HB-4391, As Passed Senate, June 18, 2015

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4391

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 8307a, 8308, 8310, 8310a, 8312, 8313, 8317,

8504, 8505, 8506, 8514, 8702, 8703, 8704, 8707, 8708, 8710, 8713a,

8715, 8716, and 8807 (MCL 324.8307a, 324.8308, 324.8310, 324.8310a,

324.8312, 324.8313, 324.8317, 324.8504, 324.8505, 324.8506,

324.8514, 324.8702, 324.8703, 324.8704, 324.8707, 324.8708,

324.8710, 324.8713a, 324.8715, 324.8716, and 324.8807), section

8307a as added and sections 8312 and 8313 as amended by 2002 PA

418, section 8310 as amended and section 8310a as added by 2008 PA

18, section 8317 as amended by 2012 PA 316, sections 8504 and 8505

as amended by 2014 PA 178, sections 8506 and 8514 as amended by

2006 PA 503, sections 8702, 8704, 8710, 8715, and 8716 as amended

and section 8713a as added by 2011 PA 2, sections 8703, 8707, and

8708 as amended by 2013 PA 46, and section 8807 as amended by 2011

PA 1, and by adding sections 8506a and 8512h; and to repeal acts

and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 8307a. (1) Every pesticide distributed, sold, exposed, or

offered for sale in this state shall be registered with the

director pursuant to this part. The registration shall be submitted

on a form provided by the director and shall be renewed annually

before July 1. The director shall not register a pesticide under

this part unless the registrant has paid all groundwater water

quality protection fees and late fees required under part 87,

registration fees under this part, and any administrative fines

imposed under this part.

     (2) A pesticide is considered distributed, sold, exposed, or

offered for sale in this state when the offer to sell either

originates within this state or is directed by the offeror to

persons in this state and received by those persons.

     (3) If a registrant distributes identical pesticides under

more than 1 brand name, or distributes more than 1 pesticide

formulation, each brand or formulation shall be registered as a

separate product.

     (4) A registrant shall not register a pesticide that contains

a substance that is required to be registered with the department

unless that substance is also registered with the department.

     (5) A pesticide registration applicant shall submit to the

director a complete copy of the pesticide labeling and the

following, in a format prescribed by the director:

     (a) The name and address of the applicant and the name and

address of the person whose name will appear on the label, if other

than the applicant.

     (b) The full product name of the pesticide and the EPA

registration number.

     (c) Other information considered necessary by the director.

     (6) The applicant shall submit a complete formula of the

pesticide proposed for registration, including the active and inert

ingredients, when requested by the director and necessary for the

director to execute his or her duties under this part. The director

shall not use any information relative to formulas of products,

trade secrets, or other information obtained under this part for

his or her own advantage or reveal such information, other than to

his or her authorized representative, the EPA, the department of

environmental quality, the department of community health and human

services, a court of the state in response to a subpoena, a

licensed physician, or in an emergency to a pharmacist or other

persons qualified to administer antidotes.

     (7) A registrant that operates from a business location

outside this state shall do either of the following:

     (a) Continuously maintain in this state a registered office

and a resident agent, which agent may be an individual resident in

this state whose business office or residence is identical with the

registered office, a domestic corporation or limited liability

company, or a foreign corporation or limited liability company

authorized to transact business in this state and having a business

office identical with the registered office. The registrant shall

file with the department the name, address, and telephone number of

the resident agent and shall maintain and make available records

required by this part and part 87.

     (b) Maintain and make available to the department records

required by this part and part 87 and pay all costs incurred by the

department in auditing the records if they are held at an out-of-

state location.

     Sec. 8308. (1) The director may do all of the following:

     (a) Issue an experimental permit to a person applying for that

permit if the director determines that the permit is necessary for

the applicant to accumulate information necessary to register a

pesticide.

     (b) Prescribe terms, conditions, and the period of time the

pesticide may be used under the experimental permit, which shall be

under the supervision of the director.

     (c) Revoke an experimental permit when its terms or conditions

are violated or its terms and conditions are inadequate to avoid

unreasonable adverse effects on the environment.

     (2) The director may conduct audits to determine compliance

with this part. In conducting audits under this part, the director

may contract for the performance of the audit.

     Sec. 8310. (1) A person shall not engage in distributing,

selling, or offering for sale restricted use pesticides to the

ultimate user except as authorized under an annual license for each

place of business issued by the department pursuant to part 13.

     (2) The applicant for a license under subsection (1) shall be

the person in charge of each business location. The applicant shall

demonstrate by written examination his or her knowledge of laws and

rules governing the use and sale of restricted use pesticides.

     (3) A person licensed under subsection (1) who that operates

from a business location outside this state shall continuously

maintain in this state both do either of the following:

     (a) A registered office.

     (b) A resident agent, which agent may be either an individual

resident in this state whose business office or residence is

identical with the registered office, a domestic corporation or

limited liability company, or a foreign corporation or limited

liability company authorized to transact business in this state and

having a business office identical with the registered office. The

person licensed under subsection (1) shall file with the department

the name, address, and telephone number of the resident agent.

     (a) Continuously maintain in this state a registered office

and a resident agent, which agent may be an individual resident in

this state whose business office or residence is identical with the

registered office, a domestic corporation or limited liability

company, or a foreign corporation or limited liability company

authorized to transact business in this state and having a business

office identical with the registered office. The person licensed

under subsection (1) shall file with the department the name,

address, and telephone number of the resident agent and shall

maintain and make available records required by this part and part

87.

     (b) Maintain and make available to the department records

required by this part and part 87 and pay all costs incurred by the

department in auditing the records if they are held at an out-of-

state location.

