Local government: water and sewer; regulation of certain drainage fees; provide for. Amends 1968 PA 2 (MCL 141.421 - 141.440a) by adding sec. 13b.

HB 4821 requires Michigan municipalities imposing drainage fees that generate over $10 million annually or 5% of their general fund budget to create separate, segregated accounts for those revenues. The bill mandates that these funds cannot be mixed with general funds, must be spent only on direct drainage-related services (like infrastructure maintenance or stormwater management), and requires annual public reports detailing revenue, expenditures, fee proportionality, and account balances. Municipalities must also hold public hearings on these reports and face fines or suspension of fee collection for violations. The law aims to increase transparency and prevent municipalities from misclassifying drainage fees as non-tax revenue to avoid voter approval requirements.