Bill Text: MI HB4432 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Public utilities; water utilities; water shutoff protection act; enact. Creates new act.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2019-04-10 - Bill Electronically Reproduced 04/09/2019 [HB4432 Detail]
Download: Michigan-2019-HB4432-Introduced.html
HOUSE BILL No. 4432
April 9, 2019, Introduced by Reps. Garrett, Cherry, Garza, Whitsett, Hammoud, Neeley, Camilleri, Gay-Dagnogo, Manoogian and Rabhi and referred to the Committee on Local Government and Municipal Finance.
A bill to prescribe the powers and duties of certain providers
of water and sewerage service in this state; to prescribe the
powers and duties of certain state officers and entities; to
prohibit certain acts and practices of providers of water and
sewerage service; and to provide for remedies and penalties for
certain violations of this act.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "water
shutoff protection act".
Sec. 2. As used in this act:
(a) "Critical care customer" means a customer who has provided
appropriate documentation from a physician or medical facility
certifying that interruption of service would be life-threatening
to, or pose a serious threat to the health and safety of, the
customer or a member of the customer's household, or that the
customer or a member of the customer's household has a communicable
disease that would present an increased risk to the health of
others if that individual is unable to maintain proper hygiene
because of interruption of water service.
(b) "Customer" means an individual who receives water or
sewerage service at a residential premises.
(c) "Eligible customer" means a customer whose household
income does not exceed 200% of the federal poverty guidelines, as
published by the United States Department of Health and Human
Services, or who meets any of the following requirements:
(i) Has received assistance from a state emergency relief
program within the past year.
(ii) Receives food assistance under the federal supplemental
nutrition assistance program administered by this state.
(iii) Receives medical assistance administered by this state
under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
(iv) Receives any other form of federal or state public
assistance.
(d) "Heating season" means that term as defined in section 9r
of 1939 PA 3, MCL 460.9r.
(e) "Nonaffordability application" means a form that the
department of health and human services shall develop to trigger an
income eligibility review for the low-income water residential
affordability program and that includes the option for
authorization for release of the customer's information to the
provider.
(f) "Provider" means any water and sewerage system that
provides water or sewerage service in this state.
(g) "Senior citizen customer" means a customer who is 62 years
of age or older or who has a member of his or her household who is
62 years of age or older.
Sec. 3. (1) A provider may shut off service temporarily for
reasons of health or safety, in a state or national emergency, or,
subject to this section and section 4, if a customer has not paid a
delinquent account. When a provider shuts off service for reasons
of health or safety, the provider must leave a notice at the
premises.
(2) Subject to section 4, a provider shall not shut off
service because a customer has not paid a delinquent account unless
the provider does, at a minimum, all of the following:
(a) Posts a delinquency notice on the door of the premises to
be shut off and on the door of the customer, if the account
customer has a different address, not less than 60 days and not
more than 90 days before the date of a proposed shutoff that
notifies the occupant of the property of a delinquency in payments
and informs the occupant of any applicable payment plans or water
affordability programs.
(b) Posts a notice on the door of the premises to be shut off
and on the door of the customer, if the account customer has a
different address, not less than 10 days before the date of the
proposed shutoff. A provider shall maintain a record of the date
the notice was posted.
(c) At least 1 week before shutoff of service, does both of
the following:
(i) Makes a personal visit to the premises where shutoff of
service is proposed where direct contact is made with an adult
member of the customer's household notifying that individual of a
delinquency in payments and of any applicable payment plans or
water affordability programs. A provider shall maintain a record of
the date direct contact was made.
(ii) Makes a personal or automated telephone call where direct
contact is made with an adult member of the customer's household or
a message is recorded notifying that individual of a delinquency in
the payments and of any applicable payment plans or water
affordability programs. A provider shall maintain a record of the
date the call was made.
(3) All written and oral notices of shutoff under subsection
(2)(b) and (c) must contain, at a minimum, all of the following
information:
(a) The name and address of the customer, and the address at
which service is provided, if different.
(b) A clear and concise statement of the reason for the
proposed shutoff of service.
(c) The date on or after which the provider may shut off
service, unless the customer takes appropriate action, and a
description of the available courses of action to avoid a shutoff
or to restore service following a shutoff.
(d) Where the shutoff would be done using meters with remote
shutoff and restoration capacity, a statement that the
disconnection of service will be performed remotely and that a
provider representative will not return to the premises before
disconnection.