     (4) A restricted use pesticide dealer shall forward to the

director a record of all sales of restricted use pesticides on

forms provided by the director as required by rule. A restricted

use pesticide dealer shall keep copies of the records on file for 2

years. These records are subject to inspection by an authorized

agent of the director. The records shall, upon request, be supplied

in summary form to other state agencies. The summary shall include

the name and address of the restricted use pesticide dealer, the

name and address of the purchaser, the name of the pesticide sold,

and, in an emergency, the quantity sold. Information may not be

made available to the public if, in the discretion of the director,

release of that information could have a significant adverse effect

on the competitive position of the dealer, distributor, or

manufacturer.

     (5) A restricted use pesticide dealer shall sell or distribute

restricted use pesticides for use only by applicators certified

under this part.

     (6) The director may deny, suspend, or revoke a restricted use

pesticide dealer's license for any violation of this part or an

order issued under this part, or upon conviction under this part,

FIFRA, or a state pesticide law of a reciprocating state committed

by the dealer or the dealer's officer, agent, or employee. The

director shall inform an applicant who is denied a restricted use

pesticide dealer's license of the reasons why the license was

denied.

     (7) A restricted use pesticide dealer shall maintain and

submit to the department records of all restricted use pesticide

sales to private applicators and the intended county of application

for those pesticides.

     (8) Information collected in subsection (7) is confidential

business information and is not subject to the freedom of

information act, 1976 PA 442, MCL 15.231 to 15.246.

     (9) A restricted use pesticide dealer who that distributes an

agricultural pesticide into this state shall report to the

agricultural pesticide registrant all of the following information

concerning that distribution:

     (a) The product name.

     (b) The EPA registration number.

     (c) The amount of pesticide sold or distributed.

     (d) The wholesale value of pesticide sold or distributed.

     (e) The date of sale or distribution.

     (f) The sales or distribution invoice number.

     (g) The name and address of the consignee.

     Sec. 8310a. (1) A person who that is not licensed under

section 8310 shall not engage in distributing, selling, or offering

for sale agricultural pesticides except as authorized under an

annual license for each place of business issued by the department

pursuant to part 13.

     (2) The applicant for a license under subsection (1) shall be

the individual in charge of each business location.

     (3) The application for a license under subsection (1) shall

be on a form provided by the director and shall contain information

regarding the applicant's proposed operations and other information

considered pertinent by the director.

     (4) A person licensed under subsection (1) who operates from a

business location outside this state shall continuously maintain in

this state both do either of the following:

     (a) A registered office.

     (b) A resident agent, which agent may be either an individual

resident in this state whose business office or residence is

identical with the registered office, a domestic corporation or

limited liability company, or a foreign corporation or limited

liability company authorized to transact business in this state and

having a business office identical with the registered office. The

person licensed under subsection (1) shall file with the department

the name, address, and telephone number of the resident agent.

     (a) Continuously maintain in this state a registered office

and a resident agent, which agent may be an individual resident in

this state whose business office or residence is identical with the

registered office, a domestic corporation or limited liability

company, or a foreign corporation or limited liability company

authorized to transact business in this state and having a business

office identical with the registered office. The person licensed

under subsection (1) shall file with the department the name,

address, and telephone number of the resident agent and shall

maintain and make available records required by this part and part

87.

     (b) Maintain and make available to the department records

required by this part and part 87 and pay all costs incurred by the

department in auditing the records if they are held at an out-of-

state location.

     (5) An agricultural pesticide dealer who distributes an

agricultural pesticide into this state shall report to the

agricultural pesticide registrant all of the following information

concerning that distribution:

     (a) The product name.

     (b) The EPA registration number.

     (c) The amount of pesticide sold or distributed.

     (d) The wholesale value of pesticide sold or distributed.

     (e) The date of sale or distribution.

     (f) The sales or distribution invoice number.

     (g) The name and address of the consignee.

     (6) The director may deny, suspend, or revoke an agricultural

pesticide dealer's license for any violation of this part or an

order issued under this part, or upon conviction under this part,

FIFRA, or a state pesticide law of a reciprocating state committed

by the dealer or the dealer's officer, agent, or employee. The

director shall inform an applicant who is denied an agricultural

pesticide dealer's license of the reasons why the license was

denied.

     (7) A pesticide registrant who distributes agricultural

pesticides into the this state is exempt from the requirements of

subsection (1).

Sec. 8312. (1) To become a certified applicator, an applicant

must satisfactorily complete the certification requirements

prescribed by the director and categorized according to the various

types of pesticide applications prescribed by rule and consistent

with the regulations of the EPA.

     (2) The application for a certified applicator certificate

shall contain information considered to be pertinent by the

director.

     (3) A certified applicator applicant shall pay the appropriate

fee as provided in section 8317.

     (4) The director shall issue a certificate to applicants that

successfully comply with all certification requirements under this

part.

     (5) The director may restrict an applicant to use only a

certain type of equipment or pesticide upon finding that the

applicant is only qualified to use that type of equipment or

pesticide.

     (6) The director may refuse to issue or renew a certificate if

an applicant demonstrates an insufficient knowledge of any item

called for in the application or has unsatisfied judgments under

this part or rules promulgated under this part against him or her

or if the equipment to be used by the applicant is unsafe or

inadequate to properly apply pesticides.

     (7) The director may at any time deny, revoke, or suspend a

private agricultural applicator certificate or a commercial

applicator certificate for a violation of this part or upon

conviction under section 14 of FIFRA, 7 U.S.C. USC 136l, or upon

conviction under a state pesticide law of a reciprocating state in

accordance with section 8320.

     (8) The director shall inform an applicant who is denied an

applicator certificate of the reasons why the certificate was

denied.

     (9) A person shall display his or her certificate upon the

request of the director.

     Sec. 8313. (1) Commercial applicators who that hold themselves

out to the public as being in the business of applying pesticides

shall obtain a commercial applicator license for each place of

business.

