Bill Summary – FastDemocracy

HOUSE BILL NO. 6274
     December 10, 2024, Introduced by Reps. Hood, McKinney, Rheingans, McFall, Farhat, Hill, Paiz,
       Wilson, Xiong, Wegela, Byrnes, Morgan, Young and Aiyash and referred to the Committee on
       Natural Resources, Environment, Tourism and Outdoor Recreation.
          A bill to amend 1976 PA 399, entitled
    "Safe drinking water act,"
    by amending section 17 (MCL 325.1017), as amended by 2008 PA 188
    and by adding section 17a.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 17. (1) A person engaged in producing that produces
 bottled drinking water shall utilize a water source meeting that
 meets the requirements of this section and the requirements
 otherwise provided in this act. Bottling or and packaging
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 facilities and their operation shall remain under the supervision
 of the department of agriculture as provided for in and rural
 development in accordance with the food law, of 2000, 2000 PA 92,
 MCL 289.1101 to 289.8111.
       (2) A person producing that produces bottled drinking water
 from an out-of-state source shall submit to the department for
 approval proof to the director that the source of the water and
 bottling facilities were approved by the agency having that has
 jurisdiction. The director department may withhold approval of the
 bottled water under this subsection if the other agency's
 inspection, surveillance, and approval procedures and techniques
 are determined to be inadequate.
       (3) A Through December 31, 2025, a person who that proposes to
 engage in producing bottled drinking water from a new or increased
 large quantity withdrawal of more than 200,000 gallons of water per
 day from the waters of the state or that will result in an
 intrabasin transfer of more than 100,000 gallons of water per day
 average over any 90-day period shall submit an application for a
 permit to the department in on a form required and in a manner
 prescribed by the department containing that contains an evaluation
 of environmental, hydrological, and hydrogeological conditions that
 exist and the predicted effects of the intended withdrawal that
 provides a reasonable basis for the a determination under this
 section to be made.
       (4) The department shall only approve an application for a
 permit under subsection (3) only if the department determines both
 of the following:
       (a) The proposed use water withdrawal or intrabasin transfer
 will meet the applicable standard provided in section 32723 of the
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 natural resources and environmental protection act, 1994 PA 451,
 MCL 324.32723.
       (b) The person will undertake activities, if needed, to
 address hydrologic impacts commensurate with the nature and extent
 of the withdrawal. These activities may include those related to
 the stream flow regime, water quality, and aquifer protection.
       (5) Before proposing activities under subsection (4)(b), the
 person proposing to engage in producing bottled drinking water that
 submits an application for a permit under subsection (3) shall
 consult with local government officials and interested community
 members.
       (6) Before making the determination under subsection (4), the
 department shall provide public notice and an opportunity for
 public comment of not less than 45 days.
       (7) If the person proposing to engage in producing bottled
 drinking water that submits an application for a permit under
 subsection (3) does not have a permit under section 4, the person
 shall request a determination under subsection (4) when that person
 applies for a permit under section 4. If the person proposing to
 engage in producing bottled drinking water that submits an
 application for a permit under subsection (3) has previously
 received a permit under section 4, the person shall obtain approval
 under subsection (4) prior to before beginning the operations. A
 proposed use for which the department makes a determination that
 the conditions of subsection (4) will be met shall be is considered
 to satisfy the requirements of section 4.11 of the compact. This
 subsection applies through December 31, 2025.
       (8) A Through December 31, 2025, a person seeking a that wants
 a departmental determination under subsection (4) shall submit an
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 application fee of $5,000.00 to the department. The department
 shall transmit application fees received under this section
 subsection to the state treasurer to be credited to the water use
 protection fund created in section 32714 of the natural resources
 and environmental protection act, 1994 PA 451, MCL 324.32714.
       (9) Beginning January 1, 2026, a person shall not produce
 bottled drinking water unless the person is licensed by the
 department in accordance with this subsection and subsections (10)
 to (13). A person applying for a license shall do so on an
 application and in a manner prescribed by the department. The
 applicant shall include all of the following with an application
 for a license:
       (a) If the applicant is not a public water supply, a permit to
 withdraw water issued in accordance with the requirements of this
 subdivision. If the person is withdrawing water from a new or
 increased large quantity withdrawal of more than 200,000 gallons of
 water per day from the waters of the state or that will result in
 an intrabasin transfer of more than 100,000 gallons of water per
 day average over any 90-day period, the person shall submit a
 permit application to the department on a form and in a manner
 prescribed by the department. The permit application must include,
 but is not limited to, an evaluation of environmental,
 hydrological, and hydrogeological conditions that exist and the
 predicted effects of the intended withdrawal that provides a
 reasonable basis for the determination under this subdivision to be
 made. Before the department approves a permit to withdraw water
 under this subdivision, the department shall provide public notice
 and an opportunity for public comment of not less than 45 days. The
 department shall approve an application for a permit to withdraw
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 water under this subdivision only if the department determines both
 of the following:
       (i) The proposed water withdrawal or intrabasin transfer will
 meet the applicable standards provided in section 32723 of the
 natural resources and environmental protection act, 1994 PA 451,
 MCL 324.32723.
