| 1 | 1 | | SENATE BILL NO. 250 A bill to amend 1939 PA 280, entitled "The social welfare act," (MCL 400.1 to 400.119b) by adding sections 14n, 14o, 14p, 14r, 14s, and 14u. the people of the state of michigan enact: Sec. 14n. As used in this section and sections 14o to 14u: (a) "Affordability program" means the low-income water residential affordability program created in section 14o. (b) "Eligible customer" means a residential customer whose household income does not exceed 200% of the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, or who meets any of the following requirements: (i) Has received assistance from a state emergency relief program within the past year. (ii) Receives food assistance under the federal supplemental nutrition assistance program administered by this state. (iii) Receives medical assistance administered under this act. (iv) Receives assistance under the Michigan energy assistance program created in section 3 of the Michigan energy assistance act, 2012 PA 615, MCL 400.1233. (v) Receives assistance under the special supplemental nutrition program for women, infants, and children. (vi) Receives supplemental security income. (vii) Receives assistance under the weatherization assistance program. (c) "Fund" means the low-income water residential affordability fund created in section 14t. (d) "Funding factor" means the low-income water residential affordability funding factor described in section 14t(8). (e) "Nonaffordability application" means a form that triggers an income eligibility review for the affordability program. (f) "Program administrator" means the department, provider, or third-party organization that administers an affordability program. (g) "Provider" means a public or private community water supply that provides retail water service in this state or performs retail billing services for another community water supply. (h) "Residential customer" means an individual who receives, or is eligible to receive, water service at the individual's primary residence. (i) "Retail water customer" means a residential or nonresidential customer receiving a water bill for water service. (j) "Task force" means the low-income water residential affordability program task force created in section 14q. (k) "Water bill" means a request from a provider to a retail water customer for payment for water service. Water bill includes a request for payment of sewer, stormwater, or other related services if the provider charges for those services. Sec. 14o. (1) The low-income water residential affordability program is created in the department to address reduction or forgiveness of water bill arrearages, ensure that an eligible customer's monthly water bill, including discounts provided by the program or provider, is based on the eligible customer's household income, and, subject to available funding in the fund, ensure that the customer does not pay more than 3% of the eligible customer's household income on the water bill. The department shall develop and, in consultation with relevant third-party organizations, administer the affordability program for eligible customers. (2) Not later than January 1, 2026, the department shall prepare a program policy and procedure manual that is consistent with applicable provisions in the Michigan energy assistance program manual, and includes time limits for participation for potential eligible customers who are not seniors or persons with disabilities. The department may review and update the program policy and procedure manual as necessary. (3) Beginning on January 1, 2026, and by each January 1 thereafter, the department and the department of treasury shall prepare projections to determine the estimated funding required to offer all enrolled and eligible customers and projected eligible applicants who will enroll in the subsequent fiscal year, with applicable program benefits. If the projections reflect that the required funding from the fund will be insufficient, the department, the department of treasury, and the task force shall identify alternative funding sources or adjust program benefits in a manner that prioritizes all enrolled and eligible customers equitably, across geographic regions and provider population sizes, to ensure that the affordability program can be sustained through available funding. The department, in consultation with the department of treasury and the task force, has final decision-making authority to ensure program benefits do not exceed the funding available in the fund. Based on available funding, the department, the department of treasury, and the task force shall prioritize program benefits designed to provide eligible customers with household income-based water bills over other program benefits. Reducing the affordability program benefits corresponding with the tier with the lowest household income must only occur if all other alternatives have been exhausted. (4) Not later than 18 months after collection for the fund begins, the department shall implement the affordability program. When the affordability program is implemented, this section applies to providers with 500 or more retail water service connections. Not later than 18 months after the affordability program is implemented under this subsection, this section applies to all providers in this state. (5) Before the affordability program is implemented under subsection (4), the department shall develop a nonaffordablility application and instructions. The nonaffordablilty application must be made available when the affordability program is implemented under subsection (4). The nonaffordablilty application must include all the following: (a) The option of authorization for release of the customer's information to the provider. (b) The option for indicating consent to receive telephonic communications about the low-income water residential affordability program. (c) An authorization for release of the customer's information to the provider. (d) An authorization for the program administrator to call the individual on the telephone or send a text message about the affordability program. (6) Not later than 30 days after the program administrator receives a signed nonaffordability application, the program administrator must complete an income eligibility review to determine if the individual meets the eligibility requirements for the affordability program. Not later than 3 business days after the program administrator starts the eligibility review, the program administrator shall provide notice to the provider that the eligibility review was started. The provider shall not pursue shutoff during an eligibility review. The program administrator shall promptly send notification to the applicant and the provider regarding the results of the eligibility review once the eligibility review is complete. (7) In addition to any other verification of income accepted by the program administrator, the program