2003 House Bill 4206

Give suburbs majority on Detroit Water Board

Introduced in the House

Feb. 12, 2003

Introduced by Rep. Leon Drolet (R-33)

To require that the Detroit water and sewer system be governed by a regional assembly, with membership consisting of representatives from each of 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 Government Operations

Feb. 20, 2003

Reported without amendment

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

Feb. 25, 2003

Substitute offered

To replace the previous version of the bill with one which would not replace 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 substitute passed by voice vote

Amendment offered by Rep. Tupac Hunter (D-9)

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

The amendment failed 25 to 75 (details)

Amendment offered by Rep. Triette Reeves (D-10)

To place all municipal water and sewer systems in Michigan under the proposed rate commission, not just Detroit's.

The amendment failed by voice vote

Passed in the House 71 to 37 (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. The new commission could approve or reject proposed rates, and provide other oversight functions. This bill creates the new commission, and Senate Bill 195 prescribes its precise authority.

Received in the Senate

Feb. 26, 2003

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

March 4, 2003

Reported without amendment

With the recommendation that the bill pass.

March 6, 2003

Amendment offered by Sen. Burton Leland (D-5)

To allow Detroit to annex any local community which procures sewer and water service from the city's system.

The amendment failed by voice vote

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

To tie bar the bill to Senate Bill 195, which prescribes the precise authority of the proposed oversight commission.

The amendment failed by voice vote

Substitute offered by Sen. Laura Toy (R-6)

To replace the House-passed version of the bill with one which places the proposed commission under the state Freedom of Information Act.

The substitute passed by voice vote

Substitute offered by Sen. Michael Switalski (D-10)

To replace the previous version of the bill with one which would not create the oversight commission, but instead would allow non-Detroit communities to name their own three members to the existing Detroit Water Board, rather than submitting a list of nominees with the final choice made by the Detroit mayor, as under current law. The substitute would also make the system's rate structure public (an issue which has been the subject of contentious FOIA lawsuits), and make it possible for non-Detroit communities to leave the system without penalty.

The substitute failed 13 to 22 (details)

Passed in the Senate 23 to 12 (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 creates the new commission, and Senate Bill 195 prescribes its precise authority. In a subsequent vote, the bill did not garner the two-thirds majority required to give it "immediate effect," meaning the earliest it could go into effect is March of 2004.

Received in the House

March 25, 2003

Referred to the Committee on Government Operations

Sept. 15, 2004

Reported without amendment

With the recommendation that a substitute be adopted giving Wayne, Oakland, Macomb and Genesee counties a majority on the board, and giving the Michigan Public Service Commission an oversight role.

Sept. 22, 2004

Substitute offered

To replace the previous version of the bill with one that gives suburbs majority on Detroit Water Board, and places its rate setting decisions under the state Public Service Commission.

The substitute passed by voice vote

Amendment offered

To apply the provisions of the bill to all municipal water systems, not just Detroit's.

The amendment failed 26 to 71 (details)

Passed in the House 55 to 44 (details)

To establish a seven-member oversight authority for the Detroit water and sewer system. The new authority would have three members appointed by the City of Detroit, one each from Oakland, Macomb, Genesee Counties, and one appointed by the five largest non-Detroit cities in Wayne County. Also, the system's water rate-setting decisions would have to be approved by the Michigan Public Service Commission.

Received in the Senate

Sept. 23, 2004