SENATE BILL NO. 343

A bill to prescribe the powers and duties of certain providers of water and sewerage service in this state; to prescribe the powers and duties of certain state officers and entities; to prohibit certain acts and practices of providers of water and sewerage service; and to provide for remedies and penalties for certain violations of this act.

the people of the state of michigan enact:

Sec. 1. This act shall be known and may be cited as the "water shutoff protection act".

Sec. 2. As used in this act:

(a) "Critical care customer" means a customer who has provided appropriate documentation from a physician or medical facility certifying that interruption of service would be life-threatening to, or pose a serious threat to the health and safety of, the customer or a member of the customer's household, or that the customer or a member of the customer's household has a communicable disease that would present an increased risk to the health of others if that individual is unable to maintain proper hygiene because of interruption of water service.

(b) "Customer" means an individual who receives water or sewerage service at a residential premises.

(c) "Eligible customer" means a customer whose household income does not exceed 200% of the federal poverty guidelines, as published by the United States Department of Health and Human Services, 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 by this state under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.

(iv) Receives any other form of federal or state public assistance.

(d) "Heating season" means that term as defined in section 9r of 1939 PA 3, MCL 460.9r.

(e) "Nonaffordability application" means a form that the department of health and human services shall develop to trigger an income eligibility review for the low-income water residential affordability program and that includes the option for authorization for release of the customer's information to the provider.

(f) "Provider" means any water and sewerage system that provides water or sewerage service in this state.

(g) "Senior citizen customer" means a customer who is 62 years of age or older or who has a member of his or her household who is 62 years of age or older.

Sec. 3. (1) A provider may shut off service temporarily for reasons of health or safety, in a state or national emergency, or, subject to this section and section 4, if a customer has not paid a delinquent account. When a provider shuts off service for reasons of health or safety, the provider must leave a notice at the premises.

(2) Subject to section 4, a provider shall not shut off service because a customer has not paid a delinquent account unless the provider does, at a minimum, all of the following:

(a) Posts a delinquency notice on the door of the premises to be shut off and on the door of the customer, if the account customer has a different address, not less than 60 days and not more than 90 days before the date of a proposed shutoff that notifies the occupant of the property of a delinquency in payments and informs the occupant of any applicable payment plans or water affordability programs.

(b) Posts a notice on the door of the premises to be shut off and on the door of the customer, if the account customer has a different address, not less than 10 days before the date of the proposed shutoff. A provider shall maintain a record of the date the notice was posted.

(c) At least 1 week before shutoff of service, does both of the following:

(i) Makes a personal visit to the premises where shutoff of service is proposed where direct contact is made with an adult member of the customer's household notifying that individual of a delinquency in payments and of any applicable payment plans or water affordability programs. A provider shall maintain a record of the date direct contact was made.

(ii) Makes a personal or automated telephone call where direct contact is made with an adult member of the customer's household or a message is recorded notifying that individual of a delinquency in the payments and of any applicable payment plans or water affordability programs. A provider shall maintain a record of the date the call was made.

(3) All written and oral notices of shutoff under subsection (2)(b) and (c) must contain, at a minimum, all of the following information:

(a) The name and address of the customer, and the address at which service is provided, if different.

(b) A clear and concise statement of the reason for the proposed shutoff of service.

(c) The date on or after which the provider may shut off service, unless the customer takes appropriate action, and a description of the available courses of action to avoid a shutoff or to restore service following a shutoff.

(d) Where the shutoff would be done using meters with remote shutoff and restoration capacity, a statement that the disconnection of service will be performed remotely and that a provider representative will not return to the premises before disconnection.

(e) A statement that, if the customer is unable to pay in full, the customer has the right to enter into a payment plan that is based on a percentage of household income or, if applicable, a water affordability program, and that the monthly payment under a payment plan must not exceed 2% of the customer's average monthly household income if the customer's household income does not exceed 200% of the federal poverty level.

(f) A statement that the customer may submit a sign