SB-1209, As Passed House, June 29, 2004                                     

SUBSTITUTE FOR

SENATE BILL NO. 1209

                                                                             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 2002 PA 13 and section 9i as added by 1993 PA               

236.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2   in transferring, selling, dispensing, or  the  offering for sale            

3   gasoline in this state, the distributor or retail dealer shall              

4   obtain a license from the department for each retail outlet                 

5   operated by that person.  In administering the licensing under              

6   this section, the department may attempt to coordinate  such the

7   licensing with the licensing applicable to gasoline administered            

8   by the department of treasury pursuant to the motor fuel tax act,           

9   2000 PA 403, MCL 207.1001 to 207.1170, and the general sales tax            

1   act, 1933 PA 167, MCL 205.51 to 205.78.                                     

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

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

4   revoked by the department.                                                  

5       (3) The fee for a license is $15.00 for each year or portion                

6   of a year through July 31, 2002, $50.00 for each year or portion            

7   of a year through July 31, 2003, $75.00 for each year or portion            

8   of a year through July 31, 2004, and $100.00 beginning August 1,            

9   2004 and each year or portion of a year thereafter.  A license              

10  shall not be issued or renewed until the fee and any                        

11  administrative fines issued under section 10a have been paid.  A            

12  hearing is not required before the refusal to issue or renew a              

13  license under this subsection.  Fees collected shall be deposited           

14  in the gasoline inspection and testing fund.   The department               

15  shall conduct a review of the fee structure provided by this                

16  subsection and the status of the gasoline inspection and testing            

17  fund in the 2003 calendar year and report its recommendations for           

18  any change or adjustment in the fee schedule to the house and               

19  senate transportation committees not later than January 1, 2004.

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

21  department upon a form furnished by the department.  The                    

22  completed form shall contain the information requested by the               

23  department and shall be accompanied by the fee specified in                 

24  subsection (3).                                                             

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

26  issued pursuant to this act for failure to comply with the                  

27  requirements provided for in section 3, for failure to provide              

1   notice as provided in section 4, for violating section 31 of the            

2   weights and measures act of 1964, 1964 PA 283, MCL 290.631, if              

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

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

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

6   comply with this act or a rule promulgated under this act or an             

7   order issued under this act.                                                

8       (6) This section does not apply until June 29, 1985.                        

9       (7) If a person licensed under this act is convicted of a                   

10  willful violation under section 31 of the weights and measures              

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

12  pursuant to this act shall be revoked for 2 years.                          

13      (8) A suspension, revocation, or denial of a license of a                   

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

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

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

17  partnership, or other association shall be suspended when a                 

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

19  or officer, member, or a person exercising control of the                   

20  corporation, partnership, or other association is suspended,                

21  revoked, or denied.  The suspension shall remain in force until             

22  the director determines that the disability created by the                  

23  suspension, revocation, or denial has been removed.                         

24  (9) Except as otherwise provided in subsection (3), beginning               

25  on the effective date of the amendatory act that added this                 

26  subsection, the department shall issue an initial or renewal                

27  license not later than 120 days after the applicant files a                 

1   completed application.  If the application is considered                    

2   incomplete by the department, the department shall notify the               

3   applicant in writing or make notification electronically                    

4   available within 40 days after receipt of the incomplete                    

5   application, describing the deficiency and requesting the                   

6   additional information.  The 120-day period is tolled upon                  

7   notification by the department of a deficiency until the date all           

8   of the information requested during the 40-day period is received           

9   by the department.  Requests for new or additional information by           

10  the department that fall outside the 40-day period do not toll              

11  the 120-day period.  The determination of the completeness of an            

12  application does not operate as an approval of the application              

13  for the license and does not confer eligibility of an applicant             

14  determined otherwise ineligible for issuance of a license.                  

15      (10) If the department does not issue or deny a license                     

16  within 120 days after the receipt of a completed application, the           

17  department shall return the license fee and shall reduce the                

18  license fee for the applicant's next renewal application, if any,           

19  by 15%.  The failure to issue a license within the time required            

20  under this subsection does not allow the department to otherwise            

21  delay the processing of the application, and that application,              

22  upon completion, shall be placed in sequence with other completed           

23  applications received at that same time.  The department shall              

24  not discriminate against an applicant in the processing of an               

25  application based on the fact that the application fee was                  

26  refunded or discounted under this subsection.                               

27      (11) Beginning October 1, 2005, the director of the                         

1   department shall submit a report by December 1 of each year to              

2   the standing committees and appropriations subcommittees of the             

3   senate and house of representatives concerned with motor fuel               

4   quality issues.  The director shall include all of the following            

5   information in the report concerning the preceding fiscal year:             

6       (a) The number of initial and renewal applications the                      

7   department received and completed within the 120-day time period            

8   described in subsection (9).                                                

9       (b) The number of applications denied.                                      

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

11  period and the amount of money returned to licensees and                    

12  registrants under subsection (10).                                          

13      (12)  (9)  Before a blender engages in the transferring,                    

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

15  this state, the blender shall register the finished product with            

16  the department and provide to the department test results as the            

17  department considers necessary.  If the product does not comply             

18  with the requirements of section 3, the blender shall provide the           

19  department with a written list of the business names and                    

20  addresses to whom the blended product is sold.                              

