March 26, 2008

LANSING - Governor Jennifer M. Granholm recently signed Senate Bill 682 (Public Act No. 18) creating a new agricultural pesticide dealer license - ensuring Michigan businesses can compete fairly by stopping out-of-state businesses from having an unfair price advantage.

“This legislation levels the playing field for Michigan businesses,” Granholm said. “It’s critical that any out-of-state company distributing agricultural pesticides in our state pay the same fees as Michigan-based businesses to help protect our groundwater.”

The new legislation requires any non-Michigan based registered use pesticide (RUP) dealer or agricultural pesticide dealer to report distribution or sales into the state to the pesticide registrant who is responsible for submitting groundwater fees based on a percentage of total wholesale value. Registrants should now be able to identify all distribution and sales into Michigan.

“I applaud the Legislature for correcting the fee assessment inequity,” said Don Koivisto, Michigan Department of Agriculture director. “Prior to the new license requirements, an out-of-state agricultural pesticide dealer may have been distributing pesticides without incorporating the groundwater fees creating an unfair price advantage for non-Michigan businesses.”

Michigan groundwater protection fees are used to support the Michigan Groundwater Stewardship Program (MGSP), which provides information and assistance to pesticide and fertilizer users that helps them voluntarily identify and reduce environmental risks.

MGSP activities include on-farm risk assessments of pesticide and nutrient management practices in the field and at the farm headquarters, such as agricultural chemical storage, pesticide mixing and loading, and water well construction/management. The MGSP also supports Clean Sweep (free pesticide disposal) and pesticide container recycling.

Additionally, the requirement for retaining a resident agent in Michigan allows MDA to obtain and audit agricultural pesticide sales records from RUP and agricultural pesticide dealers located outside Michigan. Previously, MDA was only able to audit records from dealers located in Michigan.

For more information, watch the MDA Web site at www.michigan.gov/mda.