     (2) A commercial applicator shall be certified under section

8312 and shall have at least 1 of the following in order to qualify

for a license:

     (a) Service for not less than 2 application seasons as an

employee of a commercial applicator or comparable education and

experience as determined by the director.

     (b) A baccalaureate degree from a recognized college or

university in a discipline that provides education regarding pests

and the control of pests and 1 application season of service as an

employee of a commercial applicator.

     (3) The commercial applicator license application shall be on

a form provided by the director and shall contain information

regarding the applicant's qualifications and proposed operations,

the type of equipment to be used by the applicant, and other

information considered pertinent by the director.

     (4) An application for a commercial applicator license shall

be accompanied by the appropriate fee as provided in section 8317.

     (5) An application for a commercial applicator license shall

be accompanied by proof of sufficient financial responsibility as

prescribed by rule.

     (6) The director may restrict an applicant to use only a

certain type of equipment or pesticide upon finding that the

applicant is qualified to use only that type.

     (7) The director may refuse to issue or renew a commercial

applicator license if the applicant demonstrates insufficient

knowledge of an item in the application, or has unsatisfied

judgments under this part or a rule promulgated under this part

against him or her, or if the equipment used by the applicant is

unsafe or inadequate for pesticide applications.

     (8) The director may at any time deny, revoke, or suspend a

commercial applicator license for a violation of this part or a

violation of an order issued under this part, or upon conviction

under this part, FIFRA, or a state pesticide law of a reciprocating

state in accordance with section 8320.

     (9) The director shall inform an applicant who that is denied

a commercial applicator license of the reasons why the license was

denied.

     (10) A person subject to the licensing requirements in this

section shall only apply pesticides that are registered with the

United States EPA, or subject to , either the United States EPA

EPA's or this state's laws and rules.

     (11) A person subject to the licensing requirements in this

section shall not represent that a pesticide application has

characteristics, ingredients, uses, benefits, or qualities that it

does not have.

     (12) A person subject to the licensing requirements in this

section shall not represent that a pesticide application is

necessary to control a pest when if the pest is not present or

likely to occur.

     (13) A commercial applicator that operates from a business

location outside this state shall do either of the following:

     (a) Continuously maintain in this state a registered office

and a resident agent, which agent may be an individual resident in

this state whose business office or residence is identical with the

registered office, a domestic corporation or limited liability

company, or a foreign corporation or limited liability company

authorized to transact business in this state and having a business

office identical with the registered office. The commercial

applicator shall file with the department the name, address, and

telephone number of the resident agent and shall maintain and make

available records required by this part and part 87.

     (b) Maintain and make available to the department records

required by this part and part 87 and pay all costs incurred by the

department in auditing the records if they are held at an out-of-

state location.

     Sec. 8317. (1) An application submitted under this part shall

be accompanied by the following application fee:

     (a) For a commercial applicator certification, $75.00.

     (b) For a private agricultural applicator certification,

$50.00. until September 30, 2015 and $10.00 after September 30,

2015.

     (c) For a commercial registered applicator, $45.00.

     (d) For a private registered applicator, $50.00. until

September 30, 2015 and $10.00 after September 30, 2015.

     (2) Certificates for commercial applicators, private

agricultural applicators, and registered applicators shall be are

valid for a period of time of not less than 3 years to be

established by rule by the director.

     (3) The license application fee for a commercial applicator

license is $100.00. The license expires annually on December 31.

     (4) The registration application fee for the registration of

pesticides sold, offered for sale, exposed for sale, or distributed

is $40.00 $100.00 per product. However, if the pesticide

registration fee is received by the department after June 30, the

registrant shall pay an additional late fee of $100.00 for each

pesticide.

     (5) The license application fee for a restricted use pesticide

dealer's license is $100.00. The license expires annually on

December 31.

     (6) The license application fee for an agricultural pesticide

dealer's license is $100.00. The license expires annually on

December 31.

     (7) Application fees submitted under this section are not

refundable.

     (8) Notwithstanding any other provision of subsection (1)(b)

and (d), the department shall waive any fee otherwise required

under subsection (1)(b) and (d) if the individual responsible for

paying the fee is, and provides proof satisfactory to the

department that he or she is, an honorably discharged veteran of

the armed forces of the United States.

     (9) The department shall deposit application, license,

registration, and administrative fees and administrative, civil,

and noncriminal fines received, as well as any payment for costs or

reimbursement to the department for investigation, under this part

in the agriculture licensing and inspection fees fund created in

section 9 of the insect pest and plant disease act, 1931 PA 189,

MCL 286.209, to be used, pursuant to appropriation, by the director

in administering and carrying out those duties required by law

under this part.

     Sec. 8504. (1) A person shall not manufacture or distribute

fertilizer in this state, except specialty fertilizer and soil

conditioners, until the appropriate groundwater water quality

protection fee provided in section 8715 has been submitted, and

except as authorized by a license to manufacture or distribute

issued by the department pursuant to part 13. An application for a

license shall be accompanied by a fee of $100.00 for each of the

following:

     (a) Each fixed location at which fertilizer is manufactured in

this state.

     (b) Each mobile unit used to manufacture fertilizer in this

state.

     (c) Each location out of this state that applies labeling

showing an out-of-state origin of fertilizer distributed in this

state to nonlicensees.

     (2) An application for a license to manufacture or distribute

fertilizer shall include all of the following:

     (a) The name and address of the applicant.

     (b) The name and address of each bulk distribution point in

the this state not licensed for fertilizer manufacture or

distribution. The name and address shown on the license shall be

shown on all labels, pertinent invoices, and bulk storage for

fertilizers distributed by the licensee in this state.

     (3) If the fertilizer is a beneficial use by-product intended

for beneficial use 3 under part 115, the application shall also

include the information identified in section 11551(7).

     (4) The licensee shall inform the director in writing of

additional distribution points established during the period of the

license.

