HOUSE BILL No. 4633 April 15, 1997, Introduced by Reps. LeTarte, Middleton, Middaugh, Hammerstrom, McManus, Rhead, Fitzgerald, Cassis, Brackenridge, McNutt, Gilmer, Geiger, Goschka, Crissman, London, Gernaat, Griffin, Baade, McBryde, Oxender, Jelinek, Walberg, Emerson, Martinez, Prusi, Mans, Schauer, Cherry, Baird, Agee, Gagliardi, Raczkowski, Richner, DeVuyst, Scranton, Sikkema, Dalman, Lowe, Jellema, Godchaux, Galloway, Bobier, Llewellyn, Tesanovich, Perricone and Bodem and referred to the Committee on Conservation, Environment and Recreation. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 21106 (MCL 324.21106) and by adding section 21308b and part 216; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 21106. The department shall promulgate rules relating 2 to underground storage tank systems that are at least as strin- 3 gent as the rules promulgated by the United States environmental 4 protection agency under subtitle I of title II of Public Law 5 89-272, 42 U.S.C. 6991 to 6991i. These rules shall include a 6 requirement that the owner or operator of an underground storage 7 tank system provide financial responsibility in the event of a 8 release from the underground storage tank system. AN OWNER OR 9 OPERATOR OF AN UNDERGROUND STORAGE TANK SYSTEM WHO IS ELIGIBLE TO 00237'97 JCB 2 1 RECEIVE FUNDING UNDER PART 216 SHALL BE CONSIDERED IN COMPLIANCE 2 WITH THESE FINANCIAL RESPONSIBILITY REQUIREMENTS. 3 SEC. 21308B. NOTWITHSTANDING ANY OTHER PROVISION OF THIS 4 PART, FOLLOWING COMPLETION OF INITIAL RESPONSE ACTIONS UNDER SEC- 5 TION 21307 AND SUBMITTAL OF AN INITIAL ASSESSMENT REPORT UNDER 6 SECTION 21308A, AN OWNER OR OPERATOR WHO IS ELIGIBLE TO RECEIVE 7 FUNDING FOR A CLAIM UNDER PART 216 MAY APPLY FOR APPROVAL OF A 8 SCHEDULE FOR COMPLETION OF CORRECTIVE ACTION UNDER SECTION 9 21314A. IN CONSIDERING WHETHER TO APPROVE A SCHEDULE FOR CORREC- 10 TIVE ACTION, THE DEPARTMENT SHALL APPROVE THE PROPOSED SCHEDULE 11 IF THE PROPOSED SCHEDULE IS BASED UPON THE UNAVAILABILITY OF 12 FUNDS UNDER PART 216 FOR CORRECTIVE ACTION ON CLASS II, III, OR 13 IV SITES AS DEFINED IN SECTION 21601. 14 PART 216 PETROLEUM SUPPLIERS ENVIRONMENTAL CLEANUP PROGRAM 15 SEC. 21601. AS USED IN THIS PART: 16 (A) "BOARD" MEANS THE PETROLEUM SUPPLIERS ENVIRONMENTAL 17 CLEANUP BOARD CREATED IN SECTION 21602. 18 (B) "CLASS I" MEANS A SITE THAT POSES AN IMMEDIATE THREAT TO 19 HUMAN HEALTH, SAFETY, OR SENSITIVE ENVIRONMENTAL RECEPTORS. 20 (C) "CLASS II" MEANS A SITE THAT POSES A SHORT-TERM THREAT 21 TO HUMAN HEALTH, SAFETY, OR SENSITIVE ENVIRONMENTAL RECEPTORS. 22 (D) "CLASS III" MEANS A SITE THAT POSES A LONG-TERM THREAT 23 TO HUMAN HEALTH, SAFETY, OR SENSITIVE ENVIRONMENTAL RECEPTORS. 24 (E) "CLASS IV" MEANS A SITE THAT POSES NO DEMONSTRABLE 25 LONG-TERM THREAT TO HUMAN HEALTH, SAFETY, OR SENSITIVE ENVIRON- 26 MENTAL RECEPTORS. 00237'97 3 1 (F) "CLEANUP PROGRAM" MEANS THE ENVIRONMENTAL CLEANUP 2 PROGRAM ESTABLISHED BY THE BOARD UNDER SECTION 21603. 