(e) A statement that, if the customer is unable to pay in
full, the customer has the right to enter into a payment plan that
is based on a percentage of household income or, if applicable, a
water affordability program, and that the monthly payment under a
payment plan must not exceed 2% of the customer's average monthly
household income if the customer's household income does not exceed
200% of the federal poverty level.
(f) A statement that the customer may submit a signed
nonaffordability application to the department of health and human
services and an explanation of where that form may be obtained.
(g) That the provider will delay shutoff for 30 days if the
customer submits a nonaffordability application under subdivision
(f).
(h) A statement that the provider will not shut off service if
a customer has entered and remains in compliance with a payment
plan or water affordability program.
(i) A statement that the customer may petition the provider in
accordance with the provider's rules to dispute the bill, and a
copy of those rules or reference to a specific webpage where those
rules may be found.
(j) A statement that the provider will not shut off service
pending the resolution of a dispute that is filed with the provider
in accordance with this section.
(k) A statement that the provider will not shut off service to
a customer if payment is made in full for service for the previous
billing cycle, not including any arrearage, interest, or charges
related to that arrearage.
(l) The telephone number and address of the provider where the
customer may make inquiry, enter into a payment plan, or petition
the provider in accordance with the provider's rules to dispute the
bill.
(m) A statement that during heating season the provider will
not shut off service.
(n) A statement that the provider will not shut off service if
a customer is a critical care customer, a senior citizen customer,
an individual who has dependent children under the age of 18, an
individual who is a quadriplegic, hemiplegic, or paraplegic or is
totally and permanently disabled, an infant, or a pregnant woman,
and the customer informs the provider and provides documentation to
the provider of that condition within 30 days of receiving a notice
under subsection (2).
(o) A statement that the provider may require a reasonable
restoration charge, not to exceed $150.00 or the actual cost,
whichever is less, if the provider shuts off service for nonpayment
of a delinquent account.
(4) A provider shall delay shutoff of service to a customer
for 30 days if that customer submits a signed nonaffordability
application indicating the reasons or conditions that affect the
customer's ability to afford the payments. A provider shall
establish a policy to allow a customer to enter into a payment plan
if that customer claims an inability to pay that customer's bill in
full. A provider may establish a water affordability program for a
customer who claims an inability to pay in full.
(5) Subject to the requirements of this act, a provider may
shut off service to a customer on the date specified in the notice
of shutoff or at a reasonable time following that date. If a
provider does not shut off service and mails a subsequent notice,
then the provider shall not shut off service before the date
specified in the subsequent notice and following a personal visit
to the premises at least 1 week before the shutoff. Shutoffs must
occur only between the hours of 8 a.m. and 3 p.m.
(6) A provider shall not shut off service on a day, or a day
immediately preceding a day, when the services of the provider are
not available to the general public for the purpose of restoring
service. A provider shall not shut off service during the heating
season.
(7) Immediately before the shutoff of service, an employee or
representative of the provider who is designated to perform that
function may identify himself or herself to the customer or another
responsible individual at the premises and may announce the purpose
of his or her presence.
(8) When an employee or representative of a provider shuts off
service, the employee or representative shall leave a notice. The
notice must state that service has been shut off and contain the
address and telephone number of the provider where the customer may
arrange to have service restored.
(9) When a shutoff is completed using meters with remote shut-
off and restoration capacity, the provider is not required to
contact the customer on the day service is to be shut off.
(10) A provider shall not do any of the following:
(a) Shut off service because a customer has not paid for
concurrent service received at a separate metering point,
residence, or location.
(b) Shut off service because the customer has not paid for
service at a premises lawfully occupied by another person. If a
customer is not occupying the premises at which service is
delivered to the customer, a provider may shut off service in any
of the following circumstances where proper notice has been given:
(i) If the customer supplies a written, notarized statement
that the premises are not lawfully occupied and the premises are in
fact not lawfully occupied.
(ii) If the premises are lawfully occupied and the occupant
agrees, in writing, to the shutoff of service.
(c) Shut off service if the amount the customer has not paid
for service is the subject of an unresolved dispute under the
provider's dispute resolution process.
(d) Shut off service to a lawfully occupied dwelling if
payment has been made in full for service for the previous billing
cycle, not including any arrearage, interest, or charges related to
that arrearage.
