Bill Text: MI HB5088 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: 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, 14q, 14r, 14s & 14u. TIE BAR WITH: HB 5089'23, HB 5090'23
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced) 2023-10-05 - Bill Electronically Reproduced 10/04/2023 [HB5088 Detail]
Download: Michigan-2023-HB5088-Introduced.html
HOUSE BILL NO. 5088
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding sections 14n, 14o, 14p, 14q, 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) "Eligible customer" means a provider's customer whose household income does not exceed 200% of the federal poverty guidelines 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.
(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.
(b) "Low-income water residential affordability program" means the low-income water residential affordability program created in section 14o.
(c) "Nonaffordability application" means a form that the department must develop to trigger an income eligibility review for the low-income water residential affordability program. The nonaffordability application must include the option of authorization for release of the customer's information to the provider and the option for indicating consent to receive telephonic communications about the low-income water residential affordability program.
(d) "Program administrator" means the department, provider, or third party organization that administers a low-income water residential affordability program.
(e) "Provider" means a community water supply that is publicly or privately owned and provides retail water service in this state.
(f) "Residential customer" means an individual who is either receiving or is eligible to receive water service at that individual's primary residence.
(g) "Retail water customer" means a residential or nonresidential customer receiving a water bill for water service.
(h) "Task force" means the task force created in section 14q.
(i) "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 within the department to address reduction or retiring of water bill arrearages and to ensure that an eligible customer's monthly water bill, including discounts provided by the program or the provider, is based on the eligible customer's household income and, subject to available funding in the low-income water residential affordability program fund, that the customer does not pay more than 3% of the household income on the water bill. The department shall develop and, with the assistance of third party organizations, administer the low-income water residential affordability program created under this section to customers of a water provider that chose to utilize the department's program. On an annual basis, 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 for the coming fiscal year, applicable program benefits. If the projections reflect that the required funding from the low-income water residential affordability program 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 can be sustained through available funding. The department, in consultation with the task force and department of treasury, shall have final decision-making authority to ensure program benefits do not exceed revenue collected. The department, the department of treasury, and the task force shall, based on available funding, prioritize program benefits designed to provide eligible applicants with household income-based water bills over other program benefits. Reducing the program benefits corresponding with the tier with the lowest household income shall only occur if all other alternatives have been exhausted.
(2) The low-income water residential affordability program shall begin 18 months after collection for the low-income water residential affordability program fund begins. When the low-income water residential affordability program begins, this section applies to providers with 500 or more retail water service connections. Eighteen months after the low-income water residential affordability program is initiated, this section applies to all water providers in this state.
(3) Not later than 30 days after the department or program administrator receives a signed nonaffordability application, the program administrator shall complete an income eligibility review to determine if the individual meets the eligibility requirement for the low-income water residential affordability program. The department or the program administrator shall ensure that the application is as simple and accessible as possible. The application shall include an authorization for release of the customer's information to the provider and an authorization for the program administrator to call the individual on the telephone or send a text message about the affordability program. The department or program administrator shall determine eligibility. The department or program administrator shall immediately notify the provider it has begun the eligibility review and that the provider shall not pursue shutoff during the review. The department or program administrator shall send notification to the applicant and the provider about the results of the eligibility review promptly once that review is completed.
(4) 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. When 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. Among other documents as determined by the program administrator, 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 their income or lack of income.
(5) The department may contract or collaborate with a third party organization that collects or processes household income information in order to complete the income eligibility review to determine if an individual meets the requirements for the low-income water residential affordability program, notify the applicant and provider, or perform other functions necessary for implementing the low-income water residential affordability program.
(6) The department shall create tiers of eligible customers for the program based on household income level compared to the federal poverty guidelines and the corresponding discounts, credits, or percentage of household income caps on water bills for each tier, in consultation with the low-income water residential affordability program task force created in section 14q. A water provider may use discounts, credits, or other methods to result in water bills that meet the percentage of household income-based payments as required under this act. The tiers shall include 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 and 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. The department shall adjust the standardized household contribution based on the department of treasury's projections of available funding on an annual basis that must include a projection for not less than a 10% fund balance to remain at the close of the fiscal year.
(7) If, upon the program administrator's determination of the 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. Upon receipt of the information from the program administrator under this subsection, the eligible customer's provider shall provide a discount, credit, or other method on the eligible customer's water bill to result in a bill that is affordable based on the eligible customer's household income as determined by the program administrator. The provider shall not provide a discount or credit if the eligible customer's prediscount precredit bill amount would be lower than the bill amount after application of the discount or credit. The discount or credit shall apply to the entire water bill, which includes, but is not limited to, any rider, fee, surcharge, or as described in section 14t, funding factor.
(8) The program administrator shall inform the individual of the determination of whether or not that individual is an eligible customer. If the individual is an eligible customer, the program administrator shall provide him or her with information regarding the low-income water residential affordability program and the rate to be charged by the provider.
(9) The department shall develop a process and timeline for redetermination based on the recommendations of the task force. There shall not be a time limit on a customer's enrollment in a low-income water residential affordability program.
(10) The department shall establish or refer customers to a system of appeal and complaint process in which a customer may challenge a program administrator's decision on eligibility at any point or submit a complaint regarding the low-income water residential affordability program. Upon the customer's filing an appeal, the program administrator must notify the provider to place a hold on the customer's account to cease collection or service disconnection until the hearing process is complete.