       (ii) The person will undertake activities, if needed, to
 address hydrologic impacts commensurate with the nature and extent
 of the withdrawal. These activities may include those related to
 the stream flow regime, water quality, and aquifer protection.
 Before undertaking activities under this subparagraph, the
 applicant shall consult with local government officials and
 interested community members.
       (b) If the applicant is a public water supply, identification
 of the waterworks system approved by the department under section
 4.
       (c) Any other permits required under federal law.
       (d) Any other information required by the department.
       (e) An application fee in the amount of $6,000.00.
       (10) Not later than 30 days after the department receives a
 completed license application under subsection (9), the department
 shall do all of the following:
       (a) Provide public notice of the application for a license.
       (b) Accept public comments for not less than 45 days. Public
 comments must be submitted to the department on a form and in a
 manner prescribed by the department.
       (c) If requested by a local unit of government or federally
 recognized tribe, meet and consult with the local unit of
 government or federally recognized tribe not later than 15 days
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 after a request is made. A request under this subdivision must be
 submitted to the department on a form and in a manner prescribed by
 the department.
       (d) Hold at least 1 public hearing on the license application.
 The department shall provide notice as required under the open
 meetings act, 1976 PA 267, MCL 15.261 to 15.275, of the time and
 place of the public hearing.
       (11) The department shall approve or deny an application for a
 license within 90 days after the requirements under subsection (10)
 are completed. The department shall issue a license only if the
 department determines all of the following requirements are met:
       (a) The application is complete. If the application is
 incomplete, the department shall notify the applicant in writing
 within 30 days after the application is received, and state the
 deficiency and request additional information.
       (b) The applicant is in compliance with the terms and
 conditions of a permit issued under subsection (9)(a), if
 applicable, and any permits required under federal law.
       (c) There is sufficient data and information to evaluate the
 environmental impacts of the proposed water withdrawal on the water
 source, watershed, and water distribution system.
       (d) A license issued under this section will not interfere
 with or impair public trust resources and uses.
       (12) If the department denies an application for license, the
 department shall notify the applicant of the denial within 90 days
 and state the reasons for the denial. If the department denies an
 application for a license, the applicant may appeal the denial by
 submitting a written request for a hearing to the department. The
 applicant must submit the request to the department not more than
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 15 days after the date of the denial. The department shall conduct
 a hearing requested under this section in accordance with the
 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
 24.328.
       (13) A license issued under this section is valid for 3 years
 from the date of issuance and is nontransferable.
       (14) A license is not required under this section for any of
 the following:
       (a) The production of a product that contains or incorporates
 water obtained from a private well or waterworks system.
       (b) The withdrawal, treatment, distribution, or delivery of
 water or the provision of services offered by a public or private
 water utility, public water supply, or waterworks system.
       (c) The sale of water obtained from a private well or
 waterworks system in a glass bottle or other container incidental
 to a wholesale or retail business.
       (d) The use of water for agriculture, manufacturing,
 generation of electricity, or industrial purposes.
       (15) (9) This section shall not be construed as affecting,
 intending to affect, or in any way altering or interfering does not
 affect, alter, or interfere with common law water rights or the
 applicability of any other laws providing law that provides for the
 protection of natural resources or the environment.
       (16) (10) A person who proposes to engage in producing that
 produces bottled drinking water and who submitted an application
 for a permit under section 4 prior to the effective date of the
 amendatory act that added this subsection before July 9, 2008 is
 subject to the provisions of this section that existed on February
 28, 2006.
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       (17) (11) As used in this section, "compact", "intrabasin
 transfer", "new or increased large quantity withdrawal", and
 "waters of the state" mean those terms as they are defined in
 section 32701 of the natural resources and environmental protection
 act, 1994 PA 451, MCL 324.32701.
       Sec. 17a. A person that is licensed under section 17 shall pay
 a royalty equal to 25 cents per gallon of water that is bottled.
 Quarterly, a person that is licensed under section 17 shall remit
 to the department the royalties and a report that documents the
 total volume of water withdrawn per month. A royalty collected by
 the department under this section must be deposited in the Michigan
 water trust fund created in section 1205 of the natural resources
 and environmental protection act, 1994 PA 451, MCL 324.1205.
       Enacting section 1. This amendatory act does not take effect
 unless Senate Bill No.____ or House Bill No. 6273 (request no.
 06380'24) of the 102nd Legislature is enacted into law.
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Statutes affected: 
House Introduced Bill: 325.1017