     (5) A distributor is not required to obtain a license if the

distributor is selling fertilizer of a distributor or a

manufacturer licensed under this part.

     (6) All licenses to manufacture or distribute fertilizer

expire on December 31 of each year.

     (7) A person licensed under this section that operates from a

business location outside this state shall do either of the

following:

     (a) Continuously maintain in this state a registered office

and a resident agent, which agent may be an individual resident in

this state whose business office or residence is identical with the

registered office, a domestic corporation or limited liability

company, or a foreign corporation or limited liability company

authorized to transact business in this state and having a business

office identical with the registered office. The person licensed

under this section shall file with the department the name,

address, and telephone number of the resident agent and shall

maintain and make available records required by this part and part

87.

     (b) Maintain and make available to the department records

required by this part and part 87 and pay all costs incurred in

auditing the records if they are held at an out-of-state location.

     Sec. 8505. (1) A person shall not distribute a specialty

fertilizer or soil conditioner unless it is registered with the

department. An application for registration listing each brand and

product name of each grade of specialty fertilizer or soil

conditioner shall be made on a form furnished by the director. An

application shall be accompanied with the fees described in

subsection (4) for each brand and product name of each grade.

Labels for each brand and product name of each grade shall

accompany the application.

     (2) If the specialty fertilizer or soil conditioner is a

beneficial use by-product intended for beneficial use 3 under part

115, the application shall also include the information identified

in section 11551(7).

     (3) Upon approval of an application by the director, a copy of

the registration approval shall be furnished to the applicant. All

registrations expire on December 31 of each year.

     (4) A person applying for a registration under subsection (1)

shall pay the following annual fees for each brand and product name

of each grade:

     (a) Registration fee of $25.00.

     (b) Appropriate groundwater water quality protection fee

provided for in section 8715.

     (5) A distributor is not required to register a brand of

fertilizer that is registered under this part by another person, if

the label does not differ in any respect.

     (6) A manufacturer or distributor of custom blend specialty

fertilizers for home lawns, golf courses, recreational areas, or

other nonfarm areas is not required to register each grade

distributed but shall license their firm on an application

furnished by the director for an annual fee of $100.00 and shall

label the fertilizer as provided in section 8502. The label of each

fertilizer distributed under this subsection shall be maintained by

the manufacturer or distributor for 1 year for inspection by the

director.

     (7) A manufacturer or distributor of soil conditioners blended

according to specifications provided to a blender or blended as

specifically requested by the consumer prior to blending shall

either register each brand or blend distributed or license its firm

on an application furnished by the director for an annual fee of

$100.00 and shall label the soil conditioner as provided in section

8502. The label of each soil conditioner distributed under this

subsection shall be maintained by the manufacturer or distributor

for 1 year for inspection by the director.

     (8) A registrant that operates from a business location

outside this state shall do either of the following:

     (a) Continuously maintain in this state a registered office

and a resident agent, which agent may be an individual resident in

this state whose business office or residence is identical with the

registered office, a domestic corporation or limited liability

company, or a foreign corporation or limited liability company

authorized to transact business in this state and having a business

office identical with the registered office. The registrant shall

file with the department the name, address, and telephone number of

the resident agent and shall maintain and make available records

required by this part and part 87.

     (b) Maintain and make available to the department records

required by this part and part 87 and pay all costs incurred by the

department in auditing the records if they are held at an out-of-

state location.

     Sec. 8506. (1) An inspection fee of 10 35 cents per ton shall

be paid to the department for all fertilizers or soil conditioners

sold or distributed in this state. For peat or peat moss, the

inspection fee shall be 2 cents per cubic yard. This fee shall does

not apply to registered specialty fertilizers or soil conditioners

sold or distributed only in packages of 10 pounds or less.

     (2) Payment of the inspection fee shall be made on the basis

of tonnage reports setting forth the number of tons of each grade

of fertilizer and soil conditioner and the number of cubic yards of

peat or peat moss sold or distributed in this state. The reports

shall cover the periods of the year and be made in a manner

specified by the director in rules, and shall be filed with the

department not later than 30 days after the close of each period.

The time may be extended for cause for an additional 15 days only

on written request to, and approval by, the department. Remittance

to cover the inspection fee shall accompany each tonnage report.

Payments due of less than $5.00 are waived, and refunds of less

than $5.00 will not be processed, unless requested in writing. For

any report not filed with the department by the due date, a penalty

of $50.00 or 10% of the amount due, whichever is greater, shall be

assessed. Unpaid fees and penalties constitute a debt and become

the basis of a judgment against the licensee. Records upon which

the statement of tonnage is based, including those described in

this section and section 8715, are subject to department audit.

     (3) When more than 1 person is involved in the distribution of

fertilizer or soil conditioners, the last person who is licensed or

has the fertilizer or soil conditioner registered and who

distributes to a nonlicensee or nonregistrant is responsible for

reporting the tonnage and paying the inspection fee.

     (4) Money collected by the department under this section shall

be forwarded to the state treasurer for deposit into the fund.

     Sec. 8506a. The director may conduct audits to determine

compliance with this part. In conducting audits under this part,

the director may contract for the performance of the audit.

     Sec. 8512h. (1) The fertilizer advisory committee is created

within the department. The committee shall be composed of the

following members:

     (a) The director of the department of agriculture and rural

development.

     (b) Two members representing the fertilizer industry.

     (c) One member representing the specialty fertilizer industry.

     (d) Four members representing farmers and other agricultural

organizations.

     (e) One member from the United States Department of

Agriculture Natural Resources Conservation Service.

     (f) One member who is a certified crop advisor.

     (g) One member representing conservation districts.

     (h) The director of Michigan State University AgBioResearch.

     (i) One member representing the largest statewide land

conservancy in this state.