3 (G) "CONSULTANT", "CORRECTIVE ACTION", "INDEMNIFICATION", 4 "OPERATOR", "OWNER", "PETROLEUM UNDERGROUND STORAGE TANK SYSTEM", 5 AND "RELEASE" HAVE THE MEANINGS ASCRIBED TO THOSE TERMS IN PART 6 215. 7 (H) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL 8 QUALITY. 9 (I) "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT. 10 (J) "SITE" MEANS THAT TERM AS IT IS DEFINED IN 11 SECTION 21303. 12 (K) "SUPPLIER" MEANS THAT TERM AS IT IS DEFINED IN SECTION 1 13 OF 1927 PA 150, MCL 207.101. 14 SEC. 21602. (1) THE PETROLEUM SUPPLIERS ENVIRONMENTAL 15 CLEANUP BOARD IS CREATED WITHIN THE DEPARTMENT OF ENVIRONMENTAL 16 QUALITY. 17 (2) THE BOARD SHALL CONSIST OF THE DIRECTOR OR HIS OR HER 18 DESIGNEE AND THE CLAIMS ADMINISTRATOR EMPLOYED PURSUANT TO SEC- 19 TION 21603 AS NONVOTING MEMBERS, AND THE FOLLOWING MEMBERS, 20 APPOINTED BY THE GOVERNOR: 21 (A) ONE INDIVIDUAL REPRESENTING PETROLEUM SUPPLIERS. 22 (B) ONE INDIVIDUAL REPRESENTING PETROLEUM WHOLESALERS. 23 (C) ONE INDIVIDUAL REPRESENTING SERVICE STATION DEALERS. 24 (D) ONE INDIVIDUAL WHO IS A CONSULTANT. 25 (E) ONE INDIVIDUAL WHO IS AN ENVIRONMENTAL CONTRACTOR. 26 (F) ONE INDIVIDUAL REPRESENTING THE GENERAL PUBLIC. 00237'97 4 1 (G) ONE INDIVIDUAL REPRESENTING AN ENVIRONMENTAL OR 2 CONSERVATION ORGANIZATION. 3 (3) THE MEMBERS FIRST APPOINTED TO THE BOARD SHALL BE 4 APPOINTED WITHIN 60 DAYS AFTER THE EFFECTIVE DATE OF THIS 5 SECTION. 6 (4) MEMBERS OF THE BOARD SHALL SERVE FOR TERMS OF 3 YEARS OR 7 UNTIL A SUCCESSOR IS APPOINTED, WHICHEVER IS LATER, EXCEPT THAT 8 OF THE MEMBERS FIRST APPOINTED, 3 SHALL SERVE FOR 1 YEAR, 2 SHALL 9 SERVE FOR 2 YEARS, AND 2 SHALL SERVE FOR 3 YEARS. 10 (5) IF A VACANCY OCCURS ON THE BOARD, THE GOVERNOR SHALL 11 MAKE AN APPOINTMENT FOR THE UNEXPIRED TERM IN THE SAME MANNER AS 12 THE ORIGINAL APPOINTMENT. 13 (6) THE GOVERNOR MAY REMOVE A MEMBER OF THE BOARD FOR INCOM- 14 PETENCY, DERELICTION OF DUTY, MALFEASANCE, MISFEASANCE, OR NON- 15 FEASANCE IN OFFICE, OR ANY OTHER GOOD CAUSE. 16 (7) THE FIRST MEETING OF THE BOARD SHALL BE CALLED BY THE 17 GOVERNOR. AT THE FIRST MEETING, THE BOARD SHALL ELECT FROM AMONG 18 ITS MEMBERS A CHAIRPERSON AND OTHER OFFICERS AS IT CONSIDERS NEC- 19 ESSARY OR APPROPRIATE. AFTER THE FIRST MEETING, THE BOARD SHALL 20 MEET AT LEAST QUARTERLY, OR MORE FREQUENTLY AT THE CALL OF THE 21 CHAIRPERSON OR IF REQUESTED BY 4 OR MORE MEMBERS. 22 (8) A MAJORITY OF THE MEMBERS OF THE BOARD CONSTITUTE A 23 QUORUM FOR THE TRANSACTION OF BUSINESS AT A MEETING OF THE 24 BOARD. 25 (9) THE BUSINESS THAT THE BOARD MAY PERFORM SHALL BE CON- 26 DUCTED AT A PUBLIC MEETING OF THE BOARD HELD IN COMPLIANCE WITH 27 THE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO 15.275. 00237'97 5 1 (10) A WRITING PREPARED, OWNED, USED, IN THE POSSESSION OF, 2 OR RETAINED BY THE BOARD OR THE ADMINISTRATOR IN THE PERFORMANCE 3 OF AN OFFICIAL FUNCTION IS SUBJECT TO THE FREEDOM OF INFORMATION 4 ACT, 1976 PA 442, MCL 15.231 TO 15.246. 5 (11) MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION. 6 HOWEVER, MEMBERS OF THE BOARD MAY BE REIMBURSED FOR THEIR ACTUAL 7 AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFI- 8 CIAL DUTIES AS MEMBERS OF THE BOARD. 