Michigan House Bill HB5088

Michigan 2023-2024 Regular Session

• Introduced: 10/4/23
• Refer: 10/4/23

Caption

Human services: services or financial assistance; water rate affordability program; create. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding secs. 14n, 14o, 14p, 14q, 14r, 14s & 14u. TIE BAR WITH: HB 6228'24, HB 5089'23, SB 0980'24

Impact

If passed, HB 5088 is poised to directly enhance the affordability of water services for economically disadvantaged residents of Michigan. The legislation not only facilitates discounted water bills but also offers a framework for the remission of water bill arrearages based on specific eligibility criteria. For customers enrolled in the affordable program for a designated period, the forgiveness of arrears exceeding $1,500 could significantly alleviate financial stress, preventing potential water shutoffs and enhancing access to essential services.

Summary

House Bill 5088 aims to establish a Low-Income Water Residential Affordability Program in Michigan, which seeks to reduce the financial burden of water bills for low-income households. This legislation amends the Social Welfare Act of 1939 by introducing provisions intended to ensure that eligible customers, defined as those with household incomes not exceeding 200% of the federal poverty guidelines or those receiving certain types of public assistance, will not pay more than 3% of their household income towards their water bill. The bill requires the creation of a task force to oversee the implementation and operation of the program, ensuring that it aligns with the needs of vulnerable populations in Michigan.

Contention

The proposed bill has sparked discussions around its operational implications and funding sources. Some lawmakers have raised concerns about the sustainability of the proposed funding model for the affordability program, emphasizing the need for careful budgeting to avoid overextending state resources. Furthermore, there are questions regarding the adequacy of the outreach and administrative capabilities of local utilities to effectively implement the program, particularly in reaching vulnerable populations who may benefit the most from these measures. As with many pieces of legislation targeting welfare and assistance programs, balancing equitable access with efficient operation remains a key point of contention.