June 5, 2003, Introduced by Senator LELAND and referred to the Committee on Appropriations.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 11507a, 11525, and 11525a (MCL 324.11507a,
324.11525, and 324.11525a), section 11507a as added by 1996
PA 359, section 11525 as amended by 1996 PA 506, and
section 11525a as added by 1996 PA 358.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 11507a. (1) The owner or operator of a landfill shall
2 annually submit a report to the state and the county and
3 municipality in which the landfill is located that contains
4 information on the amount of solid waste received by the landfill
5 during the year itemized, to the extent possible, by county,
6 state, or country of origin. The report shall be submitted on a
7 form provided by the department within 30 days following the end
8 of each state fiscal year.
1 (2) By September 1, 1996, the department shall develop and
2 submit to the legislature a plan to gather data on the amount of
3 recyclable materials recovered in the state itemized, to the
4 extent possible, by county, state, or country of origin.
5 Sec. 11525. (1) The owner or operator of a landfill shall
6 establish and maintain a perpetual care fund for a period of 30
7 years after final closure of the landfill as specified in this
8 section. A perpetual care fund may be established as a trust or
9 an escrow account and may be used to demonstrate financial
10 assurance for type II landfills under section 11523 and
11 section 11523a.
12 (2) Except as otherwise provided in this section, the owner
13 or operator of a landfill shall deposit into his or her perpetual
14 care fund 75 cents for each ton or portion of a ton or 25 cents
15 for each cubic yard or portion of a cubic yard of solid waste
16 that is disposed of in the landfill after June 17, 1990. The
17 deposits shall be made not less than semiannually until the fund
18 reaches the maximum required fund amount. As of July 1, 1996,
19 the maximum required fund amount is $1,156,000.00. This amount
20 shall be annually adjusted for inflation and rounded to the
21 nearest thousand. The department shall adjust the maximum
22 required fund amount for inflation annually by multiplying the
23 amount by an inflation factor derived from the most recent bureau
24 of reclamation composite index published by the United States
25 department of commerce or another index more representative of
26 the costs of closure and postclosure monitoring and maintenance
27 as determined appropriate by the department.
1 (3) The owner or operator of a landfill that is used for the
2 disposal of the following materials shall deposit into the
3 perpetual care fund 7.5 cents for each ton or cubic yard or
4 portion of a ton or cubic yard of the following materials that
5 are disposed of in the landfill after June 17, 1990:
6 (a) Coal or wood ash that is disposed of in a landfill that
7 is used only for the disposal of coal or wood ash, or that is
8 permanently segregated in a landfill.
9 (b) Wastewater treatment sludge or sediments from wood pulp
10 or paper producing industries that is disposed of in a landfill
11 that is used only for the disposal of wastewater treatment sludge
12 and sediments from wood pulp or paper producing industries, or
13 that is permanently segregated in a landfill.
14 (c) Foundry sand or other material that is approved by the
15 department for use as daily cover at an operating landfill, that
16 is disposed of in a landfill that is used only for the disposal
17 of foundry sand, or that is permanently segregated in a
18 landfill.
19 (4) The owner or operator of a landfill that is used only for
20 the disposal of a mixture of 2 or more of the materials described
21 in subsection (3)(a) to (c) or in which a mixture of 2 or more of
22 these materials are permanently segregated shall deposit into the
23 perpetual care fund 7.5 cents for each ton or cubic yard or
24 portion of a ton or cubic yard of these materials that are
25 disposed of in the landfill after July 1, 1996.
26 (5) Money is not required to be deposited into a perpetual
27 care fund for materials that are regulated under part 631.
1 (6) The owner or operator of a landfill may contribute
2 additional amounts into the perpetual care fund at his or her
3 discretion.
4 (7) The custodian of a perpetual care fund shall be a bank or
5 other financial institution that has the authority to act as a
6 custodian and whose account operations are regulated and examined
7 by a federal or state agency. Until the perpetual care fund
8 reaches the maximum required fund amount, the custodian of a
9 perpetual care fund shall credit interest and earnings of the
10 perpetual care fund to the perpetual care fund. However, upon
11 the direction of the owner or operator, the custodian may utilize
12 the interest and earnings of the perpetual care fund to pay the
13 pro rata share of the
solid waste management program
14 administration fee
imposed under surcharge required
by section
15 11525a against for
the landfill for which the perpetual care
16 fund was established. After the perpetual care fund reaches the
17 maximum required fund amount, interest and earnings shall be
18 distributed as directed by the owner or operator. The agreement
19 governing the operation of the perpetual care fund shall be
20 executed on a form consistent with this part as prepared by the
21 department. The custodian may be compensated from the fund for
22 reasonable fees and costs incurred for his or her
23 responsibilities as custodian. The custodian of a perpetual care
24 fund shall annually make an accounting to the department within
25 30 days following the close of the state fiscal year.
26 (8) The custodian of a perpetual care fund shall not disburse
27 any funds to the owner or operator of a landfill for the purposes
1 of the perpetual care fund except upon the prior written approval
2 of the department. However, the custodian shall ensure the
3 filing of all required tax returns for which the perpetual care
4 fund is liable and shall disburse funds to pay lawfully due taxes
5 owed by the perpetual care fund without permission of the
6 department, and may disburse interest and earnings of the
7 perpetual care fund to
pay the solid waste management program
8 administration fee surcharge required by section 11525a as
9 provided in subsection (7). The owner or operator of the
10 landfill shall provide notice of requests for disbursement and
11 denials and approvals to the custodian of the perpetual care
12 fund. Requests for disbursement from a perpetual care fund shall
13 be submitted not more frequently than semiannually. The owner or
14 operator of a landfill may request disbursement of funds from a
15 perpetual care fund whenever the amount of money in the fund
16 exceeds the maximum
required fund amount. specified in
17 subsection (2). The department shall approve the disbursement
18 provided the total amount of financial assurance maintained meets
19 the requirements of sections 11523 and 11523a. As used in this
20 subsection, "maximum required fund amount" means:
21 (a) For those landfills containing only those materials
22 specified in subsection (3), an amount equal to 1/2 of the
23 maximum required fund amount specified in subsection (2).
