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2004 House Bill 6074: Fuel tank cleanup tax "fund raid"

Public Act 390 of 2004

  1. Introduced by Rep. Marc Shulman (R) on July 6, 2004, to eliminate the sunset on the collection of a 7/8ths cent-per-gallon "regulatory fee" imposed on the sale of petroleum products that is intended to be used for the cleanup of underground fuel storage tanks. Under current law, when the tanks are all cleaned up the fee would no longer be imposed. The bill would authorize a "fund raid" on the money collected by this tax, with money not needed to pay off the cleanup program's debt to be used for general environmental enforcement and regulatory actions, thereby supplementing general fund money in the budget, and avoiding more spending cuts.
    • Referred to the House Appropriations Committee on July 6, 2004.
      • Reported in the House on July 14, 2004, without amendment and with the recommendation that the bill pass.
    • Substitute offered by Rep. Mike Pumford (R) on July 14, 2004, to extend the tax for an additional two years, rather than indefinately, and use $50 million in the underground tank cleanup fund to avoid making spending cuts in the 2005 budget. The bill would use the remaining $120 million in the fund to pay off the Michigan Underground Storage Tank Financial Assurance (MUSTFA) program's remaining debt. The substitute passed by voice vote in the House on July 14, 2004.
    • Amendment offered by Rep. Mike Pumford (R) on July 14, 2004, to only extend collection of the "fee" until Sept. 30, 2006. The amendment passed by voice vote in the House on July 14, 2004.
    • Amendment offered by Rep. Mike Pumford (R) on July 14, 2004, to transfer money not needed to pay off the underground fuel tank cleanup program's debt to a state cleanup and redevelopment fund, which can be appropriated by the legislature for general environmental enforcement and regulatory actions, not just underground fuel tank cleanup. The amendment passed by voice vote in the House on July 14, 2004.
  2. Passed 87 to 13 in the House on July 14, 2004, to extend for an additional two years the 7/8ths cent-per-gallon fuel "regulatory fee" (tax) levied for the cleanup of underground fuel tanks, and authorize a "fund raid" on $50 million in the underground tank cleanup fund, using this to avoid making spending cuts in the 2005 budget. Under current law, the tax would have ended on Sept. 30, 2004. Extending it will increase the tax paid by motorists by approximately $30 million a year. A new commission will advise what to do with that money. Note: A pending lawsuit against the state contends that the authority to levy this tax was eliminated once there was enough money to pay off the underground tank cleanup program's debt.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on August 4, 2004.
    • Referred to the Senate Appropriations Committee on August 4, 2004.
      • Reported in the Senate on September 23, 2004, with the recommendation that the substitute (S-5) be adopted and that the bill then pass.
    • Substitute offered in the Senate on September 28, 2004, to replace the previous version of the bill with one that extends the tax or fee until December 31, 2010. The substitute passed by voice vote in the Senate on September 28, 2004.
  4. Passed 32 to 5 in the Senate on September 29, 2004, to extend until 2011 the 7/8ths cent-per-gallon fuel sale "regulatory fee" (tax) levied for the cleanup of underground fuel tanks, and authorize a $43 million "fund raid" on the underground tank cleanup fund to avoid making spending cuts in the 2005 budget. Under current law, the tax would have ended on Sept. 30, 2004, and extending it will increase the tax paid by motorists by approximately $30 million a year. A new council will recommend fuel-related cleanups and other uses for the money, including existing fuel industry regulatory programs now funded by the general fund. The MUSTFA law requires the tax to be used for underground tank cleanup, and a pending lawsuit contends the tax should have been eliminated once there was enough money to pay off MUSTFA's debt.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on September 29, 2004, to concur with the Senate-passed version of the bill, which extends the tax for another six years, rather than another two years. Passed 74 to 31 in the House on September 29, 2004.
    Who Voted "Yes" and Who Voted "No"

  6. Signed by Gov. Jennifer Granholm on October 12, 2004.

Comments

mdeq  by Anonymous Citizen on May 10, 2008 
Mdeq wastes alot of cash on nothing.

Motor fuel regulatory fee  by Anonymous Citizen on November 6, 2004 
A new twist to the old hide and switch game. Rob the public insted of cutting services. When will our representative have the guts to cut services that money is not available to support. You have taken 30 million out of consumer spending and reduced the chance of an economic recovery. Great job.

Thanks for trying  by Mike Hignite on November 5, 2004 
Joe Hune, thanks for voting against raising my taxes in the final bill. I guess I didn't make a mistake voting for you this time.

As for the rest of you plunderers, your mother was a hamster and your father smelled of elderberries. Go away or I will taunt you a second time.

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