9 SEC. 21603. THE BOARD SHALL DO ALL OF THE FOLLOWING: 10 (A) ESTABLISH AN ENVIRONMENTAL CLEANUP PROGRAM TO FUND COR- 11 RECTIVE ACTIONS AND INDEMNIFICATION RELATED TO RELEASES FROM 12 PETROLEUM UNDERGROUND STORAGE TANK SYSTEMS. 13 (B) ESTABLISH AND ASSESS AN ENVIRONMENTAL REGULATORY ASSESS- 14 MENT PURSUANT TO SECTION 21604. 15 (C) EMPLOY A CLAIMS ADMINISTRATOR TO PROCESS, REVIEW, AND 16 APPROVE OR DISAPPROVE CLAIMS, INVOICES, AND REQUESTS FOR INDEMNI- 17 FICATION SUBMITTED UNDER THIS PART, AND TO PREAPPROVE PROPOSED 18 CORRECTIVE ACTIONS THAT ARE ELIGIBLE FOR FUNDING UNDER THIS 19 PART. 20 (D) REVIEW THE ACTIONS OF THE CLAIMS ADMINISTRATOR AS AUTHO- 21 RIZED UNDER THIS PART. 22 (E) CONDUCT A MARKET SURVEY AND, BASED ON THAT SURVEY, 23 ESTABLISH A PAYMENT SCHEDULE FOR REASONABLE AND CUSTOMARY WORK 24 THAT IS ELIGIBLE FOR REIMBURSEMENT UNDER THIS PART. 25 (F) PERFORM OTHER RESPONSIBILITIES PROVIDED FOR IN THIS PART 26 OR OTHERWISE PROVIDED BY LAW. 00237'97 6 1 SEC. 21604. (1) THE BOARD SHALL ESTABLISH AND ASSESS ON ALL 2 SUPPLIERS OF GASOLINE AND DIESEL MOTOR FUELS SUBJECT TO TAXATION 3 UNDER 1927 PA 150, MCL 207.101 TO 207.202, OTHER THAN NUMBER 2 4 FUEL OIL, A PETROLEUM SUPPLIERS ENVIRONMENTAL REGULATORY 5 ASSESSMENT. THE ASSESSMENT SHALL BE ASSESSED ON GASOLINE AND 6 DIESEL MOTOR FUELS WHEN ACCEPTED BY THE SUPPLIER AFTER THE GASO- 7 LINE AND DIESEL MOTOR FUELS ARE REFINED OR IMPORTED INTO THIS 8 STATE. TO THE EXTENT POSSIBLE, THE ASSESSMENT SHALL BE ASSESSED 9 AT THE SAME TIME AS THE SALES TAX IS IMPOSED UNDER SECTION 6A OF 10 THE GENERAL SALES TAX ACT, 1933 PA 167, MCL 205.56A. THE ASSESS- 11 MENT SHALL BE A FEE OF $67.50 PER 7,500 GALLONS OF TAXABLE GASO- 12 LINE AND DIESEL MOTOR FUELS SOLD FOR RESALE IN THIS STATE OR CON- 13 SUMPTION IN THIS STATE, OR AN EQUIVALENT AMOUNT PER FRACTION 14 THEREOF. THE SUPPLIER SHALL COLLECT THE ASSESSMENTS UNDER THIS 15 SUBSECTION AND SHALL FORWARD ALL ASSESSMENTS TO THE BOARD ALONG 16 WITH ANY DOCUMENTATION REQUIRED BY THE BOARD. 17 (2) MONEY COLLECTED PURSUANT TO THIS PART, WHETHER COLLECTED 18 FROM ASSESSMENTS OR EARNED FROM ROYALTIES DERIVED FROM ANY ACTIV- 19 ITIES PERFORMED BY ANOTHER ORGANIZATION, AGENCY, OR INDIVIDUAL 20 AND CONDUCTED PURSUANT TO THE CLEANUP PROGRAM, IS NOT STATE MONEY 21 AND SHALL BE DEPOSITED IN A BANK OR OTHER DEPOSITORY IN THIS 22 STATE. THE MONEY SHALL BE ALLOCATED TO THE CLEANUP PROGRAM UNDER 23 WHICH IT IS COLLECTED AND SHALL BE DISBURSED ONLY AS PROVIDED IN 24 THIS PART. 25 (3) THE STATE AUDITOR GENERAL SHALL ANNUALLY, OR AT GREATER 26 FREQUENCY AS DETERMINED BY THE AUDITOR GENERAL, CONDUCT A 27 PERFORMANCE AUDIT OF THE CLEANUP PROGRAM. ADDITIONALLY, THE 00237'97 7 1 BOARD SHALL CONTRACT FOR A CERTIFIED PUBLIC ACCOUNTANT TO AUDIT 2 ALL EXPENDITURES OF THE CLEANUP PROGRAM AT LEAST ANNUALLY. 