Bill Text: MI HB5599 | 2015-2016 | 98th Legislature | Chaptered
Bill Title: Environmental protection; underground storage tanks; cleanups and financial responsibility; modify requirements. Amends secs. 21502, 21503, 21508, 21510, 21510a, 21510c, 21515, 21516, 21521 & 21526 of 1994 PA 451 (MCL 324.21502 et seq.) & adds sec. 21510d.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-12-28 - Assigned Pa 380'16 With Immediate Effect [HB5599 Detail]
Download: Michigan-2015-HB5599-Chaptered.html
Act No. 380
Public Acts of 2016
Approved by the Governor
December 21, 2016
Filed with the Secretary of State
December 22, 2016
EFFECTIVE DATE: March 22, 2017
STATE OF MICHIGAN
98TH LEGISLATURE
REGULAR SESSION OF 2016
Introduced by Rep. LaFontaine
ENROLLED HOUSE BILL No. 5599
AN ACT to amend 1994 PA 451, entitled “An act to protect the environment and natural resources of the state; to codify, revise, consolidate, and classify laws relating to the environment and natural resources of the state; to regulate the discharge of certain substances into the environment; to regulate the use of certain lands, waters, and other natural resources of the state; to protect the people’s right to hunt and fish; to prescribe the powers and duties of certain state and local agencies and officials; to provide for certain charges, fees, assessments, and donations; to provide certain appropriations; to prescribe penalties and provide remedies; and to repeal acts and parts of acts,” by amending sections 21502, 21503, 21508, 21510, 21510a, 21510c, 21515, 21516, 21521, and 21526 (MCL 324.21502, 324.21503, 324.21508, 324.21510, 324.21510a, 324.21510c, 324.21515, 324.21516, 324.21521, and 324.21526), sections 21502, 21503, 21508, 21510, 21515, 21516, 21521, and 21526 as amended and sections 21510a and 21510c as added by 2014 PA 416, and by adding section 21510d.
The People of the State of Michigan enact:
Sec. 21502. As used in this part:
(a) “Administrator” means the administrator of the authority as provided for in section 21525.
(b) “Affiliate” means a person that directly, or indirectly through 1 or more intermediaries, controls the person specified.
(c) “Approved claim” means a claim that is approved pursuant to section 21510.
(d) “Authority” means the underground storage tank authority created in section 21523.
(e) “Board of directors” or “board” means the board of directors of the authority.
(f) “Bond proceeds account” means the account within the fund to which proceeds of bonds or notes issued under this part have been credited.
(g) “Bonds or notes” means the bonds, notes, commercial paper, other obligations of indebtedness, or any combination of these, issued by the finance authority pursuant to this part.
(h) “Bulk transfer” means a transfer of refined petroleum or a refined petroleum product from, or purchase for resale by, a refiner, pipeline terminal operator, supplier, or marine terminal operator to or from another refiner, pipeline terminal operator, supplier, or marine terminal operator through pipeline tender or marine delivery, including pipeline movements of refined petroleum or a refined petroleum product from 1 or more marine vessel movements of refined petroleum or a refined petroleum product. Refined petroleum or a refined petroleum product in a refinery, pipeline, terminal, or marine vessel transporting refined petroleum or a refined petroleum product to a refinery or terminal is in the bulk transfer terminal system. Notwithstanding anything to the contrary in this subdivision, refined petroleum or a refined petroleum product transferred or purchased for resale by a refiner, pipeline terminal operator, supplier, or marine terminal operator must be delivered to or otherwise remain within the bulk transfer terminal system prior to removal across the rack in order to constitute a bulk transfer.
(i) “Bulk transfer terminal system” means the refined petroleum or refined petroleum product distribution system consisting of refineries, pipelines, marine vessels, and terminals and includes refined petroleum or refined petroleum product storage tanks and refined petroleum or refined petroleum product storage facilities that are part of a refinery, boat terminal transfer, or terminal owned, operated, or controlled by a refiner, marine terminal operator, or pipeline terminal operator.