     (2) The members of the committee may designate an authorized

representative or substitute to represent them on the committee. Of

the members first appointed by the director, 4 shall serve for 1

year, 4 for 2 years, and 4 for 3 years. Thereafter, an appointment

shall be for 3 years. The director shall remove any member who is

absent, either personally or through a designated representative or

substitute, for 4 or more consecutive meetings. Vacancies shall be

filled for the balance of an unexpired term. The committee shall

meet on the call of the director, who shall serve as chairperson.

The director shall call a meeting of the committee upon request of

2 or more members. A majority of the members of the committee

constitute a quorum.

     (3) The committee shall advise the director on the research

funded under section 8514(4)(c).

     (4) All meetings of the committee shall be conducted pursuant

to the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

     (5) As used in this section, "committee" means the fertilizer

advisory committee created in subsection (1).

     Sec. 8514. (1) The fertilizer control fund is created within

the state treasury.

     (2) The state treasurer shall receive for deposit in the fund

all fees, administrative or civil fines, and payments for the costs

of investigations incurred by the department collected under this

part. In addition, the state treasurer may receive money or other

assets from any source for deposit into the fund. 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 expend money from the fund, upon

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

     (a) The administration and enforcement of this part.

     (b) The development of training programs to ensure the proper

use and storage of fertilizer.

     (c) For research necessary to ensure the adoption and

implementation of practices that optimize nutrient use efficiency,

ensure soil fertility, and address environmental concerns with

regard to fertilizer use. Until December 31, 2019, not less than

40% of the inspection fees collected with section 8506(1) shall be

used for purposes of this subdivision.

     (5) The department shall not provide grants with money from

the fund to local government agencies, institutions of higher

education, or nonprofit organizations unless the department

provides notice of the grant to the senate and house appropriations

subcommittees and the senate and house fiscal agencies at least 10

days before the grant is issued.

     Sec. 8702. (1) "Activity plan" means a plan for a specific

location that identifies all environmental risks and includes a

time frame for implementation of conservation practices to address

the environmental risks.

     (2) "Agronomic rate" means either of the following:

     (a) For pesticides, the application of pesticide contaminated

materials in such a manner as not to exceed legal labeled rates.

     (b) For fertilizers, the application of fertilizer

contaminated materials at rates not to exceed those recommended by

the Michigan state university extension, State University

Extension, taking all available sources of nutrients into account.

     (3) "Analyte" or "analytes" means the material or materials

that an analysis is designed to detect either qualitatively or

quantitatively.

     (4) "Conservation plan" means that term as it is defined in

part 82.

     (5) "Conservation practices" means that term as it is defined

in part 82.

     (6) "Confirmation mechanism" means a scientific process for

the verification of detection of analytes in groundwater utilizing

at least 2 separate water samples collected at time intervals of

greater than 14 days from the same groundwater sampling point and

analyzed by peer reviewed and authenticated laboratory

methodologies.

     (7) "Contaminant" means any pesticide or fertilizer originated

chemical, radionuclide, ion, synthetic organic compound,

microorganism, or other waste that does not occur naturally or that

naturally occurs at a lower concentration than detected.

     (8) "Contamination" means the direct or indirect introduction

into the environment of any contaminant caused in whole or in part

by human activity.

     (9) "Council" means the environmental assurance advisory

council created in section 8708.

(10) (9) "Demonstration project" means a project designed to

illustrate the implementation and impact of alternate conservation

practices.

(11) (10) "Department" means the department of agriculture and

rural development.

(12) (11) "Director" means the director of the department or

his or her designee.

     Sec. 8703. (1) "Envelope monitoring" means monitoring of

groundwater in areas adjacent to properties where groundwater is

contaminated to determine the concentration and spatial

distribution of the contaminant in the aquifer.

     (2) "Environmental assurance advisory council" means the

environmental assurance advisory council established under section

8708.

(2) (3) "Farm" means that term as it is defined in section 2

of the Michigan right to farm act, 1981 PA 93, MCL 286.472.

(3) (4) "Farmer" means a person who owns or operates a farm.

(4) (5) "Fertilizer" means a fertilizer as defined in part 85.

(5) (6) "Fund" means the freshwater protection fund created in

section 8716.

(6) (7) "General screening" means monitoring of groundwater

for the purpose of determining the presence and concentration of

analytes.

(7) (8) "Groundwater" means underground water within the zone

of saturation.

(8) (9) "MAEAP" or "Michigan agriculture environmental

assurance program" means the Michigan agriculture environmental

assurance program provided for in section 8710.

(9) (10) "MAEAP standards" means all of the following as

adopted by the commission of agriculture and rural development for

the purpose of implementing the Michigan agriculture environmental

assurance program:

     (a) Conservation practices.

     (b) Site-specific nutrient management plan requirements.

     (c) Emergency protocols.

     (d) Completed environmental risk and benefit assessments.

     (e) United States department of agriculture natural resources

conservation service Department of Agriculture Natural Resources

Conservation Service practice standards.

     (f) Generally accepted agricultural and management practices

developed under the right to farm act, 1981 PA 93, MCL 286.471 to

286.474.

     (g) Other standards considered appropriate by the director.

(10) (11) "MAEAP-verified farm" means a farm determined by the

department as meeting applicable MAEAP standards through an on-site

evaluation.

(11) (12) "Maximum contaminant level" means that term as it is

defined in title XIV of the public health service act, chapter 373,

88 Stat. 1660, and regulations promulgated under that act.

(12) (13) "Method detection limit" means the minimum

concentration of a substance that can be measured and reported with

99% confidence that the analyte concentration is greater than 0 and

is determined from analysis of a sample in a given matrix that

contains the analyte.

(13) (14) "Monitoring" means sampling and analysis to

determine the levels of pesticides or their breakdown products;

fertilizers or their residues; or other analytes as determined by

the director.

     Sec. 8704. (1) "Nitrogen fertilizer" means a fertilizer that

contains nitrogen as a component.

