SENATE BILL No. 933

 

 

December 13, 2005, Introduced by Senator BIRKHOLZ 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 3701, 3702, 3703, 3705, 3706, 3707, 3708,

 

5901, 5902, 5903, 5905, 5906, 5907, and 5908 (MCL 324.3701,

 

324.3702, 324.3703, 324.3705, 324.3706, 324.3707, 324.3708,

 

324.5901, 324.5902, 324.5903, 324.5905, 324.5906, 324.5907, and

 

324.5908), as added by 1995 PA 60.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3701. As used in this part:

 

     (a) "Certificate" means a water pollution control tax

 

exemption certificate.

 

     (b) "Disposal system" means a system used primarily for

 


disposing of or isolating industrial waste and includes pipelines

 

or conduits, pumping stations and force mains, and all other

 

constructions, devices, appurtenances, and facilities used for

 

collecting or conducting water-borne industrial waste to a point of

 

disposal, treatment, or isolation, except that which is necessary

 

to the manufacture of products.

 

     (c)  (a)  "Facility" means any disposal system, including

 

disposal wells, or any treatment works, appliance, equipment,

 

machinery, or installation constructed, used, or placed in

 

operation primarily for the purpose of reducing, controlling, or

 

eliminating water pollution caused by industrial waste.

 

     (d)  (b)  "Industrial waste" means any liquid, gaseous, or

 

solid waste substance resulting from any process of industry,

 

manufacture, trade, or business, or from the development,

 

processing, or recovery of any paper or wood, which is capable of

 

polluting the waters of the state.

 

     (e)  (c)  "Treatment works" means any plant, pumping station,

 

incinerator, or other works or reservoir used primarily for the

 

purpose of treating, stabilizing, isolating, or holding industrial

 

waste.

 

     (d) "Disposal system" means a system used primarily for

 

disposing of or isolating industrial waste and includes pipelines

 

or conduits, pumping stations and force mains, and all other

 

constructions, devices, appurtenances, and facilities used for

 

collecting or conducting water-borne industrial waste to a point of

 

disposal, treatment, or isolation, except that which is necessary

 

to the manufacture of products.

 


     Sec. 3702. (1) An application for a water pollution control

 

tax exemption certificate shall be filed with the  state tax

 

commission  department in a manner and in a form as prescribed by

 

the  state tax commission  department. The application shall

 

contain plans and specifications of the facility, including all

 

materials incorporated or to be incorporated in the facility and a

 

descriptive list of all equipment acquired or to be acquired by the

 

applicant for the purpose of industrial waste pollution control,

 

together with the proposed operating procedure for the control

 

facility.

 

     (2) Before issuing a certificate, the  state tax commission

 

shall seek approval of the department and  department shall give

 

notice in writing  by certified mail  to the department of treasury

 

and by certified mail to the assessor of the  taxing  local tax

 

collecting unit in which the facility is located or is to be

 

located, and shall afford to the applicant and the assessor an

 

opportunity for a hearing.  Tax  A tax exemption granted under this

 

part shall be reduced to the extent of any commercial or productive

 

value derived from any materials captured or recovered by any

 

facility.

 

     Sec. 3703. If the department finds that the facility is

 

designed and operated primarily for the control, capture, and

 

removal of industrial waste from the water, and is suitable,

 

reasonably adequate, and meets the intent and purposes of part 31,

 

the department shall  notify the state tax commission, which shall  

 

issue a certificate. The effective date of the certificate is the

 

date on which the certificate is issued.

 


     Sec. 3705.  The state tax commission shall send a water

 

pollution control tax exemption certificate, when issued, by

 

certified mail to the applicant, and certified copies by certified

 

mail to the assessor of the taxing unit in which any property to

 

which the certificate relates is located or to be located and to

 

the department of treasury, which copies shall be filed of record

 

in their offices. Notice of the state tax commission's refusal to

 

issue a certificate shall be sent by certified mail to the

 

applicant, to the department of treasury, and to the assessor.

 

     (1) If the department issues a water pollution control tax

 

exemption certificate, the department shall do all of the

 

following:

 

     (a) Send the certificate by certified mail to the applicant.

 

     (b) Send a certified copy of the certificate by certified mail

 

to the assessor of the local tax collecting unit in which any

 

property to which the certificate relates is located or is to be

 

located. The certified copy of the certificate shall be filed or

 

recorded in the office of the assessor.

 

     (c) Send a certified copy of the certificate to the department

 

of treasury.

