April 26, 2018, Introduced by Rep. Inman and referred to the Committee on Appropriations.


      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 a fund


 8  ; to and provide for the its administration; of the water supply


 9  fund; to provide funding for certain waterworks systems, sewer


10  systems, and stormwater management systems; and to provide


11  penalties.


12        Sec. 11a. (1) The Until March 1, 2021, the department shall


13  impose an annual fee on each community supply provider in


14  accordance with the following fee 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 January 1, 2020 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        (5) By January 1, 2021, the water asset management council


19  shall recommend to the department a fee schedule for meter sizes


20  for both residential and nonresidential accounts, based on the


21  inventory of data received from each community supply provider that


22  serves 1,000 or more residents, to generate not more than


23  $110,000,000.00 annually. However, the fee schedule shall not


24  assess community supply providers more than $20.00 per residential


25  account per year or more than $400.00 per nonresidential account


26  per year. The department shall, by rule, institute a new fee


27  schedule for the time period March 1, 2021 through March 1, 2041

 1  based on the recommendations from the water asset management


 2  council and publish this fee schedule on their website.


 3        (6) A community supply provider shall not pass on to a


 4  residential customer an amount that is higher than the per-


 5  residential-customer fee provided for in this section. If a


 6  community supply provider administers an affordability program for


 7  its residential customers that reduces charges to residential


 8  customers in the program, the community supply provider shall


 9  consider that program when passing on the per-residential-customer


10  fee. Upon request, a community supply provider shall provide to the


11  department information regarding the community supply's


12  affordability program.


13        (7) Fees and penalties collected under this section shall be


14  forwarded to the state treasurer for deposit into the water


15  infrastructure fund created in section 11d.


16        (8) As used in this section:


17        (a) "Meter size" means an instrument used by a public water


18  supply to measure volume of water.


19        (b) "Residential account" means an individual account serving


20  single family or multifamily customers.


21        Sec. 11d. (1) The water supply infrastructure fund is created


22  in the state treasury and shall be administered by the department.


23  The water infrastructure fund is capitalized by shall receive


24  revenues collected pursuant to sections 11a, 11b, and 11c. The


25  water infrastructure fund shall additionally receive money as


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


27  contribution to the water infrastructure fund.

 1        (2) The state treasurer shall retain money in the water


 2  infrastructure fund at the close of the fiscal year, and shall not


 3  return that money to the general fund.


 4        (3) The department shall expend 75% of money in the water


 5  infrastructure fund at the close of the fiscal year to offset, on a


 6  pro rata basis, each fee described in sections 11a, 11b, and 11c


 7  for the following year.


 8        (4) The Subject to subsection (5), the department shall expend


 9  money in the water supply infrastructure fund only to implement


10  this act and the administrative rules promulgated under this act,


11  and the following departmental programs: .


12        (a) Eighteen percent of the current fiscal year revenue shall


13  be used for asset management, as defined in section 5001 of the


14  natural resources and environmental protection act, 1994 PA 451,


15  MCL 324.5001.


16        (b) Nine percent of the current fiscal year revenue shall be


17  used for infrastructure failures that threaten public health and


18  the environment.


19        (c) Sixty-four percent of the current fiscal year revenue


20  shall be used for infrastructure grants and loans to political


21  subdivisions for lead service line replacements and water, sewer,


22  and stormwater capital projects.


23        (d) Nine percent of the current fiscal year revenue shall be


24  used for the water assistance program created in section 11e.


25        (5) The department shall expend at least 80% of the money


26  appropriated from the water infrastructure fund within the region


27  from where it was remitted.

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


 2  water assistance grant program to provide funding for community


 3  supply providers to create or enhance a program that provides


 4  assistance to low-income households in paying for the water


 5  expenses of their primary residence.


 6        (2) A community supply provider that wishes to receive funding


 7  to support its water assistance program shall submit an application


 8  to the department of treasury containing the information required


 9  by the department of treasury. The department of treasury may


10  approve a community supply provider's water assistance grant


11  program if the program includes at least the following components:


12        (a) A process for distributing water assistance to eligible


13  low-income households.


14        (b) The provision of services that will enable participants to


15  become or move toward becoming self-sufficient, including assisting


16  participants in doing all of the following:


17        (i) Paying their water bills on time.


18        (ii) Budgeting for and contributing to their ability to


19  provide water expenses.


20        (iii) Utilizing energy services to optimize water efficiency.


21        (3) As used in this section:


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


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


24  guidelines.


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


26  published annually in the Federal Register by the United States


27  Department of Health and Human Services under its authority to

 1  revise the poverty line under 42 USC 9902.


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


 3  households in meeting their residential water costs for their


 4  primary residence through payment or partial payment of bills.


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


 6  after the date it is enacted into law.


 7        Enacting section 2. This amendatory act does not take effect


 8  unless House Bill No. 5406 of the 99th Legislature is enacted into


 9  law.