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SENATE BILL NO. 950
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 12.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 12 1
MICHIGAN WATER TRUST FUND 2
Sec. 1201. (1) The waters of the state are of paramount public 3
concern and must be managed and protected for the benefit of the 4
people of this state and in the interest of promoting and 5
protecting the public health, safety, and general welfare. The 6
May 07, 2026, Introduced by Senator SINGH and referred to Committee on Natural Resources
and Agriculture.
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waters of the state constitute a public trust and must be protected 1
from pollution, impairment, and destruction. The public trust in 2
the waters of the state applies to the protection of the quantity 3
and quality of the water for public use, including, but not limited 4
to, drinking water, sustenance, health, fishing, swimming, boating, 5
and the reasonable use of water for domestic, agricultural, 6
commercial, industrial, public utility, and for other lawful uses 7
of water in connection with the ownership or occupancy of land. 8
(2) The obligation to manage the waters of the state in the 9
public interest is the express duty of the legislature under 10
sections 51 and 52 of article IV of the state constitution of 1963 11
and must not be ceded to any other entity. This subsection does not 12
prohibit the legislative delegation of authority to manage the 13
waters of the state to a public entity consistent with the 14
requirements of the state constitution of 1963. 15
Sec. 1203. As used in this part: 16
(a) "Board" means the Michigan water trust fund board created 17
in section 1209. 18
(b) "Bottled drinking water" means water that is packaged in 19
sealed containers for human consumption and may come from a variety 20
of sources, including springs, aquifers, icebergs, or municipal tap 21
water supplies, and that contains no added ingredients, except safe 22
and suitable antimicrobial agents. 23
(c) "Department" means the department of environment, Great 24
Lakes, and energy. 25
(d) "Federal poverty level" means the poverty guidelines 26
published annually in the Federal Register by the United States 27
Department of Health and Human Services under its authority to 28
revise the poverty line under 42 USC 9902. 29
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(e) "Fund" means the Michigan water trust fund created in 1
section 1205. 2
(f) "Local health department" means that term as defined in 3
section 1105 of the public health code, 1978 PA 368, MCL 333.1105. 4
(g) "Local unit of government" means a county, township, city, 5
or village. 6
(h) "Public water supply" means that term as defined in 7
section 2 of the safe drinking water act, 1976 PA 399, MCL 8
325.1002. 9
(i) "Waters of the state" means that term as defined in 10
section 3101. 11
Sec. 1205. (1) The Michigan water trust fund is created in the 12
state treasury. The state treasurer may receive royalties collected 13
by the department under section 17a of the safe drinking water act, 14
1976 PA 399, MCL 325.1017a, and money or other assets from any 15
other source for deposit into the fund. The state treasurer shall 16
direct the investment of the fund and credit to the fund interest 17
and earnings from fund investments. The state treasurer has the 18
same authority to invest the assets of the fund that is granted to 19
an investment fiduciary under the public employee retirement system 20
investment act, 1965 PA 314, MCL 38.1132 to 38.1141. Money in the 21
fund at the end of the fiscal year remains in the fund and does not 22
lapse to the general fund. 23
(2) By January 1, 2027, and by each January 1 thereafter, the 24
department shall prepare a report that contains an accounting of 25
revenues and expenditures from the fund. The department shall 26
provide the report to the senate and house of representatives 27
appropriations committees and the standing committees of the senate 28
and house of representatives with jurisdiction over issues 29
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pertaining to natural resources and the environment. The report 1
must identify all of the following: 2
(a) The interest and earnings of the fund from the previous 3
fiscal year. 4
(b) The cumulative total amount of unexpended interest and 5
earnings held by the fund. 6
(c) The investment performance of the fund during the previous 7
fiscal year. 8
(d) The total amount of appropriations from the fund during 9
the previous year. 10
(3) Not more than 70% of annual fund revenues may be expended 11
until the accumulated principal of the fund reaches 12
$800,000,000.00. After this target is reached, the accumulated 13
