HOUSE BILL No. 5457


     January 14, 1998, Introduced by Reps. Freeman, Profit, Brater, Gire, Vaughn, Scott, Hale, Griffin, Tesanovich, Cherry, Anthony, Jaye, Kaza, Richner, Wetters and Raczkowski 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 sections 3701, 3702, 3703, 3704, 3705, 3706, 3707,

   and 3708 (MCL 324.3701, 324.3702, 324.3703, 324.3704, 324.3705,

   324.3706, 324.3707, and 324.3708), as added by 1995 PA 60.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 3701.  As used in this part:

 2         (A) "ENVIRONMENTAL WASTES" MEANS ALL ENVIRONMENTAL POLLUT-

 3    ANTS, WASTES, DISCHARGES, AND EMISSIONS, REGARDLESS OF WHETHER OR

 4    HOW THEY ARE REGULATED AND REGARDLESS OF WHETHER THEY ARE

 5    RELEASED TO THE GENERAL ENVIRONMENT OR THE WORKPLACE ENVIRONMENT.

 6         (B)  (a)  "Facility" means  any  BOTH OF THE FOLLOWING:

 7         (i) ANY disposal system, including disposal wells, or any

 8    treatment works, appliance, equipment, machinery, or installation

 9    constructed, used, or placed in operation primarily for the


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 1    purpose of reducing, controlling, or eliminating water pollution

 2    caused by industrial waste OR FOR POLLUTION PREVENTION.

 3         (ii) A CHANGE IN PRODUCTION TECHNOLOGY, MATERIALS, PRO-

 4    CESSES, OPERATIONS, OR PROCEDURES WHICH IS DONE PRIMARILY FOR THE

 5    PURPOSE OF PREVENTING WATER POLLUTION CAUSED BY INDUSTRIAL

 6    WASTE.

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

 8    solid waste substance resulting from any process of industry,

 9    manufacture, trade, or business, or from the development, pro-

10    cessing, or recovery of any paper or wood, which is capable of

11    polluting the waters of the state.

12         (D) "POLLUTION PREVENTION" MEANS THE EMPLOYMENT BY A BUSI-

13    NESS OF A PRACTICE THAT REDUCES THE INDUSTRIAL USE OF TOXIC MATE-

14    RIALS OR REDUCES THE ENVIRONMENTAL AND HEALTH HAZARDS ASSOCIATED

15    WITH AN ENVIRONMENTAL WASTE WITHOUT DILUTING OR CONCENTRATING THE

16    WASTE BEFORE THE RELEASE, HANDLING, STORAGE, TRANSPORT, TREAT-

17    MENT, OR DISPOSAL OF THE WASTE.  POLLUTION PREVENTION INCLUDES

18    CHANGES IN PRODUCTION TECHNOLOGY, MATERIALS, PROCESSES, OPERA-

19    TIONS, OR PROCEDURES, OR THE USE OF INPROCESS, INLINE, OR CLOSED

20    LOOP RECYCLING, ACCORDING TO STANDARD ENGINEERING PRACTICES.

21    POLLUTION PREVENTION DOES NOT INCLUDE A PRACTICE THAT IS APPLIED

22    TO AN ENVIRONMENTAL WASTE AFTER THE WASTE IS GENERATED OR COMES

23    INTO EXISTENCE OR AFTER THE WASTE EXITS A PRODUCTION OR COMMER-

24    CIAL OPERATION.  POLLUTION PREVENTION DOES NOT PROMOTE, INCLUDE,

25    OR REQUIRE WASTE BURNING OR INCINERATION.

26         (E)  (c)  "Treatment works" means any plant, pumping

27    station, incinerator, or other works or reservoir used primarily



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 1    for the purpose of treating, stabilizing, isolating, or holding

 2    industrial waste.

 3         (F)  (d)  "Disposal system" means a system used primarily

 4    for disposing of or isolating industrial waste and includes pipe-

 5    lines or conduits, pumping stations and force mains, and all

 6    other constructions, devices, appurtenances, and facilities used

 7    for collecting or conducting water-borne industrial waste to a

 8    point of disposal, treatment, or isolation, except that which is

 9    necessary to the manufacture of products.

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

11    OR POLLUTION PREVENTION tax exemption certificate shall be filed

12    with the state tax commission in a manner and in a form as pre-

13    scribed by the state tax commission.  The application shall con-

14    tain plans and specifications of the facility, including all

15    materials incorporated or to be incorporated in the facility and

16    a descriptive list of all equipment acquired or to be acquired by

17    the applicant for the purpose of industrial waste WATER pollution

18    control OR POLLUTION PREVENTION, together with the proposed oper-

19    ating procedure for the control facility.

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

21    shall seek approval of the department and give notice in writing

22    by certified mail to the department of treasury and to the asses-

23    sor of the taxing unit in which the facility is located or to be

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

25    opportunity for a hearing.  Tax exemption granted under this part

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





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 1    value derived from any materials captured or recovered by any

 2    facility.

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

 4    designed and operated primarily for the control, capture, and

 5    removal OR POLLUTION PREVENTION of industrial waste from the

 6    water, and is suitable, reasonably adequate, and meets the intent

 7    and purposes of part 31, the department shall notify the state

 8    tax commission, which shall issue a certificate.  The effective

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

10    issued.

