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HB 4821

Local government: water and sewer; regulation of certain drainage fees; provide for. Amends 1968 PA 2 (MCL 141.421 - 141.440a) by adding sec. 13b.

2025-2026 Regular Session Introduced by Cam Cavitt and 7 co-sponsors

Michigan bill clarifies local government authority to regulate and impose drainage fees on properties, affecting water utility costs and municipal infrastructure funding mechanisms.

bill electronically reproduced 08/26/2025
#localgovernment:financing #localgovernment:waterandsewer #stateagencies(existing):treasury #watersupply:systemsandutilities
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Bill Summary · HB 4821

Legislative bill overview

HB 4821 amends Michigan's water and sewer regulations by adding a new section (13b) to the 1968 Public Act 2, specifically addressing how local governments can regulate and charge drainage fees. The bill appears designed to clarify or modify the authority and procedures local governments use when imposing drainage-related fees on property owners.

Why is this important

Drainage fees are a significant cost for property owners and businesses, particularly in areas prone to flooding or with aging stormwater infrastructure. How these fees are structured, approved, and implemented directly affects household utility bills and business operating costs. Clarifying or changing the rules around these fees could make the process more transparent, more restrictive, or shift financial burdens between different property classes.

Potential points of contention

  • Scope of authority: Whether local governments should have broad discretion to impose drainage fees or whether the bill restricts/expands that authority, and how this affects municipal budgets for water infrastructure
  • Fee assessment methodology: How drainage fees are calculated and whether certain properties (agricultural, residential, commercial) should be treated differently, which could shift costs between taxpayer groups
  • Notice and appeal rights: Whether property owners receive adequate notice and opportunity to challenge drainage fees, balancing due process concerns against municipal revenue needs

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

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