This bill amends the Social Welfare Act by adding new sections that establish a low-income water residential affordability program in Michigan. The program is designed to assist eligible residential customers—those with household incomes not exceeding 200% of the federal poverty guidelines or those receiving specific forms of assistance—by reducing or forgiving water bill arrearages and ensuring that their monthly water bills do not exceed 3% of their household income. The Department of Health and Human Services is tasked with administering the program, which includes developing a policy manual, conducting eligibility reviews, and forming a task force to oversee implementation and funding. Water service providers are required to inform customers about the program and engage in promotional activities.

The bill also allows water service providers to collaborate with community organizations to implement affordability initiatives and establishes criteria for arrearage forgiveness based on timely payments. Providers with existing affordability programs are not required to have customers reapply for the new program. They must submit a detailed plan for their program to the department for approval, ensuring it meets minimum standards. The legislation allows for a tiered system within affordability programs and mandates that if a provider fails to implement the program for two consecutive years, they must revert to enrolling eligible customers in the affordability program. Additionally, the bill clarifies that it supersedes conflicting local ordinances and requires applications to be forwarded to the appropriate provider if the applicant is a customer of a provider with its own program. The enactment of this bill is contingent upon the passage of several related bills in the legislature.

Statutes affected:
Senate Introduced Bill: 400.1, 400.119