HB 5761 — Agriculture: fertilizer; registration and tonnage fees for composting; eliminate. Amends secs. 8505 & 8506 of 1994 PA 451 (MCL 324.8505 & 324.8506). TIE BAR WITH: HB 5762'26, HB 5763'26

SUBSTITUTE FOR HOUSE BILL NO.

5761 MarchA 19,2026,bill Introducedto amend 1994 PA 451, entitled "Natural resources and environmental protection act," by Reps.Wortz,amending Kunse,Besonsection andWitwerandreferredto36202 Committee(MCL on324.36202), Agriculture.as amended by 2025 PA 74.

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 8505 and 8506 (MCL 324.8505 and 324.8506), as amended by 2015 PA 118.

8505.36202.

(1) AThe personagricultural shallpreservation notfund distributeis acreated specialtywithin fertilizerin or soil conditioner unless it the specialtystate fertilizertreasury. or soil conditioner is registered with the department.

An(2) AThe personstate shalltreasurer applymay forreceive amoney registrationor onother aassets formfrom andany insource afor mannerdeposit prescribedinto RMHthe H02104'25fund, ***_HB5761_INTR_1including qwzvicfederal 1funds, byother thestate department.revenues, gifts, bequests, and other donations.

AnThe applicationstate fortreasurer registrationshall listingdirect mustthe includeinvestment all of money in the following:fund and shall credit to the fund interest and earnings from the investments to the fund.

(a)investments. A list of each brand and product name of each grade of specialty fertilizer or soil conditioner.

RMH H02104'25 (H-4) fjmuhp 1 (3) Money Except as otherwise provided in this section, money in the fund at the close of the fiscal year shall beremain maderemains onin athe formfund furnishedand byshall does not lapse to the director.general fund.

An(4) applicationThe shalldepartment beis accompanied with the feesadministrator describedof (b)the Thefund feesfor requiredaudits inof subsectionthe (4).fund.

for(5) eachMoney brandin andthe productfund namemay ofbe eachexpended, grade.upon on appropriation, as follows:

Labels(a) (c)Not Themore labelsthan for$1,700,000.00 eachannually brandmay andbe productexpended namefor ofthe eachadministrative gradecosts shallof accompanythe department and the application.ofboard specialtyin fertilizerimplementing orthis soilpart conditioner.and part 361.

(2)(b) IfAfter theexpenditures specialtyfor fertilizerthe oradministrative soilcosts conditionerunder issubdivision a(a), beneficialmoney usein by-productthe intendedfund formay beneficialbe useexpended, 3upon underon partapproval 115,of the applicationboard, shallto mustprovide alsogrants includeto thelocal informationunits identifiedof ingovernment pursuant to under section 11551(7).36203.

(3)(c) UponIf, Onafter approvalexpenditures under subdivisions (a) and (b), the amount of anmoney applicationremaining byin the director,fund aexceeds copy$5,000,000.00, ofmoney in the registrationfund may be expended, upon on approval shallof mustthe beboard, furnishedpursuant providedto under part 361 for the purchase of development rights to farmland or the applicant.acquisition of agricultural conservation easements.

All(6) registrationsExpenditures expireof onmoney Decemberin 31the offund eachas year.provided in this part are consistent with the state's interest in preserving farmland and are for an important public purpose.

(4)(7) AFor personthe applyingfiscal thatyear appliesending forSeptember a30, registration2027, under$2,000,000.00 subsectionmust (1)be shalltransferred payfrom the followingfund annualto feesthe forstate eachgeneral brandfund. and product name of each grade:

(a)(8) RegistrationFor feethe offiscal $25.00.$75.00year perending productSeptember that30, is2028, a$2,000,000.00 specialtymust fertilizerbe ortransferred $50.00from perthe productfund thatto isthe astate soilgeneral conditioner,fund. as applicable.

(b)RMH AppropriateH02104'25 water(H-4) qualityfjmuhp protection(9) feeFor providedthe forfiscal inyear sectionending 8715.September 30, 2029, $2,000,000.00 must be transferred from the fund to the state general fund.

(5)Final APage distributor is not required to register a brand of fertilizer that is registered under this part by another person, if RMH H02104'25 ***_HB5761_INTR_1(H-4) qwzvicfjmuhp 1 the label does not differ in any respect.

(6) A manufacturer or distributor of custom blend specialty fertilizers for home lawns, golf courses, recreational areas, or other nonfarm areas is not required to register each grade distributed but shall must license their the firm on an application furnished by the director for and in a manner prescribed by the department.

The application for a license under this subsection must be accompanied by an annual fee of $100.00 and shall label the custom blend specialty fertilizer must be labeled as provided in section 8502.

The label of each custom blend specialty fertilizer distributed under this subsection shall must be maintained by the manufacturer or distributor for 1 year for inspection by and made available to the director for inspection on request.

(7) A manufacturer or distributor of soil conditioners blended according to specifications provided to a blender or blended as specifically requested by the consumer prior to before blending shall must either register each brand or blend distributed or license its firm on an application furnished by the director for and in a manner prescribed by the department.

The application for a registration or license under this section must be accompanied by an annual fee of $100.00.

and shall label the Each soil conditioner must be labeled as provided in section 8502, .

The label of each soil conditioner distributed under this subsection shall and the label must be maintained by the manufacturer or distributor for 1 year for inspection by and made available to the director for inspection on request.

(8) A registrant that operates from a business location outside this state shall do either 1 of the following:

(a) Continuously maintain in this state a registered office RMH H02104'25 ***_HB5761_INTR_1 qwzvic 1 and a resident agent.

, which The resident agent may be an individual resident in this state whose business office or residence is identical with to the registered office, a domestic corporation or limited liability company, or a foreign corporation or limited liability company authorized to transact business in this state and having that has a business office identical with to the registered office.

The registrant shall file with the department the name, address, and telephone number of the resident agent and shall maintain and make available to the department records required by this part and part 87.

(b) Maintain and make available to the department records required by this part and part 87 and pay all costs incurred by the department in auditing the records if they the records are held at an out-of-state location.

Sec.

8506.

(1) An inspection fee of 35 cents per ton shall be paid to the department for all fertilizers or soil conditioners sold or distributed in this state.

For Subject to subsection (2) and in addition to the fees under section 8505(4) and subsections (3) and (4), each manufacturer of a fertilizer or soil conditioner is responsible for a $50.00 fee.

Each manufacturer of peat or peat moss , the inspection fee shall be 2 cents per cubic yard.

This fee does is responsible for a $25.00 fee.

The fees described in this subsection do not apply to registered specialty fertilizers or soil conditioners sold or distributed only in packages of 10 pounds or less.

(2) Payment of the inspection fee shall be made on the basis of tonnage reports setting forth the number of tons of each grade of fertilizer and soil conditioner and the number of cubic yards of peat or peat moss sold or distributed in this state.

The reports RMH H02104'25 ***_HB5761_INTR_1 qwzvic 1 shall cover the periods of the year and be made in a manner specified by the director in rules, and shall be filed with the department not later than 30 days after the close of each period.