Michigan House Bill HB5089

Michigan 2023-2024 Regular Session

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

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 0980'24, HB 5088'23, HB 5090'23

Impact

The legislation is anticipated to have a significant impact on low-income households across Michigan by providing much-needed financial support for essential water services. By establishing a dedicated funding mechanism, the bill encourages broader access to water affordability programs, thereby promoting the principle of equitable utility service. As funds are allocated toward covering costs specific to income-based bill adjustments, it is envisioned that fewer residents will face financial strain related to their water services. Moreover, the fund underlines the importance of reliable civic utility support for vulnerable communities.

Summary

House Bill 5089 introduces the low-income water residential affordability program fund in Michigan, aimed at assisting low-income residents in managing their water bills. The bill amends the existing Social Welfare Act to allow the creation of a dedicated fund managed by the state treasurer, which can accept various forms of revenue to support its initiatives. This includes provisions for drawing from a mandatory monthly fee on retail water meters, ensuring continuous funding for the program without lapsing to the general fund. Utilizing this fund, the Department of Treasury will oversee disbursements for administrative costs and income-based water bill discounts among other essential services.

Contention

Although the bill aims to provide relief to low-income residents, it may also spark debate over the imposition of mandatory fees on water meters. Some stakeholders may argue that creating such fees, although intended for a good cause, can impose an additional burden on consumers. Furthermore, questions may arise regarding the administration of these funds, particularly on whether existing resources are sufficient for managing and auditing the fund's disbursements and the impact on overall utility rates. Balancing the affordability factor with financial sustainability for water providers will likely remain a point of contention as discussions around this bill progress.