Bill Text: MI HB5090 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Public utilities: water utilities; water shutoff protection act; enact. Creates new act. TIE BAR WITH: SB 0980'24, HB 5088'23, HB 5089'23
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced) 2024-12-11 - Placed On Third Reading [HB5090 Detail]
Download: Michigan-2023-HB5090-Introduced.html
HOUSE BILL NO. 5090
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "water shutoff protection act".
(a) "Critical care customer" means a residential customer who requires, or has a household member who requires, water or sanitation for home medical equipment, a life-support system, or treatment or therapy to reduce a public health risk, or has a communicable disease, and provides appropriate documentation to a provider from a physician or medical facility that identifies the medical equipment, life-support system, treatment, or therapy and certifies that an interruption of service would be immediately life-threatening or cause harmful health consequences.
(b) "Delinquency" means the measure by which a provider determines a payment is late or overdue.
(c) "Delinquent account" means an account or bill for which there is a delinquency.
(d) "Eligible customer" means a residential customer whose household income does not exceed 200% of the federal poverty guidelines, as published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902, 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.
(e) "Lawful occupant" means an individual who resides in a home and who has a valid lease, rental agreement, or affidavit of tenant responsibility for the water bill.
(f) "Program administrator" means the department, provider, or third-party organization that administers a low-income water residential affordability program.
(g) "Provider" means a community water supply that is publicly or privately owned and that provides retail water service in this state.
(h) "Residential customer" means an individual who receives, or is eligible to receive, water service at the individual's primary premises.
Sec. 5. (1) A provider may shut off service temporarily to all residential customers, including critical care customers, for reasons of health or safety, in a state or national emergency, or, subject to this section and section 7, if a residential 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 7, a provider shall not shut off service because a residential customer has not paid a delinquent account unless the provider contacts the residential customer at least 4 times using 2 or more of the following methods, as practicable:
(a) Posts a delinquency notice on the door of the premises to be shut off and, if the account customer has a separate mailing address, mails a delinquency notice to that 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 low-income water residential affordability programs. A provider shall maintain a record of the date the delinquency notice was posted.
(b) Makes a personal visit to the premises where shutoff of service is proposed and direct contact is made with the head of household notifying that individual of a delinquency in payments and of any applicable payment plans or low-income water residential affordability programs. A provider shall maintain a record of the date direct contact was made. A personal visit described under this subdivision may be conducted by a contracted third-party organization or other agent of the provider.
(c) Makes a personal or automated telephone call to the telephone number identified on the customer account where direct contact is made or a message is recorded notifying that individual of a delinquency in the payments and of any applicable payment plans or low-income water residential affordability programs. A provider shall maintain a record of the date the call was made.
(d) Sends a direct text message to the telephone number identified on the customer account 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 the text message was sent.
(e) Sends a written notice by first-class mail to the premises where shutoff of service is proposed notifying the account customer of a delinquency in payments and of any applicable payment plans or low-income water residential affordability programs. A provider shall maintain a record of the date the written notice was sent.
(3) At least 1 of the contacts made by the provider must be a delinquency notice as provided for under subsection (2)(a).
(4) All written and oral notices of shutoff under subsection (2) must contain, at a minimum, all of the following information:
(a) The address at which service is provided.
(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 residential customer takes appropriate action, and a description of the available courses of action to prevent a shutoff or to restore service following a shutoff.
(d) A statement that the provider will not shut off service if a residential customer has entered and remains in compliance with a payment plan or low-income water residential affordability program.
(e) The telephone number and address of the program administrator where the residential customer may make an inquiry, enter into a payment plan or low-income water residential affordability program, or petition the provider in accordance with the provider's rules to dispute a delinquent account.
(f) A statement that if the residential customer that receives the notice is a tenant whose landlord is responsible for the water bill, the tenant should contact the landlord and provider immediately. This subdivision does not preclude a provider from offering additional options for the tenant to maintain service.
