HB 4790 Summary

• Establishes the "Regional Water and Sewer Alliance Act" to create regional water and sewer alliances as state agencies with powers to own, operate, and maintain water supply and sewage disposal systems serving more than 20% of Michigan's population.

• Creates a 9-member board of directors appointed by the mayor and city council of the largest served city, the governor, and county executives, with 4-year terms and meetings required at least monthly.

• Grants alliances broad powers including construction and maintenance of water/sewage facilities, eminent domain authority (following 1980 PA 87), contracting with governments and private entities, and issuing revenue bonds payable from system revenues with terms up to 50 years.

• Authorizes alliances to finance operations through rates, charges, special assessments, grants, loans, and revenue bonds, while prohibiting tax levies except for pledging existing tax proceeds returned to the alliance by contract.

• Requires local units of government to retain ownership and control of municipal water distribution and sewage collection systems until January 1, 2018, when the alliance assumes exclusive control; alliance property is exempt from all state and local taxes.