SB-0932, As Passed House, December 12, 2007
SUBSTITUTE FOR
SENATE BILL NO. 932
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 8716, 14501, 36109, and 73301 (MCL 324.8716,
324.14501, 324.36109, and 324.73301), section 8716 as amended by
2003 PA 163, section 14501 as amended by 2006 PA 254, section 36109
as amended by 2002 PA 75, and section 73301 as added by 1995 PA 58.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8716. (1) The freshwater protection fund is created
within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund, including general fund
general
purpose appropriations, gifts, grants, and
bequests. , and,
if
provided by law, revenue from the sale of Michigan freshwater
protection
bonds or the Michigan freshwater protection checkoff on
state
income and single business tax returns. The director shall
annually seek matching general fund general purpose appropriations
in amounts equal to the groundwater protection fees collected under
section 8715 that are deposited into the fund pursuant to this
part. The state treasurer shall direct the investment of the fund.
The state treasurer shall credit to the fund interest and earnings
from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) (4)
The department shall expend money
from the fund, upon
appropriation, only for 1 or more of the following purposes:
(a) Direct assistance.
(b) Indirect assistance.
(c) Emergency response and removal of potential sources of
groundwater contamination. Expenditures pursuant to this
subdivision shall not exceed $15,000.00 per location.
(d) Groundwater protection and groundwater regulatory program.
(e) Administrative costs. Expenditures pursuant to this
subdivision shall not exceed 20% of the annual appropriations from
the fund.
(6) (5)
The department shall establish
criteria and procedures
for approving proposed expenditures from the fund.
(7) (6)
Notwithstanding section 8715, if at
the close of any
fiscal year the amount of money in the fund exceeds $3,500,000.00,
the department shall not collect a groundwater protection fee for
the following year. After the groundwater protection fees have been
suspended under this subsection, the fees shall only be reinstated
if, at the close of any succeeding fiscal year, the amount of money
in the fund is less than $1,000,000.00.
(8) (7)
The department of treasury shall,
before November 1 of
each year, notify the department of the balance in the fund at the
close of the preceding fiscal year.
(9) (8)
As used in this section:
(a) "Administrative costs" includes, but is not limited to,
costs incurred during any of the following:
(i) Groundwater monitoring for pesticides and fertilizers.
(ii) Development and enforcement of groundwater protection
rules.
(iii) Coordination of programs under this part with the United
States environmental protection agency and other state programs
with groundwater and pesticide management responsibilities.
(iv) Management of pesticide sales information.
(b) "Direct assistance" includes, but is not limited to,
programs that will provide for any of the following:
(i) Provision of alternate noncommunity water supplies.
(ii) Closure of wells that may impact groundwater, such as
abandoned, improperly constructed, or drainage wells.
(iii) The environmentally sound disposal or recycling of
specialty pesticide containers.
(iv) The environmentally sound disposal or recycling of
nonspecialty pesticide containers.
(v) Specialty and nonspecialty pesticide pickup programs for
pesticides not currently registered for use.
(vi) Programs devoted to integrated pest and crop management
that strive to encourage the judicious use of pesticides and
fertilizers through targeted applications as part of a systems
approach to pest control and related crop management decisions.
(vii) Incentive and cost share programs for persons in the
groundwater stewardship program for implementation of groundwater
stewardship practices or groundwater protection rules.
(viii) Incentive and cost share programs for persons who notify
the director of potential sources of groundwater contamination on
their property.
(ix) Monitoring of private well water for pesticides and
fertilizers.
(x) Removal of soils and waters contaminated by pesticides and
fertilizers and the land application of those materials at
agronomic rates.
(xi) Groundwater stewardship program grants pursuant to section
8710.
(xii) Other programs established pursuant to this part.
(c) "Indirect assistance" includes, but is not limited to,
programs that will provide for any of the following:
(i) Public education and demonstration programs on specialty
pesticide container recycling and environmentally sound disposal
methods.
(ii) Educational programs for pesticide and fertilizer end
users.
(iii) Technical assistance programs for pesticide and fertilizer
end users.
