Section 324.21506 - Michigan underground storage tank financial assurance fund; creation; expenditures.
NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT (EXCERPT)
Act 451 of 1994
324.21506 Michigan underground storage tank financial assurance fund; creation; expenditures.
Sec. 21506.
(1) The Michigan underground storage tank financial assurance fund is created in the state treasury.
(2) The state treasurer shall direct the investment of the fund. Interest and earnings from fund investments shall be credited to the fund.
(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) Except as provided in subsections (5) and (6), money in the fund shall be expended only as follows and in the following order of priority:
(a) To defease principal and interest due and owing on bonds issued by the authority pursuant to this part that are outstanding on the effective date of the 2004 amendatory act that amended this section.
(b) For the reasonable administrative cost of implementing this part by the department, the department of treasury, the department of attorney general, and the authority as annually appropriated by the legislature. Administrative costs include the actual and necessary expenses incurred by the board and its members in carrying out the duties imposed by this part. Total administrative costs expended under this subdivision shall not exceed 7% of the fund's projected revenues in any year. Costs incurred by the authority for the issuance of bonds or notes which may also be payable from the proceeds of the bonds or notes shall not be considered administrative costs.
(c) For payment of rewards under section 21549.
(d) For the interest subsidy program established in section 21522. The money expended under this subdivision shall not exceed 10% of the fund's projected revenues in any year. However, 10% of the revenue of the fund during the first year of the fund's operation shall be expended on the interest subsidy program. If this money is not expended during the first year, this money shall be carried over for expenditure in the succeeding years of the fund's operation. Additional fund revenue shall not be set aside for the interest subsidy program until all of the first year revenue is expended.
(e) For corrective action and indemnification including all of the following:
(i) Payments for work invoices submitted prior to 5 p.m. on June 29, 1995 and approved by the department pursuant to this part.
(ii) Payments for requests for indemnification submitted prior to 5 p.m. on June 29, 1995 and approved by the department pursuant to this part.
(iii) Payments for work invoices or requests for indemnification that were submitted prior to 5 p.m. on June 29, 1995 and denied by the department pursuant to this part but which denials were subsequently reversed on appeal.
(5) All revenue collected during the state fiscal years ending September 30, 2003 and September 30, 2004 from the environmental protection regulatory fee imposed under section 21508 shall be allocated and expended by the state treasurer for the purchase of United States treasury obligations in an amount sufficient, together with interest on the obligations, to implement subsection (4)(a).
(6) Upon determination by the state treasurer of the amount of money needed to satisfy all obligations listed in subsection (4), the state treasurer shall transfer all remaining money in the fund to the refined petroleum fund created in section 21506a.
(7) The board shall make recommendations to the appropriations committees in the senate and house of representatives on the distribution and amount of administrative costs under subsection (4)(b). The board shall provide a copy of these recommendations to each affected department.
History: 1994, Act 451, Eff. Mar. 30, 1995 ;-- Am. 1995, Act 269, Imd. Eff. Jan. 8, 1996 ;-- Am. 2004, Act 390, Imd. Eff. Oct. 12, 2004
Compiler's Notes: Enacting section 1 of Act 390 of 2004 provides:"Enacting section 1. The provisions of this amendatory act relating to the extension and collection of the regulatory fee provided for under this part and the obligation to pay the fee shall be applied retroactively. The requirement to impose and collect the regulatory fee and the obligation to pay the fee shall not be considered to have ceased at any time since the date the requirement and obligation were originally enacted into law. The requirement that this enacting section be applied retroactively extends to any regulatory fee imposed or collected even if it is alleged or determined that sufficient regulatory fees were collected to pay in full bonds or notes issued by the Michigan underground storage tank financial assurance authority."
Popular Name: Act 451
Popular Name: NREPA