Bill Text: MI HB4179 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Local government; financing; safe drinking water revolving fund; authorize use of for replacing lead or galvanized service lines. Amends secs. 5401 & 5403 of 1994 PA 451 (MCL 324.5401 & 324.5403).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-02-09 - Bill Electronically Reproduced 02/08/2017 [HB4179 Detail]

Download: Michigan-2017-HB4179-Introduced.html

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HOUSE BILL No. 4179

 

 

February 8, 2017, Introduced by Reps. Hughes, Lucido, Yaroch, Bizon, Sheppard, Leutheuser, Zemke and Kesto and referred to the Committee on Natural Resources.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 5401 and 5403 (MCL 324.5401 and 324.5403), as

 

added by 1997 PA 26.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5401. As used in this part:

 

     (a) "Act 399" means the safe drinking water act, 1976 PA 399,

 

MCL 325.101 325.1001 to 325.1023.

 

     (b) "Annual user costs" means an annual charge levied by a

 

water supplier on users of the waterworks system to pay for each

 

user's share of the cost for operation, maintenance, and

 

replacement of the waterworks system. These costs may also include

 

a charge to pay for the debt obligation.

     (c) "Assistance" means 1 or more of the following activities

 

to the extent authorized by the federal safe drinking water act:

 

     (i) Provision of loans for the planning, design, and

 

construction or alteration of waterworks systems.

 

     (ii) Provision of loans for the total or partial replacement

 

of service lines made in whole or part of lead, galvanized steel,

 

or any other material that may pose a health risk to individuals

 

who use water supplied by the service lines.

 

     (iii) (ii) Project refinancing assistance.

 

     (iv) (iii) The guarantee or purchase of insurance for local

 

obligations, if the guarantee or purchase action would improve

 

credit market access or reduce interest rates.

 

     (v) (iv) Use of the proceeds of the fund as a source of

 

revenue or security for the payment of principal and interest on

 

revenue or general obligation bonds issued by this state, if the

 

proceeds of the sale of the bonds will be deposited into the fund.

 

     (vi) (v) Provision of loan guarantees for sub-state revolving

 

funds established by water suppliers that are municipalities.

 

     (vii) (vi) The use of deposited funds to earn interest on fund

 

accounts.

 

     (viii) (vii) Provision for reasonable costs of administering

 

and conducting activities under this part.

 

     (ix) (viii) Provision of technical assistance under this part.

 

     (x) (ix) Provision of loan forgiveness for certain planning

 

costs incurred by disadvantaged communities.

 

     (d) "Authority" means the Michigan municipal bond authority

 

created in the shared credit rating act, 1985 PA 227, MCL 141.1051

to 141.1077.141.1076.

 

     (e) "Capitalization grant" means the federal grant made to

 

this state by the United States environmental protection agency,

 

Environmental Protection Agency, as provided in the federal safe

 

drinking water act.

 

     (f) "Community water supply" means a public water supply that

 

provides year-round service to not less fewer than 15 living units

 

or which that regularly provides year-round service to not less

 

fewer than 25 residents.

 

     (g) "Construction activities" means any actions undertaken in

 

the planning, designing, or building of a waterworks system.

 

Construction activities include, but are not limited to, all of the

 

following:

 

     (i) Engineering services.

 

     (ii) Legal services.

 

     (iii) Financial services.

 

     (iv) Preparation of plans and specifications.

 

     (v) Acquisition of land or structural components, or both, if

 

the acquisition is integral to a project authorized by this part

 

and the purchase is from a willing seller at fair market value.

 

     (vi) Building, erection, alteration, remodeling, or extension

 

of waterworks systems, providing if the extension is not primarily

 

for the anticipation of future population growth.

 

     (vii) Reasonable expenses of supervision of the project

 

activities described in subparagraphs (i) to (vi).

 

     Sec. 5403. As used in this part:

 

     (a) "Priority list" means the annual ranked listing of

projects developed by the department in section 5406.

 

     (b) "Project" means a any of the following:

 

     (i) A project related to the planning, design, and

 

construction or alteration of a waterworks system.

 

     (ii) The total or partial replacement of service lines made in

 

whole or part of lead, galvanized steel, or any other material that

 

may pose a health risk to individuals who use water supplied by the

 

service lines.

 

     (c) "Project refinancing assistance" means buying or

 

refinancing the debt obligations of water suppliers if construction

 

activities commenced, and the debt obligation was incurred, after

 

the effective date of this part.June 17, 1997.

 

     (d) "Public water supply" means a waterworks system that

 

provides water for drinking or household purposes to persons other

 

than the supplier of the water, except for those waterworks systems

 

that supply water to only 1 house, apartment, or other domicile

 

occupied or intended to be occupied on a day-to-day basis by an

 

individual, family group, or equivalent.

 

     (e) "Service line" means a direct pipe from a distribution

 

water main to a living unit or other site to provide water for

 

drinking or household purposes.

 

     (f) (e) "State drinking water standards" means rules

 

promulgated under Act 399 that establish water quality standards

 

necessary to protect public health or that establish treatment

 

techniques to meet these water quality standards.

 

     (g) (f) "Water supplier" or "supplier" means a municipality or

 

its designated representative accepted by the director , a legal

business entity, or any other person who owns a public water

 

supply. However, water supplier does not include a water hauler.

 

     (h) (g) "Waterworks system" or "system" means a system of

 

pipes and structures through which water is obtained or distributed

 

and includes any of the following that are actually used or

 

intended to be used for the purpose of furnishing water for

 

drinking or household purposes:

 

     (i) Wells and well structures.

 

     (ii) Intakes and cribs.

 

     (iii) Pumping stations.

 

     (iv) Treatment plants.

 

     (v) Storage tanks.

 

     (vi) Pipelines and appurtenances.

 

     (vii) A combination of any of the items specified in this

 

subdivision.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.