administrator may accept a federal income tax return as documentation of income. If applicable, the program administrator must use publicly available information regarding standard benefit amounts for supplemental security income and temporary assistance for needy families. An applicant has no obligation to provide confirmation of the amount of benefits the applicant receives from supplemental security income. The program administrator shall consider the customer's enrollment in the low-income home energy assistance program, the supplemental nutrition assistance program, the special supplemental nutrition program for women, infants, and children, supplemental security insurance, the weatherization assistance program, or the customer's self-verification of income or lack of income as proof of the customer's eligibility in the form of a written customer statement regarding the customer's income or lack of income. (8) The department may contract or collaborate with a third-party organization that collects or processes household income information in order to complete the eligibility review under subsection (6) to determine if an applicant meets the requirements for the affordability program, notify the applicant and provider, or perform other functions necessary to implement the affordability program. (9) The department, in consultation with the task force, shall create tiers of eligible customers for the program based on household income level compared to the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, and the corresponding discounts, credits, or percentage of household income caps on water bills for each tier. A provider may use discounts, credits, or other payment methods to result in water bills that meet the percentage of household income-based payments as required under this act. The tiers must include the following: (a) A tier for households where the household income is at or less than 135% of the federal poverty guidelines, and the corresponding cap is 2% of household income or there is a standardized household contribution of 2% of the average household income for households with income between 0% and 135% of the federal poverty guidelines within the provider's water service area. (b) A tier for households where the household income is greater than 135% but at or less than 200% of the federal poverty guidelines and the corresponding cap is 3% of household income or there is a standardized household contribution of 3% of the average household income for households with income between 135% and 200% of the federal poverty guidelines within the provider's water service area. (10) Beginning October 1, 2026, and by each October 1 thereafter, the department shall adjust the standardized household contribution based on the department of treasury's projections, which must include a projection for not less than a 10% fund balance to remain at the close of the fiscal year. (11) If, on the program administrator's determination of an individual's household income, the program administrator finds that the individual is an eligible customer, the program administrator shall provide that information, as well as the eligible customer's household income, to that eligible customer's provider. On receipt of the information from the program administrator under this subsection, the eligible customer's provider shall provide a discount, credit, or another payment method option on the eligible customer's water bill to ensure that the water bill is based on the eligible customer's household income. The provider shall not provide a discount or credit if the eligible customer's pre-discount or pre-credit bill amount would be lower than the bill amount after application of the discount or credit. The discount or credit must apply to the entire water bill, including, but not limited to, any rider, fee, surcharge, or funding factor. The discount or credit provided under this subsection must not be applied to other charges for public services on the eligible customer's water bill that are unrelated to water, sewer, or stormwater services. (12) The program administrator shall inform the applicant of the determination of whether the applicant is an eligible customer. If the applicant is an eligible customer, the program administrator shall provide the applicant with information regarding the affordability program and how the water bill payment will be determined by the provider. (13) Depending on the availability of funds, the program administrator may issue a waiver to include a household that is between 200% and 250% of the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, into the affordability program if the household is experiencing any of the following financial hardships: (a) Job loss or reduction of income. (b) Acute or chronic physical or mental illness. (c) Increase in essential expenses. (d) Major home repair due to natural disaster or unexpected catastrophic event or repairs to essential equipment. (e) Death of a household income provider or unexpected funeral or burial expenses. (14) The department shall develop a process and timeline for redetermination of eligibility for the affordability program based on the recommendations of the task force and shall consider the redetermination timelines and processes for similar programs, including, but not limited to, the supplemental nutrition assistance program. There is no time limit on a customer's enrollment in the affordability program. (15) The department shall establish or refer applicants or eligible customers, as applicable, to a system of appeal and complaint process in which an applicant or eligible customer may challenge a program administrator's decision on eligibility at any point or submit a complaint regarding the affordability program. When an applicant or eligible customer files an appeal, the program administrator shall notify the provider to place a hold on the individual's account and cease collection or service disconnection until the hearing process is complete. (16) The program administrator shall make a good-faith effort to assess whether an eligible customer is the property owner and in need of household plumbing repair to address a leak or other plumbing or water service issue. If the eligible customer is the property owner, the program administrator shall connect the eligible customer with a master plumber or journey plumber, as those terms are defined in article 11 of the skilled trades regulations act, 2016 PA 407, MCL 339.6101 to 339.6133, to fix the water service issue. The program administrator shall pay for the necessary minor repair up to $2,500.00 per household. The program administrator shall establish a waiver process to issue over $2,500.00 for minor repairs if the property owner demonstrates an extreme need. (17) An eligible customer has a limited allocation of water use per month to qualify for the tiers under subsection (9). If the eligible customer