(11) The program administrator shall make a good-faith effort to assess whether an eligible customer is in need of household plumbing repair to address a leak or other plumbing or water service issue. The department or contracted third party organization shall connect the eligible customer with resources to fix the water service issue and 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 plumbing repairs if the customer demonstrates an extreme need.
Sec. 14p. (1) Each provider shall give notice to its customers regarding the availability of either the department's low-income water residential affordability program or the provider's own low-income water residential affordability program, if it has one, and the process to apply for that program. The notice required under this subsection must be given to each customer in writing on the customer's water bill and by posting on the provider's website if the provider maintains a website.
(2) Beginning January 1, 2025, the department must inform all individuals receiving benefit program services from the department regarding the availability of the low-income water residential affordability program and the process to apply for that program.
Sec. 14q. (1) Not later than 30 days after the effective date of the amendatory act that added this section, the department shall create a low-income water residential affordability program task force.
(2) The department director shall appoint members of the task force that include, but are not limited to, representatives of a water provider with a population served of less than 3,300, a water provider with a population served of between 3,300 and 10,000, a water provider with a population served of over 10,000, water and sewerage customer advocacy groups, community action agencies, municipal governments, and environmental groups.
(3) The task force shall do all of the following:
(a) Discuss, and advise the department on, best practices for administering the low-income water residential affordability program.
(b) By no later than 9 months after the effective date of the amendatory act that added this section, develop further guidance for the low-income water residential affordability program. The department shall implement this plan no later than 18 months after the effective date of the amendatory act that added this section.
(c) Work with the department to develop educational outreach materials about the low-income water residential affordability program.
(d) Seek additional funding sources for the low-income water residential affordability program.
(e) Explore ways to expand the low-income water residential affordability program to include more types of water providers.
(4) The department shall collaborate with the department of treasury to distribute funding from the water affordability fund to the water providers to make up the difference between the total of customers' actual water, sewerage, and stormwater bill and the total discounted water and sewerage bills provided through the department's or a provider's low-income water residential affordability program. The department shall collaborate with the department of treasury to distribute funds to assist with plumbing repairs and other repairs necessary as described in section 14o(8). The department of treasury shall set aside a specific funding amount for plumbing repairs.
(5) The department shall collaborate with the department of treasury to distribute funds to third party organizations that the department collaborates with to administer the low-income water residential affordability program to cover the administrative costs.
Sec. 14r. (1) Timely payment, as defined by the water 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 low-income water residential affordability program shall receive full forgiveness of the individual's arrears if, on the date the individual is enrolled in a low-income water residential affordability program, the individual's arrears are less than or equal to $1,500.00. If, on the date the individual enrolls in a low-income water residential affordability program, that individual has arrears more than $1,500.00, that individual shall receive forgiveness of 1/2 of the current arrears. After 12 months of successful participation in the low-income water residential affordability program, that individual with over $1,500.00 in original arrearages shall have up to $1,500.00 in additional arrearages forgiven.
(3) A customer who is enrolled in the low-income water residential 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 a low-income water residential affordability program. The program administrator may request to the department that an amount exceeding $1,500.00 be forgiven if the individual has an extreme need.
(4) Upon enrollment, and while a customer remains eligible and enrolled in the low-income water residential affordability program, a provider shall not certify to property tax any amount of arrears subject to arrearage forgiveness as provided in this section.
Sec. 14s. (1) A water provider may design and implement its own low-income water residential affordability program rather than use the department's low-income water residential affordability program, as long as its low-income water residential affordability program meets the following criteria:
(a) The program is designed so that an individual enrolled in its program does not pay more than 3% of that individual's household income on either the water bill or the discounted water bill, whichever results in a lower amount to be paid.
(b) The provider maintains records of the customers enrolled in the program and relevant data and makes those records and data available to the department.
(c) The provider considers the customer to be an eligible customer or a more generous threshold.
(d) Other criteria as determined by the department.
(2) A water provider may partner with a community action agency, united way organization, or other community organization to implement its low-income water residential affordability program.
(3) If a provider designs and implements its own low-income water residential affordability program and the provider already had a water affordability or assistance program, the provider does not need to require a customer who is already enrolled in the provider's water affordability or assistance program to reapply for a program funded by the water affordability funding factor.
(4) A water provider that designs and implements its own low-income water residential affordability program must submit its program plan to the department for review and approval and receive an approval letter from the department. The department must review program plans and provide the provider with any recommended or required changes. The water provider must provide updates to the department about any substantive change to the program planned after receiving initial approval. If at any point the water provider identifies that its low-income water residential affordability program may not have sufficient resources to continue, at that point, the water provider must notify the department within 90 days and detail what steps are being taken to attempt to address the situation. The department shall collaborate with the water provider to identify potential strategies.
(5) A water provider that designs and implements its own low-income water residential affordability program may create more than 2 tiers in its tier system.
(6) If a water provider chooses not to design and implement its own low-income water residential affordability program, it must use the department's low-income water residential affordability program.
Sec. 14u. If an individual submits an application 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 residential 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 102nd Legislature are enacted into law:
(a) Senate Bill No.____ or House Bill No. 5089 (request no. 01778'23).
(b) Senate Bill No.____ or House Bill No. 5090 (request no. 01851'23).