21  (13) As used in this section, "completed application" means                 

22  an application complete on its face and submitted with any                  

23  applicable licensing fees as well as any other information,                 

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

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

26  private entity but not from another department or agency of the             

27  state of Michigan.

1       Sec. 9i.  (1) A dispensing facility constructed after                       

2   November 15, 1990  ,  shall obtain a dispensing permit.  The fee            

3   for a dispensing permit is $25.00 for each year or portion of a             

4   year.                                                                       

5       (2) Before a dispensing permit is issued, a dispensing                      

6   facility shall install an approved stage I and, if required,                

7   stage II vapor-recovery system and, in addition to the fee for              

8   the dispensing permit, shall pay a registration fee for each                

9   dispensing unit located at the dispensing facility.  A permit               

10  shall not be issued or renewed until all fees and administrative            

11  fines issued under section 10a are paid.  A hearing shall not be            

12  required before the refusal to issue or renew a permit under this           

13  subsection.                                                                 

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

15  unless renewed before December 1 of each year or unless                     

16  suspended, denied, or revoked by the department.  Application for           

17  a dispensing permit shall be made on a form furnished by the                

18  department.  The completed form shall contain the information               

19  requested by the department and shall be accompanied by the fees            

20  specified.                                                                  

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

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

23  required by subsection (1) or (2)  ,  or for failure to comply              

24  with the requirements of sections 9a to 10c.                                

25      (5) A fee shall be charged to the operator of stage I and                   

26  stage II vapor-recovery or gasoline-dispensing equipment for its            

27  inspection if any of the following occur:                                   

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

2   already been tested and found to contain a substantial defect as            

3   defined under section 9c.                                                   

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

5   operator.                                                                   

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

7   special services, including the fee for an operator requested               

8   inspection or reinspection, for registrations, for training                 

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

10  fee is sufficient to cover the cost of an operator requested                

11  inspection, reinspection, registration, training, or trainer                

12  accreditation, respectively, and that the aggregate of all fees             

13  collected is sufficient to pay for all salaries and other                   

14  expenses connected with the activity.  The department shall                 

15  review and adjust the fees at the end of each year and have all             

16  fees approved by the director before they are adopted.  Fees                

17  collected under this section shall be deposited in the gasoline             

18  inspection and testing fund and reserved for conducting the                 

19  vapor-recovery program.                                                     

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

21  date of the amendatory act that added this subsection, the                  

22  department shall issue an initial or renewal permit not later               

23  than 120 days after the applicant files a completed application.            

24  If the application is considered incomplete by the department,              

25  the department shall notify the applicant in writing or make                

26  notification electronically available within 40 days after                  

27  receipt of the incomplete application, describing the deficiency            

1   and requesting the additional information.  The 120-day period is           

2   tolled upon notification by the department of a deficiency until            

3   the date all of the information requested during the 40-day                 

4   period is received by the department.  The determination of the             

5   completeness of an application does not operate as an approval of           

6   the application for the permit and does not confer eligibility of           

7   an applicant determined otherwise ineligible for issuance of a              

8   permit.  Requests for new or additional information by the                  

9   department that fall outside the initial 40-day period do not               

10  toll the 120-day period.                                                    

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

12  120 days after the receipt of a completed application, the                  

13  department shall return the permit fee and shall reduce the                 

14  permit fee for the applicant's next renewal application, if any,            

15  by 15%.  The failure to issue a permit within the time required             

16  under this subsection does not allow the department to otherwise            

17  delay the processing of the application, and that application,              

18  upon completion, shall be placed in sequence with other completed           

19  applications received at that same time.  The department shall              

20  not discriminate against an applicant in the processing of an               

21  application based on the fact that the application fee was                  

22  refunded or discounted under this subsection.                               

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

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

25  committees and appropriations subcommittees of the senate and               

26  house of representatives concerned with motor fuel quality                  

27  issues.  The director shall include all of the following                    

1   information in the report concerning the preceding fiscal year:             

2       (a) The number of initial and renewal applications the                      

3   department received and completed within the 120-day time period            

4   described in subsection (7).                                                

5       (b) The number of applications denied.                                      

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

7   period and the amount of money returned to permittees under                 

8   subsection (8).                                                             

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

10  an application complete on its face and submitted with any                  

11  applicable permitting fees as well as any other information,                

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

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

14  private entity but not from another department or agency of the             

15  state of Michigan.