                

8   the standing committees and appropriations subcommittees of the             

                                                                                

9   senate and house of representatives concerned with motor fuel               

                                                                                

10  quality issues.  The director shall include all of the following            

                                                                                

11  information in the report concerning the state calendar year that           

                                                                                

12  ended the preceding December 31:                                            

                                                                                

13      (a) The number of initial and renewal applications the                      

                                                                                

14  department received and completed within the 180-day time period            

                                                                                

15  described in subsection (7).                                                

                                                                                

16      (b) The number of applications requiring a request for                      

                                                                                

17  additional information.                                                     

                                                                                

18      (c) The average time for an applicant to respond to a request               

                                                                                

19  for additional information.                                                 

                                                                                

20      (d) The number of applications rejected, categorized by                     

                                                                                

21  reason for rejection.                                                       

                                                                                

22      (e) The amount of money returned to licensees and registrants               

                                                                                

23  under subsection (8).                                                       

                                                                                

24      (f) The number of applications not issued within the 180-day                

                                                                                

25  period.                                                                     

                                                                                

26      (g) The average processing time for initial and renewal                     

                                                                                

27  permits and registrations granted after the 180-day period.