exceeds the limited allocation under this subsection, the provider shall charge the provider's normal rate. The provider shall determine the limited allocation of water use per month, but must be within the ranges as follows: (a) Six to 8 centum cubic feet for households with zero to 4 people. (b) Nine to 11 centum cubic feet for households with 5 to 6 people. (c) Twelve to 14 centum cubic feet for households with 7 to 8 people. (d) Fifteen to 17 centum cubic feet for households with 9 to 10 people. (e) Eighteen to 20 centum cubic feet for households with 11 or more people. (18) A provider shall attempt to contact a customer that exceeds the limited allocation of water use per month described under subsection (17) to determine next steps the eligible customer may take to reduce water consumption, including possible minor plumbing repairs under to this section, and to coordinate with the program administrator regarding continued eligibility in the program. Sec. 14p. (1) Each provider shall give notice to its customers regarding the availability of either the department's affordability program or, if available, the provider's own low-income water affordability program, and information on how to apply for the programs. The notice required under this subsection must be given to each customer in writing on or with the customer's water bill and by posting on the provider's website, if available. (2) Beginning on the implementation date described in section 14o(4), the department shall engage in public relations activities to promote the affordability program across this state and must inform all individuals receiving benefit program services from the department regarding the availability of the affordability program and the process to apply for the affordability program. Sec. 14r. (1) Timely payment, as defined by the provider, of a water bill satisfies the customer's current water liability so that there is no addition to that customer's arrears. (2) A customer who is enrolled in the affordability program shall receive full forgiveness of an individual's arrears if, on the date the individual is enrolled in the affordability program, the individual's arrears are less than or equal to $1,500.00. If, on the date the individual enrolls in the affordability program, that individual has arrears more than $1,500.00, that individual shall receive forgiveness of $1,500.00 of the current arrears. After 12 months of successful participation in the affordability program, an individual with over $1,500.00 in original arrearages on enrollment shall have up to $1,500.00 in additional arrearages forgiven. (3) A customer who is enrolled in the affordability program for 24 months and who has made timely payments on the individual's water bills for 24 months shall receive forgiveness of the remainder of the individual's arrears if the arrears were greater than $1,500.00 when the individual enrolled in the affordability program. The program administrator shall request to the department that an amount exceeding $1,500.00 be forgiven if the individual has an extreme need. If the program administrator determines that the individual has had extreme need or circumstances in the individual's life that led the individual to not pay every payment for 24 months, the program administrator may make a determination, based on best judgment, that the individual should still receive forgiveness for arrearages. (4) On enrollment, and while an eligible customer remains eligible and enrolled in the affordability program, a provider shall not certify to the property tax authority any amount of arrears subject to arrearage forgiveness as provided in this section. Sec. 14s. (1) A provider may, or 2 or more providers may, collaborate to design and implement a low-income water affordability program rather than use the department's affordability program. A low-income water affordability program designed and implemented under this subsection must meet the following criteria: (a) The low-income water affordability program is designed so that an eligible customer enrolled in the program will not pay more than the tiers provided for in section 14o(9). The low-income water affordability program must also be consistent with the enrollment process described in section 14o and the arrearage forgiveness described in section 14r. (b) The provider considers the customer to be an eligible customer or a more generous threshold. (c) Other criteria as determined by the department. (2) A provider may partner with a community action agency, United Way organization, or other community organization to implement a low-income water affordability program. (3) If a provider designs and implements a low-income water affordability program and the provider already has a similar affordability or assistance program, the provider does not need to require a customer who is already enrolled in the existing program to reapply for a new low-income water affordability program. (4) A provider that implements a low-income water affordability program shall submit a plan to the department for review and approval and receive an approval letter from the department. The plan must include a description that meets the minimum criteria provided under subsection (1). The department shall review plans and provide the provider with any recommended or required changes. The provider must provide updates to the department about any substantive change to the low-income water affordability program after receiving approval under this subsection. (5) If a provider develops a low-income water affordability program that is more generous than the affordability program, the provider must utilize its own funding or other source of funding beyond the fund for the more generous program's increased budget. (6) A provider that designs and implements a low-income water affordability program may create more than 2 tiers in its tier system. (7) If a provider does not design and implement a low-income water affordability program, the provider must use the affordability program. (8) A provider may elect not to collect the funding factor if the provider's governing body adopts a policy to create and implement its own low-income water affordability program and affordability fund. Two or more providers may create a combined low-income water affordability program administered by 1 or more of the participating providers. The low-income water affordability program created under this subsection must include a description of the criteria described under subsection (1) and describe the providers' ability to maintain a fund to sustain the providers' low-income water affordability program. The providers shall submit a plan for implementing the low-income water affordability program to the department for annual review and approval and receive an approval letter. The department must review the plan and provide the providers with any recommended or required