HB 6577, As Passed Senate

HB-6577, As Passed Senate, December 14, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6577

A bill to amend 1976 PA 399, entitled

"Safe drinking water act,"

by amending sections 4 and 21 (MCL 325.1004 and 325.1021), section

4 as amended by 2006 PA 37, and by adding section 4a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) A supplier of water shall file with the department

the plans and specifications of the entire waterworks system owned

or operated by the supplier, unless the department determines that

its existing records are adequate. A general plan of the waterworks

system for each public water supply shall be provided to the

department by a supplier of water and shall be updated as

determined necessary by the department.

(2) Upon receipt of the plans and specifications for a

proposed waterworks system, the department shall evaluate the

adequacy of the proposed system to protect the public health by

supplying water meeting the state drinking water standards and, if

applicable, shall evaluate the impact of the proposed system as

provided in subsections (3) and (4). The department shall also

conduct a capacity assessment for a proposed community supply or

nontransient noncommunity water supply and determine if the system

has the technical, financial, and managerial capacity to meet all

requirements of this act and the rules promulgated under this act,

on the date of commencement of operations. If upon evaluation the

department determines the plans and specifications to be inadequate

or the capacity assessment shows the system to be inadequate, the

department may return the plans and specifications to the applicant

and require additions or modifications as may be appropriate. The

department may reject plans and specifications for a waterworks

system that will not satisfactorily provide for the protection of

the public health or, if applicable, will not meet the standards

provided in subsections (3) and (4). The department may deny a

permit for construction of a proposed community supply or a

nontransient noncommunity water supply if the capacity assessment

shows that the proposed system does not have adequate technical,

financial, or managerial capacity to meet the requirements of this

act and the rules promulgated under this act.

(3) The department may evaluate the impact of a proposed

waterworks system for a community supply owned by a political

subdivision that will do any of the following:

(a) Provide new total designed withdrawal capacity of more

than 2,000,000 gallons of water per day from a source of water

other than the Great Lakes and their connecting waterways.

(b) Provide an increased total designed withdrawal capacity of

more than 2,000,000 gallons of water per day from a source of water

other than the Great Lakes and their connecting waterways beyond

the system's total designed withdrawal capacity.

than 5,000,000 gallons of water per day from the Great Lakes and

their connecting waterways.

(d) Provide an increased total designed withdrawal capacity of

more than 5,000,000 gallons of water per day from the Great Lakes

and their connecting waterways beyond the system's total designed

withdrawal capacity.

(4) The department shall reject the plans and specifications

for a proposed waterworks system evaluated under subsection (3) if

it determines that the proposed system will not meet the applicable

standard provided in section 32723(5) or (6) of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.32723, unless both of the following conditions are met:

(a) The department determines that there is no feasible and

prudent alternative location for the withdrawal.

(b) The department includes in the approval conditions related

to depth, pumping capacity, rate of flow, and ultimate use that

ensure that the environmental impact of the withdrawal is balanced

by the public benefit of the withdrawal related to public health,

safety, and welfare.

(5) Before commencing the construction of a waterworks system

or an alteration, addition, or improvement to a system, a supplier

of water shall submit the plans and specifications for the

improvements to the department and secure from the department a

permit for construction as provided by rule. Plans and

specifications submitted to the department shall be prepared by a

professional engineer licensed under article 20 of the occupational

code, 1980 PA 299, MCL 339.2001 to 339.2014. A contractor, builder,

or supplier of water shall not engage in or begin the construction

of a waterworks system or an alteration, addition, or improvement

to a waterworks system until a valid permit for the construction

has been secured from the department. A contractor, builder, or

supplier of water who permits or allows construction to proceed

without a valid permit, or in a manner not in accordance with the

plans and specifications approved by the department, violates this

act. A supplier of water shall not issue a voucher or check or in

any other way expend money or provide consideration for

construction of a waterworks system unless a valid permit issued by

the department is in effect. The department may issue a permit with

conditions to correct minor design deficiencies. If eligible, a

supplier may request an expedited review of an application for a

permit under section 4a.

(6) The department may deny a permit for construction of a

waterworks system or an alteration, addition, or improvement to a

waterworks system if the most recent capacity assessment shows that

the waterworks system does not have adequate technical, financial,

or managerial capacity to meet the requirements of this act and the

rules promulgated under this act, and the deficiencies identified

in that capacity assessment remain uncorrected, unless the proposed

construction will remedy the deficiencies.

(7) The department may verbally approve minor modifications of

a construction permit issued by the department as a result of

unforeseen site conditions that become apparent during

construction. Minor modifications include, but are not limited to,

extending a hydrant lead or routing a water main around a manhole.

A supplier making a request for a modification shall provide to the

department all relevant information required under this section and

the application form provided by the department related to the

modification. A supplier shall obtain written approval from the

department for all modifications to a waterworks system except when

the department provides verbal approval for a minor modification as

provided for in this subsection. A supplier receiving a written or

verbal approval from the department shall submit revised plans and

specifications to the department within 10 days from the date of

approval.

(8) If a supplier seeks confirmation of the department's

verbal approval of a minor modification under subsection (7), the

supplier shall notify the department electronically, at an address

specified by the department, with a detailed description of the

request for the modification. The department shall make reasonable

efforts to respond within 2 business days, confirming whether the

request has been approved or not approved. If the department has

not responded within 2 business days after the department receives

the detailed description, the verbal approval shall be considered

confirmed.