(iv) The promotion and implementation of on-site evaluation
systems and groundwater stewardship practices.
(v) Research programs for determination of the impacts of
alternate pesticide and fertilizer management practices.
(vi) Research program for determination of aquifer sensitivity
and vulnerability to contamination by pesticides and fertilizers.
Sec. 14501. As used in this part:
(a) "Agricultural biomass" means residue and waste generated
on a farm or by farm co-operative members from the production and
processing of agricultural products, animal wastes, food processing
wastes, or other materials as approved by the director.
(b) "Department" means the department of environmental
quality.
(c) "Director" means the director of the department of
environmental quality.
(d) "Eligible farmer or agricultural processor" means a person
who processes agricultural products or a person who is engaged as
an owner-operator of a farm in the production of agricultural goods
as defined by section 35(1)(h) of the former single business tax
act,
1975 PA 228, MCL 208.35 or
by section 207(1)(d) of the
Michigan business tax act, 2007 PA 36, MCL 208.1207.
(e) "Environmental wastes" means all environmental pollutants,
wastes, discharges, and emissions, regardless of how they are
regulated and regardless of whether they are released to the
general environment or the workplace environment.
(f) "Pollution prevention" means all of the following:
(i) "Source reduction" as defined in 42 USC 13102.
(ii) "Pollution prevention" as described in the United States
environmental protection agency's pollution prevention statement
dated June 15, 1993.
(iii) Environmentally sound on-site or off-site reuse or
recycling including, but not limited to, the use of agricultural
biomass by qualified agricultural energy production systems.
(g) "Qualified agricultural energy production system" means
the structures, equipment, and apparatus to be used to produce a
gaseous fuel from the noncombustive decomposition of agricultural
biomass and the apparatus and equipment used to generate
electricity or heat from the gaseous fuel or store the gaseous fuel
for future generation of electricity or heat. Qualified
agricultural energy production system may include, but is not
limited to, a methane digester, biomass gasification technology, or
thermal depolymerization technology.
(h) "RETAP" means the retired engineers technical assistance
program created in section 14511.
(i) "Retap fund" means the retired engineers technical
assistance program fund created in section 14512.
(j) "Small business" means a business that is not dominant in
its field as described in 13 CFR part 121 and meets both of the
following requirements:
(i) Is independently owned or operated, by a person that
employs 500 or fewer individuals.
(ii) Is a small business concern as defined in 15 USC 632.
Sec. 36109. (1) An owner of farmland and related buildings
subject to 1 or more development rights agreements under section
36104 or agricultural conservation easements or purchases of
development rights under section 36111b or 36206 who is required or
eligible to file a return as an individual or a claimant under the
state income tax act may claim a credit against the state income
tax liability for the amount by which the property taxes on the
land and structures used in the farming operation, including the
homestead, restricted by the development rights agreements,
agricultural conservation easements, or purchases of development
rights exceed 3.5% of the household income as defined in section
508 of the income tax act of 1967, 1967 PA 281, MCL 206.508,
excluding a deduction if taken under section 613 of the internal
revenue code of 1986, 26 USC 613. For the purposes of this section,
all of the following apply:
(a) A partner in a partnership is considered an owner of
farmland and related buildings owned by the partnership and covered
by a development rights agreement, agricultural conservation
easement, or purchase of development rights. A partner is
considered to pay a proportion of the property taxes on that
property equal to the partner's share of ownership of capital or
distributive share of ordinary income as reported by the
partnership to the internal revenue service or, if the partnership
is not required to report that information to the internal revenue
service, as provided in the partnership agreement or, if there is
no written partnership agreement, a statement signed by all the
partners. A partner claiming a credit under this section based upon
the partnership agreement or a statement shall file a copy of the
agreement or statement with his or her income tax return. If the
agreement or statement is not filed, the department of treasury
shall deny the credit. All partners in a partnership claiming the
credit allowed under this section shall compute the credit using
the same basis for the apportionment of the property taxes.