principal of the fund must not be less than $750,000,000.00 or more 14
than $1,500,000,000.00. 15
Sec. 1207. (1) The department shall create and administer a 16
grant program to address water infrastructure and accessibility. 17
Revenues, interest, and earnings from the fund must be used to 18
administer the fund and provide grants under the program for any of 19
the following purposes: 20
(a) Grants to local units of government or nonprofit 21
organizations to ensure that residents of this state who experience 22
a water emergency do not have to pay for bottled drinking water to 23
meet domestic water needs. 24
(b) Grants to local units of government to address lead 25
service line replacement. 26
(c) Grants to local health departments to provide water 27
testing for residents of this state that are reliant on private 28
wells. 29
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(d) Grants to local health departments for the administration 1
and implementation of on-site wastewater regulations. 2
(e) Grants to public water supplies, water authorities, or 3
similar entities to assist residential customers whose gross 4
monthly income is 200% or less of the federal poverty level, so 5
that the residential customers receive a continuous supply of water 6
to meet domestic water needs. 7
(f) Grants to local units of government for water 8
infrastructure projects that improve water quality, provide access 9
to safe and affordable water, and help prepare for flood 10
resilience. 11
(2) The department shall develop a detailed application, 12
approval, and compliance process for the program that is made 13
available on the department's website. The department shall 14
promulgate rules under the administrative procedures act of 1969, 15
1969 PA 306, MCL 24.201 to 24.328, to implement this section. 16
Sec. 1209. (1) The Michigan water trust fund board is created 17
within the department to review grant applications received under 18
section 1207 and make recommendations to the department on projects 19
that should receive grant funding under the program. 20
(2) The board must consist of the following members: 21
(a) The director of the department. 22
(b) Six members appointed by the governor, with the advice and 23
consent of the senate, who have experience with local units of 24
government, water infrastructure projects, or water management. 25
(3) Members of the board appointed under subsection (2)(b) 26
shall serve for terms of 4 years or until a successor is appointed, 27
except that of the members first appointed, 1 shall serve for 1 28
year, 1 shall serve for 2 years, 1 shall serve for 3 years, and 3 29
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shall serve for 4 years. 1
(4) The members first appointed to the board shall be 2
appointed not later than 90 days after the effective date of the 3
amendatory act that added this part. 4
(5) If a vacancy occurs on the board, an individual shall be 5
appointed in the same manner as the original appointment to fill 6
the vacancy for the balance of the term. 7
(6) The governor may remove a member of the board for 8
incompetence, dereliction of duty, malfeasance, misfeasance, or 9
nonfeasance in office, or any other good cause. 10
(7) Not later than 120 days after the effective date of the 11
amendatory act that added this part, the governor shall call the 12
first meeting of the board. At the first meeting, the board shall 13
elect from among its members a chairperson and other officers as 14
necessary and appropriate. Except as otherwise provided in this 15
subsection, after the first meeting, the board shall meet at least 16
bimonthly, or more frequently at the call of a chairperson, or if 17
requested by the department. 18
(8) A majority of the members of the board constitutes a 19
quorum for the transaction of business at a meeting of the board. A 20
majority of the members present and serving is required for 21
official action of the board. 22
(9) The business that the board may perform must be conducted 23
at a public meeting of the board held in compliance with the open 24
meetings act, 1976 PA 267, MCL 15.261 to 15.275. 25
(10) A writing prepared, owned, used, in the possession of, or 26
retained by the board in the performance of an official function is 27
subject to the freedom of information act, 1976 PA 442, MCL 15.231 28
to 15.246. 29
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(11) Members of the board shall serve without compensation. 1
However, members of the board may be reimbursed for actual and 2
necessary expenses incurred in the performance of the official 3
duties as members of the board. 4
Enacting section 1. This amendatory act does not take effect 5
unless Senate Bill No. 951 of the 103rd Legislature is enacted into 6
law. 7