(j) “Claim” means the submission by the owner or operator or his or her representative of documentation on an application requesting payment by the authority. A claim shall include, at a minimum, a completed and signed claim form and the name, address, and telephone number of the owner or operator.
(k) “Claims limit” means $1,000,000.00 per release. Two or more claims arising out of the same, interrelated, associated, repeated, or continuous releases or a series of related releases shall be subject to 1 claims limit. Any claim that takes place over 2 or more claim periods shall be subject to 1 claims limit.
(l) “Claim period” means a 1-year period commencing on October 1 of each year and ending on September 30 the following year.
(m) “Claim period aggregate limit” means the following aggregate claims limit for all releases discovered during a claim period:
(i) For owners, operators, and affiliates of 1 to 100 refined petroleum underground storage tanks, $1,000,000.00.
(ii) For owners, operators, and affiliates of more than 100 refined petroleum underground storage tanks, $2,000,000.00.
(n) “Controls” means the possession or the contingent or noncontingent right to acquire possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities or interests, by contract, other than a commercial contract for goods or nonmanagement services, by pledge of securities, or otherwise, unless the power is the result of an official position with or corporate office held by the person.
(o) “Corrective action” means that term as it is defined in section 21302.
(p) “Deductible amount” means the amount of corrective action costs or indemnification costs that are required to be paid by an owner or operator as provided in section 21510a.
(q) “Department” means the department of environmental quality.
(r) “Eligible person” means an owner or operator who meets the eligibility requirements under this part to submit a claim.
(s) “Excluded liquid” means that term as defined in 26 CFR 48.4081-1.
(t) “Finance authority” means the Michigan finance authority created by Executive Reorganization Order No. 2010-2, MCL 12.194.
(u) “Financial responsibility requirements” means the financial responsibility for taking corrective action and for compensating third parties for bodily injury and property damage caused by a release from a refined petroleum underground storage tank system that the owner or operator of a refined petroleum underground storage tank system must demonstrate under part 211 and the rules promulgated under that part.
(v) “Fund” means the underground storage tank cleanup fund created in section 21506b and includes the bond proceeds account established within the fund.
(w) “Indemnification” means indemnification of an owner or operator for a legally enforceable judgment entered against the owner or operator by a third party, or a legally enforceable settlement entered between the owner or operator and a third party, compensating that third party for bodily injury or property damage, or both, caused by an accidental release as those terms are defined in R 29.2163 of the Michigan Administrative Code.
(x) “Location” means a parcel of property where refined petroleum underground storage tank systems are registered pursuant to part 211.
(y) “Marine terminal operator” means a person that stores refined petroleum or a refined petroleum product at a boat terminal transfer.
(z) “Operator” means that term as it is defined in section 21303 or a person to whom an approved claim has been assigned or transferred.
(aa) “Owner” means that term as it is defined in section 21303.
(bb) “Oxygenate” means an organic compound containing oxygen and having properties as a fuel that are compatible with petroleum, including, but not limited to, ethanol, methanol, or methyl tertiary butyl ether (MTBE).
Sec. 21503. As used in this part:
(a) “Person” means an individual, partnership, corporation, association, governmental entity, or other legal entity.
(b) “Pipeline terminal operator” means a person that receives and stores refined petroleum or a refined petroleum product in tanks and other equipment used in receiving and storing refined petroleum or a refined petroleum product from interstate and intrastate pipelines, pending wholesale bulk reshipment.
(c) “Qualifying expenditures” means an expenditure for a specific activity that does not exceed the allowable payment for that activity as detailed on the schedule of costs.
(d) “Rack” means a mechanism for delivering refined petroleum or a refined petroleum product from a refiner, a pipeline terminal operator, or a marine terminal operator into a railroad tank car, a transport truck, a tank wagon, or the fuel supply tank of a marine vessel.
