SB-0677, As Passed House, December 18, 2008

SUBSTITUTE FOR

SENATE BILL NO. 677

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 21556 and 21559 (MCL 324.21556 and 324.21559),

section 21556 as added by 2006 PA 321 and section 21559 as added by

2006 PA 322.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 21556. (1) To be considered for eligibility for

reimbursement under the first round of the temporary reimbursement

program, a person shall submit to the department a completed first

round precertification application on a form provided by the

department. A person may submit more than 1 first round

precertification application if he or she possesses more than 1

approved claim for releases that meet the eligibility requirements

in subsection (3)(a) to (d).

     (2) To be considered for approval, first round

precertification applications shall be received by the department

at or before 5 p.m. on the one hundred eightieth day following the

department's initiation date of the application period.

     (3) In order for a person to be eligible for reimbursement

under the first round of the temporary reimbursement program, the

completed first round precertification application shall

demonstrate all of the following:

     (a) That the person was the owner or operator who submitted

and had an approved claim or that the person received a valid

assignment of an approved claim in accordance with section 21516.

     (b) That the release for which the approved claim was obtained

has not been closed pursuant to part 213.

     (c) That the release for which the approved claim was obtained

caused the site to be classified as a class 1 or class 2 site,

based on the most recently submitted data or reports prior to May

9, 2005, or as otherwise determined by the department prior to May

9, 2005.

     (d) For underground storage tank systems that are operating at

the location from which the release occurred, that the owner or

operator, if he or she is the applicant, is currently in compliance

with the registration and fee requirements of part 211.

     (4) All applications for the temporary reimbursement program

shall be considered on a first-come, first-served basis. If the

first round precertification application received by the department

successfully demonstrates eligibility in accordance with

subsections (2) and (3), the department shall approve the first

round precertification application. Not more than 900

precertification applications shall be approved by the department.

     (5) An eligible person shall have 540 days after the date of

approval of the precertification application to perform corrective

actions pursuant to part 213 at the site of release in accordance

with section 21558.

(5) (6) Only corrective action costs incurred after the date

of approval of the precertification application and up to the five

hundred fortieth day following precertification application

approval September 30, 2009 shall be considered for reimbursement

by the department. Corrective action costs incurred after the five

hundred fortieth day September 30, 2009 are not eligible for

reimbursement.

(6) (7) An eligible person may receive up to $50,000.00 or

such additional amount as may be made available pursuant to section

21557(8), for approved corrective action costs for each approved

precertification application.

(7) (8) An eligible person shall submit all work invoices for

which reimbursement is being sought to the department within 600

days following the precertification application approval date not

later than December 29, 2009. An eligible person shall not submit a

request for reimbursement that totals less than $5,000.00 $3,000.00

for the costs of corrective action, except for the last

reimbursement request.

(8) (9) Eligible persons shall receive reimbursement of 80% of

the amount of each approved work invoice until the maximum

reimbursement amount is reached. The remaining 20% shall be

considered the co-pay amount. Proof of payment of the co-pay amount

is required with each work invoice submittal.

(9) (10) Corrective actions for which reimbursement is sought

shall conform to the requirements of part 213 and section 21558.

Requests for reimbursement are subject to sections 21559 to 21561.

(10) (11) Any allocated amount for reimbursement in the first

round that is not expended, but subject to appeal pursuant to

section 21561, shall be held in reserve until the appeal is

exhausted and a final reimbursement determination is made.

     Sec. 21559. (1) For an eligible person to receive money under

the temporary reimbursement program for corrective action, all of

the following conditions shall be met:

     (a) The eligible person, and the consultant retained by the

eligible person, shall follow the procedures outlined in this

section and shall submit reports, work plans, feasibility analyses,

hydrogeological studies, and corrective action plans prepared under

part 213 to the department, and shall provide other information

required by the department relevant to determining compliance with

this part and part 213.

     (b) The eligible person shall submit a work invoice to the

department, with an attached summary report of the work performed

under the invoice and results of the work performed, including, but

not limited to, laboratory results, soil boring logs, construction

logs, site investigation results, and other information that may be

requested by the department.

     (c) Work invoices shall comply with all of the following:

     (i) Be submitted on a standardized work invoice form provided

by the department.

     (ii) Contain complete information in accordance with the form

and the requirements of this section and as requested by the

department.

     (iii) Be in an amount not less than $5,000.00, except for the

last work invoice submitted for reimbursement under the approved

precertification application consistent with the requirements of

section 21556.

     (2) Upon receipt of a work invoice pursuant to subsection (1),

the department shall make all of the following determinations:

     (a) Whether the work performed is necessary and appropriate

considering conditions at the site of the release.

     (b) Whether the cost of performing the work is reasonable.

     (c) Whether the eligible person is eligible to receive funding

under this part.

     (d) Whether the consultant retained by the eligible person has

complied with section 21558.

     (3) The department shall deny payment of a work invoice if the

department determines that the corrective action work performed is

not consistent with the requirements of part 213 or does not comply

with the requirements of this part.

     (4) Within 45 days after receipt of a work invoice, the

department shall determine whether the work invoice complies with

subsections (1) to (3). The department shall notify the eligible

person in writing of such a determination.

     (5) The department shall keep records of approved

precertification applications and work invoices. If the eligible

person has not exceeded the allowable amount of expenditure

provided in sections 21556 and 21557, the department shall forward

an approved payment voucher to the state treasurer within 45 days

after approval of the work invoice.

     (6) Except as provided in subsection (7) or as otherwise

provided in this subsection, upon receipt of an approved payment

voucher, the state treasurer shall make a payment jointly to the

eligible person and the consultant within 30 days. However, the

eligible person may submit to the department a signed affidavit

stating that the consultant listed on a work invoice has been paid

in full. The affidavit shall list the work invoice number and

precertification application to which the affidavit applies, a

statement that the eligible person has mailed a copy of the

affidavit by first-class mail to the consultant listed on the work

invoice, and the date that the affidavit was mailed to the

consultant. The department is not required to verify affidavits

submitted under this subsection. If, within 14 days after the

affidavit was mailed to the consultant under this subsection, the

department has not received an objection in writing from the

consultant listed on the work invoice, the state treasurer shall

make the payment directly to the eligible person. If a check has

already been issued to the eligible person and the consultant, the

eligible person shall return the original check to the department

along with the affidavit. If, within 14 days after the affidavit

was mailed to the consultant, the department has not received an

objection from the consultant listed on the check, the state

treasurer shall reissue a check to the eligible person. If a

consultant objects to an affidavit received under this subsection

and notifies the department in writing within 14 days after the

affidavit was mailed to the consultant, the department shall notify

the state treasurer, and the state treasurer shall issue or reissue

the check to the eligible person and the consultant. The grounds

for an objection by a consultant under this subsection shall be

that the consultant has not been paid in full and the objection

shall be made by affidavit. The state treasurer shall issue checks

under this subsection within 60 days after an affidavit has been

received by the department. Once payment has been made under this

section, the refined petroleum fund is not liable for any claim on

the basis of that payment.

     (7) The temporary reimbursement program is subject to section

21548.

     (8) Upon direction of the department, the state treasurer may

withhold partial payment of money on payment vouchers if there is

reasonable cause to believe that there are violations of section

21548 or if necessary to assure acceptable completion of the

corrective actions.