changes. The providers' annual updates to the department must identify whether there have been changes to the low-income water affordability program plan or fund. If the department determines the providers are unable to administer or fund a low-income water affordability program created under this subsection for 2 consecutive years, the department shall notify the providers that they must enroll eligible customers in the affordability program and impose a funding factor. (9) If a provider is subject to a local ordinance that conflicts with this act, this act supersedes the local ordinance. Sec. 14u. If an individual submits an application for the affordability program to the department, or contracted third-party organization for the department, and the individual is a customer of a provider that has its own low-income water affordability program, the department or third-party organization must forward the application directly to that customer's provider's plan administrator. Enacting section 1. This amendatory act takes effect 180 days after the date it is enacted into law. Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law: (a) Senate Bill No. 248. (b) Senate Bill No. 252. (c) Senate Bill No. 249. |
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| 2 | 2 | | |
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| 3 | 3 | | SENATE BILL NO. 250 |
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| 4 | 4 | | |
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| 5 | 5 | | A bill to amend 1939 PA 280, entitled |
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| 6 | 6 | | |
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| 7 | 7 | | "The social welfare act," |
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| 8 | 8 | | |
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| 9 | 9 | | (MCL 400.1 to 400.119b) by adding sections 14n, 14o, 14p, 14r, 14s, and 14u. |
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| 10 | 10 | | |
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| 11 | 11 | | the people of the state of michigan enact: |
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| 12 | 12 | | |
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| 13 | 13 | | Sec. 14n. As used in this section and sections 14o to 14u: |
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| 14 | 14 | | |
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| 15 | 15 | | (a) "Affordability program" means the low-income water residential affordability program created in section 14o. |
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| 16 | 16 | | |
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| 17 | 17 | | (b) "Eligible customer" means a residential customer whose household income does not exceed 200% of the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, or who meets any of the following requirements: |
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| 18 | 18 | | |
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| 19 | 19 | | (i) Has received assistance from a state emergency relief program within the past year. |
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| 20 | 20 | | |
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| 21 | 21 | | (ii) Receives food assistance under the federal supplemental nutrition assistance program administered by this state. |
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| 22 | 22 | | |
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| 23 | 23 | | (iii) Receives medical assistance administered under this act. |
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| 24 | 24 | | |
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| 25 | 25 | | (iv) Receives assistance under the Michigan energy assistance program created in section 3 of the Michigan energy assistance act, 2012 PA 615, MCL 400.1233. |
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| 26 | 26 | | |
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| 27 | 27 | | (v) Receives assistance under the special supplemental nutrition program for women, infants, and children. |
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| 28 | 28 | | |
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| 29 | 29 | | (vi) Receives supplemental security income. |
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| 30 | 30 | | |
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| 31 | 31 | | (vii) Receives assistance under the weatherization assistance program. |
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| 32 | 32 | | |
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| 33 | 33 | | (c) "Fund" means the low-income water residential affordability fund created in section 14t. |
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| 34 | 34 | | |
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| 35 | 35 | | (d) "Funding factor" means the low-income water residential affordability funding factor described in section 14t(8). |
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| 36 | 36 | | |
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| 37 | 37 | | (e) "Nonaffordability application" means a form that triggers an income eligibility review for the affordability program. |
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| 38 | 38 | | |
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| 39 | 39 | | (f) "Program administrator" means the department, provider, or third-party organization that administers an affordability program. |
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| 40 | 40 | | |
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| 41 | 41 | | (g) "Provider" means a public or private community water supply that provides retail water service in this state or performs retail billing services for another community water supply. |
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| 42 | 42 | | |
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| 43 | 43 | | (h) "Residential customer" means an individual who receives, or is eligible to receive, water service at the individual's primary residence. |
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| 44 | 44 | | |
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| 45 | 45 | | (i) "Retail water customer" means a residential or nonresidential customer receiving a water bill for water service. |
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| 46 | 46 | | |
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| 47 | 47 | | (j) "Task force" means the low-income water residential affordability program task force created in section 14q. |
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| 48 | 48 | | |
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| 49 | 49 | | (k) "Water bill" means a request from a provider to a retail water customer for payment for water service. Water bill includes a request for payment of sewer, stormwater, or other related services if the provider charges for those services. |