(1) (2) "On-site evaluation" means a specific set of criteria

used to voluntarily evaluate a farmer's property with regard to

determination of potential environmental risks.

(2) (3) "Pesticide" means that term as it is defined in part

83.

     Sec. 8707. (1) The director, in conjunction with Michigan

state university extension State University Extension and the

Michigan state university agricultural experiment station, Michigan

State University AgBioResearch, and in cooperation with the United

States department of agriculture natural resources conservation

service, Department of Agriculture Natural Resources Conservation

Service, the department of environmental quality, and other

professional and industry organizations, shall develop conservation

practices for approval by the commission of agriculture and rural

development and upon approval shall promote their implementation.

     (2) The director, in conjunction with Michigan state

university, State University, the department of environmental

quality, and other persons the director considers appropriate,

shall develop protocols for voluntary on-site evaluations. The on-

site evaluations shall be designed to do all of the following:

     (a) Provide farmers with the ability to voluntarily determine

the relative risk of current practices in relation to sources of

contamination.

     (b) Provide farmers with the ability to determine the degree

to which farm operations are in accord with MAEAP standards and

applicable law.

     (c) Prioritize operational changes on farms to protect

groundwater and surface waters from sources of contamination.

     (d) Guide farmers to appropriate technical and educational

materials.

     (e) Provide farmers with the opportunity for verification.

     (f) Provide landowners with the ability to voluntarily assess

the value of managing areas of the land that are not utilized for

traditional or production agriculture practices for environmental,

ecological, and economic benefits.

     (3) The director, in conjunction with the environmental

assurance advisory council, shall review and evaluate the

effectiveness of conservation practices approved under subsection

(1).

     Sec. 8708. (1) The director shall establish an environmental

assurance advisory council composed of all of the following:

     (a) The director of the department of agriculture and rural

development.

     (b) The director of the department of environmental quality.

     (c) The director of the Michigan state university

extension.State University Extension.

     (d) The director of the Michigan state university agricultural

experimentation station.State University AgBioResearch.

     (e) Representatives of all of the following as appointed by

the director to serve terms of 3 years:

     (i) The United States department of agriculture - farm service

agency.Department of Agriculture - Farm Service Agency.

     (ii) The United States department of agriculture natural

resources conservation service.Department of Agriculture Natural

Resources Conservation Service.

     (iii) Conservation districts.

     (iv) Farmers and other agricultural organizations.

     (v) Nongovernmental conservation and environmental

organizations.

     (vi) Regulated agricultural industries.

     (vii) A private consulting forester.

     (viii) A member of the forest products industry.

     (ix) A member of the logging profession.

     (x) Other persons as determined by the director.

     (xi) A member representing each regional environmental

assurance team established under section 8709.

     (2) The environmental assurance advisory council shall be co-

chaired by the representative from Michigan state university

extension State University Extension and a representative from 1 of

the farmers and other agricultural organizations.

     (3) The environmental assurance advisory council shall advise

the director on topics including, but not limited to, the

following:

     (a) MAEAP standards.

     (b) On-site evaluations for verification of specific aspects

of a farming operation.

     (c) Water quality and environmental monitoring.

     (d) Protocols for verification and revocation of verification.

     (e) MAEAP activities.

     (f) Interagency coordination of conservation programs.

     (g) The use of money in the clean water fund created in

section 8807 and other funding sources to promote MAEAP and

activities to encourage more MAEAP-verified farms.

     (h) Options to increase assistance to assist small- and

medium-sized farms in achieving MAEAP standards.

     (i) The creation of subcommittees as needed to address

emerging and ongoing issues.

     (j) On-site evaluations of potential environmental,

ecological, and economic benefits that can be realized by managing

areas of the land that are not utilized for traditional or

production agriculture practices.

     (4) The environmental assurance advisory council shall do all

of the following:

     (a) Annually provide recommendations to the director on MAEAP

standards and protocols for verification and revocation of

verification for consideration by the commission of agriculture and

rural development.

     (b) Annually submit a report to the department that outlines

activities, accomplishments, and emerging issues. The department

shall share this report with the agriculture community.

     (c) Not later than September 30, 2014, submit to the director

a comprehensive report detailing program achievements under the

Michigan agricultural environmental assurance program.

     (d) Not later than 1 year after the effective date of the 2013

amendatory act that amended this section, submit to the director a

recommendation for an assessment tool designed to assist landowners

to voluntarily assess the value of managing areas of the land that

are not utilized for traditional or production agriculture

practices for environmental, ecological, and economic benefits. The

assessment tool shall assess, at a minimum, all of the following:

     (i) Forest management for timber, habitat development, or

both.

     (ii) Wetland restoration development potential.

     (iii) Habitat restoration development.

     (c) Provide recommendations to the director on the creation of

a tiered recognition program for farms working toward MAEAP

verification. To qualify for the recognition program, farmers must

have completed educational programs, conducted appropriate farm

assessments, and implemented conservation practices as approved by

the director. The tiers may be used to recognize a farm's movement

toward MAEAP verification.

     (d) Provide recommendations to the director and the

legislature on incentives to increase participation in MAEAP.

     (e) Annually provide recommendations to the director on

funding for research projects that address impediments to

verification and improve MAEAP practice standards.

     Sec. 8710. (1) The director, in consultation with the

environmental assurance advisory council, shall implement a

Michigan agriculture environmental assurance program designed to

promote natural resources conservation through education, technical

assistance, and verification. The MAEAP shall be a voluntary

program that is available to farms throughout the state.

     (2) A farmer who desires to have his or her farm MAEAP-

verified shall do all of the following:

     (a) Complete educational requirements authorized by the

department.

     (b) Develop and implement 1 or more conservation plans as

approved by the director.

     (c) Upon completion of subdivisions (a) and (b), contact the

department to arrange for an on-site evaluation.