(e) “Refined petroleum” means aviation gasoline, middle distillates, jet fuel, kerosene, gasoline, residual oils, and any oxygenates that have been blended with any of these. Refined petroleum includes refined petroleum products and transmix. Refined petroleum does not include excluded liquids.
(f) “Refined petroleum fund” means the refined petroleum fund established under section 21506a.
(g) “Refined petroleum underground storage tank” means an underground storage tank system used for the storage of refined petroleum.
(h) “Refiner” means a person that meets both of the following:
(i) Manufactures or produces refined petroleum or a refined petroleum product at a refinery.
(ii) Is a taxable fuel registrant that is a refiner for purposes of 26 CFR 48.4081-1.
(i) “Refinery” means a facility used by a refiner to produce refined petroleum or a refined petroleum product from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons by any process involving substantially more than the blending of refined petroleum and from which refined petroleum or a refined petroleum product may be removed by pipeline or marine vessel or at a rack.
(j) “Regulated financial institution” means a state or nationally chartered bank, savings and loan association or savings bank, credit union, or other state or federally chartered lending institution or a regulated affiliate or regulated subsidiary of any of these entities.
(k) “Regulatory fee” means the environmental protection regulatory fee imposed under section 21508.
(l) “Release” means that term as it is defined in section 21303.
(m) “Removal” or “removed” means a physical transfer other than by evaporation, loss, or destruction of refined petroleum or a refined petroleum product from a refiner, pipeline terminal operator, or marine terminal operator.
(n) “Schedule of costs” means the list of allowable reimbursement amounts that may be paid on a claim, as established in section 21510b.
(o) “Site” means that term as it is defined in section 21303.
(p) “Supplier” means a supplier or permissive supplier licensed under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170.
(q) “Tank wagon” means a straight truck having 1 or more compartments other than the fuel supply tank designed or used to carry fuel.
(r) “Terminal” means a refined petroleum or refined petroleum products storage and distribution facility that meets all of the following requirements:
(i) Is registered as a qualified terminal by the internal revenue service.
(ii) Is supplied by a pipeline or a marine vessel.
(iii) Has a rack from which refined petroleum or refined petroleum products may be removed.
(s) “Transmix” means the mixed product that results from the buffer or interface of 2 different products in a pipeline shipment, or a mixture of 2 different products within a refinery or terminal that results in an off-grade mixture.
(t) “Transport truck” means a semitrailer combination rig designed or used for the purpose of transporting refined petroleum or a refined petroleum product over the public roads or highways.
(u) “Two-party exchange” means a transaction, including a book transfer, in which refined petroleum or a refined petroleum product is transferred from 1 supplier to another supplier and to which all of the following apply:
(i) The transaction includes a transfer of refined petroleum or a refined petroleum product from the person that holds the original inventory position for the refined petroleum or refined petroleum product in storage tanks as reflected in the records of the refiner, pipeline terminal operator, or marine terminal operator.
(ii) The exchange transaction is completed before removal across the rack by the receiving supplier.
(iii) The refiner, pipeline terminal operator, or marine terminal operator in its books and records treats the receiving exchange party as the supplier that removes the refined petroleum or refined petroleum product across a rack for purposes of reporting the transaction to the department under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170.
(v) “Underground storage tank system” means that term as it is defined in section 21303.
(w) “Work invoice” means a list of goods or services for costs of corrective action related to a claim, including a statement of the amount due.
Sec. 21508. (1) An environmental protection regulatory fee is imposed on all refined petroleum products sold for resale in this state or consumption in this state. The regulatory fee shall be charged for capacity utilization of refined petroleum underground storage tanks measured on a per gallon basis. The regulatory fee shall be charged against all refined petroleum products sold for resale in this state or consumption in this state so as to not exclude any products that may be stored in a refined petroleum underground tank at any point after the petroleum is refined. The regulatory fee shall be 7/8 cent per gallon for each gallon of refined petroleum sold for resale in this state or consumption in this state, with the per gallon charge being a direct measure of capacity utilization of a refined underground storage tank system. The regulatory fee shall not be imposed on a bulk transfer of or a 2-party exchange involving refined petroleum or refined petroleum products.