(5) Except as otherwise provided in this subsection, a provider shall delay shutoff of service to a residential customer that pays at least $10.00 per month, or another amount approved by the provider, on a delinquent account and applies for enrollment in a low-income water residential affordability program with the provider, the department of health and human services, or a third-party organization that administers a low-income water residential affordability program. A provider is not required to delay shutoff of service under this subsection if any of the following apply:
(a) The residential customer applied to a low-income water residential affordability program and 10 business days have passed since the program administrator determined that the residential customer is not eligible.
(b) The residential customer applied to a low-income water residential affordability program and was determined to be eligible but did not enroll in the program within 10 business days.
(c) The residential customer paid at least $10.00 per month but did not apply to a low-income water residential affordability program by submitting an application within 10 business days after the date the final notice of shutoff was issued.
(6) Subject to the requirements of this act, a provider may shut off service to a residential customer on the date specified in the notice of shutoff or at a reasonable time following that date. If a provider does not shut off service and mails a subsequent notice, then the provider shall not shut off service before the date specified in the subsequent notice. Shutoffs must occur only between the hours of 8 a.m. and 3 p.m.
(7) A provider shall not shut off service on a day, or a day immediately preceding a day, when the services of the provider are not available to the general public for the purpose of restoring service.
(8) The day before or the day of the planned shutoff of service, an employee or agent of or a third-party organization contracted with the provider shall call or send a text message to the telephone number and send an email to the email address, if provided, identified on the customer account notifying the residential customer of the planned shutoff. If the provider does not have a valid telephone number or email address on the customer account, the provider shall make a notation and may proceed with the planned shutoff.
(9) When an employee or representative of a provider shuts off service, the employee or representative shall leave a notice. The notice must state that service has been shut off and contain the address and telephone number of the provider where the residential customer may arrange to have service restored.
(10) When a shutoff is completed using meters with remote shutoff and restoration capacity, the provider shall advise the residential customer on how to arrange for service to be restored.
(11) A provider shall not do any of the following:
(a) Shut off service because a residential customer has not paid for concurrent service received at a separate metering point, residence, or location.
(b) Shut off service because the property owner, who is the residential customer on record, has not paid for service at a premises lawfully occupied by another person. If a property owner is not occupying the premises at which service is delivered, a provider may shut off service if proper notice has been given, and the property owner supplies a written, certified statement, on a form and in a manner prescribed by the provider, that the premises are not lawfully occupied and the premises are in fact not lawfully occupied.
(c) Shut off service if the amount the residential customer has not paid for service is the subject of an unresolved dispute under the provider's dispute resolution process.
(d) Shut off service to a multi-unit dwelling where at least 1 unit is not sub-metered and is lawfully occupied.
(12) After a provider has shut off service, the provider shall restore service on the residential customer's request when the cause of the shutoff has been cured or payment arrangements have been made, including at the residential customer's option a payment plan or enrollment in a low-income water residential affordability program.
(13) When a provider is required to restore service at the residential customer's meter manually, the provider shall make reasonable efforts to restore service on the day the residential customer requests restoration. Except for reasons beyond its control, the provider shall restore service not later than the first working day after the residential customer's request.
(14) For providers using meter technology with remote shut-off and restoration capability, service must be restored no later than the first working day after the residential customer requests restoration, except in the case of documented equipment failure.
(15) A provider may assess the residential customer a reasonable charge for restoring service. The charge must not exceed $150.00 or the actual cost, whichever is less. A provider shall not charge a residential customer a fee for a shutoff of service.
(16) A provider shall first apply payments received to the costs incurred for services for the oldest debt.
Sec. 7. (1) A provider shall not shut off service to a residential customer for nonpayment of a delinquent account if the residential customer is a critical care customer and provides documentation to the provider demonstrating that the residential customer is a critical care customer.
(2) A provider shall not shut off service to a residential customer if a residential customer has entered into and remains in compliance with a payment plan or low-income water residential affordability program. A provider shall not shut off service for nonpayment until the payment is delinquent for at least 120 days.
