HB-6003, As Passed House, June 12, 2018

HB-6003, As Passed Senate, June 12, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 6003

 

 

May 15, 2018, Introduced by Rep. Allor and referred to the Committee on Oversight.

 

     A bill to amend 1984 PA 44, entitled

 

"Motor fuels quality act,"

 

by amending sections 6 and 9i (MCL 290.646 and 290.649i), section 6

 

as amended by 2016 PA 466 and section 9i as amended by 2006 PA 104.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6. (1) Before a distributor or retail dealer engages in

 

transferring, selling, dispensing, or offering for sale gasoline,

 

diesel fuel, biodiesel, biodiesel blend, or hydrogen fuel in this

 

state, the distributor or retail dealer shall obtain a license from

 

the department for each retail outlet operated by that person. In

 

administering the licensing under this section, the department may

 

attempt to coordinate the licensing with the licensing applicable

 


to gasoline administered by the department of treasury pursuant to

 

the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170, and

 

the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78.

 

     (2) A license expires annually on November 30 unless renewed

 

before December 1 of each year or unless suspended, denied, or

 

revoked by the department.

 

     (3) A license shall not be issued or renewed until any

 

administrative fines issued imposed under section 10a have been

 

paid. A hearing is not required before the refusal to issue or

 

renew a license under this subsection.

 

     (4) An application for a license shall be made to the

 

department upon a form furnished by the department. The completed

 

form shall contain the information requested by the department.

 

     (5) The director may suspend, deny, or revoke a license issued

 

pursuant to this act for failure to comply with the requirements

 

provided for in section 3, for failure to provide notice as

 

provided in section 4, or for violating section 31 of the weights

 

and measures act, of 1964, 1964 PA 283, MCL 290.631, if that

 

violation occurs at any of the licensee's retail outlets and

 

involves the transferring, selling, dispensing, or the offering for

 

sale of gasoline in this state, or for otherwise failing to comply

 

with this act or a rule promulgated under this act or an order

 

issued under this act.

 

     (6) If a person licensed under this act is convicted of an

 

intentional violation under section 31 of the weights and measures

 

act, of 1964, 1964 PA 283, MCL 290.631, any license issued pursuant

 

to this act shall be revoked for 2 years.


     (7) A suspension, revocation, or denial of a license of a

 

person who is an individual shall result results in the suspension,

 

revocation, or denial of any other license held or applied for by

 

that individual under this act. The license of a corporation,

 

partnership, or other association shall be suspended when a license

 

or license application of a partner, trustee, director, or officer,

 

member, or a person exercising control of the corporation,

 

partnership, or other association is suspended, revoked, or denied.

 

The suspension shall remain in force until the director determines

 

that the disability created by the suspension, revocation, or

 

denial has been removed.

 

     (8) Except as otherwise provided in subsection (3), the

 

department shall issue an initial or renewal license not later than

 

120 days after the applicant files a completed application. If the

 

application is considered incomplete by the department, the

 

department shall notify the applicant in writing or make the

 

notification electronically available within 40 days after receipt

 

of the incomplete application, describing the deficiency and

 

requesting the additional information. The 120-day period is tolled

 

upon notification by the department of a deficiency until the date

 

all of the information requested during the 40-day period is

 

received by the department. Requests for new or additional

 

information by the department that fall outside the 40-day period

 

do not toll the 120-day period. The determination of the

 

completeness of an application does is not operate as an approval

 

of the application for the license and does not confer eligibility

 

of to an applicant determined otherwise ineligible for issuance of


a license.

 

     (9) The director of the department shall submit a report by

 

December 1 of each year to the standing committees and

 

appropriations subcommittees of the senate and house of

 

representatives concerned with motor fuel quality issues. The

 

director shall include all of the following information in the

 

report concerning the preceding fiscal year:

 

     (a) The number of initial and renewal applications the

 

department received and completed within the 120-day time period

 

described in subsection (8).

 

     (b) The number of applications denied.

 

     (c) The number of applications not issued within the 120-day

 

period.

 

     (9) (11) Before a blender engages in the transferring,

 

selling, dispensing, or offering for sale of blended gasoline in

 

this state, the blender shall register the finished product with

 

the department and provide to the department test results as the

 

department considers necessary. If the product does not comply with

 

the requirements of section 3, the blender shall provide the

 

department with a written list of the business names and addresses

 

to whom the blended product is sold.

 

     (10) (12) As used in this section, "completed application"

 

means an application complete on its face and submitted with any

 

other information, records, approval, security, or similar item

 

required by law or rule from a local unit of government, a federal

 

agency, or a private entity but not from another department or

 

agency of this state.