 

     (2) If the department refuses to issue a water pollution

 

control tax exemption certificate, the department shall send notice

 

of the refusal in writing to the department of treasury and by

 

certified mail to the applicant and to the assessor of the local

 

tax collecting unit in which any property to which the application

 

for the certificate relates is located or is to be located.

 

     Sec. 3706. (1) The  state tax commission  department, on

 


notice by certified mail to the applicant and opportunity for a

 

hearing, shall, on its own initiative or on complaint of  the

 

department, the department of treasury, or  the assessor of the  

 

taxing  local tax collecting unit in which any property to which

 

the certificate relates is located or is to be located,  shall  

 

modify or revoke the certificate if any of the following appear:

 

     (a) The certificate was obtained by fraud or

 

misrepresentation.

 

     (b) The holder of the certificate has failed substantially to

 

proceed with the construction, reconstruction, installation, or

 

acquisition of a facility or to operate the facility for the

 

purpose and degree of control specified in the  certification  

 

certificate or an amended certificate.

 

     (c) The facility covered by the certificate is no longer used

 

for the primary purpose of pollution control and is being used for

 

a different purpose.

 

     (2)  On the mailing by certified mail to the certificate

 

holder, the department of treasury, and the local assessor of

 

notice  After sending notice in writing to the department of

 

treasury and by certified mail to the certificate holder and to the

 

assessor of the action of the  state tax commission  department

 

modifying or revoking a certificate, the  certificates  certificate

 

shall cease to be in force or shall remain in force only as

 

modified. If a certificate is revoked because it was obtained by

 

fraud or misrepresentation, all taxes that would have been payable

 

if a certificate had not been issued are immediately due and

 

payable with the maximum interest and penalties prescribed by

 


applicable law. A statute of limitations shall not operate in the

 

event of fraud or misrepresentation.

 

     Sec. 3707. A party aggrieved by the issuance, refusal to

 

issue, revocation, or modification of a water pollution control tax

 

exemption certificate may appeal from the finding and order of the  

 

state tax commission  department in the manner and form and within

 

the time provided by the administrative procedures act of 1969,  

 

Act No. 306 of the Public Acts of 1969, being sections 24.201 to

 

24.328 of the Michigan Compiled Laws  1969 PA 306, MCL 24.201 to

 

24.328.

 

     Sec. 3708. The  state tax commission  department may

 

promulgate rules as it considers necessary for the administration

 

of this part.  These rules shall not abridge the authority of the

 

department to determine whether or not industrial waste pollution

 

control exists within the meaning of this part.

 

     Sec. 5901. As used in this part:  , "facility"  

 

     (a) "Certificate" means an air pollution control tax exemption

 

certificate.

 

     (b) "Facility" means machinery, equipment, structures, or any

 

part or accessories of machinery, equipment, or structures,

 

installed or acquired for the primary purpose of controlling or

 

disposing of air pollution that if released would render the air

 

harmful or inimical to the public health or to property within this

 

state. Facility includes an incinerator equipped with a pollution

 

abatement device in effective operation. Facility does not include

 

an air conditioner, dust collector, fan, or other similar facility

 

for the benefit of personnel or of a business. Facility also means

 


the following, if the installation was completed on or after July

 

23, 1965:

 

     (i)  (a)  Conversion or modification of a fuel burning system

 

to effect air pollution control. The fuel burner portion only of

 

the system is eligible for tax exemption.

 

     (ii)  (b)  Installation of a new fuel burning system to effect

 

air pollution control. The fuel burner portion only of the system

 

is eligible for tax exemption.

 

     (iii)  (c)  A process change involving production equipment made

 

to satisfy the requirements of part 55 and rules promulgated under

 

that part. The maximum cost allowed shall be 25% of the cost of the

 

new process unit but shall not exceed the cost of the conventional

 

control equipment applied on the basis of the new process

 

production rate on the preexisting process.

 

     Sec. 5902. (1) An application for  a  an air pollution control

 

tax exemption certificate shall be filed with the  state tax

 

commission  department in a manner and in a form as prescribed by

 

the  state tax commission  department. The application shall

 

contain plans and specifications of the facility, including all

 

materials incorporated or to be incorporated in the facility and a

 

descriptive list of all equipment acquired or to be acquired by the

 

applicant for the purpose of air pollution control, together with

 

the proposed operating procedure for the control facility.