(3) If an eligible customer fails to comply with the terms and conditions of a low-income water residential affordability program, the eligible customer must be referred to a program administrator for triage before a provider may shut off service to a residential customer. An eligible customer referred under this subsection must participate in triage to restore compliance with and prevent disenrollment from the low-income water residential affordability program. Within 10 business days after a residential customer is referred under this subsection, the program administrator shall send a letter by first-class mail to the premises that receives service from the provider, and, if the residential customer has a separate mailing address, to that address. The letter must state all of the following information:
(a) The start date of noncompliance.
(b) The reason for noncompliance and a statement of goals to engage the residential customer to ensure future compliance.
(c) The date for a triage meeting with the program administrator, scheduled not more than 10 business days after the letter was postmarked. The triage meeting described in this subdivision may take place by telephone, virtually, or in person.
(d) A statement that an extension for a triage meeting may be granted for good cause, as determined by the program administrator, and if no good cause is shown, failure to attend the triage meeting may result in disenrollment.
(e) A summary of the requirements to maintain eligibility in the low-income water residential affordability program.
(f) A statement that the residential customer has 10 business days after the triage meeting to comply with triage requirements.
(4) The program administrator may create a renewal agreement with the department or provider to use during the triage process described under subsection (3). The agreement must include all of the following information:
(a) A statement of goals to engage the residential customer to ensure future compliance, including a payment plan and schedule, participation expectations, and additional household support that will be provided to the residential customer following triage.
(b) A list of triage requirements to maintain compliance in the low-income water residential affordability program, which may include, but is not limited to, any of the following:
(i) A minimum payment.
(ii) A restart of the residential customer's program calendar.
(iii) The forgiveness of any amount owed on the delinquent account.
(iv) Removal of any fees or charges on the delinquent account.
(v) A copayment credit on the delinquent account.
(vi) Any other options for successful outcomes available through the low-income water residential affordability program.
(5) The program administrator shall advise a provider if a residential customer fails to comply with the triage process or a renewal agreement described under subsection (3) or (4), and the provider may proceed with the shut-off process described in section 5.
(6) A provider may develop policies and procedures to delay shutoff for residential customers who face temporary financial hardship due to recent loss of a job, medical bills, or other extenuating circumstances. If the provider maintains a website, the provider must post its policies and procedures on the website.
(7) A provider shall not threaten to shut off service when the provider has no intent to terminate service or when termination of service is otherwise prohibited by law.
(8) This section does not apply to a shutoff at a premises if a property owner provides the provider a notarized statement that the premises are not lawfully occupied and the premises are in fact not lawfully occupied.
Sec. 9. If the department of treasury projects that the funding required to implement a low-income water residential affordability program does not exist in the low-income water residential affordability program fund created in section 14t of the social welfare act, 1939 PA 280, MCL 400.14t, and determines that adjustments must be made in accordance with section 14o(6) of the social welfare act, 1939 PA 280, MCL 400.14o, the provider shall not shut off service to an eligible customer that has entered into and remains in compliance with a low-income water residential affordability program.
Sec. 11. The attorney general or any residential customer or other lawful occupant of a premises subject to this act may enforce this act by filing a civil action in the circuit court in the county where the residential customer lives or the provider does business. In any civil action commenced under this section, the plaintiff may obtain damages, declaratory relief, or temporary or permanent injunctive relief for any violation of this act. A residential customer or other lawful occupant that prevails in a civil action filed under this section is entitled to reasonable attorney fees and costs.
Sec. 13. A provider shall take reasonable steps to provide equal language access to water service and vital information for residential customers with limited English proficiency. As used in this section, "equal language access" means the ability to receive information and to participate in and benefit from water service at a level equal to English-proficient individuals.
Enacting section 1. This act takes effect 1 year after the date it is enacted into law.
Enacting section 2. This 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. 5088 (request no. 01852'23).
