SENATE BILL No. 510

 

 

May 21, 2003, Introduced by Senator LELAND and referred to the Committee on Natural Resources and Environmental Affairs.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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, the  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 operator of the           

                                                                                

22  system is a city, a village, a township, or a county or if the              

                                                                                

23  operator has a single permit authorization for municipal separate           

                                                                                

24  storm sewer systems in multiple locations statewide.                        

                                                                                

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

                                                                                

26  sewer system operated by 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 operated by 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.                                      

                                                                                

10      (11)  (7)  As used in this section and section 3119:                        

                                                                                

11      (a) "Clean water act" means the federal water pollution                     

                                                                                

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

                                                                                

13  1253 to 1254, 1255 to 1257, 1258 to 1263, 1265 to 1270, 1273 to             

                                                                                

14  1274, 1281, 1282 to 1293, 1294 to  1299  1301, 1311 to 1313, 1314           

                                                                                

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

                                                                                

16  1381 to 1387.                                                               

                                                                                

17      (b) "Construction activity" means a human-made earth change                 

                                                                                

18  or disturbance in the existing cover or topography of land that             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

22  Construction activity includes clearing, grading, and excavating            

                                                                                

23  activities.  Construction activity does not include the practice            

                                                                                

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

                                                                                

25  purpose of crop production.                                                 

                                                                                

26      (c) "Fee" means a storm water discharge fee authorized under                

                                                                                

27  this section.                                                               


                                                                                

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

                                                                                

2   October 1 and ending September 30.                                          

                                                                                

3       (d)  (e)  "Fund" means the storm water fund created in                      

                                                                                

4   section 3119.                                                               

                                                                                

5       (e) "General permit" means a permit issued authorizing a                    

                                                                                

6   category of similar discharges.                                             

                                                                                

7       (f) "Individual permit" means a site-specific permit.                       

                                                                                

8       (g) "Municipal separate storm sewer system" means all                       

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

12  law, having jurisdiction over disposal of sewage, industrial                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  or approved management agency under section 208 of the clean                

                                                                                

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

                                                                                

18  state.  Municipal separate storm sewer system includes systems              

                                                                                

19  similar to separate storm sewer systems in municipalities, such             

                                                                                

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

                                                                                

21  and highways and other thoroughfares.  Municipal separate storm             

                                                                                

22  sewer system does not include separate storm sewers in very                 

                                                                                

23  discrete areas, such as individual buildings.                               

                                                                                

24      (h) "Notice of coverage" means a notice that a person                       

                                                                                

25  engaging in construction activity agrees to comply with a permit            

                                                                                

26  by rule for that activity.                                                  

                                                                                

27      (i)  (f)  "Permit" or "storm water discharge permit" means a                


                                                                                

1   permit authorizing the discharge of wastewater or any other                 

                                                                                

2   substance to surface waters of the state under the national                 

                                                                                

3   pollutant discharge elimination system, pursuant to the clean               

                                                                                

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

                                                                                

5   under that act or this part.                                                

                                                                                

6       (j) "Public body" means the United States, the state of                     

                                                                                

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

                                                                                

8   public college or university, or single purpose governmental                

                                                                                

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

                                                                                

10  statute or law.                                                             

                                                                                

11      (k) "Separate storm sewer system" means a system of drainage,               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  mixes with sanitary wastes.                                                 

                                                                                

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

                                                                                

18  works.                                                                      

                                                                                

19                                                                               (l)  (g)  "Storm water" means storm water runoff, snowmelt                           

                                                                                

20  runoff, and surface runoff and drainage.                                    

                                                                                

21      (m) "Storm water discharge associated with industrial                       

                                                                                

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

                                                                                

23  facility which is defined as an industrial activity under 40                

                                                                                

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

                                                                                

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

                                                                                

26  state treasury.                                                             

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   shall credit to the fund interest and earnings from fund                    

                                                                                

4   investments.                                                                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9       (a) Review of storm water permit applications.                              

                                                                                

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

                                                                                

11  modification, and termination.                                              

                                                                                

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

                                                                                

13  permitting process.                                                         

                                                                                

14      (d) Assessment of compliance with storm water permit                        

                                                                                

15  conditions.                                                                 

                                                                                

16      (e) Enforcement against storm water permit violations.                      

                                                                                

17      (f) Classification of storm water control facilities.                       

                                                                                

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

                                                                                

19  for certification of storm water operators and educational                  

                                                                                

20  material to assist persons regulated under this part.                       

                                                                                

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

                                                                                

22  effectiveness of storm water permits.                                       

                                                                                

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

                                                                                

24  costs of litigation undertaken to enforce this part.                        

                                                                                

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

                                                                                

26  section 3118 for any other purpose than those specifically listed           

                                                                                

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


                                                                                

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

                                                                                

2   appropriated for purposes other than those listed in this section           

                                                                                

3   is returned to the fund.