 

     (2) Before issuing a certificate, the  state tax commission  

 

department shall  seek approval of the department and  give notice

 

in writing  by certified mail  to the department of treasury and by

 

certified mail to the assessor of the taxing unit in which the

 


facility is located or is to be located, and shall afford to the

 

applicant and the assessor an opportunity for a hearing.  Tax  A

 

tax exemption granted under this part shall be reduced to the

 

extent of any commercial or productive value derived from any

 

materials captured or recovered by any air pollution control

 

facility as defined in this part.

 

     Sec. 5903. If the department finds that the facility is

 

designed and operated primarily for the control, capture, and

 

removal of pollutants from the air, and is suitable, reasonably

 

adequate, and meets the intent and purposes of part 55 and rules

 

promulgated under that part, the department shall  notify the state

 

tax commission, which shall  issue a certificate. The effective

 

date of the certificate is the date on which the certificate is

 

issued.

 

     Sec. 5905.  The state tax commission shall send an air

 

pollution control tax exemption certificate, when issued, by

 

certified mail to the applicant, and certified copies by certified

 

mail to the assessor of the taxing unit in which any property to

 

which the certificate relates is located or to be located and to

 

the department of treasury, which copies shall be filed of record

 

in their offices. Notice of the state tax commission's refusal to

 

issue a certificate shall be sent by certified mail to the

 

applicant, to the department of treasury, and to the assessor.

 

     (1) If the department issues an air pollution control tax

 

exemption certificate, the department shall do all of the

 

following:

 

     (a) Send the certificate by certified mail to the applicant.

 


     (b) Send a certified copy of the certificate by certified mail

 

to the assessor of the local tax collecting unit in which any

 

property to which the certificate relates is located or is to be

 

located. The certified copy of the certificate shall be filed or

 

recorded in the office of the assessor.

 

     (c) Send a certified copy of the certificate to the department

 

of treasury.

 

     (2) If the department refuses to issue an air pollution

 

control tax exemption certificate, the department shall send notice

 

of the refusal in writing to the department of treasury and by

 

certified mail to the applicant and to the assessor of the local

 

tax collecting unit in which any property to which the application

 

for the certificate relates is located or is to be located.

 

     Sec. 5906. (1) The  state tax commission  department, on

 

notice by certified mail to the applicant and opportunity for a

 

hearing, shall, on its own initiative or on complaint of  the

 

department, the department of treasury, or  the assessor of the  

 

taxing  local tax collecting unit in which any property to which

 

the certificate relates is located or is to be located, modify or

 

revoke the certificate if any of the following appear:

 

     (a) The certificate was obtained by fraud or

 

misrepresentation.

 

     (b) The holder of the certificate has failed substantially to

 

proceed with the construction, reconstruction, installation, or

 

acquisition of a facility or to operate the facility for the

 

purpose and degree of control specified in the  certification  

 

certificate or an amended certificate.

 


     (c) The facility covered by the certificate is no longer used

 

for the primary purpose of pollution control and is being used for

 

a different purpose.

 

     (d) Substantial noncompliance with part 55 or any rule

 

promulgated under that part.

 

     (2)  On the mailing by certified mail to the certificate

 

holder, the department of treasury, and the local assessor of

 

notice  After sending notice in writing to the department of

 

treasury and by certified mail to the certificate holder and to the

 

assessor of the action of the  state tax commission  department

 

modifying or revoking a certificate, the certificate shall cease to

 

be in force or shall remain in force only as modified. If a

 

certificate is revoked because it was obtained by fraud or

 

misrepresentation, all taxes that would have been payable if a

 

certificate had not been issued are immediately due and payable

 

with the maximum interest and penalties prescribed by applicable

 

law. A statute of limitations shall not operate in the event of

 

fraud or misrepresentation.

 

     Sec. 5907. A party aggrieved by the issuance, refusal to

 

issue, revocation, or modification of  a  an air pollution control

 

tax exemption certificate may appeal from the finding and order of

 

the  state tax commission  department in the manner and form and

 

within the time provided by the administrative procedures act of

 

1969,  Act No. 306 of the Public Acts of 1969, being sections

 

24.201 to 24.328 of the Michigan Compiled Laws  1969 PA 306, MCL

 

24.201 to 24.328.

 

     Sec. 5908. The  state tax commission  department may adopt

 


rules as it considers necessary for the administration of this

 

part.  These rules shall not abridge the authority of the

 

department to determine whether or not air pollution control exists

 

within the meaning of this part.