Sec. 4a. (1) Not later than October 1, 2007, the department

shall establish an expedited permit application review process

available for projects described in subsection (7). The expedited

review process shall be available through September 30, 2010. To be

eligible for expedited review, an applicant shall submit all of the

items under subsection (2) not later than September 30, 2010.

(2) A supplier requesting an expedited review shall do all of

the following:

(a) At least 10 business days prior to submitting an

application under subdivision (b), notify the department

electronically, in accordance with the instructions provided on the

department's website, of his or her intent to request expedited

review.

(b) Submit electronically a complete application for a permit,

including a request for expedited review and including, via credit

card, the appropriate fee under subsection (3).

specifications for the project that has been prepared, signed, and

sealed by a licensed professional engineer to the department

postmarked not later than the date that the application is

submitted electronically.

(3) Except as provided in subsection (5), the fee for an

expedited review is as follows:

(a) Water main projects with total lengths less than 1,000

feet, $1,000.00.

(b) Water main projects with total lengths greater than or

equal to 1,000 feet and less than 3,000 feet, $1,500.00.

feet and less than or equal to 10,000 feet, $2,000.00.

(4) Except as otherwise provided in subsection (6), if an

applicant does not comply with subsection (3), the department shall

not conduct an expedited review and any submitted fee shall not be

refunded. Within 10 business days of receipt of the application,

the department shall notify the supplier of the reasons why the

department's review of the application will not be expedited. Upon

receipt of this notification, the supplier may correct the

deficiencies and resubmit an application and request for an

expedited review with the appropriate fee specified under

subsection (5). The department shall not reject a resubmitted

application solely because of deficiencies that the department

failed to identify in the original application.

(5) For a second submission of an application that originally

failed to meet the requirements specified in subsection (4), the

applicant shall instead include a fee equal to 10% of the fee

specified in subsection (3). However, if the deficiency included

failure to pay the appropriate fee, the second submission shall

include the balance of the appropriate fee plus 10% of the

appropriate fee. If the applicant makes additional changes other

than those items identified by the department as being deficient,

the applicant shall instead include an additional fee equal to the

fee specified in subsection (3). For the third and each subsequent

submittal of an application that fails to meet the requirements

specified in subsection (4), the applicant shall include an

additional fee equal to the fee specified in subsection (3).

(6) If the applicant fails to sign the application, submits

construction plans and specifications that have not been prepared,

signed, and sealed by a licensed professional engineer, or submits

an insufficient fee, the department shall notify the applicant

within 5 business days of the deficiency. The application shall not

be processed until the deficient items are addressed. If the

applicant does not provide the deficient items within 5 business

days after notification by the department, the application shall be

handled as provided in subsection (4).

(7) A request for an expedited permit application review is

limited to projects that consist solely of installation of new

water mains of less than or equal to 10,000 feet located in a

county with a population of between 750,000 and 1,000,000 and any

contiguous county with a population of greater than 160,000.

Expedited permit application reviews are not allowed for other

projects requiring a permit under this act including, but not

limited to, projects involving water treatment processes, ground or

elevated storage tanks, chemical feed systems, wells, booster

stations, pumps, new proposed waterworks systems subject to a

capacity assessment, or projects funded under the state drinking

water revolving fund established under section 16b of the shared

credit rating act, 1985 PA 227, MCL 141.1066b.

(8) The department shall review and make a decision on a

complete application submitted with a request for expedited review

pursuant to the following schedule:

(a) Until September 30, 2008, the department shall make a

permit decision within 20 business days of receipt by the

department of the complete application, including plans and

specifications.

(b) From October 1, 2008 through September 30, 2009, the

department shall make a permit decision within 15 business days of

receipt by the department of the complete application, including

plans and specifications.

department shall make a permit decision within 10 business days of

receipt by the department of the complete application, including

plans and specifications.

(9) If the department fails to meet the deadlines specified in

subsection (8), the department shall continue to expedite the

application review process for an application submitted under this

section. However, the fee for an expedited review required under

this section shall be refunded if the department fails to meet the

deadlines established in subsection (8).

(10) The department shall transmit fees collected under this

section to the state treasurer for deposit into the infrastructure

construction fund created in section 4113 of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.4113.

(11) As used in this section:

(a) "Complete application" means that the application form

provided by the department is completed, all requested information

is provided, and the application can be processed without

additional information.

(b) "Expedited review" means an expedited review of a permit

application under this section.

engineer licensed under article 20 of the occupational code, 1980

PA 299, MCL 339.2001 to 339.2014.

(d) "Project" means a plan or proposal to install new water

mains within a waterworks system located in 1 general area where

all the components are interconnected but does not include a

waterworks system proposed for construction in separate parcels of

land or development areas.

Sec. 21. (1) A person who violates this act or the rules

promulgated ~~hereunder~~ under this act or an order issued pursuant

to this act is guilty of a misdemeanor ~~and shall be punished~~

punishable by a fine of not more than $5,000.00 for each day of

violation, or by imprisonment for not more than 1 year, or both.

(2) A law enforcement officer may issue and serve an

appearance ticket upon a person for a minor offense pursuant to

sections 9c to 9g of chapter IV of the code of criminal procedure,

1927 PA 175, MCL 764.9c to 764.9g.

(3) As used in this section, "minor offense" means a violation

of a permit issued under this act that does not functionally impair

the operation or capacity of a waterworks system or the level of

public health protection it provides.

Enacting section 1. This amendatory act does not take effect

unless House Bill No. 6668 of the 93rd Legislature is enacted into

law.