December 1, 2015, Introduced by Reps. Chang, Garrett, Plawecki, Neeley, Rutledge, Brunner, Derek Miller, Talabi, Chirkun, Liberati, Brinks, Cochran, Byrd, Robinson, Pagan, Geiss, Gay-Dagnogo, Banks, Darany, Sarah Roberts, Yanez, Irwin, Hoadley, Wittenberg, Guerra, Greig, Callton, Phelps, Love, LaVoy, Santana, Lucido, Moss, Townsend and Tedder and referred to the Committee on Local Government.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding sections 14m, 14n, 14o, and 14p.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 14m. As used in this section and sections 14n to 14p:
(a) "Eligible customer" means a provider's customer whose
household income does not exceed 200% of the federal poverty
guidelines or who meets any of the following requirements:
(i) Has received assistance from a state emergency relief
program within the past year.
(ii) Receives food assistance under the federal Supplemental
Nutrition Assistance Program administered by the state.
(iii) Receives medical assistance administered this act.
(iv) Receives any other form of federal or state public
assistance.
(b) "Nonaffordability affidavit" means the nonaffordability
affidavit provided to an individual under section 3 of the water
shutoff protection act.
(c) "Provider" means any water and sewerage system that
provides water or sewerage service in this state.
(d) "Task force" means the task force created in section 14o.
(e) "Water rate affordability program" or "WRAP" means the
water rate affordability program created in section 14n.
Sec. 14n. (1) The water rate affordability program is created
within the department to address reduction or retiring of water and
sewerage bill arrearages and to ensure that an eligible customer's
monthly water and sewerage bill is based on the eligible customer's
household income. The department shall develop and administer the
water rate affordability program created under this act.
(2) Not later than 30 days after the department receives a
signed nonaffordability affidavit, the department shall complete an
income eligibility review to determine if the individual meets the
eligibility requirement for the water rate affordability program.
The department shall determine eligibility for the water rate
affordability program through the same process by which it
determines eligibility for cash assistance under this act.
(3) In addition to any other verification of income accepted
by the department, the department may accept a federal income tax
return as documentation of income. When applicable, the department
shall use publicly available information regarding standard benefit
amounts for supplemental security income and temporary assistance
for needy families. An applicant has no obligation to provide
confirmation of the amount of benefits he or she receives from
supplemental security income and temporary assistance to needy
families.
(4) Eligibility for the water rate affordability program in
all cases requires a showing of financial hardship or an inability
to pay a provider for services rendered. An applicant who
demonstrates a monthly income that does not exceed 200% of the
federal poverty guidelines as determined by the department has
satisfied this eligibility requirement.
(5) If, upon the department's determination of the
individual's household income, the department finds that the
individual is an eligible customer, the department shall provide
that information, as well as the eligible customer's household
income, to the eligible customer's provider. Upon receipt of the
information from the department under this subsection, the eligible
customer's provider shall charge the eligible customer a rate that
is affordable based on the eligible customer's household income as
determined by the department. Alternatively, the department may
provide a subsidy to the eligible customer based on the
department's determination of the eligible customer's household
income.
(6) The department shall inform the individual of the
determination of whether or not he or she is an eligible customer.
If the individual is an eligible customer, the department shall
provide him or her with information regarding the water rate
affordability program and the rate to be charged by the provider.
Sec. 14o. (1) Not later than 30 days after the effective date
of the amendatory act that added this section, the department shall
create a water rate affordability program task force.
(2) The department director shall appoint members of the task
force that include, but are not limited to, representatives of
providers and water and sewerage customer advocacy groups.
(3) The task force shall do all of the following:
(a) Discuss, and advise the department on, best practices for
administering the water rate affordability program.
(b) By no later than March 1, 2016, create a plan for the
water rate affordability program that is based on household income,
that addresses water and sewerage bill arrearages, and that
includes, but is not limited to, WRAP funding and coordination of
voluntary check-off contributions with providers. This plan shall
be implemented by the department no later than October 1, 2016.
Sec. 14p. (1) The water rate affordability program fund is
created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund, including, but not limited
to, money received from a voluntary checkoff on water and sewerage
bills as provided in the water shutoff protection act. The state
treasurer shall direct the investment of the fund. The state
treasurer shall credit to the fund interest and earnings from fund
investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall expend money from the fund, upon
appropriation, only for 1 or more of the following purposes:
(a) Administration of the water rate affordability program.
(b) Providing of a subsidy to eligible customers as determined
necessary by the department.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. ____ (request no.
02050'15) of the 98th Legislature is enacted into law.