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| 50 | 50 | | |
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| 51 | 51 | | Sec. 14o. (1) The low-income water residential affordability program is created in the department to address reduction or forgiveness of water bill arrearages, ensure that an eligible customer's monthly water bill, including discounts provided by the program or provider, is based on the eligible customer's household income, and, subject to available funding in the fund, ensure that the customer does not pay more than 3% of the eligible customer's household income on the water bill. The department shall develop and, in consultation with relevant third-party organizations, administer the affordability program for eligible customers. |
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| 52 | 52 | | |
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| 53 | 53 | | (2) Not later than January 1, 2026, the department shall prepare a program policy and procedure manual that is consistent with applicable provisions in the Michigan energy assistance program manual, and includes time limits for participation for potential eligible customers who are not seniors or persons with disabilities. The department may review and update the program policy and procedure manual as necessary. |
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| 54 | 54 | | |
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| 55 | 55 | | (3) Beginning on January 1, 2026, and by each January 1 thereafter, the department and the department of treasury shall prepare projections to determine the estimated funding required to offer all enrolled and eligible customers and projected eligible applicants who will enroll in the subsequent fiscal year, with applicable program benefits. If the projections reflect that the required funding from the fund will be insufficient, the department, the department of treasury, and the task force shall identify alternative funding sources or adjust program benefits in a manner that prioritizes all enrolled and eligible customers equitably, across geographic regions and provider population sizes, to ensure that the affordability program can be sustained through available funding. The department, in consultation with the department of treasury and the task force, has final decision-making authority to ensure program benefits do not exceed the funding available in the fund. Based on available funding, the department, the department of treasury, and the task force shall prioritize program benefits designed to provide eligible customers with household income-based water bills over other program benefits. Reducing the affordability program benefits corresponding with the tier with the lowest household income must only occur if all other alternatives have been exhausted. |
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| 56 | 56 | | |
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| 57 | 57 | | (4) Not later than 18 months after collection for the fund begins, the department shall implement the affordability program. When the affordability program is implemented, this section applies to providers with 500 or more retail water service connections. Not later than 18 months after the affordability program is implemented under this subsection, this section applies to all providers in this state. |
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| 58 | 58 | | |
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| 59 | 59 | | (5) Before the affordability program is implemented under subsection (4), the department shall develop a nonaffordablility application and instructions. The nonaffordablilty application must be made available when the affordability program is implemented under subsection (4). The nonaffordablilty application must include all the following: |
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| 60 | 60 | | |
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| 61 | 61 | | (a) The option of authorization for release of the customer's information to the provider. |
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| 62 | 62 | | |
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| 63 | 63 | | (b) The option for indicating consent to receive telephonic communications about the low-income water residential affordability program. |
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| 64 | 64 | | |
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| 65 | 65 | | (c) An authorization for release of the customer's information to the provider. |
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| 66 | 66 | | |
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| 67 | 67 | | (d) An authorization for the program administrator to call the individual on the telephone or send a text message about the affordability program. |
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| 68 | 68 | | |
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| 69 | 69 | | (6) Not later than 30 days after the program administrator receives a signed nonaffordability application, the program administrator must complete an income eligibility review to determine if the individual meets the eligibility requirements for the affordability program. Not later than 3 business days after the program administrator starts the eligibility review, the program administrator shall provide notice to the provider that the eligibility review was started. The provider shall not pursue shutoff during an eligibility review. The program administrator shall promptly send notification to the applicant and the provider regarding the results of the eligibility review once the eligibility review is complete. |
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| 70 | 70 | | |
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| 71 | 71 | | (7) In addition to any other verification of income accepted by the program administrator, the program administrator may accept a federal income tax return as documentation of income. If applicable, the program administrator must use publicly available information regarding standard benefit amounts for supplemental security income and temporary assistance for needy families. An applicant has no obligation to provide confirmation of the amount of benefits the applicant receives from supplemental security income. The program administrator shall consider the customer's enrollment in the low-income home energy assistance program, the supplemental nutrition assistance program, the special supplemental nutrition program for women, infants, and children, supplemental security insurance, the weatherization assistance program, or the customer's self-verification of income or lack of income as proof of the customer's eligibility in the form of a written customer statement regarding the customer's income or lack of income. |
