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SB 249

Human services: services or financial assistance; low-income water residential affordability program task force; create. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 14q. TIE BAR WITH: SB 0248'25, SB 0250'25, SB 0252'25

2025-2026 Regular Session Introduced by Rosemary Bayer and 7 co-sponsors

Senate Bill 249 establishes a task force to ensure low-income households in Michigan pay no more than 3% of their income on water bills, enhancing water affordability.

REFERRED TO COMMITTEE OF THE WHOLE
#humanservices:servicesorfinancialassistance #publicutilities:consumerservices #stateagencies(existing):healthandhumanservices #watersupply:systemsandutilities
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Bill Summary · SB 249

Summary of Senate Bill 249

Bill Number: SB 249
Title: Human services: services or financial assistance; low-income water residential affordability program task force; create.
Introduced: April 23, 2025
Status: Referred to Committee of the Whole
Classification: Bill
Subject Areas: Human services, Public utilities, State agencies, Water supply

Purpose and Intent

Senate Bill 249 aims to establish a Low-Income Water Residential Affordability Program (Program) in Michigan to ensure that low-income households do not pay more than 3% of their income on water bills. The bill seeks to create a task force that will oversee the implementation and administration of this affordability program, ensuring equitable access to water services for vulnerable populations.

Key Provisions

  • Task Force Creation: The Department of Health and Human Services (DHHS) is required to create a Water Residential Affordability Program Task Force within 30 days of the bill's effective date. This task force will include representatives from various sectors, including:

    • Water providers of different sizes
    • Consumer advocacy groups
    • Community action agencies
    • Municipal governments
    • Environmental groups

  • Responsibilities of the Task Force:

    • Advise the DHHS on best practices for administering the affordability program.
    • Develop guidance for the program within nine months of the bill's enactment.
    • Collaborate with the DHHS to create educational materials about the program.
    • Seek additional funding sources and explore ways to expand the program.

  • Funding Distribution: The DHHS will work with the Department of Treasury (DoT) to distribute funds from the Low-Income Water Residential Affordability Fund (Fund) to water providers. This funding will cover the difference between customers' actual bills and the discounted rates provided through the affordability program.

  • Plumbing Repairs: The bill mandates that funds be allocated for necessary plumbing repairs for eligible households, ensuring that low-income residents can maintain access to safe and reliable water services.

Impact

  • Affected Populations: The bill primarily targets low-income households, specifically those with incomes up to 200% of the Federal Poverty Guidelines (FPL). It aims to alleviate the financial burden of water bills on these households.

  • Fiscal Considerations: The establishment of the affordability program is expected to have significant fiscal implications, including the creation of a funding mechanism through a monthly fee on water meters. The Fund is projected to reach approximately $71.2 million within the first 18 months, which will be used for administrative costs, bill discounts, and arrearage payments.

  • Implementation Timeline: The task force must develop guidance and the DHHS is required to implement the program within 18 months of the bill's effective date.

Conclusion

Senate Bill 249 represents a significant step towards addressing water affordability issues for low-income residents in Michigan. By creating a structured program and task force, the bill aims to ensure that all residents have access to affordable water services while also providing necessary support for plumbing repairs. The collaborative approach involving various stakeholders is designed to enhance the effectiveness and reach of the program.

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

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