Bill Text: MI SB0550 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Human services: services or financial assistance; water rate affordability fund; provide for. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 14t. TIE BAR WITH: SB 0551'23, SB 0549'23
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced) 2023-10-03 - Referred To Committee On Housing And Human Services [SB0550 Detail]
Download: Michigan-2023-SB0550-Introduced.html
SENATE BILL NO. 550
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding section 14t.
the people of the state of michigan enact:
Sec. 14t. (1) The low-income water residential affordability program fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer must credit to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall remain in the fund and shall not lapse to the general fund.
(4) The department of treasury is responsible for collecting and auditing related funds.
(5) The department shall expend money from the fund, upon appropriation, only for 1 or more of the following purposes:
(a) 3% of the fund to the department for administrative costs of the low-income water residential affordability program.
(b) The remaining balance of the fund to providers for the following:
(i) The actual administrative costs associated with the implementation of the low-income water residential affordability program, not to exceed 15 percent.
(ii) Payment or advancement to providers for income-based bill discounts, income-based bill caps, or income-based rates.
(iii) Arrearage payments.
(iv) Water loss mitigation programs administered by third party organizations such as home plumbing audits and minor plumbing repairs.
(6) Subject to subsection (5)(b), benefits shall be provided to eligible customers for a low-income water residential affordability program offered by the department or the provider in accordance with sections 14n through 14u. Not less than 80% of the funding received by a provider shall be spent as described in subsection (5)(b)(ii) unless otherwise approved by the department.
(7) The department shall disburse funding from the low-income water residential affordability program fund to providers on a frequency of not less than quarterly for the items listed in subsection (5)(b).
(8) Subject to the limitations imposed in this section, the low-income water residential affordability funding factor shall be a fee of $2.00 per month per retail water meter, or the equivalent based on the provider's billing cycle.
(9) After 3 years, the department of treasury may adjust the funding factor annually based on recommendations from the task force.
(10) The funding factor shall not exceed $3.00 or result in total collections that are 10% greater than the total amount collected in the previous year, whichever is less.
(11) Any adjustment to the funding factor shall be determined by the department of treasury no later than October 1 and takes effect on January 1 of the succeeding year.
(12) The affordability funding factor shall be considered as part of the total bill for the purposes of considering water affordability based on household income caps in low-income water residential affordability programs outlined in sections 14n through 14s.
(13) Providers shall include the low-income water residential affordability funding factor on all retail water bills. Providers may list the low-income water residential affordability funding factor as a separate line item on residential customer bills or incorporate the funding factor into their retail water rates. Payment for services collected by providers shall first be applied to satisfy this subsection and shall be remitted to the state treasurer for deposit in the fund on a regular cycle that matches the remitting providers' billing cycle but not later than 30 days after the last day of the billing cycle.
(14) After the first full year of collection, by April 1, the provider shall be required to annually provide to the low-income water residential affordability program task force the following information regarding the low-income water residential affordability funding factor:
(a) The number of retail water meters for which a bill was sent subject to the low-income water residential affordability funding factor on June 30 and December 31 of the previous calendar year.
(b) The total amount of money collected by the provider from the low-income water residential affordability funding factor.
(c) The total amount of money not collected by the provider from the low-income water residential affordability funding factor.
(d) The total amount of money remitted by the provider to the state treasurer from the low-income water residential affordability funding factor.
(15) By July 1 of each year, the task force shall annually provide a report to the legislature and post that report on the department's website. The report shall include the following:
(a) The information collected under subsection (9).
(b) The total amount of money remitted to each provider.
(c) Any recommended adjustments to the low-income water residential affordability program or fund.
(d) The total amount of administrative costs associated with administering or implementing the low-income water residential affordability program.
(16) This section does not give the Michigan public service commission the power to regulate a public water utility.
(17) The attorney general may enforce this section against a provider that fails to include the low-income water residential affordability funding factor on all retail water bills or remit the money collected from the affordability funding factor by filing a civil action in the circuit court in the county where the provider does business. Subject to this subsection, a provider is not subject to liability for the affordability funding factor fees included on retail water bills but not collected through the provider's normal business practices.
(18) The department of treasury shall create a mechanism through which a retail water customer or philanthropic entity can donate funds into the affordability program fund. Any entity that contributes more than $5,000.00 shall receive a "water affordability champion" designation.
(19) As used in this section:
(a) "Department" means the department of health and human services.
(b) "Fund" means the low-income water affordability fund created in subsection (1).
(c) "Low-income water residential affordability funding factor" or "affordability funding factor" means a mandatory fee on each retail water meter payable by every customer receiving water or sewerage service from a provider.
(d) "Provider" means any public or private water system that provides retail water service in this state.
(e) "Task force" means the task force created in section 14q.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No. 551.
(b) Senate Bill No. 549.
