HAZARDOUS MATERIALS TRANSPORT - S.B. 554 (S-1): FLOOR ANALYSIS

Senate Bill 554 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor: Senator Loren Bennett

Committee: Natural Resources and Environmental Affairs

CONTENT

The bill would create the "Hazardous Materials Transportation Act" to provide for the registration and permitting of motor carriers engaged in the transportation of hazardous materials (hazardous waste or liquid industrial waste) by highway. The bill would require motor carriers to designate their "base state", and to pay fees depending upon their base state designation. A base state other than Michigan would be the state in which a carrier had the highest number of hazardous materials miles traveled among states participating in the Uniform State Hazardous Materials Transportation Registration and Permit Program. Motor carriers required to register in Michigan would have to pay an "apportioned vehicle registration fee" based upon their percentage of transportation in this State.

The bill also would establish liability coverage requirements for motor carriers; create the "Hazardous Materials Transportation Permit Fund"; require the registration and permit fees collected under the proposed Act to be deposited into the Fund, for implementation of the Act and other hazardous materials transportation safety activities; specify responsibilities of the Department of Environmental Quality (DEQ); permit the DEQ, the Department of State Police, a local law enforcement agency, or the Department of Natural Resources to enforce the bill; permit the DEQ or the State Police to inspect vehicles or facilities; preempt hazardous materials transportation registration or permitting programs administered by local units; and provide that certain data would not be subject to public disclosure.

The bill would take effect on July 1, 1998.

- Legislative Analyst: S. Lowe

FISCAL IMPACT

Department of Environmental Quality. The bill would establish a new "uniform program" that, according to the DEQ, is anticipated to generate between $180,000 and $220,000 per year from an "apportioned vehicle registration fee". This revenue would be used to implement the uniform application process.

Department of State Police. The Department of State Police could incur additional costs under the bill should the Department use its authority to inspect, investigate, and enforce the regulations established in the bill. It is unclear whether the Department of Environmental Quality would provide to the State Police funds generated by the bill to assist with the State Police enforcement costs, though the bill does provide for Fund revenue to be used for implementation of the proposed act.

Date Completed: 10-22-97 - Fiscal Analyst: G. Cutler

- B. Baker

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.