24 (b) For all other landfills, an amount equal to the maximum
25 required fund amount specified in subsection (2).
26 (9) If the owner or operator of a landfill refuses or fails
27 to conduct closure, postclosure monitoring and maintenance, or
1 corrective action as necessary to protect the public health,
2 safety, or welfare, or the environment or fails to request the
3 disbursement of money from a perpetual care fund when necessary
4 to protect the public health, safety, or welfare, or the
5 environment, or fails to
pay the solid waste management program
6 administration fee due
the department under this part within 90
7 days of the request surcharge required under section 11525a,
8 then the department may require the disbursement of money from
9 the perpetual care fund and may expend the money for closure,
10 postclosure monitoring and maintenance, and corrective action, as
11 necessary. The department may assess a perpetual care fund for
12 administrative costs associated with actions taken under this
13 subsection.
14 (10) Upon approval by the department of a request to
15 terminate financial assurance for a landfill under section
16 11525b, any money in the perpetual care fund for that landfill
17 shall be disbursed by the custodian to the owner of the landfill
18 unless a contract between the owner and the operator of the
19 landfill provides otherwise.
20 (11) The owner of a landfill shall provide notice to the
21 custodian of the perpetual care fund for that landfill if there
22 is a change of ownership of the landfill. The custodian shall
23 maintain records of ownership of a landfill during the time in
24 which a perpetual care fund is established.
25 (12) This section does not relieve an owner or operator of a
26 landfill of any liability that he or she may have under this part
27 or as otherwise provided by law.
1 (13) This section does not create a cause of action at law or
2 in equity against a custodian of a perpetual care fund other than
3 for errors or omissions related to investments, accountings,
4 disbursements, filings of required tax returns, and maintenance
5 of records required by this section or the applicable perpetual
6 care fund.
7 (14) As used in this section, "custodian" means the trustee
8 or escrow agent of a perpetual care fund.
9 Sec. 11525a. (1)
A solid waste program administration fee
10 is imposed upon the
owners or operators of landfills in the
11 state. The annual
cumulative total amount of this fee shall be
12 $1,040,000.00 as this
amount is annually adjusted for inflation
13 beginning in 1997
using the Detroit consumer price index. As
14 used in this section,
"Detroit consumer price index" means the
15 most comprehensive
index of consumer prices available for the
16 Detroit area from the United States department
of labor, bureau
17 of labor statistics.
18 (2) The department
shall apportion the cumulative solid waste
19 program administration
fee among the operating landfills in the
20 state. The
apportionment shall be made on the basis of each
21 landfill's pro rata
share of the cumulative total of amounts
22 maintained in
individual perpetual care funds in the state.
23 (3) Within 30 days
following the close of each state fiscal
24 year, the owner or
operator of a landfill shall report to the
25 department the total
amount of assets in its perpetual care
26 fund. The department
shall determine the cumulative total amount
27 of perpetual care
funds in the state but shall not credit any
1 individual landfill
more than the maximum required fund amount
2 established in section
11525(2). The department shall determine
3 each landfill's pro
rata share of perpetual care fund
4 contributions using
this amount.
5 (4) Within 60 days
following the close of each state fiscal
6 year, the department
shall notify the owner or operator of each
7 landfill of its
assessed share of the solid waste program
8 administration fee.
Within 90 days following the close of the
9 state fiscal year, the
owner or operator of a landfill shall pay
10 his or her assessed
share of the solid waste program
11 administration fee.
12 (5) Fees collected
under this section shall be forwarded to
13 the state treasurer
for deposit in the solid waste staff account
14 of the solid waste
management fund established in section 11550.
15 (1) The owner or operator of a landfill shall pay a surcharge
16 on solid waste received by the landfill during the previous state
17 fiscal year. The surcharge shall be paid according to this
18 section.
19 (2) The annual cumulative total of the surcharge established
20 by this section for the owners or operators of landfills in this
21 state shall be $3,900,000.00 as this amount is annually adjusted
22 for inflation beginning in 2005 using the Detroit consumer price
23 index. As used in this section, "Detroit consumer price index"
24 means the comprehensive index of consumer prices available for
25 the Detroit area from the United States department of labor,
26 bureau of labor statistics.
27 (3) By January 1 of each year, the department shall notify
1 the owner or operator of each landfill of the amount of the
2 surcharge that will be paid for each cubic yard of solid waste
3 received as described in subsection (1) and the total amount of
4 the surcharge due from that owner or operator. The amount per
5 cubic yard shall be determined by dividing the amount established
6 by subsection (2) by the cumulative amount of waste received by
7 all landfills during the previous state fiscal year as reported
8 pursuant to section 11507a.
9 (4) The owner or operator of a landfill shall pay the
10 surcharge established by this section by January 31 of each year
11 or within 30 days of the date of the notice provided under
12 subsection (3), whichever is sooner.
13 (5) Surcharges collected under this section shall be
14 forwarded to the state treasurer for deposit in the solid waste
15 staff account of the solid waste management fund established in
16 section 11550.