(2) The department of treasury shall precollect regulatory fees from persons who refine petroleum in this state for resale in this state or consumption in this state and persons who import refined petroleum into this state for resale in this state or consumption in this state. The regulatory fees shall be collected in the manner determined by the state treasurer.
(3) A public utility with more than 500,000 customers in this state is exempt from any fee or assessment imposed under this part if that fee or assessment is imposed on petroleum used by that public utility for the generation of steam or electricity.
(4) All regulatory fees collected pursuant to this part during each state fiscal year shall be deposited as follows:
(a) The first $20,000,000.00 that is collected shall be deposited into the fund.
(b) Following the deposit under subdivision (a), all money collected shall be deposited into the refined petroleum fund.
(5) The department of treasury may audit, enforce, collect, and assess the fee imposed by this part in the same manner and subject to the same requirements as revenues collected pursuant to 1941 PA 122, MCL 205.1 to 205.31.
Sec. 21510. (1) An owner or operator is eligible to receive money from the authority for corrective action or indemnification due to a release from a refined petroleum underground storage tank system only if all of the following requirements are satisfied and the owner or operator otherwise complies with this part:
(a) The release from which the corrective action or indemnification arose was discovered and reported on or after December 30, 2014.
(b) The refined petroleum underground storage tank from which the release occurred was, at the time of discovery of the release, and is presently, in compliance with the registration and fee requirements of part 211.
(c) The owner or operator reported the release within 24 hours after its discovery as required by part 211 and the rules promulgated under that part.
(d) The owner or operator is not the United States government.
(e) The claim is not for a release from a refined petroleum underground storage tank closed prior to January 1, 1974, in compliance with the fire prevention code, 1941 PA 207, MCL 29.1 to 29.33, and the rules promulgated under that act.
(f) The owner or operator was in compliance with the financial responsibility requirements of part 211 and the rules promulgated under that part at the time of the discovery of the release or releases for which the claim is filed.
(g) The owner or operator is otherwise eligible to receive money from the authority under this part.
(h) The total amount of expenditures, including the deductible amount, does not exceed the claims limit or the claim period aggregate limit applicable to the claim.
(2) The owner or operator may receive money from the authority for corrective action or indemnification due to a release that originates from an aboveground piping and dispensing portion of a refined petroleum underground storage tank system if all of the following requirements are satisfied:
(a) The owner or operator is otherwise in compliance with this part and the rules promulgated under this part.
(b) The release is sudden and immediate.
(c) The release is of a quantity exceeding 25 gallons and is released into groundwater, surface water, or soils.
(d) The owner or operator reported the release to the department within 24 hours after its discovery.
(3) Either the owner or the operator may receive money from the authority under this part for an occurrence, but not both.
(4) An owner or operator that is a public utility with more than 500,000 customers in this state is ineligible to receive money from the authority for corrective action or indemnification associated with a release from a refined petroleum underground storage tank system used to supply refined petroleum for the generation of steam electricity.
(5) If an owner or operator has received money from the authority under this part for a release at a location, the owner and operator are not eligible to receive money from the authority for a subsequent release at the same location unless the owner or operator has done either or both of the following:
(a) Discovered the subsequent release pursuant to corrective action being taken on a confirmed release and included this subsequent release as part of the corrective action for the confirmed release.
(b) Upgraded, replaced, removed, or properly closed in place all refined petroleum underground storage tank systems at the location of the release so as to meet the requirements of part 211 and the rules promulgated under that part.
