Bill Text: MI SB0660 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Environmental protection: sewage; municipal stormwater utilities; provide for, and authorize fee. Creates new act.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced) 2024-11-13 - Referred To Committee Of The Whole With Substitute (s-2) [SB0660 Detail]
Download: Michigan-2023-SB0660-Introduced.html
SENATE BILL NO. 660
A bill to regulate the creation of stormwater management utilities by local units of government; to provide for the creation of stormwater management plans; to provide for the adoption of stormwater management utility fee ordinances; to provide for the establishment and collection of stormwater management utility fees; to provide for the reduction or elimination of stormwater management utility fees; to provide for appeals; and to prescribe the powers and duties of certain local governmental officers and entities.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "stormwater management utility act".
(a) "Facilities" means all real and tangible personal property that comprises a stormwater management system, including, but not limited to, the land; buildings; basins; pipes; drains; pump stations; outfalls; storage facilities; structures; fixtures such as screens, meters, and control gates; improvements; easements; access rights; rights of way; permits; licenses; leases; machinery; equipment; vehicles; office equipment; furniture; software; hardware; security systems; communications systems; nature-based solutions that use or mimic natural systems to manage stormwater runoff; and other information technology systems.
(b) "Fund" means a stormwater enterprise fund established under section 11.
(c) "Local unit of government" means a city, village, township, county, or authority established by law.
(d) "Property" means real property.
(e) "Stormwater" means stormwater, rainwater, snowmelt, or other surface water runoff or drainage.
(f) "Stormwater management plan" or "plan" means a plan described in section 7.
(g) "Stormwater management services" means 1 or more of the following:
(i) The receipt, acceptance, conveyance, transport, storage, treatment, disposal, or regulation of the volume or rate of flow of stormwater through a stormwater management system from a property for purposes of flood control or public health, safety, or welfare.
(ii) The receipt, acceptance, conveyance, transport, storage, treatment, disposal, or regulation of stormwater for the purpose of contributing to, improving, attaining, or maintaining water quality standards, including, but not limited to, stormwater treatment, pollution prevention activities, and compliance with local, state, and federal laws, regulations, or permits to reduce, control, or treat pollutants transported from property into a stormwater management system.
(h) "Stormwater management system" means facilities that are owned, operated, designed, maintained, or used by a local unit of government within a set geographical area for the purpose of providing stormwater management services.
(i) "Stormwater management utility" means a system created under this act through which a local unit of government provides stormwater management services in accordance with a stormwater management plan.
(j) "Stormwater management utility fee" means a fee established by a local unit of government under section 9.
(k) "Stormwater management utility fee ordinance" means an ordinance adopted by a local unit of government under this act.
Sec. 5. (1) A local unit of government may create a stormwater management utility and adopt a stormwater management utility fee.
(2) A local unit of government that creates a stormwater management utility under this act shall do both of the following:
(a) Adopt a stormwater management plan by resolution.
(b) Adopt a stormwater management utility fee ordinance.
Sec. 7. (1) A stormwater management plan must include all of the following:
(a) A designated period of time, not less than 5 years, within which the local unit of government must review and update the plan as necessary.
(b) The service area of the stormwater management utility.
(c) A general description of the stormwater management services that will be provided by the stormwater management utility.
(d) A determination of the properties that will be subject to a stormwater management utility fee, a description of the process and method used to make that determination, and the process and method for determining the addition or subtraction of properties that will be subject to stormwater management utility fees.
(e) The method of calculating the stormwater management utility fee.
(f) A description of how a property owner may obtain a reduction or elimination of a stormwater management utility fee.
(g) A description of the process by which a property owner can appeal the amount of a stormwater management utility fee.
(h) Any other information that the local unit of government determines is relevant.
(2) Before adopting a proposed plan or an amendment to an existing plan, the local unit of government must hold at least 1 public hearing on the proposed plan or amendments to an existing plan. The local unit of government shall provide notice of the date, time, and location of the public hearing and the times and locations where a physical copy of the proposed plan or amendments to an existing plan may be reviewed by the public. The notice must contain a statement that the purpose of the public hearing is to present and receive public comment on a proposed plan or amendments to an existing plan. Notice must be provided using 1 of the following methods:
(a) By publication, at least once, in a newspaper of general circulation in the area of the local unit of government.
(b) By posting a copy of the notice at the principal office of the local unit of government, and any other locations considered appropriate by the local unit of government, for not less than 30 days before the date of the public hearing.
(c) If the local unit of government maintains a website that is accessible to the public, by posting the notice on the website for not less than 30 days before the date of the public hearing.
Sec. 9. (1) A stormwater management utility may establish a stormwater management utility fee ordinance and charge a stormwater management utility fee for the use of a stormwater system and to recover the costs, both direct and indirect, of providing stormwater management services, including, but not limited to, operation, maintenance, administration, capital, or other related costs.
(2) The stormwater management utility fee under this section must be proportionate based on 1 or more methods generally accepted by licensed professional civil or environmental engineers, financial consultants familiar with municipal utility rate-setting practices, or regional or national professional groups associated with stormwater experts, such as the American Water Works Association, American Society of Civil Engineers, Water Environment Federation, or other similar organizations.
(3) As used in this section, "licensed professional civil or environmental engineer" means a professional engineer that is licensed under article 20 of the occupational code, 1980 PA 299, MCL 339.2001 to 339.2014.
