SENATE BILL NO. 220
March 21, 2023, Introduced by Senators IRWIN, SANTANA, CHANG, BAYER, CAVANAGH
and SHINK and referred to the Committee on Natural Resources and Agriculture.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 61524 (MCL 324.61524), as amended by 1998 PA
252.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 61524. (1) For the purposes of monitoring, surveillance,
2 enforcement, and administration of this part, a fee not in excess
3 of 1%, 2%, based upon on the gross cash market value, is levied
4 upon on oil and gas produced in this state. The fee shall must be
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1 collected by the revenue division of the department of treasury in
2 the same manner, at the same time, and subject to the same
3 provisions of as the tax levied by 1929 PA 48, MCL 205.301 to
4 205.317.
5 (2) The fee shall must be computed as follows:
6 (a) The director of the department of technology, management,
7 and budget, on or before by November 1 each year, shall certify to
8 the department of treasury the amount appropriated for the current
9 state fiscal year for the purposes of monitoring, surveillance,
10 enforcement, and administration of this part.
11 (b) The department, by November 1 each year, shall estimate
12 the total production and gross cash market value of all oil and gas
13 that will be produced in this state during the current state fiscal
14 year ending September 30, and shall and certify its estimate to the
15 department of treasury. on or before November 1.
16 (c) Within 30 days after the effective date of the 1998
17 amendments to this section and on or before By December 1 of each
18 succeeding year, the department of treasury shall determine the fee
19 as follows:
20 (i) If the fund balance is less than $7,000,000.00 as of the
21 end of the immediately preceding state fiscal year, immediately
22 prior to November 1, the fee shall be 1% the fee is 2% of the gross
23 cash market value of oil and gas produced, or an amount calculated
24 to cause the fund to accumulate to $7,000,000.00 at the end of the
25 current fiscal year, whichever is less.
26 (ii) If the fund balance is equal to or exceeds $7,000,000.00
27 as of the end of the immediately preceding state fiscal year,
28 immediately prior to November 1, the fee shall be is the ratio, to
29 the nearest 1/100 of 1%, that the appropriation bears to the total
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1 gross cash market value of the oil and gas that will be produced in
2 this state as estimated by the department as provided in under
3 subdivision (b).
4 (iii) Any money accumulated in the fund in excess of
5 $7,000,000.00 as of the end of the immediately preceding state
6 fiscal year shall must be deducted from the following current state
7 fiscal year's appropriation in determining an amount to be
8 certified by the director of the department of technology,
9 management, and budget to the department of treasury for computing
10 the annual fee provided for in this section.under subdivision (a).
11 (d) The percentage determined pursuant to under subdivision
12 (c) shall must not exceed 1% 2% and shall be is the fee, beginning
13 the first of the following month, and will continue to be the fee
14 for the next 12 months for a 1-year period and until a different
15 fee is determined. However, the fee shall be 1% beginning the first
16 day of the second month after the effective date of the 1998
17 amendments to this section and will continue to be the fee for the
18 remainder of that calendar year.
19 (3) The proceeds of the fee provided for in this section shall
20 must be forwarded to the state treasurer for deposit into the fund.
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Statutes affected: Senate Introduced Bill: 324.61524