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| 72 | 72 | | |
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| 73 | 73 | | (8) The department may contract or collaborate with a third-party organization that collects or processes household income information in order to complete the eligibility review under subsection (6) to determine if an applicant meets the requirements for the affordability program, notify the applicant and provider, or perform other functions necessary to implement the affordability program. |
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| 74 | 74 | | |
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| 75 | 75 | | (9) The department, in consultation with the task force, shall create tiers of eligible customers for the program based on household income level compared to the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, and the corresponding discounts, credits, or percentage of household income caps on water bills for each tier. A provider may use discounts, credits, or other payment methods to result in water bills that meet the percentage of household income-based payments as required under this act. The tiers must include the following: |
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| 76 | 76 | | |
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| 77 | 77 | | (a) A tier for households where the household income is at or less than 135% of the federal poverty guidelines, and the corresponding cap is 2% of household income or there is a standardized household contribution of 2% of the average household income for households with income between 0% and 135% of the federal poverty guidelines within the provider's water service area. |
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| 78 | 78 | | |
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| 79 | 79 | | (b) A tier for households where the household income is greater than 135% but at or less than 200% of the federal poverty guidelines and the corresponding cap is 3% of household income or there is a standardized household contribution of 3% of the average household income for households with income between 135% and 200% of the federal poverty guidelines within the provider's water service area. |
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| 80 | 80 | | |
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| 81 | 81 | | (10) Beginning October 1, 2026, and by each October 1 thereafter, the department shall adjust the standardized household contribution based on the department of treasury's projections, which must include a projection for not less than a 10% fund balance to remain at the close of the fiscal year. |
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| 82 | 82 | | |
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| 83 | 83 | | (11) If, on the program administrator's determination of an individual's household income, the program administrator finds that the individual is an eligible customer, the program administrator shall provide that information, as well as the eligible customer's household income, to that eligible customer's provider. On receipt of the information from the program administrator under this subsection, the eligible customer's provider shall provide a discount, credit, or another payment method option on the eligible customer's water bill to ensure that the water bill is based on the eligible customer's household income. The provider shall not provide a discount or credit if the eligible customer's pre-discount or pre-credit bill amount would be lower than the bill amount after application of the discount or credit. The discount or credit must apply to the entire water bill, including, but not limited to, any rider, fee, surcharge, or funding factor. The discount or credit provided under this subsection must not be applied to other charges for public services on the eligible customer's water bill that are unrelated to water, sewer, or stormwater services. |
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| 84 | 84 | | |
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| 85 | 85 | | (12) The program administrator shall inform the applicant of the determination of whether the applicant is an eligible customer. If the applicant is an eligible customer, the program administrator shall provide the applicant with information regarding the affordability program and how the water bill payment will be determined by the provider. |
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| 86 | 86 | | |
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| 87 | 87 | | (13) Depending on the availability of funds, the program administrator may issue a waiver to include a household that is between 200% and 250% of the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, into the affordability program if the household is experiencing any of the following financial hardships: |
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| 88 | 88 | | |
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| 89 | 89 | | (a) Job loss or reduction of income. |
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| 90 | 90 | | |
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| 91 | 91 | | (b) Acute or chronic physical or mental illness. |
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| 92 | 92 | | |
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| 93 | 93 | | (c) Increase in essential expenses. |
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| 94 | 94 | | |
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| 95 | 95 | | (d) Major home repair due to natural disaster or unexpected catastrophic event or repairs to essential equipment. |
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| 96 | 96 | | |
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| 97 | 97 | | (e) Death of a household income provider or unexpected funeral or burial expenses. |
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| 98 | 98 | | |
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| 99 | 99 | | (14) The department shall develop a process and timeline for redetermination of eligibility for the affordability program based on the recommendations of the task force and shall consider the redetermination timelines and processes for similar programs, including, but not limited to, the supplemental nutrition assistance program. There is no time limit on a customer's enrollment in the affordability program. |
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| 100 | 100 | | |
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| 101 | 101 | | (15) The department shall establish or refer applicants or eligible customers, as applicable, to a system of appeal and complaint process in which an applicant or eligible customer may challenge a program administrator's decision on eligibility at any point or submit a complaint regarding the affordability program. When an applicant or eligible customer files an appeal, the program administrator shall notify the provider to place a hold on the individual's account and cease collection or service disconnection until the hearing process is complete. |