(b) A shareholder of a corporation that has filed a proper
election under subchapter S of chapter 1 of subtitle A of the
internal
revenue code of 1986, 26 U.S.C. USC
1361 to 1379, is
considered an owner of farmland and related buildings covered by a
development rights agreement that are owned by the corporation. A
shareholder is considered to pay a proportion of the property taxes
on that property equal to the shareholder's percentage of stock
ownership for the tax year as reported by the corporation to the
internal revenue service. Except as provided in subsection (8),
this subdivision applies to tax years beginning after 1987.
(c) Except as otherwise provided in this subdivision, an
individual in possession of property for life under a life estate
with remainder to another person or holding property under a life
lease is considered the owner of that property if it is farmland
and related buildings covered by a development rights agreement.
Beginning January 1, 1986, if an individual in possession of
property for life under a life estate with remainder to another
person or holding property under a life lease enters into a written
agreement with the person holding the remainder interest in that
land and the written agreement apportions the property taxes in the
same manner as revenue and expenses, the life lease or life estate
holder and the person holding the remainder interest may claim the
credit under this act as it is apportioned to them under the
written agreement upon filing a copy of the written agreement with
the return.
(d) If a trust holds farmland and related buildings covered by
a development rights agreement and an individual is treated under
subpart E of subchapter J of subchapter A of chapter 1 of the
internal
revenue code of 1986, 26 U.S.C. USC
671 to 679, as the
owner of that portion of the trust that includes the farmland and
related buildings, that individual is considered the owner of that
property.
(e) An individual who is the sole beneficiary of a trust that
is the result of the death of that individual's spouse is
considered the owner of farmland and related buildings covered by a
development rights agreement and held by the trust if the trust
conforms to all of the following:
(i) One hundred percent of the trust income is distributed to
the beneficiary in the tax year in which the trust receives the
income.
(ii) The trust terms do not provide that any portion of the
trust is to be paid, set aside, or otherwise used in a manner that
would qualify for the deduction allowed by section 642(c) of the
internal revenue code of 1986, 26 USC 642.
(f) A member in a limited liability company is considered an
owner of farmland and related buildings covered by a development
rights agreement that are owned by the limited liability company. A
member is considered to pay a proportion of the property taxes on
that property equal to the member's share of ownership or
distributive share of ordinary income as reported by the limited
liability company to the internal revenue service.
(2) An owner of farmland and related buildings subject to 1 or
more development rights agreements under section 36104 or
agricultural conservation easements or purchases of development
rights under section 36111b or 36206 to whom subsection (1) does
not apply may claim a credit under the former single business tax
act,
1975 PA 228, MCL 208.1 to 208.145 or the Michigan business tax
act, 2007 PA 36, MCL 208.1101 to 208.1601, for the amount by which
the property taxes on the land and structures used in farming
operations restricted by the development rights agreements,
agricultural conservation easements, or purchases of development
rights exceed 3.5% of the adjusted business income of the owner as
defined in section 36 of the former single business tax act, 1975
PA
228, MCL 208.36 or the
business income tax base of the owner as
defined in section 201 of the Michigan business tax act, 2007 PA
36, MCL 208.1201, plus compensation to shareholders not included in
adjusted business income or the business income tax base, excluding
any deductions if taken under section 613 of the internal revenue
code of 1986, 26 USC 613. When calculating adjusted business income
for tax years beginning before 1987, federal taxable income shall
not be less than zero for the purposes of this subsection only. A
participant is not eligible to claim a credit and refund against
the
state former single business tax act, 1975 PA 228, or the
Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601,
unless the participant demonstrates that the participant's
agricultural gross receipts of the farming operation exceed 5 times
the property taxes on the land for each of 3 out of the 5 tax years
immediately preceding the year in which the credit is claimed. This
eligibility requirement does not apply to those participants who
executed farmland development rights agreements under this part
before January 1, 1978. A participant may compare, during the
contract period, the average of the most recent 3 years of
agricultural gross receipts to property taxes in the first year
that the participant entered the program under the present contract
in calculating the gross receipts qualification. Once an election
is made by the participant to compute the benefit in this manner,
all future calculations shall be made in the same manner.