(6) An owner or operator that discovers a subsequent release at the same location as an initial release pursuant to subsection (5)(a) may receive money from the authority to perform corrective action on the subsequent release, if the owner or operator otherwise complies with the requirements of this part and the rules promulgated under this part. However, the subsequent release shall be considered as part of the claim for the initial release for purposes of determining the total amount of expenditures for corrective action and indemnification under subsection (1)(h).
(7) An owner or operator that discovers a subsequent release at the same location as an initial release following compliance with subsection (5)(b) may receive money from the authority to perform corrective action on the subsequent release, if there have been not more than 2 releases at the location, and if the owner or operator otherwise complies with the requirements of this part and the rules promulgated under this part. The subsequent release shall be considered a separate claim for purposes of determining the total amount of expenditures for corrective action and indemnification under subsection (1)(h).
(8) An owner or operator that seeks to receive money from the authority for corrective action shall submit to the administrator the cleanup fund claim submittal form created by the authority containing the information required by the administrator to determine compliance with this part. The administrator shall determine whether the claim complies with this part and shall notify the owner or operator. The administrator may consult with the department of licensing and regulatory affairs to make the determination required in this subsection.
Sec. 21510a. (1) An owner or operator is responsible for a deductible amount as follows:
(a) If the owner or operator or its affiliate owns or operates fewer than 8 refined petroleum underground storage tanks, $2,000.00 per claim.
(b) If the owner or operator or its affiliate owns or operates 8 or more refined petroleum underground storage tanks, $10,000.00 per claim.
(c) The deductible amount under subdivisions (a) and (b) is retroactive to all claims filed for releases discovered and reported on or after December 30, 2014.
(2) The deductible amount applies to each claim. However, 2 or more claims arising out of the same, interrelated, associated, repeated, or continuous releases or a series of related releases shall be considered a single claim and are subject to 1 deductible amount. Any claim that takes place over 2 or more claim periods is subject to 1 deductible amount.
(3) An owner or operator that submits a work invoice under section 21515 is responsible for the deductible amount described in subsection (1). The expenses toward meeting the deductible amount shall be documented and shall comply with the following:
(a) Expenses for items listed in the schedule of costs shall be at or below the allowable reimbursement amount listed in the schedule of costs.
(b) Expenses for items that are not listed in the schedule of costs shall be reasonable and necessary considering conditions at the site based upon a competitive bidding process established by the authority.
Sec. 21510c. A claim shall not be approved by the authority for any of the following:
(a) A release that was expected or intended by an owner or operator, or an employee of an owner or operator.
(b) Punitive, exemplary, or multiplied damages, fines, taxes, penalties, assessments, punitive or statutory assessments, or any civil, administrative, or criminal fines, sanctions, or penalties.
(c) A claim made by an owner or operator against any other person that is also an owner or operator of the refined petroleum underground storage tank system.
(d) A release caused by, based upon, resulting from, or attributable to the owner’s or operator’s intentional, knowing, willful, or deliberate noncompliance with any statute, regulation, ordinance, administrative complaint, notice of violation, notice letter, executive order, or instruction of any governmental agency or body.
(e) A release arising from the ownership, maintenance, use, or entrustment to others of any aircraft, auto, rolling stock, or watercraft, including loading and unloading.
(f) Costs, charges, or expenses incurred by the owner or operator for goods supplied by the owner or operator or services performed by the staff or employees of the owner or operator, or its parent, subsidiary, or affiliate, unless the costs, charges, or expenses are incurred with the prior written approval of the authority.
(g) A release arising from any consequence, whether direct or indirect, of war, invasion, act of a foreign enemy, act of terrorists, hostilities, whether war has been declared or not, civil war, rebellion, revolution, insurrection or military or usurped power, strike, riot, or civil commotion.
(h) Costs arising out of the reconstruction, repair, replacement, upgrading of a refined petroleum underground storage tank system, or any other improvements and any site enhancements or routine maintenance on, within, or under a location.
(i) Costs arising out of the removing, replacing, or recycling of a refined petroleum underground storage tank system or its contents.