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| 102 | 102 | | |
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| 103 | 103 | | (16) The program administrator shall make a good-faith effort to assess whether an eligible customer is the property owner and in need of household plumbing repair to address a leak or other plumbing or water service issue. If the eligible customer is the property owner, the program administrator shall connect the eligible customer with a master plumber or journey plumber, as those terms are defined in article 11 of the skilled trades regulations act, 2016 PA 407, MCL 339.6101 to 339.6133, to fix the water service issue. The program administrator shall pay for the necessary minor repair up to $2,500.00 per household. The program administrator shall establish a waiver process to issue over $2,500.00 for minor repairs if the property owner demonstrates an extreme need. |
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| 104 | 104 | | |
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| 105 | 105 | | (17) An eligible customer has a limited allocation of water use per month to qualify for the tiers under subsection (9). If the eligible customer exceeds the limited allocation under this subsection, the provider shall charge the provider's normal rate. The provider shall determine the limited allocation of water use per month, but must be within the ranges as follows: |
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| 106 | 106 | | |
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| 107 | 107 | | (a) Six to 8 centum cubic feet for households with zero to 4 people. |
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| 108 | 108 | | |
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| 109 | 109 | | (b) Nine to 11 centum cubic feet for households with 5 to 6 people. |
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| 110 | 110 | | |
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| 111 | 111 | | (c) Twelve to 14 centum cubic feet for households with 7 to 8 people. |
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| 112 | 112 | | |
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| 113 | 113 | | (d) Fifteen to 17 centum cubic feet for households with 9 to 10 people. |
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| 114 | 114 | | |
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| 115 | 115 | | (e) Eighteen to 20 centum cubic feet for households with 11 or more people. |
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| 116 | 116 | | |
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| 117 | 117 | | (18) A provider shall attempt to contact a customer that exceeds the limited allocation of water use per month described under subsection (17) to determine next steps the eligible customer may take to reduce water consumption, including possible minor plumbing repairs under to this section, and to coordinate with the program administrator regarding continued eligibility in the program. |
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| 118 | 118 | | |
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| 119 | 119 | | Sec. 14p. (1) Each provider shall give notice to its customers regarding the availability of either the department's affordability program or, if available, the provider's own low-income water affordability program, and information on how to apply for the programs. The notice required under this subsection must be given to each customer in writing on or with the customer's water bill and by posting on the provider's website, if available. |
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| 120 | 120 | | |
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| 121 | 121 | | (2) Beginning on the implementation date described in section 14o(4), the department shall engage in public relations activities to promote the affordability program across this state and must inform all individuals receiving benefit program services from the department regarding the availability of the affordability program and the process to apply for the affordability program. |
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| 122 | 122 | | |
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| 123 | 123 | | Sec. 14r. (1) Timely payment, as defined by the provider, of a water bill satisfies the customer's current water liability so that there is no addition to that customer's arrears. |
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| 124 | 124 | | |
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| 125 | 125 | | (2) A customer who is enrolled in the affordability program shall receive full forgiveness of an individual's arrears if, on the date the individual is enrolled in the affordability program, the individual's arrears are less than or equal to $1,500.00. If, on the date the individual enrolls in the affordability program, that individual has arrears more than $1,500.00, that individual shall receive forgiveness of $1,500.00 of the current arrears. After 12 months of successful participation in the affordability program, an individual with over $1,500.00 in original arrearages on enrollment shall have up to $1,500.00 in additional arrearages forgiven. |
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| 126 | 126 | | |
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| 127 | 127 | | (3) A customer who is enrolled in the affordability program for 24 months and who has made timely payments on the individual's water bills for 24 months shall receive forgiveness of the remainder of the individual's arrears if the arrears were greater than $1,500.00 when the individual enrolled in the affordability program. The program administrator shall request to the department that an amount exceeding $1,500.00 be forgiven if the individual has an extreme need. If the program administrator determines that the individual has had extreme need or circumstances in the individual's life that led the individual to not pay every payment for 24 months, the program administrator may make a determination, based on best judgment, that the individual should still receive forgiveness for arrearages. |
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| 128 | 128 | | |
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| 129 | 129 | | (4) On enrollment, and while an eligible customer remains eligible and enrolled in the affordability program, a provider shall not certify to the property tax authority any amount of arrears subject to arrearage forgiveness as provided in this section. |
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| 130 | 130 | | |
