Bill Text: MI SB0348 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Local government: water and sewer; municipality billing requirements for water or sewerage service; provide for, require municipalities to adopt a written dispute resolution process for disputed water or sewerage service bills, and require municipalities to monitor for customer water leaks. Amends title & sec. 6 of 1939 PA 178 (MCL 123.166) & adds secs. 1a, 1b, 1c, 1d & 1e.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2021-03-25 - Referred To Committee On Local Government [SB0348 Detail]
Download: Michigan-2021-SB0348-Introduced.html
SENATE BILL NO. 348
A bill to amend 1939 PA 178, entitled
"An act to provide for the collection of water or sewage system rates, assessments, charges, or rentals; and to provide a lien for water or sewage system services furnished by municipalities as defined by this act,"
by amending the title and section 6 (MCL 123.166), as amended by 1981 PA 132, and by adding sections 1a, 1b, 1c, 1d, and 1e.
the people of the state of michigan enact:
An act to provide for the collection of water or sewage system rates, assessments, charges, or rentals; and to provide for the powers and duties of certain municipal officers and entities; to provide a lien for water or sewage system services furnished by municipalities as defined by this act; and to prescribe civil remedies for violation of this act.
Sec. 1a. (1) A municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall not require a customer to provide his or her Social Security number in order to open a customer account.
(2) Regardless of whether a customer's account for water or sewerage service is current or delinquent, a municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall bill each customer of the system on a regular monthly basis.
(3) A municipality shall not send an estimated bill for water or sewerage service to a customer more than twice a year. As used in this subsection, "estimated bill" means a bill for water or sewerage service at the premises that is not based on a meter reading of a customer's actual water or sewerage usage for the period being billed.
(4) A municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall include, at a minimum, on each customer's water or sewerage bill all of the following:
(a) The units of consumption in which the bill is calculated. If the units of consumption are not expressed in gallons, a conversion factor to gallons must be provided on the bill.
(b) The water or sewerage rates and charges for each component of the bill.
(c) The actual amount owed to the municipality for water or sewerage service under any existing payment plan.
(5) A municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall advertise to customers, by posting on the municipality's website, and provide written notice to each customer at least once each year that all customers have the option to do, at a minimum, 1 or more of the following at no additional cost to the customer:
(a) Pay the water or sewerage bill online.
(b) Pick a billing due date.
(c) Select levelized billing. If a customer selects levelized billing, the customer's monthly bill must still indicate water or sewerage usage for each month and how that usage compares to prior monthly usage. As used in this subdivision, "levelized billing" means each monthly bill is the rolling average of a customer's water or sewerage usage for the most recent 12 months.
(6) A customer of a municipality that provides water or sewerage service is not responsible for any water or sewerage usage for a billing period if that water or sewerage usage is not billed to that customer by the municipality within 10 days after the end of the billing period.
(7) A municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall not do any of the following:
(a) Charge any additional fee to a customer based on the customer's method of payment.
(b) Assess any fee or charge upon a residential customer as a penalty.
(c) Charge interest to a customer for past-due amounts at a rate greater than 4.0% per year.
(8) If the customer of a municipality that provides water or sewerage service is an eligible customer, that customer must receive from the municipality a complete waiver of any fees associated with any late payments or restoration of service, and that customer is not required to make any deposit to receive water or sewerage service from the municipality. As used in this subsection, "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:
(a) Has received assistance from a state emergency relief program within the past year.
(b) Receives food assistance under the federal Supplemental Nutrition Assistance Program administered by this state.
(c) Receives medical assistance administered by this state under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
(d) Receives any other form of federal or state public assistance.
(9) If the customer of a municipality that provides water or sewerage service is in a household that has a household income of between 200% and 300% of the federal poverty guidelines, as published by the United States Department of Health and Human Services, that customer is eligible for a partial waiver of any fee associated with any late payments or restoration of service, or a partial waiver of any deposit, as determined by the municipality.
(10) This section takes effect January 1, 2023.
Sec. 1b. (1) A municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall adopt a dispute resolution process for a customer to dispute a water or sewerage service bill and that municipality shall post the dispute resolution process on its website.
(2) At least once each year, a municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall provide in writing to each of its customers the dispute resolution process adopted under subsection (1) for disputing a water or sewerage service bill.
Sec. 1c. (1) If the customer of a municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state disputes a water or sewerage service bill using the dispute resolution process adopted by that municipality under section 1b, all of the following apply:
(a) The customer is not required to pay the municipality the disputed amount during the dispute resolution process.
(b) Interest does not accrue on that customer's water or sewerage service balance during the dispute resolution process.
(c) The municipality shall not discontinue water service or sewage system service to the customer's premises during the dispute resolution process.
(2) Any costs associated with a dispute resolution process for the first dispute between a customer and the municipality in a calendar year are to be borne by the municipality. Except as otherwise provided in this subsection, for a second or subsequent dispute between a customer and the municipality in a calendar year, the municipality may charge the customer for up to 50% of the costs associated with the dispute resolution process. If a dispute resolution process determines that the municipality's process or equipment was in error, any costs associated with the dispute resolution process are to be borne by the municipality.
Sec. 1d. (1) Each municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall give notice to a retail customer of that municipality if the municipality obtains information indicating that a leak may exist on the customer's side of the water service meter.
(2) Each municipality that owns or operates a water distribution system or a sewage system and that provides water or sewerage service in this state shall monitor its systems at least annually to detect customer-side leaks by conducting 1 or more of the following:
(a) Acoustic monitoring of customer water meters, and if leak sounds are detected, the municipality must check connection points on both the municipality side and the customer side of the meter.
(b) Onsite meter reading comparisons of current and prior meter readings to identify atypical water usage.
(c) Customer bill analysis to detect anomalies in bills or consumption levels that may be indicative of leakage.
(d) Any other method of review that is submitted to and approved by the department of environment, Great Lakes, and energy.
(3) If information obtained by the municipality under subsection (2) indicates that a water leak may exist, the municipality shall alert the customer to the possible leak by placing a door hanger at the customer's premises, or by any other contact method including, but not limited to, written notice, telephone, or email.
(4) If, after notice of a possible leak under subsection (3) is provided, water consumption by the customer is not reduced during the next routine meter read, the municipality shall alert the customer again in any manner provided in subsection (3).
(5) Any notice provided by a municipality under subsection (3) or (4) must advise the customer that it is the customer's responsibility to fix any water leak, but the municipality may provide to the customer any guidance or assistance needed for repairing the water leak.
Sec. 1e. (1) The attorney general, the department of environment, Great Lakes, and energy, or any customer or lawful occupant of a customer's premises subject to this act may enforce sections 1a, 1b, 1c, or 1d by filing a civil action in a court of appropriate jurisdiction for injunctive relief, declaratory relief, or actual damages, or any combination of injunctive relief, declaratory relief, or actual damages.
(2) A court rendering a judgment in an action brought under subsection (1) may award all or a portion of the costs of litigation, including reasonable attorney fees, to the complainant if the court determines that the award is appropriate.
Sec. 6. A Subject to section 1c(1), a municipality may discontinue water service or sewage system service from the premises against which the lien created by this act has accrued if a person fails to pay the rates, assessments, charges, or rentals for the respective service, or may institute an action for the collection of the same rates, assessments, charges, or rentals for the respective service in any court of competent jurisdiction. However, a municipality's attempt to collect these sewage system or water rates, assessments, charges, or rentals by any process shall does not invalidate or waive the lien upon the premises.