(3) If the farmland and related buildings covered by a
development rights agreement under section 36104 or an agricultural
conservation easement or purchase of development rights under
section 36111b or 36206 are owned by more than 1 owner, each owner
is allowed to claim a credit under this section based upon that
owner's share of the property tax payable on the farmland and
related buildings. The department of treasury shall consider the
property tax equally apportioned among the owners unless a written
agreement signed by all the owners is filed with the return, which
agreement apportions the property taxes in the same manner as all
other items of revenue and expense. If the property taxes are
considered equally apportioned, a husband and wife shall be
considered 1 owner, and a person with respect to whom a deduction
under section 151 of the internal revenue code of 1986, 26 USC 151,
is allowable to another owner of the property shall not be
considered an owner.
(4) A beneficiary of an estate or trust to which subsection
(1) does not apply is entitled to the same percentage of the credit
provided in this section as that person's percentage of all other
distributions by the estate or trust.
(5) If the allowable amount of the credit claimed exceeds the
state
income tax or the state single business tax otherwise due for
the
tax year or if there is no state income tax or the state single
business tax due for the tax year, the amount of the claim not used
as
an offset against the state income tax or the state single
business tax, after examination and review, shall be approved for
payment to the claimant pursuant to 1941 PA 122, MCL 205.1 to
205.31. The total credit allowable under this part and chapter 9 of
the income tax act of 1967, 1967 PA 281, MCL 206.501 to 206.532, or
the
former single business tax act, 1975 PA 228, MCL 208.1
to
208.145
or the Michigan business tax
act, 2007 PA 36, MCL 208.1101
to 208.1601, shall not exceed the total property tax due and
payable by the claimant in that year. The amount the credit exceeds
the property tax due and payable shall be deducted from the credit
claimed under this part.
(6) For purposes of audit, review, determination, appeals,
hearings, notices, assessments, and administration relating to the
credit program provided by this section, the state income tax act,
or
1967 PA 281, MCL 206.1 to
206.36, the former single business
tax
act,
1975 PA 228, MCL 208.1 to 208.145 or the Michigan business tax
act, 2007 PA 36, MCL 208.1101 to 208.1601, applies according to
which tax the credit is claimed against. If an individual is
allowed to claim a credit under subsection (1) based upon property
owned or held by a partnership, S corporation, or trust, the
department of treasury may require that the individual furnish to
the department a copy of a tax return, or portion of a tax return,
and supporting schedules that the partnership, S corporation, or
trust files under the internal revenue code.
(7) The department of treasury shall account separately for
payments under this part and not combine them with other credit
programs. A payment made to a claimant for a credit claimed under
this part shall be issued by 1 or more warrants made out to the
county treasurer in each county in which the claimant's property is
located and the claimant, unless the claimant specifies on the
return that a copy of the receipt showing payment of the property
taxes that became a lien in the year for which the credit is
claimed, or that became a lien in the year before the year for
which the credit is claimed, is attached to the income tax or
single
business tax return filed by the
claimant. If the claimant
specifies that a copy of the receipt is attached to the return, the
payment shall be made directly to the claimant. A warrant made out
to a claimant and a county treasurer shall be used first to pay
delinquent property taxes, interest, penalties, and fees on
property restricted by the development rights agreement. If the
warrant exceeds the amount of delinquent taxes, interest,
penalties, and fees, the county treasurer shall remit the excess to
the claimant. If a claimant falsely specifies that the receipt
showing payment of the property taxes is attached to the return and
if the property taxes on the land subject to that development
rights agreement were not paid before the return was filed, all
future payments to that claimant of credits claimed under this act
attributable to that development rights agreement may be made
payable to the county treasurer of the county in which the property
subject to the development rights agreement is located and to that
claimant.