     (3) If the department conducts an on-site evaluation and

determines that a farm is meeting MAEAP standards, the department

shall issue a MAEAP verification. A MAEAP verification that is in

effect on September 30, 2015 is valid for 5 years from the original

issue date. Beginning October 1, 2015, a new MAEAP verification or

reverification is valid for 3 5 years.

     (4) A farm is eligible for reverification if the department

determines it is determined to be is meeting MAEAP standards

through an on-site evaluation conducted by the department or its

designee.

     (5) Beginning in the state fiscal year ending September 30,

2013, the The department shall provide MAEAP verification signs to

each MAEAP-verified farm.

     (6) A farm that allows its verification to lapse or whose

verification is revoked under subsection (7) shall forfeit its

verification sign and all other benefits that are provided to

MAEAP-verified farms under this act.

     (7) The director may revoke verification of a MAEAP-verified

farm if any of the following apply:

     (a) The department, in consultation with the department of

environmental quality, determines with scientific evidence provided

by water quality data that the MAEAP-verified farm caused an

exceedance of water quality standards as a result of nonconformance

with MAEAP standards.

     (b) The MAEAP-verified farm fails to conform to MAEAP

standards as a result of gross negligence.

     (c) The MAEAP-verified farm fails to comply with protocols for

verification as approved by the commission of agriculture and rural

development.

     (d) Upon advice from the interagency technical review panel

provided for in section 8710, subsection (11), the director

determines that the MAEAP-verified farm is responsible for a

pattern of repeated violations of environmental laws, rules,

regulations, permit conditions, settlement agreements, orders of

consent, or judicial orders that were due to separate and distinct

events.

     (8) A farmer shall not be is not liable for groundwater

contamination on a MAEAP-verified farm for activities on the MAEAP-

verified farm unless he or she was grossly negligent or in

violation of state or federal law or failed to comply with the

MAEAP standards. This part does not modify or limit any obligation,

responsibility, or liability imposed by any other provision of

state law.

     (9) The department shall establish a MAEAP grants program.

Grants issued under the MAEAP grants program are limited to

availability of funds collected pursuant to this part. Grants shall

be available for all of the following:

     (a) Technical assistance.

     (b) Promotion of the MAEAP.

     (c) Educational programs related to the MAEAP.

     (d) Demonstration projects to implement conservation

practices.

     (e) Removal of potential sources of contamination.

     (f) Other purposes considered appropriate by the director.

     (10) Following review of the proposed tiered recognition

program submitted to the director by the council under section

8708, the director shall approve and implement a tiered recognition

program. As part of the tiered recognition program, the department

shall provide a certificate of progress to a farm participating in

MAEAP recognizing each time a new tier is achieved. The certificate

of progress shall summarize conservation practices implemented by

the farm and the environmental impacts of the implemented

conservation practices. The certificate of progress shall recognize

the farm for its achievement and encourage the farm to complete the

remaining conservation practices necessary for verification. A

certificate of progress is valid for 5 years from the date of

mailing. Upon written confirmation by the farmer and the MAEAP

technician updating any new conservation practices and confirming

that all previous applicable conservation practices are still being

implemented, the department shall reissue a certificate of progress

for additional 5-year periods, as appropriate, until the farm

becomes MAEAP-verified in the applicable system or the farmer

ceases implementation of the conservation practices. Information

collected under this section is not subject to the freedom of

information act, 1976 PA 442, MCL 15.231 to 15.246.

(11) (10) The department and the department of environmental

quality shall enter into a memorandum of understanding to formalize

a commitment to promote the MAEAP and to clarify the application of

state and federal environmental laws to farms. In addition, the

memorandum of understanding shall provide for all of the following:

     (a) An ongoing interagency technical review panel for MAEAP-

verified farms that discharge in violation of state or federal law

to determine enforcement action.

     (b) Preference for funding for nonpoint source pollution –

funds for farms seeking MAEAP verification.

     (c) Considerations for reverification of a farm with revoked

MAEAP verification status.

     (d) Integration of the MAEAP into pollution prevention

activities of both agencies.

     (e) Clarification of the consultation process in part 88 to

ensure that the department of agriculture and rural development has

meaningful input into the establishment of the grants program and

the issuance of grants.

     (12) Beginning December 1, 2016 and every December 1

thereafter, the department shall publish a report on MAEAP that

includes, but is not limited to, all of the following:

     (a) County and statewide totals for the previous fiscal year

of all of the following:

     (i) Conservation practices implemented.

     (ii) Environmental impacts of practices implemented.

     (iii) Number of new verifications and reverifications.

     (iv) Number of unique farms verified.

     (v) Number of farms in tiered recognition system.

     (vi) Total area and percentage of this state's farmland

involved.

     (b) County and statewide program to-date totals of all of the

following:

     (i) Conservation practices implemented.

     (ii) Environmental impacts of practices implemented.

     (iii) Number of new verifications and reverifications.

     (iv) Number of unique farms verified.

     (v) Number of farms in tiered recognition system.

     (vi) Total area and percentage of this state's farmland

involved.

     (c) A summary of educational and MAEAP verification standards

changes for each system tool and an overview of the reasons for the

changes.

     (d) A summary of each system subcommittee's work beyond the

standards changes, including identification of ongoing and emerging

issues.

     (13) The department shall make available a consent form for

completion by farmers implementing conservation practices that

includes both of the following:

     (a) Permission for the department to associate the farmer's

name, farm location, and mailing address with conservation

practices implemented on that farm.

     (b) A statement by the farmer that conservation practices

being implemented on the farm are for the purpose of working toward

MAEAP verification.

     (14) The department shall provide for the consent forms

described in subsection (13) to be authenticated. The department

may use a completed consent form in the recognition program

described in subsection (10). Information collected under this

subsection is not subject to the freedom of information act, 1976

PA 442, MCL 15.231 to 15.246.