(j) Costs, charges, or expenses incurred to investigate or verify that a confirmed release has taken place.
(k) Costs related to the injury of an employee of the owner or operator or its parent, subsidiary, or affiliate arising out of and in the course of employment by the owner or operator or its parent, subsidiary, or affiliate or performing duties related to the conduct of the business of the owner or operator or its parent, subsidiary, or affiliate by a spouse, child, parent, brother, or sister of that employee. This subdivision applies whether the owner or operator may be liable as an employer or in any other capacity and to any obligation to share damages with or repay someone else who must pay damages because of the injury.
(l) Any obligation of the owner or operator under worker’s compensation, unemployment compensation, or disability benefits law or similar law.
(m) Any liability or claim for liability of others assumed by the owner or operator under any contract or agreement, unless the owner or operator would have been liable in the absence of the contract or agreement.
(n) A release on, within, under, or emanating from a location if the release commenced subsequent to the time the location was sold, given away, or abandoned.
(o) Costs that have been or will be submitted to or that have been paid pursuant to an insurance policy or policies.
(p) Costs arising from corrective actions performed in excess of the corrective actions required to obtain a restricted closure based on then current land use.
(q) Costs incurred after the closure date of the release or releases for which the claim was filed except for costs for monitoring well abandonment or remediation system decommissioning, or both, performed within 1 year of the closure date.
Sec. 21510d. If an owner or operator intends to rely on the fund to meet financial responsibility requirements, the owner or operator shall submit to the authority a request for a determination that the owner or operator would be eligible for funding under this part in the event of a release from a refined petroleum underground storage tank system. Upon receipt of a request under this subsection, the authority shall make a determination and provide notice of that determination, in writing, to the owner or operator. The notice may contain conditions for maintenance of that eligibility. A determination under this section is based upon a demonstration of all of the following:
(a) The owner or operator is not ineligible for funding under section 21510(4) and (5).
(b) The refined petroleum underground storage tank or tanks are presently in compliance with the registration and fee requirements of part 211.
(c) The owner or operator is not the United States government.
(d) The owner or operator has financial responsibility for the deductible amount.
Sec. 21515. (1) To receive money from the authority for corrective action, an owner or operator that has received notice from the administrator that its claim has been approved pursuant to section 21510(8) shall follow the procedures outlined in this section and shall submit work invoices to the administrator containing information required by the administrator relevant to determining compliance with this part.
(2) Within 45 days of receipt of work invoices submitted pursuant to subsection (1) using forms created by the authority, the administrator shall make all of the following determinations:
(a) Whether the owner or operator is eligible to receive funding under this part.
(b) Whether the work performed or proposed to be performed is consistent with part 213, and whether those activities are consistent with achieving site closure.
(c) Whether the owner or operator has paid the deductible amount.
(d) Whether the corrective action performed is reasonable and necessary considering conditions at the site of the release.
(e) Whether the cost of performing the corrective action work is at or below the allowable reimbursement amount in the schedule of costs or, if the corrective action work is not a listed item, whether the cost is reasonable and necessary, and whether the cost was based upon a competitive bidding process established by the authority.
(3) The administrator may consult with the department and the department of licensing and regulatory affairs to make the determination required in subsection (2).
(4) If the administrator determines under subsection (2) that the work invoice is reasonable and necessary considering conditions at the site of the release and reasonable in terms of cost and the owner or operator is eligible for funding under this part, the administrator shall approve the work invoice and notify the owner or operator that submitted the work invoice of the approval. If the administrator determines that the work described on the work invoices submitted was not reasonable and necessary or the cost of the work is not reasonable, or that the owner or operator is not eligible for funding under this part, the administrator shall deny the work invoice or any portion of the work invoice submitted and give notice of the denial to the owner or operator that submitted the work invoice.