Sec. 11. (1) A stormwater management utility that establishes a stormwater management utility fee must establish a stormwater enterprise fund. All stormwater management utility fees collected by a stormwater management utility must be deposited into the fund. The treasurer of the local unit of government may receive money or other assets from any other source for deposit into the fund. Money in the fund may be invested in accordance with applicable law or policies established by the local unit of government, as applicable. The treasurer shall credit to the fund interest and earnings from fund investments. Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund of the local unit of government.
(2) The treasurer of the local unit of government shall expend money from the fund only for the purposes of defraying the costs of the stormwater management utility.
(3) If the local unit of government maintains a website that is accessible to the public, the local unit of government shall post on its website the most recent annual comprehensive financial report of the local unit of government that includes the information regarding the fund.
Sec. 13. (1) A stormwater management utility fee ordinance that establishes a stormwater management utility fee must provide procedures for the reduction or elimination of the stormwater management utility fee for a property if a modification or improvement made to that property, or to that and 1 or more other properties, reduces the rate or volume, eliminates runoff, or limits pollutant loadings of stormwater entering the stormwater management system.
(2) Each property owner has the burden of demonstrating that the stormwater management utility fee reduction or elimination is justified for that property, using methods that are reasonably accurate considering available technology.
(3) A stormwater management utility fee ordinance adopted under this act must establish all of the following:
(a) A statement of billing cycles and due dates for stormwater management utility fees and remedies for delinquent stormwater management utility fees, including the assessment of interest charges and late fees.
(b) A provision that delinquent stormwater management utility fees, including interest charges and late fees, constitute a lien on any of the owner's property if stormwater services are provided and the stormwater management utility fees, including interest charges and late fees, remain delinquent for 3 months or more. The delinquent stormwater management utility fees, including interest charges and late fees, may be certified to the proper tax authority assessing officer or agency to be entered on the next tax roll against the property to which stormwater management services have been provided. The delinquent amount of the lien described under this subsection is collected in the same manner as taxes assessed on the tax roll. The time and manner of certification and other details regarding the collection of the delinquent amount and enforcement of the lien must be prescribed under this provision. A lien described under this subdivision is effective and has priority over all other liens and encumbrances except those filed or recorded before the date of the judgment only if notice of the lien is filed or recorded as required by state or federal law. A lien filed or recorded under this subdivision is terminated in accordance with the procedures required by state or federal law within 14 days after the delinquent amount is paid.
(c) Any other provisions determined necessary by the local unit of government.
(4) A local unit of government may collect a delinquent stormwater management utility fee by any method authorized by law.
(5) A partial payment of delinquent stormwater management utility fees must be applied to the oldest delinquent fees, and remaining fees may continue to accrue interest and late fees.
Sec. 15. (1) In addition to the requirements under section 13(3), a stormwater management utility fee ordinance adopted under this act must establish an appeals board and provide procedures for appeals of any stormwater management utility fee charged or determined under this act. The appeals procedures must include, at a minimum, all of the following:
(a) Any property owner liable for a stormwater management utility fee may appeal the determination that the property utilizes the stormwater management system or the amount of a stormwater management utility fee, including, but not limited to, a determination on a reduction or the elimination of the stormwater management utility fee under section 13. An appeal must be based on the quantity or quality of stormwater deposited into the stormwater management utility system, the reductions established, the reductions allocated, or any other matter relating to the determination or validity of the stormwater management utility fee.
(b) An appeal of a stormwater management utility fee must be brought in accordance with the stormwater management utility's prescribed process not more than 6 months after the challenged stormwater management utility fee was first billed.
(c) To prevail in an appeal of a stormwater management utility fee, the appellant must demonstrate, in accordance with the requirements of the stormwater management plan, that the property does not use the stormwater management utility system to the extent determined by the stormwater management utility in the calculation of that property's stormwater management utility fee from the applicable appeal date to the date that the appeal was resolved or that there was a mathematical error in the calculation.
(d) The sole remedy for a property owner that prevails in an appeal of a stormwater management utility fee is a recalculation of the stormwater management utility fee that was subject to the appeal. If the recalculated stormwater management utility fee is less than the amount of the stormwater management utility fee that was subject to the appeal, the property owner shall receive a refund or credit for any difference that was paid to the stormwater management utility. The stormwater management utility may provide a refund to a property owner for the difference that was paid if the property owner no longer owns the property and provides proof that the amount of the stormwater management utility fee that was subject to the appeal was paid.
(e) If, in an appeal of a stormwater management utility fee, the appeals board finds that the requirements of subdivision (c) have not been met, that finding is conclusive until the property is modified to either increase or decrease the utilization of the system in a manner that makes the property owner eligible for a reduction or elimination of the stormwater management utility fee under section 13.
(2) The property owner that files an appeal under this section has the burden of providing the appeals board with information necessary to support the appeal.
(3) A property owner may file an appeal of a determination of the appeals board with the circuit court in the county in which the owner's property is located.
(4) Notwithstanding any other provision of law, a property owner shall continue to pay an assessed stormwater management utility fee unless otherwise determined by a stormwater management utility.
Sec. 17. This act is construed as cumulative authority for the exercise of the powers granted to a local unit of government and does not repeal any existing laws or limit or preempt any existing powers or authorities of a local unit of government. This act does not require a local unit of government with a combined sewer system or separated storm sewer system to establish a stormwater management utility, or to otherwise comply with this act in order to assess a stormwater management utility fee. This act applies only to a stormwater management utility created by a local unit of government under this act on or after the effective date of this act.
Enacting section 1. This act takes effect 90 days after the date it is enacted into law.