3 WITHIN 30 DAYS AFTER COMPLETION OF A PERFORMANCE AUDIT OR A 4 FINANCIAL AUDIT, THE STATE AUDITOR GENERAL OR CERTIFIED PUBLIC 5 ACCOUNTANT, AS APPROPRIATE, SHALL GIVE A COPY OF THE AUDIT TO 6 EACH MEMBER OF THE BOARD, THE DIRECTOR, AND EACH MEMBER OF THE 7 LEGISLATURE. THE BOARD SHALL PUBLISH AN ACTIVITY AND FINANCIAL 8 REPORT ANNUALLY AND SHALL MAKE THAT REPORT AVAILABLE TO INTER- 9 ESTED PARTIES. 10 SEC. 21605. (1) MONEY REMAINING FROM THE ASSESSMENTS COL- 11 LECTED UNDER THIS PART MAY BE REFUNDED AT THE CLOSE OF THE FISCAL 12 YEAR UPON A PRO RATA BASIS TO ALL PERSONS FROM WHOM ASSESSMENTS 13 WERE COLLECTED. IF THE BOARD FINDS THAT THE MONEY MAY BE NECES- 14 SARY TO DEFRAY THE COST OF OPERATING THE CLEANUP PROGRAM IN SUC- 15 CEEDING YEARS, ALL OR ANY PORTION OF THE MONEY MAY BE CARRIED 16 OVER INTO SUCCEEDING YEARS. 17 (2) UPON TERMINATION OF THE CLEANUP PROGRAM, ALL MONEY 18 REMAINING AND NOT REQUIRED TO DEFRAY THE EXPENSES OF OPERATING 19 THE CLEANUP PROGRAM SHALL BE REFUNDED ON A PRO RATA BASIS TO PER- 20 SONS FROM WHOM ASSESSMENTS WERE COLLECTED. IF THE BOARD FINDS 21 THAT THE REFUNDABLE AMOUNT IS SO SMALL AS TO MAKE IMPRACTICABLE 22 THE COMPUTATION AND REFUNDING OF THE MONEY, IT MAY BE USED TO 23 DEFRAY THE EXPENSES INCURRED BY THE DEPARTMENT IN THE FORMULA- 24 TION, ADOPTION, ADMINISTRATION, OR ENFORCEMENT OF THIS PART. 25 SEC. 21606. (1) THE BOARD SHALL EMPLOY A CLAIMS ADMINISTRA- 26 TOR TO PROCESS AND REVIEW CLAIMS AND ASSOCIATED WORK INVOICES AND 00237'97 8 1 REQUESTS FOR INDEMNIFICATION SUBMITTED FOR FUNDING UNDER THIS 2 PART. 3 (2) EXCEPT FOR INITIAL RESPONSE ACTIVITIES DESCRIBED IN SEC- 4 TION 21307(2)(A) TO (C), THE CLAIMS ADMINISTRATOR OR THE BOARD 5 SHALL NOT ALLOW FUNDING OF ACTIVITIES THAT HAVE NOT BEEN PREAP- 6 PROVED BY THE ADMINISTRATOR. 7 (3) THE OWNER OR OPERATOR OF AN UNDERGROUND STORAGE TANK 8 SYSTEM MAY SUBMIT A CLAIM AND ASSOCIATED WORK INVOICES TO THE 9 CLAIMS ADMINISTRATOR REQUESTING FUNDING FOR CORRECTIVE ACTIONS 10 REQUIRED TO BE PERFORMED UNDER PART 213 OR INDEMNIFICATIONS, OR 11 BOTH. THE CLAIM AND ALL WORK INVOICES AND REQUESTS FOR INDEMNI- 12 FICATION SHALL BE IN A FORM REQUESTED BY THE CLAIMS ADMINISTRATOR 13 AND SHALL CONTAIN SUPPORTING DOCUMENTATION AS REQUIRED BY THE 14 CLAIMS ADMINISTRATOR. 15 (4) UPON RECEIPT OF A CLAIM SUBMITTED UNDER THIS PART, THE 16 CLAIMS ADMINISTRATOR SHALL REVIEW WHETHER THE CLAIM IS ELIGIBLE 17 FOR FUNDING UNDER THIS PART. A CLAIM IS ELIGIBLE FOR FUNDING 18 UNDER THIS PART IF ALL OF THE FOLLOWING CONDITIONS ARE MET: 19 (A) THE CLAIM MEETS THE ELIGIBILITY REQUIREMENTS DESCRIBED 20 IN SECTION 21510(1)(A), (B), (C), (D), AND (F) AND SECTION 21 21510(2), (3), (4), AND (5). 22 (B) THE SITE WHICH THE CLAIM ADDRESSES HAS NOT RECEIVED 23 FUNDING UNDER THIS PART OR PART 215 MORE THAN ONCE BEFORE. 24 (5) THE OWNER OR OPERATOR OF AN UNDERGROUND STORAGE TANK 25 SYSTEM IS ELIGIBLE TO RECEIVE FUNDING FOR WORK INVOICES ASSOCI- 26 ATED WITH A CLAIM APPROVED UNDER SUBSECTION (4) SUBJECT TO ALL OF 27 THE FOLLOWING: 00237'97 9 1 (A) THE OWNER OR OPERATOR MAY NOT BE COMPENSATED FOR AN 2 ACTIVITY THAT IS ELIGIBLE FOR FUNDING UNDER PART 215. 