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| 131 | 131 | | Sec. 14s. (1) A provider may, or 2 or more providers may, collaborate to design and implement a low-income water affordability program rather than use the department's affordability program. A low-income water affordability program designed and implemented under this subsection must meet the following criteria: |
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| 132 | 132 | | |
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| 133 | 133 | | (a) The low-income water affordability program is designed so that an eligible customer enrolled in the program will not pay more than the tiers provided for in section 14o(9). The low-income water affordability program must also be consistent with the enrollment process described in section 14o and the arrearage forgiveness described in section 14r. |
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| 134 | 134 | | |
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| 135 | 135 | | (b) The provider considers the customer to be an eligible customer or a more generous threshold. |
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| 136 | 136 | | |
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| 137 | 137 | | (c) Other criteria as determined by the department. |
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| 138 | 138 | | |
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| 139 | 139 | | (2) A provider may partner with a community action agency, United Way organization, or other community organization to implement a low-income water affordability program. |
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| 140 | 140 | | |
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| 141 | 141 | | (3) If a provider designs and implements a low-income water affordability program and the provider already has a similar affordability or assistance program, the provider does not need to require a customer who is already enrolled in the existing program to reapply for a new low-income water affordability program. |
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| 142 | 142 | | |
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| 143 | 143 | | (4) A provider that implements a low-income water affordability program shall submit a plan to the department for review and approval and receive an approval letter from the department. The plan must include a description that meets the minimum criteria provided under subsection (1). The department shall review plans and provide the provider with any recommended or required changes. The provider must provide updates to the department about any substantive change to the low-income water affordability program after receiving approval under this subsection. |
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| 144 | 144 | | |
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| 145 | 145 | | (5) If a provider develops a low-income water affordability program that is more generous than the affordability program, the provider must utilize its own funding or other source of funding beyond the fund for the more generous program's increased budget. |
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| 146 | 146 | | |
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| 147 | 147 | | (6) A provider that designs and implements a low-income water affordability program may create more than 2 tiers in its tier system. |
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| 148 | 148 | | |
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| 149 | 149 | | (7) If a provider does not design and implement a low-income water affordability program, the provider must use the affordability program. |
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| 150 | 150 | | |
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| 151 | 151 | | (8) A provider may elect not to collect the funding factor if the provider's governing body adopts a policy to create and implement its own low-income water affordability program and affordability fund. Two or more providers may create a combined low-income water affordability program administered by 1 or more of the participating providers. The low-income water affordability program created under this subsection must include a description of the criteria described under subsection (1) and describe the providers' ability to maintain a fund to sustain the providers' low-income water affordability program. The providers shall submit a plan for implementing the low-income water affordability program to the department for annual review and approval and receive an approval letter. The department must review the plan and provide the providers with any recommended or required changes. The providers' annual updates to the department must identify whether there have been changes to the low-income water affordability program plan or fund. If the department determines the providers are unable to administer or fund a low-income water affordability program created under this subsection for 2 consecutive years, the department shall notify the providers that they must enroll eligible customers in the affordability program and impose a funding factor. |
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| 152 | 152 | | |
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| 153 | 153 | | (9) If a provider is subject to a local ordinance that conflicts with this act, this act supersedes the local ordinance. |
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| 154 | 154 | | |
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| 155 | 155 | | Sec. 14u. If an individual submits an application for the affordability program to the department, or contracted third-party organization for the department, and the individual is a customer of a provider that has its own low-income water affordability program, the department or third-party organization must forward the application directly to that customer's provider's plan administrator. |
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| 156 | 156 | | |
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| 157 | 157 | | Enacting section 1. This amendatory act takes effect 180 days after the date it is enacted into law. |
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| 158 | 158 | | |
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| 159 | 159 | | Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law: |
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| 160 | 160 | | |
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| 161 | 161 | | (a) Senate Bill No. 248. |
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| 162 | 162 | | |
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| 163 | 163 | | (b) Senate Bill No. 252. |
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| 164 | 164 | | |
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| 165 | 165 | | (c) Senate Bill No. 249. |
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