WeVote
Log In

Bill

NA

Bill

HB 5171

Local government: public services; water lien on residential property; prohibit. Creates new act & repeals 1939 PA 178 (MCL 123.161 - 123.167).

2025-2026 Regular Session Introduced by Noah Arbit and 15 co-sponsors

Michigan bill repeals 1939 law allowing municipalities to place water service liens on residential properties, restricting local government debt collection authority.

bill electronically reproduced 10/30/2025
#liens:other #localgovernment:publicservices #watersupply:other
0
WeVote Research Nonpartisan
Bill Summary · HB 5171

Legislative bill overview

HB 5171 would repeal Michigan's 1939 Public Act 178, which currently allows municipalities to place liens on residential properties for unpaid water bills and other public service charges. The bill creates a new act to replace this framework, fundamentally changing how local governments can collect unpaid water debts from homeowners.

Why is this important

Water liens are a significant enforcement tool for municipalities struggling with water bill non-payment, which can affect system operations and costs for paying customers. Eliminating this collection mechanism could impact local government revenue, water system maintenance funding, and how debt recovery is pursued—potentially shifting costs to other ratepayers or requiring alternative collection strategies.

Potential points of contention

  • Municipal revenue impact: Cities and villages may lose a critical enforcement tool for collecting unpaid water bills, potentially reducing municipal budgets for water infrastructure maintenance
  • Debt collection alternatives: Unclear what replacement mechanisms the new act provides; without strong alternatives, unpaid debt may accumulate with limited recourse
  • Inequitable burden shift: If municipalities cannot collect from non-payers, costs may be absorbed by compliant customers through higher rates, creating fairness concerns
  • Homeowner protections vs. system sustainability: Debate over whether protecting homeowners from property liens outweighs municipalities' need to ensure water system financial stability

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

Sign in to ask a question.