3 (B) THE OWNER OR OPERATOR MAY RECEIVE FROM THE FUND NOT MORE 4 THAN $1,000,000.00 PER CLAIM MINUS THE AMOUNT OF ELIGIBLE COMPEN- 5 SATION UNDER PART 215 FOR THAT CLAIM AND MINUS THE AMOUNT OF THE 6 REQUIRED PAYMENT UNDER SECTION 21607. 7 (C) THE OWNER OR OPERATOR SUBMITS EVIDENCE THAT HE OR SHE 8 HAS PAID THE PAYMENT REQUIRED UNDER SECTION 21607. 9 (D) EXCEPT FOR INITIAL RESPONSE ACTIVITIES DESCRIBED IN SEC- 10 TION 21307(2)(A) TO (C), THE WORK INVOICE IS FOR ACTIVITIES THAT 11 HAVE RECEIVED PRIOR APPROVAL FROM THE ADMINISTRATOR. 12 (E) MONEY IS AVAILABLE IN THE FUND. 13 (6) UPON RECEIPT OF A WORK INVOICE SUBMITTED UNDER THIS 14 PART, THE ADMINISTRATOR SHALL REVIEW THE ELIGIBILITY OF THE WORK 15 INVOICE, AND IF THE WORK INVOICE IS ELIGIBLE FOR FUNDING UNDER 16 THIS PART AND IS OF A CLASS OF WORK THAT IS BEING FUNDED UNDER 17 SECTION 21608, THE ADMINISTRATOR SHALL PAY THE OWNER OR OPERATOR 18 THE AMOUNT PROVIDED IN THE PAYMENT SCHEDULE FOR REASONABLE AND 19 CUSTOMARY WORK. IF THE WORK INVOICE IS FOR AN ACTIVITY NOT 20 LISTED ON THE PAYMENT SCHEDULE AND IS FOR WORK NECESSARY TO 21 COMPLY WITH PART 213, THE CLAIMS ADMINISTRATOR SHALL PAY THE 22 OWNER OR OPERATOR AN AMOUNT THAT IS NOT MORE THAN A REASONABLE 23 COST OF CONDUCTING NECESSARY ACTIVITIES. 24 SEC. 21607. (1) AN OWNER OR OPERATOR WHO SUBMITS A CLAIM 25 UNDER THIS PART IS RESPONSIBLE FOR PAYMENT OF THE FOLLOWING: 26 (A) FOR A SITE THAT HAS NOT RECEIVED FUNDING UNDER PART 215 27 OR THIS PART, THE FIRST $10,000.00 OF COSTS ASSOCIATED WITH THE 00237'97 10 1 CLAIM AND 5% OF EACH WORK INVOICE OR REQUEST FOR INDEMNIFICATION 2 SUBMITTED. 3 (B) FOR A SITE THAT HAS PREVIOUSLY RECEIVED FUNDING UNDER 4 THIS PART OR PART 215, THE FIRST $10,000.00 OF COSTS ASSOCIATED 5 WITH THE CLAIM AND 10% OF EACH WORK INVOICE OR REQUEST FOR INDEM- 6 NIFICATION SUBMITTED. 7 (2) THE BOARD SHALL ESTABLISH A LOW-INTEREST LOAN PROGRAM 8 FOR SMALL BUSINESSES. THE LOW-INTEREST LOAN PROGRAM SHALL PRO- 9 VIDE LOANS OR INTEREST SUBSIDIES FOR LOANS OF NOT MORE THAN 10 $10,000.00 FOR SMALL BUSINESSES TO PAY FOR THE FIRST $10,000.00 11 OF COSTS ASSOCIATED WITH A CLAIM REQUIRED UNDER SUBSECTION (1). 12 AS USED IN THIS SUBSECTION, "SMALL BUSINESS" MEANS AN OWNER OR 13 OPERATOR WHOSE ANNUAL GROSS SALES OF GASOLINE AND DIESEL MOTOR 14 FUELS IN THIS STATE DO NOT EXCEED $1,000,000.00. 15 SEC. 21608. THE CLAIMS ADMINISTRATOR SHALL APPROVE PAYMENTS 16 ON WORK INVOICES AND REQUESTS FOR INDEMNIFICATION IN THE FOLLOW- 17 ING PRIORITY ORDER: 18 (A) WORK INVOICES FOR INITIAL RESPONSE ACTIONS UNDER SECTION 19 21307. 20 (B) WORK INVOICES FOR ACTIVITIES AT CLASS I SITES. 21 (C) WORK INVOICES FOR ACTIVITIES AT CLASS II SITES. 22 (D) REQUEST FOR INDEMNIFICATION. 23 (E) WORK INVOICES FOR ACTIVITIES AT CLASS III SITES. 24 (F) WORK INVOICES FOR ACTIVITIES AT CLASS IV SITES. 