Bill Text: MI HB4431 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Local government: water and sewer; municipality billing requirements for water or sewerage service; provide for, require municipalities to adopt a written dispute resolution process for disputed water or sewerage service bills, and require municipalities to monitor for customer water leaks. Amends title & sec. 6 of 1939 PA 178 (MCL 123.166) & adds secs. 1a, 1b, 1c, 1d & 1e.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2019-04-09 - Bill Electronically Reproduced 04/09/2019 [HB4431 Detail]
Download: Michigan-2019-HB4431-Introduced.html
HOUSE BILL No. 4431
April 9, 2019, Introduced by Reps. Neeley, Hope, Garrett, Garza, Whitsett, Hammoud, Camilleri, Gay-Dagnogo, Manoogian and Rabhi and referred to the Committee on Local Government and Municipal Finance.
A bill to amend 1939 PA 178, entitled
"An act to provide for the collection of water or sewage system
rates, assessments, charges, or rentals; and to provide a lien for
water or sewage system services furnished by municipalities as
defined by this act,"
by amending the title and section 6 (MCL 123.166), as amended by
1981 PA 132, and by adding sections 1a, 1b, 1c, 1d, and 1e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to provide for the collection of water or sewage system
rates,
assessments, charges, or rentals; and to provide for the
powers and duties of certain municipal officers and entities; to
provide a lien for water or sewage system services furnished by
municipalities as defined by this act; and to prescribe civil
remedies for violation of this act.
Sec. 1a. (1) A municipality that owns or operates a water
distribution system or a sewage system and that provides water or
sewerage service in this state shall not require a customer to
provide his or her Social Security number in order to open a
customer account.
(2) Regardless of whether a customer's account for water or
sewerage service is current or delinquent, a municipality that owns
or operates a water distribution system or a sewage system and that
provides water or sewerage service in this state shall bill each
customer of the system on a regular monthly basis.
(3) A municipality shall not send an estimated bill for water
or sewerage service to a customer more than twice a year. As used
in this subsection, "estimated bill" means a bill for water or
sewerage service at the premises that is not based on a meter
reading of a customer's actual water or sewerage usage for the
period being billed.
(4) A municipality that owns or operates a water distribution
system or a sewage system and that provides water or sewerage
service in this state shall include, at a minimum, on each
customer's water or sewerage bill all of the following:
(a) The units of consumption in which the bill is calculated.
If the units of consumption are not expressed in gallons, a
conversion factor to gallons must be provided on the bill.
(b) The water or sewerage rates and charges for each component
of the bill.
(c) The actual amount owed to the municipality for water or
sewerage service under any existing payment plan.
(5) A municipality that owns or operates a water distribution
system or a sewage system and that provides water or sewerage
service in this state shall advertise to customers, by posting on
the municipality's website, and provide written notice to each
customer at least once each year that all customers have the option
to do, at a minimum, 1 or more of the following at no additional
cost to the customer:
(a) Pay the water or sewerage bill online.
(b) Pick a billing due date.
(c) Select levelized billing. If a customer selects levelized
billing, the customer's monthly bill must still indicate water or
sewerage usage for each month and how that usage compares to prior
monthly usage. As used in this subdivision, "levelized billing"
means each monthly bill is the rolling average of a customer's
water or sewerage usage for the most recent 12 months.
(6) A customer of a municipality that provides water or
sewerage service is not responsible for any water or sewerage usage
for a billing period if that water or sewerage usage is not billed
to that customer by the municipality within 10 days after the end
of the billing period.
(7) A municipality that owns or operates a water distribution
system or a sewage system and that provides water or sewerage
service in this state shall not do any of the following:
(a) Charge any additional fee to a customer based on the
customer's method of payment.
(b) Assess any fee or charge upon a residential customer as a
penalty.
(c) Charge interest to a customer for past-due amounts at a
rate greater than 4.0% per year.
(8) If the customer of a municipality that provides water or
sewerage service is an eligible customer, that customer must
receive from the municipality a complete waiver of any fees
associated with any late payments or restoration of service, and
that customer is not required to make any deposit to receive water
or sewerage service from the municipality. As used in this
subsection, "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:
(a) Has received assistance from a state emergency relief
program within the past year.
(b) Receives food assistance under the federal supplemental
nutrition assistance program administered by this state.
(c) Receives medical assistance administered by this state
under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
(d) Receives any other form of federal or state public
assistance.
