Michigan Senate Bill SB0549

Michigan 2023-2024 Regular Session

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

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: SB 0550'23, SB 0551'23

Impact

The program will be administered by the department and will implement measures to ensure cooperation between water providers and third-party organizations. This initiative is expected to alleviate financial pressure on low-income families by providing structured financial relief and establishing an appeals process for customers who wish to challenge decisions regarding their eligibility. By allowing households to pay based on income tiers, the program integrates financial assistance with essential utility management and is projected to begin 18 months after the fund's collection starts.

Summary

Senate Bill 0549 establishes a Low-Income Water Residential Affordability Program in the state of Michigan to assist eligible residential customers struggling to pay their water bills. This bill amends the Social Welfare Act by incorporating new sections that outline eligibility criteria based on household income not exceeding 200% of the federal poverty guidelines, as well as other forms of assistance receipt. The program aims to limit the monthly water bill payment to a maximum of 3% of the household income while also addressing issues of past-due arrearages, thereby enhancing access to essential water services for low-income households.

Contention

Noteworthy points of contention may arise concerning the funding of the program and its sustainability. The necessary funding will be reviewed annually, and alternative sources will need to be identified if projected costs exceed available revenue. There may also be debates about the implications and responsibilities of water providers in managing their own affordable programs or adhering to state guidelines, potentially leading to variance in assistance quality regionally.