2003 Senate Bill 195

Introduced in the Senate

Feb. 18, 2003

Introduced by Sen. Laura Toy (R-6)

To require that the Detroit water and sewer system be governed by a regional assembly, with membership consisting of representatives from the communities using the system, and each community’s voting power determined by how much water/sewer service they use.

Referred to the Committee on Local, Urban, and State Affairs

March 4, 2003

Reported without amendment

With the recommendation that the substitute (S-4) be adopted and that the bill then pass.

March 5, 2003

Substitute offered

To replace the previous version of the bill with one which would not take over the Detroit water and sewer system’s board, but would subject its rate-setting decisions to a five-member oversight body similar to the state Public Service Commission which oversees price controls on utility rates. The new commission would have members appointed by the City of Detroit, and by Wayne, Oakland, Macomb, and Genesee Counties. It would approve or reject proposed rates, and provide other oversight functions. This bill prescribes the precise authority of the new commission, and House Bill 4206 creates the commission. The substitute was amended to require that local governments which add surcharges to the Detroit water and sewer fees must annually itemize those surcharges on the bills sent to individual customers.

The substitute passed by voice vote

March 6, 2003

Amendment offered by Sen. Gilda Jacobs (D-14)

To require that local governments which add surcharges to the Detroit water and sewer fees must itemize those surcharges on all bills sent to individual customers, rather than only doing so once a year. Also, to require the itemization to give the reasons why the additional charges are assessed.

The amendment failed 13 to 23 (details)

Amendment offered by Sen. Irma Clark-Coleman (D-3)

To prohibit local governments which purchase Detroit water or sewer service for their residents from adding a surcharge of more than 15 percent to the rate. Some municipalities add surcharges to pay for the expense of local systems which deliver the service to individual households, and to cover administrative or other expenses.

The amendment failed by voice vote

Amendment offered by Sen. Irma Clark-Coleman (D-3)

To prohibit local governments which purchase Detroit water or sewer service for their residents from adding a surcharge to the rate which is more than their actual costs. Some municipalities add surcharges to pay for the expense of local systems which deliver the service to individual households, and to cover administrative or other expenses.

The amendment failed 13 to 24 (details)

Amendment offered by Sen. Samuel B. Thomas (D-4)

To prohibit local governments which purchase Detroit water or sewer service for their residents from adding a surcharge to the rate which is more than their actual costs. Also, to subject these systems to independent audits.

The amendment failed 12 to 25 (details)

Amendment offered by Sen. Samuel B. Thomas (D-4)

To allow Detroit to cut off water and sewer service to suburban to suburban communities.

The amendment failed by voice vote

Amendment offered by Sen. Samuel B. Thomas (D-4)

To allow Detroit to cut off water and sewer service to suburban communities, and require those communities to pay off the existing debt of the water and sewer system.

The amendment failed 13 to 23 (details)

Passed in the Senate 23 to 14 (details)

To subject the water and sewer customer rate-setting decisions of the Detroit water and sewer system to a five-member oversight body similar to the state Public Service Commission (which oversees price controls on utility rates). The new commission would have members appointed by the City of Detroit, and by Wayne, Oakland, Macomb, and Genesee Counties. It would approve or reject proposed rates, and provide other oversight functions. Local governments which add surcharges to the Detroit water and sewer fees would be required to annually itemize those surcharges on the bills sent to individual customers. This bill prescribes the precise authority of the new commission, and House Bill 4206 creates the commission..

Received in the House

March 11, 2003

Referred to the Committee on Government Operations

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

March 12, 2003

Substitute offered

To replace the previous version of the bill with one which both prescribes the precise authority of the new commission, and creates the commission. The latter provision was previously contained in House Bill 4206. The tie-bar between that bill and this is also broken in the substitute.

The substitute passed by voice vote

Amendment offered by Rep. James Koetje (R-86)

To establish that any challenge to the constitutionality of the proposed law be filed and decided directly by the Court of Appeals, rather than first going through circuit court.

The amendment passed by voice vote

Passed in the House 63 to 41 (details)

To subject the water and sewer customer rate-setting decisions of the Detroit water and sewer system to a five-member oversight body similar to the state Public Service Commission (which oversees price controls on utility rates). The new commission would have members appointed by the City of Detroit, and by Wayne, Oakland, Macomb, and Genesee Counties. It would approve or reject proposed rates, and provide other oversight functions. Local governments which add surcharges to the Detroit water and sewer fees would be required to annually itemize those surcharges on the bills sent to individual customers. The House version of the bill both prescribes the precise authority of the new commission, and creates the commission. The latter provision was previously contained in House Bill 4206.

Received in the Senate

March 18, 2003

Passed in the Senate 22 to 15 (details)

To concur with the House-passed version of the bill.

Vetoed by Gov. Jennifer Granholm

March 26, 2003