(8) For property taxes levied after 1987, a person that was an
S corporation and had entered into a development rights agreement
before January 1, 1989, and paid property taxes on that property,
may claim the credit allowed by this section as an owner eligible
under subsection (2). A subchapter S corporation claiming a credit
as permitted by this subsection for taxes levied in 1988 through
1990 shall claim the credit by filing an amended return under the
single business tax act, 1975 PA 228, MCL 208.1 to 208.145. If a
subchapter S corporation files an amended return as permitted by
this subsection and if a shareholder of the subchapter S
corporation claimed a credit under subsection (1)(b) for the same
property taxes, the shareholder shall file an amended return under
the state income tax act. A subchapter S corporation is not
entitled to a credit under this subsection until all of its
shareholders file the amended returns required by this subsection.
The department of treasury shall first apply a credit due to a
subchapter S corporation under this subsection to repay credits
claimed under this section by the subchapter S corporation's
shareholders for property taxes levied in 1988 through 1990 and
shall refund any remaining credit to the S corporation. Interest or
penalty is not due or payable on an income tax liability resulting
from an amended return required by this subsection. A subchapter S
corporation electing to claim a credit as an owner eligible under
subsection (2) shall not claim a credit under subsection (1) for
property taxes levied after 1987.
Sec. 73301. (1) Except as otherwise provided in this section,
a cause of action shall not arise for injuries to a person who is
on the land of another without paying to the owner, tenant, or
lessee of the land a valuable consideration for the purpose of
fishing, hunting, trapping, camping, hiking, sightseeing,
motorcycling, snowmobiling, or any other outdoor recreational use
or trail use, with or without permission, against the owner,
tenant, or lessee of the land unless the injuries were caused by
the gross negligence or willful and wanton misconduct of the owner,
tenant, or lessee.
(2) A cause of action shall not arise for injuries to a person
who is on the land of another without paying to the owner, tenant,
or lessee of the land a valuable consideration for the purpose of
entering or exiting from or using a Michigan trailway as designated
under part 721 or other public trail, with or without permission,
against the owner, tenant, or lessee of the land unless the
injuries were caused by the gross negligence or willful and wanton
misconduct of the owner, tenant, or lessee. For purposes of this
subsection, a Michigan trailway or public trail may be located on
land of any size including, but not limited to, urban, suburban,
subdivided, and rural land.
(3) A cause of action shall not arise against the owner,
tenant, or lessee of land or premises for injuries to a person who
is on that land or premises for the purpose of gleaning
agricultural or farm products, unless that person's injuries were
caused by the gross negligence or willful and wanton misconduct of
the owner, tenant, or lessee.
(4) A cause of action shall not arise against the owner,
tenant, or lessee of a farm used in the production of agricultural
goods as defined by section 35(1)(h) of the former single business
tax
act, Act No. 228 of the Public Acts of 1975, being section
208.35
of the Michigan Compiled Laws 1975
PA 228, or by section
207(1)(d) of the Michigan business tax act, 2007 PA 36, MCL
208.1207, for injuries to a person who is on that farm and has paid
the owner, tenant, or lessee valuable consideration for the purpose
of fishing or hunting, unless that person's injuries were caused by
a condition which involved an unreasonable risk of harm and all of
the following apply:
(a) The owner, tenant, or lessee knew or had reason to know of
the condition or risk.
(b) The owner, tenant, or lessee failed to exercise reasonable
care to make the condition safe, or to warn the person of the
condition or risk.
(c) The person injured did not know or did not have reason to
know of the condition or risk.
(5) A cause of action shall not arise against the owner,
tenant, or lessee of land or premises for injuries to a person,
other than an employee or contractor of the owner, tenant, or
lessee, who is on the land or premises for the purpose of picking
and purchasing agricultural or farm products at a farm or "u-pick"
operation, unless the person's injuries were caused by a condition
that involved an unreasonable risk of harm and all of the following
apply:
(a) The owner, tenant, or lessee knew or had reason to know of
the condition or risk.
(b) The owner, tenant, or lessee failed to exercise reasonable
care to make the condition safe, or to warn the person of the
condition or risk.
(c) The person injured did not know or did not have reason to
know of the condition or risk.
(6) As used in this section, "agricultural or farm products"
means the natural products of the farm, nursery, grove, orchard,
vineyard, garden, and apiary, including, but not limited to, trees
and firewood.