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HB 5188

Drains: other; assessment and expenditure limits; increase. Amends sec. 196 of 1956 PA 40 (MCL 280.196).

2023-2024 Regular Session Introduced by Bob Bezotte and 12 co-sponsors

Raises per-mile drain maintenance limit to $10,000 (from $5,000), indexes it to CPI, and increases insufficient-fund thresholds, allowing more annual spending without petitions.

assigned PA 237'24
#drains:districts #drains:financing #drains:maintenanceandimprovement #drains:other
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Bill Summary · HB 5188

Summary — HB 5188 (Public Act 237 of 2024)

Amends section 196 of the Drain Code (1956 PA 40; MCL 280.196)

Main purpose

Increase statutory per‑mile limits for annual drain maintenance expenditures and emergency/insufficiency assessments, and require those per‑mile limits to be indexed annually to a Michigan Consumer Price Index (CPI). The changes are intended to give drain commissioners and drainage boards greater ability to maintain drains without undergoing the longer petition process.

Key provisions

  • Raises the per‑mile annual no‑petition expenditure limit for maintenance and repair from $5,000 to $10,000 per mile (or fraction of a mile).
    • This limit excludes inspection, engineering, legal, publication, and mailing costs.
    • The maximum is computed on the total length of the drain, not only the portion actually worked on.
    • Costs incurred under this section may be financed and assessed for up to 10 years.
  • Indexing: Beginning January 1, 2025, the State Treasurer must annually adjust the $10,000 figure to reflect the cumulative percentage change in the Michigan CPI since January 1, 2024, and report the adjusted amount to the Michigan Department of Agriculture & Rural Development (MDARD). MDARD must post and maintain the adjusted amount on its public website.
  • Increases the thresholds that trigger limited assessments when a drainage fund is "insufficient":
    • The "insufficient fund" threshold is increased from less than $5,000 per mile to less than $10,000 per mile.
    • When a drainage fund is below that threshold, the commissioner/board may assess the district up to $5,000 per mile in a single year (previously $2,500).
  • Other existing constraints remain: additional expenditures beyond the per‑mile limit generally require approval by governing bodies of townships/cities/villages affecting more than 20% of the cost (or a public corporation may request and pay the full cost). Emergency declarations remain an exception.

Who is affected

  • Property owners in drainage districts (assessments are allocated by benefit).
  • Local units and public corporations (e.g., county road commissions, MDOT) that may be assessed; increased caps could raise assessment amounts.
  • Drain commissioners and drainage boards (gain greater authority to undertake maintenance without petition).
  • MDARD and State Treasurer (administrative duties to publish/index amounts).

Fiscal and policy notes

  • Nonpartisan fiscal analyses indicate the bill could increase assessment costs to property owners and some local units (negative fiscal impact for some), though the drain commission itself is a local government and broader government net effect is expected to be neutral. The Department of Treasury incurred no fiscal impact.
  • Supporters argued current limits were outdated (last updated 2009) and constrained timely maintenance; indexing addresses inflationary increases.

Procedural/timeline

  • Introduced Oct. 24, 2023 (Rep. Amos O’Neal).
  • Passed House (with substitute H‑2) June 20, 2024; passed Senate Dec. 11, 2024.
  • Approved by Governor Jan. 17, 2025; filed with Secretary of State Jan. 17, 2025.
  • Assigned Public Act No. 237 of 2024; effective April 2, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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