HB-5036, As Passed House, October 23, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 5036

     A bill to amend 1941 PA 207, entitled

"Fire prevention code,"

by amending section 2c (MCL 29.2c), as amended by 2006 PA 189.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2c. (1) To implement and enforce this act, the bureau may

charge hospitals operation and maintenance inspection fees and may

charge hospitals and schools plan review and construction

inspection fees as provided in this section. The state fire

services fund is created in the state treasury. The state treasurer

shall be the custodian of the fund and may invest the surplus of

the fund in investments as, in the state treasurer's judgment, are

in the best interests of the fund. Money in the fund at the close

of each fiscal year shall remain in the fund and shall not lapse to

the general fund. The state fire marshal shall supervise and

administer the fund. Fees received by the bureau and money

collected under this act shall be deposited in the fund and shall

be appropriated by the legislature for the operation of the bureau,

including indirect overhead expenses.

     (2) Fees charged under subsection (1) shall be deposited in

the general fund in a restricted account. The fees collected under

this act and placed in the restricted account shall be used only to

fund the services for which the fees were collected and shall

remain in the restricted account at the end of the fiscal year.

Until 5 years after the effective date of the amendatory act that

added this sentence, the state fire marshal, after notifying the

chairperson of the house and senate appropriations committee of his

or her intent to establish the fees and after approval of the board

and following a public hearing held by the board, shall establish

reasonable fees to be charged by the bureau for acts and services

performed by the bureau including, but not limited to, inspections,

review of plans and specifications, issuance of certificates of

acceptability, testing and evaluation of new products, methods and

processes of construction or alteration, inspection of construction

and alteration, inspection of construction undertaken pursuant to a

permit, the issuance of certificates of use and occupancy, and the

hearing of appeals. The fees shall bear a direct relationship to

the cost of the service or act, including overhead. The state

treasurer shall notify the state fire marshal and the legislature

of interest credited and the balance of the fund as of September 30

of each year.

     (3) The fees charged under this section shall be established

in a fee schedule contained in each fiscal year's appropriations

act for the department. Within 30 days after the setting of fees

under subsection (2), the state fire marshal shall report to the

legislature on the following:

     (a) The factors considered in the fee changes including, but

not limited to, the increase in the nature and cost of the services

and the presence, absence, or change of any state or federal

mandates related to the services.

     (b) Specific cost increases, if any, related to specific

services and the method of determining that increased cost.

     (c) The individuals with direct knowledge of the fee changes

that are available to answer questions regarding those changes.