25 SEC. 21609. THE DIRECTOR OR THE BOARD MAY INSTITUTE AN 26 ACTION NECESSARY TO ENFORCE COMPLIANCE WITH THIS PART OR A 27 CLEANUP PROGRAM ESTABLISHED UNDER THIS PART. IN ADDITION TO ANY 00237'97 11 1 OTHER REMEDY PROVIDED BY LAW, THE DIRECTOR OR THE BOARD MAY APPLY 2 FOR AND OBTAIN RELIEF BY INJUNCTION TO PROTECT THE PUBLIC INTER- 3 EST WITHOUT BEING COMPELLED TO ALLEGE OR PROVE THAT AN ADEQUATE 4 REMEDY AT LAW DOES NOT EXIST. THE APPLICATION MAY BE MADE TO THE 5 CIRCUIT COURT IN ANY COUNTY. 6 SEC. 21610. (1) A PERSON WHO MAKES OR SUBMITS OR CAUSES TO 7 BE MADE OR SUBMITTED EITHER DIRECTLY OR INDIRECTLY ANY STATEMENT, 8 REPORT, AFFIDAVIT, APPLICATION, CLAIM, BID, WORK INVOICE, OR 9 OTHER REQUEST FOR PAYMENT OR INDEMNIFICATION UNDER THIS PART 10 KNOWING THAT THE STATEMENT, REPORT, AFFIDAVIT, APPLICATION, 11 CLAIM, BID, WORK INVOICE, OR OTHER REQUEST FOR PAYMENT OR INDEM- 12 NIFICATION IS FALSE OR MISLEADING IS GUILTY OF A FELONY PUNISH- 13 ABLE BY IMPRISONMENT FOR NOT MORE THAN 5 YEARS OR A FINE OF NOT 14 MORE THAN $50,000.00, OR BOTH. IN ADDITION TO ANY PENALTY 15 IMPOSED UNDER THIS SUBSECTION, A PERSON CONVICTED UNDER THIS SUB- 16 SECTION SHALL PAY RESTITUTION TO THE BOARD FOR THE AMOUNT 17 RECEIVED IN VIOLATION OF THIS SUBSECTION. 18 (2) A PERSON WHO MAKES OR SUBMITS OR CAUSES TO BE MADE OR 19 SUBMITTED EITHER DIRECTLY OR INDIRECTLY ANY STATEMENT, REPORT, 20 AFFIDAVIT, APPLICATION, CLAIM, BID, WORK INVOICE, OR OTHER 21 REQUEST FOR PAYMENT OR INDEMNIFICATION UNDER THIS PART KNOWING 22 THAT THE STATEMENT, REPORT, AFFIDAVIT, APPLICATION, CLAIM, BID, 23 WORK INVOICE, OR OTHER REQUEST FOR PAYMENT OR INDEMNIFICATION IS 24 FALSE, MISLEADING, OR FRAUDULENT, OR WHO COMMITS A FRAUDULENT 25 PRACTICE, IS SUBJECT TO A CIVIL FINE OF NOT MORE THAN $50,000.00 26 OR TWICE THE AMOUNT SUBMITTED, WHICHEVER IS GREATER. IN ADDITION 27 TO ANY CIVIL FINE IMPOSED UNDER THIS SUBSECTION, A PERSON FOUND 00237'97 12 1 RESPONSIBLE UNDER THIS SUBSECTION SHALL PAY RESTITUTION TO THE 2 BOARD FOR THE AMOUNT RECEIVED IN VIOLATION OF THIS SUBSECTION. 3 (3) AS USED IN SUBSECTION (2), "FRAUDULENT" OR "FRAUDULENT 4 PRACTICE" INCLUDES, BUT IS NOT LIMITED TO, THE FOLLOWING: 5 (A) SUBMITTING A WORK INVOICE FOR THE EXCAVATION, HAULING, 6 DISPOSAL, OR PROVISION OF SOIL, SAND, OR BACKFILL FOR AN AMOUNT 7 GREATER THAN THE LEGAL CAPACITY OF THE CARRYING VEHICLE OR 8 GREATER THAN WAS ACTUALLY CARRIED, EXCAVATED, DISPOSED, OR 9 PROVIDED. 10 (B) SUBMITTING PAPERWORK FOR SERVICES DONE OR WORK PROVIDED 11 THAT WAS NOT IN FACT PROVIDED OR THAT WAS NOT DIRECTLY PROVIDED 12 BY THE INDIVIDUAL INDICATED ON THE PAPERWORK. 13 (C) CONTAMINATING AN OTHERWISE CLEAN RESOURCE OR SITE FOR 14 THE PURPOSE OF RECEIVING FUNDING UNDER THIS PART. 15 (D) RETURNING ANY LOAD OF CONTAMINATED SOIL TO ITS ORIGINAL 16 SITE FOR REASONS OTHER THAN REMEDIATION OF THE SOIL. 17 (E) CAUSING DAMAGE INTENTIONALLY OR AS THE RESULT OF GROSS 18 NEGLIGENCE TO AN UNDERGROUND STORAGE TANK SYSTEM, WHICH DAMAGE 19 RESULTS IN A RELEASE AT A SITE. 20 (F) PLACING AN UNDERGROUND STORAGE TANK SYSTEM AT A CONTAMI- 21 NATED SITE WHERE NO UNDERGROUND STORAGE TANK SYSTEM PREVIOUSLY 22 EXISTED FOR PURPOSES OF DISGUISING THE SOURCE OF CONTAMINATION OR 23 TO OBTAIN FUNDING UNDER THIS PART. 24 (G) SUBMITTING A WORK INVOICE FOR THE EXCAVATION OF SOIL 25 FROM A SITE THAT WAS REMOVED FOR REASONS OTHER THAN REMOVAL OF 26 THE UNDERGROUND STORAGE TANK SYSTEM OR REMEDIATION. 