     Sec. 8713a. (1) The director, in consultation with the

environmental assurance advisory council, may develop and establish

priorities, procedures, and protocols for the implementation of a

surface water quality monitoring program to do both of the

following:

     (a) Promote voluntary water quality monitoring by farms.

     (b) Monitor and benchmark the effectiveness of conservation

practices and MAEAP standards in cooperation with participating

farmers.

     (2) Water quality information collected under this section by

the department in cooperation with farmers shall be aggregated and

made available to the commission of agriculture and rural

development. Specific locations or persons involved in water

quality information collection are exempt from disclosure under the

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

     Sec. 8715. (1) In addition to the fees provided for in part

83, a registrant shall pay an annual groundwater water quality

protection fee for each product to be registered. The specialty

pesticide groundwater water quality protection fee is $100.00

$270.00 per product. Groundwater protection fees for all other

pesticides are 0.75% of the wholesale value of the previous

registration year's product sales for use in this state, with a

$150.00 minimum groundwater protection fee. The minimum groundwater

water quality protection fee is due in the office of the director

before July 1. A sales based groundwater protection fee greater

than the $150.00 minimum is due in the office of the director

before October 1 of the following registration year.

     (2) An additional late fee of $100.00 shall be paid by the

registrant for each pesticide if the pesticide registration is a

renewal registration and the minimum groundwater water quality

protection fee is received by the department after June 30.

     (3) A person required to pay a specialty fertilizer or soil

conditioner registration fee under section 8505 shall pay an

additional $100.00 groundwater water quality protection fee for

each brand and product name of each grade registered.

     (4) All fertilizer manufacturers or distributors licensed

under part 85, except specialty fertilizer and soil conditioner

registrants, shall pay an additional groundwater the following:

     (a) Until December 31, 2015, a water quality protection fee of

1-1/2 cents per percent of nitrogen in the fertilizer for each ton

of fertilizer sold.

     (b) Beginning January 1, 2016, $.0005 per pound of fertilizer

sold.

     (5) The fees collected under this part, including any interest

or dividends earned, shall be transmitted to the state treasurer,

who shall credit the money received to the fund.

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

this section for any purpose other than those specifically listed

in this part, authorization to collect fees in this section shall

be suspended until the money expended or appropriated for purposes

other than those listed in this part are returned to the fund.

     (7) The department may audit, or may contract for audits of

records that are the basis for fees levied under this section.

(8) (7) This section is repealed December 31, 2015.2021.

     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. The

director shall annually seek matching general fund general purpose

appropriations in amounts equal to the groundwater water quality

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) 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

water contamination. Expenditures pursuant to this subdivision

shall not exceed $15,000.00 per location.

     (d) Natural resources protection.

     (e) Administrative costs. Expenditures pursuant to this

subdivision shall not exceed 20% of the annual appropriations from

the fund.

     (6) The department shall establish criteria and procedures for

approving proposed expenditures from the fund.

     (7) Notwithstanding section 8715, if at the close of any

fiscal year the amount of money in the fund exceeds $3,500,000.00,

$5,000,000.00, the department shall not collect a groundwater water

quality protection fee fees for the following year. After the

groundwater water quality 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.$2,000,000.00.

     (8) 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) 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 natural resources

protection rules.

     (iii) Coordination of programs under this part with the United

States environmental protection agency Environmental Protection

Agency and other state programs with environmental protection

responsibilities.

     (iv) Coordination of programs under this part with the United

States Department of Agriculture Natural Resources Conservation

Service and state programs with nonpoint source pollution

prevention and conservation practice responsibilities.

(v) (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 disposal programs.

     (vi) Programs devoted to integrated natural resources

conservation that encourage the judicious use of pesticides and

fertilizers and other agricultural inputs and practices that are

protective of water quality through targeted systems approach to

management decisions.

     (vii) Incentive and cost share programs to assist farmers in

achieving MAEAP standards.

     (viii) Incentive and cost share programs for MAEAP-verified

farms with potential sources of contamination on their property.

     (ix) Monitoring of private well water for pesticides,

fertilizers, and other contaminants.

     (x) Removal of soils and waters contaminated by pesticides and

fertilizers and the land application of those materials at

agronomic rates.

     (xi) MAEAP grants pursuant to section 8710.

     (xii) Programs that enhance investment of private and federal

funds in conservation.

     (xiii) Verification.

     (xiv) 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.

     (iii) Technical assistance programs.

     (iv) The promotion and implementation of on-site evaluation

systems, conservation practices, and the MAEAP.

     (v) Research programs. for determination of the impacts of

alternate management practices.

     (vi) Research program for determination of natural resources

sensitivity and vulnerability to contamination.

     Sec. 8807. (1) The clean water 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. 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) Except as otherwise provided in this section, the

department, in consultation with the department of agriculture and

rural development, shall expend money in the fund, upon

appropriation, for any of the following:

     (a) To implement the programs described in the department's

document entitled "A strategic environmental quality monitoring

program Strategic Environmental Quality Monitoring Program for

Michigan's surface waters", Surface Waters", dated January 1997. In

implementing these programs, the department may contract with any

person.

     (b) Monitor Not more than $100,000.00 of the total annual

appropriations from the fund to monitor and benchmark the

effectiveness of conservation practices and MAEAP standards in

cooperation with participating farmers.

     (c) Promotion of MAEAP and activities to encourage more MAEAP-

verified farms.

     (d) Water pollution control activities.

     (e) Wellhead protection activities.

     (f) Storm water treatment projects and activities.

     (5) Money in the fund shall not be expended for combined sewer

overflow corrections.

     (6) Money in the fund shall not be expended until rules are

promulgated under section 8808.

     Enacting section 1. This amendatory act takes effect October

1, 2015.