     Sec. 9i. (1) A dispensing facility in the county of Wayne,

 

Oakland, Macomb, Washtenaw, Livingston, Monroe, or St. Clair County

 

constructed after November 15, 1990 shall obtain a dispensing

 

permit. The fee for a dispensing permit is $25.00 for each year or

 

portion of a year.

 

     (2) Before a dispensing permit is issued, a The department

 

shall not issue a dispensing permit unless the dispensing facility

 

shall install has installed an approved stage I vapor-recovery

 

system and, in addition to the fee for the dispensing permit, shall

 

pay paid a registration fee for each dispensing unit located at the

 

dispensing facility. A permit shall not be issued or renewed until

 

all fees and administrative fines issued under section 10a are

 

paid. A hearing shall is not be required before the refusal to

 

issue or renew a permit under this subsection.

 

     (3) A dispensing permit expires annually on November 30 unless

 

renewed before December 1 of each year or unless suspended, denied,

 

or revoked by the department. Application for a dispensing permit

 

shall be made on a form furnished by the department. The completed

 

form shall contain the information requested by the department and

 

shall be accompanied by the fees specified.

 

     (4) The director may suspend, deny, or revoke a dispensing

 

permit issued pursuant to this act for failure to pay the fee

 

required by subsection (1) or (2) or for failure to comply with the

 

requirements of sections 9a to 10c or rules promulgated thereunder.

 

     (5) A fee shall be charged to the operator of stage I vapor-

 

recovery or gasoline-dispensing equipment for its inspection if any

 

of the following occur:


     (a) The inspection is a reinspection of equipment that has

 

already been tested and found to contain a substantial defect.

 

     (b) The inspection is performed at the request of the

 

operator.

 

     (6) The department shall establish the fees and expenses for

 

special services, including the fee for an operator requested

 

inspection or reinspection, for registrations, for training

 

courses, and for accreditation of a trainer, to provide that each

 

fee is sufficient to cover the cost of an operator requested

 

inspection, reinspection, registration, training, or trainer

 

accreditation, respectively, the service for which the fee is

 

charged and that the aggregate of all fees collected is sufficient

 

to pay for all salaries and other expenses connected with the

 

activity. The department shall review and adjust the fees at the

 

end of each year and have obtain the director's approval of all

 

fees approved by the director before they are adopted. Fees

 

collected under this section shall be deposited in the gasoline

 

inspection and testing fund and reserved for conducting the vapor-

 

recovery program.

 

     (7) Subject to subsection (2), and beginning on the effective

 

date of the amendatory act that added this subsection, the

 

department shall issue an initial or renewal permit not later than

 

120 days after the applicant files a completed application. If the

 

application is considered incomplete by the department, the

 

department shall notify the applicant in writing or make

 

notification electronically available within 40 days after receipt

 

of the incomplete application, describing the deficiency and


requesting the additional information. The 120-day period is tolled

 

upon notification by the department of a deficiency until the date

 

all of the information requested during the 40-day period is

 

received by the department. The determination of the completeness

 

of an application does is not operate as an approval of the

 

application for the permit and does not confer eligibility of to an

 

applicant determined otherwise ineligible for issuance of a permit.

 

Requests for new or additional information by the department that

 

fall outside the initial 40-day period do not toll the 120-day

 

period.

 

     (8) If the department does not issue or deny a permit within

 

120 days after the receipt of a completed application, the

 

department shall return the permit fee and shall reduce the permit

 

fee for the applicant's next renewal application, if any, by 15%.

 

The failure to issue a permit within the time required under this

 

subsection does not allow the department to otherwise delay the

 

processing of the application, and that application, upon

 

completion, shall be placed in sequence with other completed

 

applications received at that same time. The department shall not

 

discriminate against an applicant in the processing of an

 

application based on the fact that the application fee was refunded

 

or discounted under this subsection.

 

     (9) Beginning October 1, 2005, the director of the department

 

shall submit a report by December 1 of each year to the standing

 

committees and appropriations subcommittees of the senate and house

 

of representatives concerned with motor fuel quality issues. The

 

director shall include all of the following information in the


report concerning the preceding fiscal year:

 

     (a) The number of initial and renewal applications the

 

department received and completed within the 120-day time period

 

described in subsection (7).

 

     (b) The number of applications denied.

 

     (c) The number of applications not issued within the 120-day

 

period and the amount of money returned to permittees under

 

subsection (8).

 

     (9) (10) As used in this section, "completed application"

 

means an application complete on its face and submitted with any

 

applicable permitting fees as well as any other information,

 

records, approval, security, or similar item required by law or

 

rule from a local unit of government, a federal agency, or a

 

private entity but not from another department or agency of the

 

this state. of Michigan.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.