00237'97 13 1 (H) ANY INTENTIONAL ACT OR ACT OF GROSS NEGLIGENCE THAT 2 CAUSES OR ALLOWS CONTAMINATION TO SPREAD AT A SITE. 3 (I) LOANING TO AN OWNER OR OPERATOR THE AMOUNT REQUIRED 4 UNDER SECTION 21607 AND THEN SUBMITTING OR CAUSING TO BE SUBMIT- 5 TED INFLATED CLAIMS OR INVOICES DESIGNED TO RECOUP THAT AMOUNT. 6 (J) INFLATING BILLS OR WORK INVOICES, OR BOTH, BY ADDING 7 CHARGES FOR WORK THAT WAS NOT PERFORMED. 8 (K) SUBMITTING A FALSE OR MISLEADING LABORATORY REPORT. 9 (l) SUBMITTING BILLS OR WORK INVOICES, OR BOTH, FOR SAM- 10 PLING, TESTING, MONITORING, OR EXCAVATION THAT ARE NOT JUSTIFIED 11 BY THE SITE CONDITION. 12 (M) FALSELY CHARACTERIZING THE CONTENTS OF AN UNDERGROUND 13 STORAGE TANK SYSTEM FOR PURPOSES OF OBTAINING FUNDING UNDER THIS 14 PART. 15 (N) SUBMITTING OR CAUSING TO BE SUBMITTED BILLS OR WORK 16 INVOICES BY OR FROM A PERSON WHO DID NOT DIRECTLY PROVIDE THE 17 SERVICE. 18 (O) CHARACTERIZING LEGAL SERVICES AS CONSULTING SERVICES FOR 19 PURPOSES OF OBTAINING FUNDING UNDER THIS PART. 20 (P) MISREPRESENTING OR CONCEALING THE IDENTITY, CREDENTIALS, 21 AFFILIATION, OR QUALIFICATIONS OF PRINCIPALS OR PERSONS SEEKING, 22 EITHER DIRECTLY OR INDIRECTLY, FUNDING OR APPROVAL FOR PARTICIPA- 23 TION UNDER THIS PART. 24 (Q) FALSIFYING A SIGNATURE ON A CLAIM APPLICATION OR A WORK 25 INVOICE. 00237'97 14 1 (R) ANY OTHER ACT OR OMISSION OF A FALSE, FRAUDULENT, OR 2 MISLEADING NATURE UNDERTAKEN IN ORDER TO OBTAIN FUNDING UNDER 3 THIS PART. 4 (4) THE ATTORNEY GENERAL OR COUNTY PROSECUTOR MAY CONDUCT AN 5 INVESTIGATION OF AN ALLEGED VIOLATION OF THIS SECTION AND BRING 6 AN ACTION FOR A VIOLATION OF THIS SECTION. 7 (5) IF THE ATTORNEY GENERAL OR COUNTY PROSECUTOR HAS REASON- 8 ABLE CAUSE TO BELIEVE THAT A PERSON HAS INFORMATION OR IS IN POS- 9 SESSION, CUSTODY, OR CONTROL OF ANY DOCUMENT OR RECORDS, HOWEVER 10 STORED OR EMBODIED, OR TANGIBLE OBJECT WHICH IS RELEVANT TO AN 11 INVESTIGATION OF A VIOLATION OR ATTEMPTED VIOLATION OF THIS PART 12 OR A CRIME OR ATTEMPTED CRIME THAT VIOLATES THIS PART, THE ATTOR- 13 NEY GENERAL OR COUNTY PROSECUTOR MAY, BEFORE BRINGING ANY ACTION, 14 MAKE AN EX PARTE REQUEST TO A MAGISTRATE FOR ISSUANCE OF A SUB- 15 POENA REQUIRING THAT PERSON TO APPEAR AND BE EXAMINED UNDER OATH 16 OR TO PRODUCE THE DOCUMENT, RECORDS, OR OBJECT FOR INSPECTION AND 17 COPYING, OR BOTH. SERVICE MAY BE ACCOMPLISHED BY ANY MEANS 18 DESCRIBED IN THE MICHIGAN COURT RULES. REQUESTS MADE BY THE 19 ATTORNEY GENERAL MAY BE BROUGHT IN INGHAM COUNTY. 20 (6) IF A PERSON OBJECTS TO OR OTHERWISE FAILS TO COMPLY WITH 21 A SUBPOENA SERVED UNDER SUBSECTION (5), AN ACTION MAY BE BROUGHT 22 IN DISTRICT COURT TO ENFORCE THE DEMAND. ACTIONS FILED BY THE 23 ATTORNEY GENERAL MAY BE BROUGHT IN INGHAM COUNTY. 24 (7) THE ATTORNEY GENERAL OR COUNTY PROSECUTOR MAY APPLY TO 25 THE DISTRICT COURT FOR AN ORDER GRANTING IMMUNITY TO ANY PERSON 26 WHO REFUSES TO PROVIDE OR OBJECTS TO PROVIDING INFORMATION, 27 DOCUMENTS, RECORDS, OR OBJECTS SOUGHT PURSUANT TO THIS SECTION. 