11         Sec. 3704.  (1) For the period  subsequent to  AFTER the

12    effective date of  the  A POLLUTION PREVENTION certificate and

13    continuing as long as the certificate is in force, a facility

14    covered by the certificate is exempt from real and personal prop-

15    erty taxes imposed under the general property tax act,  Act

16     No. 206 of the Public Acts of 1893, being sections 211.1 to

17     211.157 of the Michigan Compiled Laws  1893 PA 206, MCL 211.1 TO

18    211.157.  FOR THE PERIOD AFTER THE EFFECTIVE DATE OF A WATER POL-

19    LUTION CONTROL CERTIFICATE AND CONTINUING AS LONG AS THE CERTIFI-

20    CATE IS IN FORCE, A FACILITY COVERED BY THE CERTIFICATE IS EXEMPT

21    FROM 50% OF THE REAL AND PERSONAL PROPERTY TAXES IMPOSED UNDER

22    THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO 211.157.

23         (2) Tangible personal property purchased and installed as a

24    component part of the facility  shall be  IDENTIFIED ON A POLLU-

25    TION PREVENTION CERTIFICATE IS exempt from both of the

26    following:





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 1         (a) Sales taxes imposed under the general sales tax act,

 2     Act No. 167 of the Public Acts of 1933, being sections 205.51 to

 3     205.78 of the Michigan Compiled Laws  1933 PA 167, MCL 205.51 TO

 4    205.78.

 5         (b) Use taxes imposed under the use tax act,  Act No. 94 of

 6     the Public Acts of 1937, being sections 205.91 to 205.111 of the

 7     Michigan Compiled Laws  1937 PA 94, MCL 205.91 TO 205.111.

 8         (3) TANGIBLE PERSONAL PROPERTY PURCHASED AND INSTALLED AS A

 9    COMPONENT PART OF THE FACILITY IDENTIFIED ON A WATER POLLUTION

10    CONTROL CERTIFICATE IS EXEMPT FROM 50% OF THE FOLLOWING:

11         (A) SALES TAXES IMPOSED UNDER THE GENERAL SALES TAX ACT,

12    1933 PA 167, MCL 205.51 TO 205.78.

13         (B) USE TAXES IMPOSED UNDER THE USE TAX ACT, 1937 PA 94, MCL

14    205.91 TO 205.111.

15         (4)  (3)  The certificate shall state the total acquisition

16    cost of the facility entitled to exemption.

17         Sec. 3705.  The state tax commission shall send a water pol-

18    lution control OR POLLUTION PREVENTION tax exemption certificate,

19    when issued, by certified mail to the applicant, and certified

20    copies by certified mail to the assessor of the taxing unit in

21    which any property to which the certificate relates is located or

22    to be located and to the department of treasury, which copies

23    shall be filed of record in their offices.  Notice of the state

24    tax commission's refusal to issue a certificate shall be sent by

25    certified mail to the applicant, to the department of treasury,

26    and to the assessor.





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

 2    certified mail to the applicant and opportunity for a hearing, on

 3    its own initiative or on complaint of the department, the depart-

 4    ment of treasury, or the assessor of the taxing unit in which any

 5    property to which the certificate relates is located, shall

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

 7         (a) The certificate was obtained by fraud or

 8    misrepresentation.

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

10    to proceed with the construction, reconstruction, installation,

11    or acquisition of a facility or to operate the facility for the

12    purpose and degree of control specified in the certification or

13    an amended certificate.

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

15    used for the primary purpose of WATER pollution control OR POLLU-

16    TION PREVENTION and is being used for a different purpose.

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

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

19    notice of the action of the state tax commission modifying or

20    revoking a certificate, the certificates shall cease to be in

21    force or shall remain in force only as modified.  If a certifi-

22    cate is revoked because it was obtained by fraud or misrepresen-

23    tation, all taxes that would have been payable if a certificate

24    had not been issued are immediately due and payable with the max-

25    imum interest and penalties prescribed by applicable law.  A

26    statute of limitations shall not operate in the event of fraud or

27    misrepresentation.



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

 2    issue, revocation, or modification of a WATER pollution control

 3    OR POLLUTION PREVENTION tax exemption certificate may appeal from

 4    the finding and order of the state tax commission in the manner

 5    and form and within the time provided by the administrative pro-

 6    cedures act of 1969,  Act No. 306 of the Public Acts of 1969,

 7     being sections 24.201 to 24.328 of the Michigan Compiled Laws 

 8    1969 PA 306, MCL 24.201 TO 24.328.

 9         Sec. 3708.  The state tax commission may promulgate rules as

10    it considers necessary for the administration of this part.

11    These rules shall not abridge the authority of the department to

12    determine whether or not industrial waste WATER pollution control

13    OR POLLUTION PREVENTION exists within the meaning of this part.

14         Enacting section 1.  This amendatory act does not take

15    effect unless both of the following bills of the 89th Legislature

16    are enacted into law:

17         (a) House Bill No. 4987.

18         (b) House Bill No. 4988.





















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