Michigan Senate Bill SB0550

Michigan 2023-2024 Regular Session

• Introduced: 10/3/23
• Refer: 10/3/23

Caption

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

Impact

Under this legislation, funding will be allocated primarily to help providers implement income-based bill discounts, caps, and rates for qualifying customers. The bill mandates that at least 80% of the funds received by any provider be spent on these discounts unless otherwise approved by the state department. The introduction of a mandatory funding factor, which will be a fee added to the monthly water bills, aims to generate ongoing financial support for the program. The funding factor will initially be set at $2.00 per month per retail water meter and can be adjusted in the future based on recommendations from a task force.

Summary

Senate Bill 550, also known as the Low-Income Water Residential Affordability Program Fund bill, amends the Social Welfare Act by introducing a fund specifically designed to assist low-income households with their water utility bills. The bill establishes a dedicated fund within the state treasury, enabling the state treasurer to receive contributions and manage investments. Importantly, any unspent money in this fund will not lapse to the general fund at the end of the fiscal year, ensuring that the resources remain available for their intended purpose.

Contention

While SB 550 seeks to address critical access issues for low-income constituents, it also raises points of contention regarding the additional fees imposed on water customers. Some members of the legislature may express concern about the financial burden this fee could add, especially for those who are already struggling to pay their utilities. Additionally, the bill specifies that the department is not granting the Michigan Public Service Commission regulation over public water utilities, potentially limiting oversight on how funds are managed by providers. Ensuring compliance among providers and proper implementation of the funding program will be crucial for the success of SB 550.