(9) If the customer of a municipality that provides water or
sewerage service is in a household that has a household income of
between 200% and 300% of the federal poverty guidelines, as
published by the United States Department of Health and Human
Services, that customer is eligible for a partial waiver of any fee
associated with any late payments or restoration of service, or a
partial waiver of any deposit, as determined by the municipality.
(10) This section takes effect January 1, 2021.
Sec. 1b. (1) A municipality that owns or operates a water
distribution system or a sewage system and that provides water or
sewerage service in this state shall adopt a dispute resolution
process for a customer to dispute a water or sewerage service bill
and that municipality shall post the dispute resolution process on
its website.
(2) At least once each year, a municipality that owns or
operates a water distribution system or a sewage system and that
provides water or sewerage service in this state shall provide in
writing to each of its customers the dispute resolution process
adopted under subsection (1) for disputing a water or sewerage
service bill.
Sec. 1c. (1) If the customer of a municipality that owns or
operates a water distribution system or a sewage system and that
provides water or sewerage service in this state disputes a water
or sewerage service bill using the dispute resolution process
adopted by that municipality under section 1b, all of the following
apply:
(a) The customer is not required to pay the municipality the
disputed amount during the dispute resolution process.
(b) Interest does not accrue on that customer's water or
sewerage service balance during the dispute resolution process.
(c) The municipality shall not discontinue water service or
sewage system service to the customer's premises during the dispute
resolution process.
(2) Any costs associated with a dispute resolution process for
the first dispute between a customer and the municipality in a
calendar year are to be borne by the municipality. Except as
otherwise provided in this subsection, for a second or subsequent
dispute between a customer and the municipality in a calendar year,
the municipality may charge the customer for up to 50% of the costs
associated with the dispute resolution process. If a dispute
resolution process determines that the municipality's process or
equipment was in error, any costs associated with the dispute
resolution process are to be borne by the municipality.
Sec. 1d. (1) Each municipality that owns or operates a water
distribution system or a sewage system and that provides water or
sewerage service in this state shall give notice to a retail
customer of that municipality if the municipality obtains
information indicating that a leak may exist on the customer's side
of the water service meter.
(2) Each municipality that owns or operates a water
distribution system or a sewage system and that provides water or
sewerage service in this state shall monitor its systems at least
annually to detect customer-side leaks by conducting 1 or more of
the following:
(a) Acoustic monitoring of customer water meters, and if leak
sounds are detected, the municipality must check connection points
on both the municipality side and the customer side of the meter.
(b) Onsite meter reading comparisons of current and prior
meter readings to identify atypical water usage.
(c) Customer bill analysis to detect anomalies in bills or
consumption levels that may be indicative of leakage.
(d) Any other method of review that is submitted to and
approved by the department of environmental quality.
(3) If information obtained by the municipality under
subsection (2) indicates that a water leak may exist, the
municipality shall alert the customer to the possible leak by
placing a door hanger at the customer's premises, or by any other
contact method including, but not limited to, written notice,
telephone, or electronic mail.
(4) If, after notice of a possible leak under subsection (3)
is provided, water consumption by the customer is not reduced
during the next routine meter read, the municipality shall alert
the customer again in any manner provided in subsection (3).
(5) Any notice provided by a municipality under subsection (3)
or (4) must advise the customer that it is the customer's
responsibility to fix any water leak, but the municipality may
provide to the customer any guidance or assistance needed for
repairing the water leak.
Sec. 1e. (1) The attorney general, the department of
environmental quality, or any customer or lawful occupant of a
customer's premises subject to this act may enforce sections 1a,
1b, 1c, or 1d by filing a civil action in a court of appropriate
jurisdiction for injunctive relief, declaratory relief, or actual
damages, or any combination of injunctive relief, declaratory
relief, or actual damages.
(2) A court rendering a judgment in an action brought under
subsection (1) may award all or a portion of the costs of
litigation, including reasonable attorney fees, to the complainant
if the court determines that the award is appropriate.
Sec.
6. A Subject to section
1c(1), a municipality may
discontinue water service or sewage system service from the
premises against which the lien created by this act has accrued if
a person fails to pay the rates, assessments, charges, or rentals
for the respective service, or may institute an action for the
collection
of the same rates,
assessments, charges, or rentals for
the respective service in any court of competent jurisdiction.
However, a municipality's attempt to collect these sewage system or
water
rates, assessments, charges, or rentals by any process shall
does not invalidate or waive the lien upon the premises.
