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SB 950

Natural resources: trust fund; Michigan water trust fund; provide for. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding pt. 12. TIE BAR WITH: SB 0951'26

2025-2026 Regular Session Introduced by Sam Singh

Creates a Michigan Water Trust Fund with a governing board to finance water infrastructure, safety, and access, plus grant programs and reporting.

REFERRED TO COMMITTEE ON NATURAL RESOURCES AND AGRICULTURE
#naturalresources:trustfund #watersupply:conservation
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Bill Summary · SB 950

Summary of SB 950 (2025-2026) – Michigan

Purpose and intent

  • Establishes the Michigan Water Trust Fund and a governing board to finance water infrastructure, accessibility, and related public health needs.
  • Frames water as a public trust of paramount importance to residents’ health, safety, and welfare, with the legislature retaining responsibility for managing the waters of the state.

Key provisions and changes

  • Creation of the Michigan Water Trust Fund (Sec. 1205):

    • Fund to be created in the state treasury. The state treasurer may receive:
    • Royalties collected by the department under the Safe Drinking Water Act.
    • Money or assets from any other source for deposit into the fund.
    • Investment and earnings: The treasurer directs investments; interest and earnings accrue to the fund.
    • End-of-year treatment: Balances do not lapse to the general fund; retained in the fund.

  • Annual reporting (Sec. 1205(2)):

    • By January 1, 2027, and annually thereafter, the department must report:
    • Interest/earnings from the prior year.
    • Cumulative unexpended interest/earnings.
    • Investment performance for the prior year.
    • Total appropriations from the fund during the prior year.
    • Reports to legislative appropriations committees and natural resources/environment committees.

  • Expenditure limits and safeguards (Sec. 1205(3)):

    • Until the fund’s accumulated principal reaches $800,000,000, no more than 70% of annual revenues may be expended.
    • After reaching $800,000,000, the principal must stay within a target range of $750,000,000 to $1,500,000,000.

  • Grant program and eligible uses (Sec. 1207):

    • The department will create a grant program funded by the fund for:
    • Emergencies: grants to prevent bottled water purchases for residents in water emergencies.
    • Lead service line replacement.
    • Water testing for private wells (via local health departments).
    • On-site wastewater regulation administration/implementation (via local health departments).
    • Assistance for low-income residential customers (gross income ≤ 200% of federal poverty level) to ensure continuous water supply.
    • Water infrastructure projects improving water quality, access to safe and affordable water, and flood resilience.
    • A detailed application, approval, and compliance process will be developed and rules promulgated under the Administrative Procedures Act.

  • Board governance (Sec. 1209):

    • Establishes the Michigan Water Trust Fund Board within the department to review grant applications and advise on funding.
    • Composition: 1 department director + 6 gubernatorial appointees (with Senate consent) with experience in local government, water infrastructure, or water management.
    • Terms: 4-year terms for most appointees; staggered terms for the initial appointments (1, 2, 3, and three 4-year terms).
    • Meeting and operations: First meeting within 120 days of enactment; regular meetings at least every two months; quorum and decision rules; open meetings compliance; records subject to FOIA.
    • Compensation: Board members serve without pay but may be reimbursed for reasonable expenses.
    • Staffing and procedure: Public meeting requirements for board actions and transparent processes.

Affected parties and impact

  • Local governments and nonprofits: eligible grant recipients for water-related projects and emergency drinking water measures.
  • Public health entities (local health departments): funding for water testing and wastewater regulation administration.
  • Water utilities and customers, especially low-income households: potential relief to maintain continuous water service and support for lead service line replacements.
  • General public: recognition of water as a state public trust; enhanced capacity to address water quality, infrastructure, and flood resilience.
  • State government: creation of a dedicated fund and board alters budgeting and fund management for water resources.

Procedural and timeline notes

  • Enacting section: The act takes effect only if SB 951 is enacted.
  • Administrative implementation: Department to develop grant program rules and application processes; board to be formed and begin operations within specified timeframes after enactment.
  • Initial reporting requirement: first annual fund report due January 1, 2027.

Overall, SB 950 would create a dedicated Michigan Water Trust Fund with governance and grant programs aimed at protecting water quality, expanding access to safe water, addressing lead contamination, and increasing flood resilience, while preserving the fund’s principal balance and ensuring public accountability through regular reporting.

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

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