Michigan Senate Bill SB0250

Michigan 2025-2026 Regular Session

• Introduced: 4/23/25
• Refer: 4/23/25

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, 14r, 14s & 14u. TIE BAR WITH: SB 0248'25, SB 0252'25, SB 0249'25

Impact

The key feature of this legislation is the creation of tiered eligibility for customers based on their income levels. Households earning between 0% to 135% of the federal poverty guidelines will pay no more than 2% of their income on water bills, while those earning between 135% to 200% will be capped at 3%. This approach not only aims to alleviate immediate financial burdens but also seeks to foster long-term sustainability in water affordability programs across the state.

Summary

Senate Bill 250 introduces a low-income water residential affordability program aimed at providing financial relief to eligible customers facing high water bills. The bill amends the Social Welfare Act, establishing a framework that defines key terms such as 'eligible customer', which includes those with household incomes at or below 200% of the federal poverty guidelines. The program allows for a discount or credit on water bills, ensuring that eligible customers do not pay more than a specified percentage of their household income toward these bills.

Contention

Notable concerns surrounding SB 250 include the potential for local ordinances to conflict with the state program. The bill states that if any local regulation contradicts its provisions, state law will prevail. This aspect raises questions about local governance and the degree of control municipalities have over their water billing policies. Furthermore, there are logistical implications regarding the implementation of the affordability program, including funding adequacy and the effectiveness of outreach to ensure eligible customers enroll and receive the benefits to which they are entitled.