HB-5898, As Passed House, December 12, 2018





























      A bill to amend 1976 PA 399, entitled


"Safe drinking water act,"


by amending the title and sections 11a and 11d (MCL 325.1011a and


325.1011d), the title as amended by 1998 PA 56 and sections 11a and


11d as added by 1993 PA 165, and by adding section 11e.




 1                                 TITLE


 2        An act to protect the public health and the environment; to


 3  provide for supervision and control over public water supplies; to


 4  provide for the protection of water resources; to prescribe the


 5  powers and duties of the department of environmental quality; to


 6  provide for the submission of plans and specifications for


 7  waterworks systems and the issuance of construction permits


 1  therefor; to provide for capacity assessments and source water


 2  assessments of public water supplies; to provide for the


 3  classification of public water supplies and the examination,


 4  certification and regulation of persons operating those systems; to


 5  provide for continuous, adequate operation of privately owned,


 6  public water supplies; to authorize the promulgation of rules to


 7  carry out the intent of the act; to create the water supply fund;


 8  to certain funds and provide for the their administration; of the


 9  water supply fund; to provide funding for certain waterworks


10  systems, sewer systems, and stormwater management systems; and to


11  provide penalties.


12        Sec. 11a. (1) The department shall impose an annual fee on


13  each community supply provider in accordance with the following fee


14  schedule:




   Number of Residents Served

   Annual Fee



      More than 500,000

  $ 83,800.00


      100,001 - 500,000

  $ 17,400.00


       50,001 - 100,000

  $ 11,000.00


       25,001 - 50,000

  $  6,500.00


       10,001 - 25,000

  $  3,500.00


        5,001 - 10,000

  $  1,900.00


        1,001 - 5,000

  $    800.00


          401 - 1,000

  $    500.00


          101 - 400

  $    400.00


           25 - 100

  $    250.00



27        (2) The annual fee in this section provided in subsection (1)

 1  shall be adjusted on October 1 each year following the effective


 2  date of this section September 16, 1993, by applying a percentage


 3  adjustment using the Detroit consumer price index. Consumer Price


 4  Index. The fee may also be adjusted as the result of increased


 5  federal funding or a reduction in actual costs, as determined by


 6  the department.


 7        (3) Each community supply provider shall pay the annual fee


 8  under subsection (1), as adjusted pursuant to subsection (2), by


 9  November 30 each year. Failure to submit timely payment will result


10  in assessment of a penalty of 9% per annum until the fee and


11  assessment penalty are paid in full. The department of treasury


12  shall collect each penalty.


13        (4) By September 1, 2019 and each subsequent January 1, each


14  community supply provider that serves 1,000 or more residents shall


15  provide to the department and to the water asset management council


16  an inventory of the number of accounts associated with each meter


17  size, for both residential and nonresidential accounts.


18        Sec. 11d. (1) The water supply rebuild Michigan fund is


19  created in the state treasury and shall be administered by the


20  department. The rebuild Michigan fund is capitalized by shall


21  receive revenues collected pursuant to sections 11a, 11b, and 11c.


22  The rebuild Michigan fund shall additionally receive money as


23  otherwise provided by law, and shall receive any gift or


24  contribution to the rebuild Michigan fund.


25        (2) The state treasurer shall retain money in the rebuild


26  Michigan fund at the close of the fiscal year, and shall not return


27  that money to the general fund.

 1        (3) The department shall expend 75% of money in the fund at


 2  the close of the fiscal year to offset, on a pro rata basis, each


 3  fee described in sections 11a, 11b, and 11c for the following year.


 4        (3) (4) The department shall expend money in the water supply


 5  rebuild Michigan fund only to implement this act and the


 6  administrative rules promulgated under this act.


 7        Sec. 11e. (1) The department of treasury shall establish a


 8  water assistance grant program to provide funding for community


 9  supply providers to create or enhance a program that provides water


10  assistance to eligible low-income households.


11        (2) As used in this section:


12        (a) "Eligible low-income household" means a household with a


13  household income of not more than 150% of the federal poverty


14  guidelines.


15        (b) "Federal poverty guidelines" means the poverty guidelines


16  published annually in the Federal Register by the United States


17  Department of Health and Human Services under its authority to


18  revise the poverty line under 42 USC 9902.


19        (c) "Water assistance" means assistance to low-income


20  households in meeting their residential water costs for their


21  primary residence through payment or partial payment of bills.


22        Enacting section 1. This amendatory act takes effect 90 days


23  after the date it is enacted into law.