MI HB4821

Municipalities imposing drainage fees generating over $10,000,000 annually or 5% of their general fund budget (whichever is less) must create segregated accounts for those revenues, which cannot be commingled with other funds

Drainage fee revenues can only be spent on costs directly related to stormwater or drainage services, including infrastructure maintenance, engineering studies, and personnel primarily dedicated to stormwater management

Affected municipalities must publish annual reports detailing fee revenues, itemized expenditures, methodology for calculating fees, and any surplus or deficit, followed by a public hearing for community input

The Department of Treasury must conduct random audits of at least 5% of affected municipalities annually, and must audit any municipality upon receiving a petition signed by 1% of registered voters

Penalties include written warnings for first violations, fines of $50,000 or 1% of drainage fee revenue for second violations within 3 years, and suspension of drainage fee authority for third violations; willful misclassification to evade voter approval requires refunds to all affected payers