(5) The owner or operator may submit work invoices to the administrator that are related to a claim only after initial approval of the claim under section 21510(8) and if the aggregate amount of work invoices in the submission is $5,000.00 or more. This limitation does not apply to the final work invoice submission related to the approved claim.
(6) If the administrator determines that a work invoice does not meet the requirements of subsection (2) or (5), the administrator shall deny reimbursement for the work invoice and give written notice of the denial to the owner or operator who submitted the work invoice.
(7) The administrator shall approve a reimbursement for a work invoice that was submitted by an owner or operator for corrective action taken if the work invoice meets the requirements of this part for an approved claim and an approved work invoice.
(8) Except as provided in subsection (9) and section 21519, the authority shall make a joint payment to the owner or operator and the contractor that performed the work listed in the approved work invoices within 45 days after the date of the administrator’s approval under subsection (4) if sufficient money exists in the fund. Once payment has been made under this section, the authority is not liable for any claim on the basis of that payment.
(9) The authority may withhold partial payment of money on payment vouchers if there is reasonable cause to suspect that there are violations of section 21548 or if necessary to assure acceptable completion of the proposed work.
(10) The authority shall prepare and make available to owners and operators standardized claim and work invoice forms.
Sec. 21516. (1) An owner or operator with a claim approved pursuant to section 21510 for which corrective action is in progress who sells or transfers the property that is the subject of the approved claim to another person may assign or transfer the approved claim to that other person. The person to whom the assignment or transfer is made is eligible to receive money from the authority as an owner or operator for the release which is the subject of the approved claim. Allowable, outstanding approved or paid work invoices of the owner or operator making the assignment or transfer may be counted toward the deductible amount of the person to whom the assignment or transfer is made.
(2) An owner or operator assigning or transferring an approved claim pursuant to this section shall notify the administrator of the proposed assignment or transfer at least 10 days before the effective date of the assignment or transfer.
Sec. 21521. (1) If the administrator denies a claim, work invoice, request for indemnification, or request for an eligibility determination under section 21510(8), the owner or operator who submitted the claim, work invoice, request for indemnification, or request for an eligibility determination under section 21510(8) may, within 14 days following the denial, request review by the board. However, if the administrator believes the dispute may be able to be resolved without the board’s review, the administrator may contact the owner or operator regarding the issues in dispute and may negotiate a resolution of the dispute prior to the board’s review. The board shall conduct a review of the denial to determine whether the claim, work invoice, or request for indemnification is payable under this part.
(2) A person who is denied approval by the board after review under subsection (1) may appeal the decision directly to the circuit court.
Sec. 21526. Except as otherwise provided in this part, the board of directors may do all things necessary or convenient to implement this part and the purposes, objectives, and powers delegated to the board of directors by other laws or executive orders, including, but not limited to, all of the following:
(a) Adopt an official seal and bylaws for the regulation of its affairs and alter the seal or bylaws.
(b) Sue and be sued in its own name and plead and be impleaded.
(c) Enter into contracts and other instruments necessary, incidental, or convenient to the performance of its duties and the exercise of its powers.
(d) With the prior consent of the director of the department, solicit and accept gifts, grants, loans, and other aid from any person or the federal, state, or local government or any agency of the federal, state, or local government, or participate in any other way in a federal, state, or local government program.
(e) Procure insurance against loss in connection with the property, assets, or activities of the authority.
(f) Contract for goods and services and engage personnel as necessary and engage the services of private consultants, managers, legal counsel, and auditors for rendering professional financial assistance and advice, payable out of any money of the authority.
(g) Indemnify and procure insurance indemnifying members of the board of directors from personal loss or accountability from liability asserted by a person on bonds or notes of the authority, or from any personal liability or accountability by reason of the issuance of the bonds or notes, or by reason of any other action taken or the failure to act by the authority.
(h) Do all other things necessary or convenient to achieve the objectives and purposes of the authority, this part, rules promulgated under this part, or other laws that relate to the purposes and responsibilities of the authority.
Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor
