January 16, 2008, Introduced by Rep. Sak and referred to the Committee on Commerce.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 162; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 162. RECYCLING FEE
Sec. 16201. As used in this part:
(a) "Department" means the department of environmental
quality.
(b) "Fund" means the recycling fund created in section 16205.
(c) "Goods sold at retail" means tangible personal property,
including food, the ownership of which is transferred by a person
regularly and principally engaged in the business of selling
tangible personal property to buyers for use or consumption and not
for resale. Goods sold at retail include, but are not limited to,
goods sold to a person whose membership in a club or other
organization entitles the person to buy the goods from the seller.
(d) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(e) "Recycling" means the act of treating or processing an
item so that it or the materials from which it is made may be used
again.
(f) "Recycling fee" means the fee established under section
16203.
(g) "Sales transaction" means a transaction involving the sale
of goods sold at retail having an aggregate pretax value of $2.00
or more. The transaction may include the sale of goods that are not
goods sold at retail or that are excluded under this subdivision,
but the aggregate value is calculated only on the goods sold at
retail that are not excluded under this subdivision. Sales
transaction does not include the sale of any of the following:
(i) Goods sold from a vending machine.
(ii) Motor fuel, as that term is defined in section 4 of the
motor fuel tax act, 2000 PA 403, MCL 207.1004.
(iii) A prescription drug sold for human use.
(iv) Electricity, steam, gas, water, communication, or a
similar good delivered to the public by pipe, wire, cable, or
similar means.
Sec. 16203. (1) Beginning on October 1, 2008, a recycling fee
is levied on each sales transaction in this state.
(2) The recycling fee is 1 cent for each sales transaction.
(3) The recycling fee shall be collected at the same time and
in the same manner as the tax imposed under the general sales tax
act, 1933 PA 167, MCL 205.51 to 205.78.
(4) If a fee payer has a reasonable basis, based on the
history of the fee payer's sales transactions, to make a good-faith
estimate that less than $20.00 in recycling fees will be levied on
the fee payer in a month, the fee payer may elect not to pay the
fee. A fee payer that makes the election under this subsection
shall not reimburse himself or herself for the recycling fee, as
provided in section 16204, while the election is effective.
(5) An election under subsection (4) is effective until the
fee payer has a reasonable basis, based on the history of the fee
payer's sales transactions since the election, to estimate that the
number of the fee payer's average monthly sales transactions for
the previous 12 months exceeded 2,000.
(6) The recycling fee imposed under this act shall be
administered by the state treasurer under 1941 PA 122, MCL 205.1 to
205.31.
(7) The state treasurer shall prescribe the forms necessary
for the administration of this act and may promulgate necessary
rules under the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
Sec. 16204. (1) A fee payer shall reimburse himself or herself
by adding the amount of the recycling fee to the cost of each sales
transaction.
(2) A fee payer may retain 3/4 of a percent of the recycling
fees levied on him or her for administrative costs.
Sec. 16205. (1) The recycling fund is created within the state
treasury.
(2) Money from the recycling fee shall be deposited in the
fund. The state treasurer may receive money or other assets from
any other source for deposit into the fund. The state treasurer
shall direct the investment of the fund. The state treasurer shall
credit to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall expend money from the fund, upon
appropriation, as follows:
(a) Fifty percent of the money shall be distributed to local
units of government to be expended for recycling and waste
diversion programs operated by the local units. Money shall be
distributed under this subdivision in proportion, as determined by
the department, to the amount of money expended by the local unit
of government for recycling and waste diversion programs in the
previous year, not including money distributed under this
subdivision.
(b) Forty percent of the money shall be expended as grants to
fund persons who conduct recycling and waste diversion programs,
including governmental and nongovernmental entities. Grants under
this subdivision may be distributed to elementary and secondary
schools in this state to fund recycling and waste diversion
projects conducted by the students and recycling and waste
diversion education.
(c) Ten percent of the money shall be expended for a
comprehensive public litter abatement program that includes
education about and advocation of litter abatement.
Sec. 16207. (1) The department of treasury may require a
person, by notice served upon that person, to file a report, make a
statement under oath, or keep or disclose records as the department
of treasury determines necessary to show the amount of the
recycling fee to be levied on that person.
(2) Except as provided in subsection (3), a person who fails
to comply with this part is subject to a civil fine of not less
than $100.00 or more than $1,000.00 and is liable for the costs of
prosecution.
(3) A person who knowingly reimburses himself or herself for
the recycling fee as provided in section 16204 in a manner or
amount contrary to this part, who knowingly fails to transmit the
correct amount of recycling fees levied on him or her, or who
knowingly fails to accurately complete a form required by the
department of treasury under this part is guilty of a misdemeanor
punishable by imprisonment for not more than 1 year or a fine of
not more than $1,000.00, or both.
Sec. 16209. This part is repealed if 1976 IL 1, MCL 445.571 to
445.576, is amended to require deposits and redemption of deposits
on types of beverage containers for which deposits and redemption
of deposits are not required under that act on the effective date
of the amendatory act that added this section.
Enacting section 1. This amendatory act does not take effect
unless Senate Joint Resolution ____ or House Joint Resolution ____
(request no. 05840'07) of the 94th Legislature becomes a part of
the state constitution of 1963 as provided in section 1 of article
XII of the state constitution of 1963.