(11) After a provider has shut off service, the provider shall
restore service upon the customer's request when the cause of the
shutoff has been cured or payment arrangements, including at the
customer's option a payment plan, have been made.
(12) When a provider is required to restore service at the
customer's meter manually, the provider shall make reasonable
efforts to restore service on the day the customer requests
restoration. Except for reasons beyond its control, the provider
shall restore service not later than the first working day after
the customer's request.
(13) For providers using meter technology with remote shut-off
and restoration capability, service must be restored no later than
the first working day after the customer requests restoration,
except in the case of documented equipment failure.
(14) A provider may assess the customer a reasonable charge
for restoring service. The charge shall not exceed $150.00 or the
actual cost, whichever is less. A provider shall not charge a
customer a fee for a shutoff of service.
(15) A provider shall first apply payments received to the
costs incurred for services for the previous billing cycle.
(16) This section does not apply to a shutoff at a premises if
the customer provides the provider a notarized statement that the
premises are not lawfully occupied and the premises are in fact not
lawfully occupied.
Sec. 4. (1) A provider shall not shut off service to a
customer for nonpayment of a delinquent account if the customer is
a critical care customer, a senior citizen customer, an individual
who has dependent children under the age of 18, an individual who
is a quadriplegic, hemiplegic, or paraplegic or is totally and
permanently disabled, an infant, or a pregnant woman, and who has
provided documentation to the provider of that condition. A
provider shall not shut off service to a customer if a customer has
entered into and remains in compliance with a payment plan or water
affordability program.
(2) In addition to the notices required under section 3, if a
customer fails to comply with the terms and conditions of a water
affordability program or payment plan, a provider may shut off
service to a customer after giving the customer a notice, by
personal service or first-class mail delivered to the affected
premises or the customer's address, that contains, at a minimum,
all of the following information:
(a) The name and address of the customer, and the address to
which service is provided, if different.
(b) The nature of the default.
(c) A statement that unless the customer makes a substantial
payment on a past due balance within 15 days of the date of
mailing, the provider may shut off service.
(d) The date on or after which the provider may shut off
service, unless the customer takes appropriate action, and a
description of the available courses of action to avoid a shutoff
or to restore service following a shutoff.
(e) A statement that the customer may petition the provider in
accordance with the provider's rules to dispute the bill or the
alleged default, and a copy of the rules or reference to a specific
webpage where the rules may be found.
(f) A statement that the provider will not shut off service
pending the resolution of a dispute that is filed with the provider
in accordance with this section.
(g) The telephone number and address of the provider where the
customer may make inquiry, enter into a payment plan, or petition
the provider in accordance with the provider's rules to dispute the
bill.
(h) A statement that during the heating season the provider
will not shut off service.
(i) A statement that the provider will not shut off service if
the customer is a critical care customer, a senior citizen
customer, an individual who has dependent children under the age of
18, an individual who is a quadriplegic, hemiplegic, or paraplegic
or is totally and permanently disabled, an infant, or a pregnant
woman.
(j) A statement that the provider may require a reasonable
restoration charge, not to exceed $150.00 or the actual cost,
whichever is less, if the provider shuts off service for nonpayment
of a delinquent account.
(3) A provider shall develop policies and procedures to delay
shutoff for customers who face temporary financial hardship due to
recent loss of a job, medical bills, or other extenuating
circumstances.
(4) This section does not apply to a shutoff at a premises if
the customer provides the provider a notarized statement that the
premises are not lawfully occupied and the premises are in fact not
lawfully occupied.
Sec. 5. The attorney general, the department of environmental
quality, and any customer or other lawful occupant of a premises
subject to this act may enforce this act by filing a civil action
in court. In any civil action commenced under this section, the
plaintiff may obtain damages, declaratory relief, and injunctive
relief for any violation of this act. A customer or other lawful
occupant that prevails in a civil action filed under this section
is entitled to reasonable attorney fees and costs.
Sec. 6. A payment plan developed by a provider must be based
on a percentage of household income. For customers whose household
income does not exceed 200% of the federal poverty level, the
monthly payment under a payment plan must not exceed 2% of the
customer's average monthly household income.
Sec. 7. A provider shall take reasonable steps to provide
equal language access to water and sewerage service and vital
information for customers with limited English proficiency. Equal
language access means the ability to receive information and to
participate in and benefit from water and sewerage service at a
level equal to English-proficient individuals.