00237'97 15 1 IF THE JUDGE IS SATISFIED THAT IT IS IN THE INTEREST OF JUSTICE 2 THAT IMMUNITY BE GRANTED, HE OR SHE SHALL ENTER AN ORDER GRANTING 3 IMMUNITY TO THE PERSON AND REQUIRING THE PERSON TO APPEAR AND BE 4 EXAMINED UNDER OATH OR TO PRODUCE THE DOCUMENT, RECORDS, OR 5 OBJECT FOR INSPECTION AND COPYING, OR BOTH. 6 (8) A PERSON WHO FAILS TO COMPLY WITH A SUBPOENA ISSUED PUR- 7 SUANT TO SUBSECTION (5) OR A REQUIREMENT TO APPEAR AND BE 8 EXAMINED PURSUANT TO SUBSECTION (7) IS SUBJECT TO A CIVIL FINE OF 9 NOT MORE THAN $25,000.00 FOR EACH DAY OF CONTINUED 10 NONCOMPLIANCE. 11 (9) IN ADDITION TO ANY CIVIL FINES OR CRIMINAL PENALTIES 12 IMPOSED UNDER THIS PART OR THE CRIMINAL LAWS OF THIS STATE, THE 13 PERSON FOUND RESPONSIBLE OR GUILTY SHALL REPAY ANY MONEY OBTAINED 14 DIRECTLY OR INDIRECTLY UNDER THIS PART. MONEY OWED PURSUANT TO 15 THIS SECTION CONSTITUTES A CLAIM AND LIEN BY THE BOARD UPON ANY 16 REAL OR PERSONAL PROPERTY OWNED EITHER DIRECTLY OR INDIRECTLY BY 17 THE PERSON. THIS LIEN SHALL ATTACH REGARDLESS OF WHETHER THE 18 PERSON IS INSOLVENT AND MAY NOT BE EXTINGUISHED OR AVOIDED BY 19 BANKRUPTCY. THE LIEN IMPOSED BY THIS SECTION HAS THE FORCE AND 20 EFFECT OF A FIRST IN TIME AND RIGHT JUDGMENT LIEN. 21 (10) SUBSECTION (1) DOES NOT PRECLUDE PROSECUTIONS UNDER 22 OTHER LAWS OF THE STATE INCLUDING, BUT NOT LIMITED TO, SECTION 23 157A, 218, 248, 249, 280, OR 422 OF THE MICHIGAN PENAL CODE, 1931 24 PA 328, MCL 750.157A, 750.218, 750.248, 750.249, 750.280, AND 25 750.422. 26 (11) ALL CIVIL FINES COLLECTED PURSUANT TO THIS SECTION 27 SHALL BE APPORTIONED IN THE FOLLOWING MANNER: 00237'97 16 1 (A) FIFTY PERCENT SHALL BE DEPOSITED IN THE GENERAL FUND AND 2 SHALL BE USED BY THE DEPARTMENT TO FUND FRAUD INVESTIGATIONS 3 UNDER THIS PART. 4 (B) TWENTY-FIVE PERCENT SHALL BE PAID TO THE OFFICE OF THE 5 COUNTY PROSECUTOR OR ATTORNEY GENERAL, WHICHEVER OFFICE BROUGHT 6 THE ACTION. 7 (C) TWENTY-FIVE PERCENT SHALL BE PAID TO A LOCAL POLICE 8 DEPARTMENT OR SHERIFF'S OFFICE, OR A CITY OR COUNTY HEALTH 9 DEPARTMENT, IF INVESTIGATION BY THAT OFFICE OR DEPARTMENT LED TO 10 THE BRINGING OF THE ACTION. IF MORE THAN 1 OFFICE OR DEPARTMENT 11 IS ELIGIBLE FOR PAYMENT UNDER THIS SUBSECTION, DIVISION OF PAY- 12 MENT SHALL BE ON AN EQUAL BASIS. IF THERE IS NOT A LOCAL OFFICE 13 OR DEPARTMENT THAT IS ENTITLED TO PAYMENT UNDER THIS SUBDIVISION, 14 THE MONEY SHALL BE FORWARDED TO THE STATE TREASURER FOR DEPOSIT 15 INTO THE EMERGENCY RESPONSE FUND CREATED IN SECTION 21507. 16 Enacting section 1. The following are repealed upon the 17 expiration of 4 years after the effective date of this amendatory 18 act: 19 (a) Sections 21106 and 21308b of the natural resources and 20 environmental protection act, 1994 PA 451, MCL 324.21106 and 21 324.21308b. 22 (b) Part 216 of the natural resources and environmental pro- 23 tection act, 1994 PA 451, MCL 324.21601 to 324.21610. 00237'97 Final page. JCB