HB-4520, As Passed House, December 8, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 4520

A bill to amend 1972 PA 348, entitled

"An act to regulate relationships between landlords and tenants

relative to rental agreements for rental units; to regulate the

payment, repayment, use and investment of security deposits; to

provide for commencement and termination inventories of rental

units; to provide for termination arrangements relative to rental

units; to provide for legal remedies; and to provide penalties,"

by amending the title and section 1 (MCL 554.601), section 1 as

amended by 1995 PA 79, and by adding sections 1d, 1e, 1f, and 1g.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to regulate relationships between landlords and tenants

relative to rental agreements for rental units; to provide for the

responsibilities of landlords and tenants for the control of

certain pests in rental units; to regulate the payment, repayment,

use and investment of security deposits; to provide for

commencement and termination inventories of rental units; to

provide for termination arrangements relative to rental units; to

provide for legal remedies; and to provide penalties.

Sec. 1. As used in this act:

(a) "Accredited canine team" means a handler and dog team

certified by an independent organization according to commonly

accepted industry standards for entomological scent detection.

(b) "Bedbug" means an insect of the species Cimex lectularius.

vacuuming, conducting thermal remediation, properly disposing of

property, and arranging or scheduling treatments.

(d) "Infestation" means and "infested" refers to the presence

of live bedbugs or viable bedbug eggs.

(e) "Landlord" means any of the following:

(i) The owner, lessor, or sublessor of the rental unit or the

property of which it is a part.

(ii) A person authorized to exercise any aspect of the

management of a rental unit or the property of which it is a part,

including a person who, directly or indirectly, acts as a rental

agent or receives rent, other than as a bona fide purchaser,

whether or not that person has an obligation to deliver the rent

payments to another person.

(f) "Pest management professional" means a commercial

applicator as defined in section 8302 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.8302, who is

licensed under section 8313 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.8313.

(g) "Rental agreement" means an agreement that establishes or

modifies the terms, conditions, or other provisions concerning the

use and occupancy of a rental unit.

(h) ~~(a)~~ "Rental unit" means a structure or part of a structure

used as a home, residence, or sleeping unit by a single person or

household unit, or any grounds, or other facilities or area

promised for the use of a residential tenant and includes, but

without limitation, apartment units, boarding houses, rooming

houses, mobile home spaces, and single and 2-family dwellings.

~~(b) "Rental agreement" means an agreement that establishes or~~

~~modifies the terms, conditions, rules, regulations, or any other~~

~~provisions concerning the use and occupancy of a rental unit.~~

~~(c) "Landlord" means the owner, lessor, or sublessor of the~~

~~rental unit or the property of which it is a part and, in addition,~~

~~means a person authorized to exercise any aspect of the management~~

~~of the premises, including a person who, directly or indirectly,~~

~~acts as a rental agent, receives rent, other than as a bona fide~~

~~purchaser, and who has no obligation to deliver the receipts to~~

~~another person.~~

~~(d) "Tenant" means a person who occupies a rental unit for~~

~~residential purposes with the landlord's consent for an agreed upon~~

~~consideration.~~

(i) ~~(e)~~ "Security deposit", subject to subdivision (j), means

a deposit, in any amount, paid by the tenant to the landlord or his

or her agent to be held for the term of the rental agreement, or

any part of the term, and includes ~~any~~ all of the following:

(i) Any required prepayment of rent other than the first full

rental period of the lease agreement. ~~; any~~

(ii) Any sum required to be paid as rent in any rental period

in excess of the average rent for the term. ~~; and any~~

(iii) Any other amount of money or property returnable to the

tenant on condition of return of the rental unit by the tenant in

condition as required by the rental agreement.

(j) "Security deposit" does not include either of the

following:

(i) An amount paid for an option to purchase, pursuant to a

lease with option to purchase, unless it is shown the intent was to

evade this act.

(ii) An amount paid as a subscription for or purchase of a

membership in a cooperative housing association incorporated under

the laws of this state. As used in this subparagraph, "cooperative

housing association" means a consumer cooperative that provides

dwelling units to its members.

(k) ~~(f)~~ "Senior citizen housing" means housing for individuals

62 years of age or older that is subsidized in whole or in part

under any local, state, or federal program.

(l) "Tenant" means a person who occupies a rental unit for

residential purposes with the landlord's consent for an agreed-upon

consideration.

(m) "Thermal remediation" means using intense temperature to

eradicate bedbugs.

(n) "Treatment" means applying pesticides or other chemicals,

or other methods common to the pest control industry, to eradicate

bedbugs.

Sec. 1d. (1) A landlord shall not enter into a rental

agreement if the landlord knows or has reason to know that the

rental unit is infested.

(2) A landlord shall maintain the landlord's rental premises

free from bedbugs.

(3) Within 7 days after receiving written or electronic notice

from a tenant or other reliable source of a suspected infestation

in the tenant's rental unit, the landlord shall order an inspection

of the rental unit for bedbugs by a pest management professional or

accredited canine team. If an infestation of a rental unit is

confirmed, the landlord shall order an inspection of the adjoining

rental units.

(4) Within 7 days after an infestation in a rental unit is

confirmed by an inspection under subsection (3), the landlord shall

begin control. If treatment is necessary, the landlord shall employ

a pest management professional for that purpose.

Sec. 1e. (1) If a rental unit is free from bedbugs, the tenant

shall maintain the rental unit free from bedbugs. A tenant shall

not move items that are infested into a rental unit.

(2) A tenant shall inspect a rental unit for infestation when

the tenant first occupies the rental unit.

(3) If a tenant suspects that the tenant's rental unit is

infested, the tenant shall notify the landlord in writing or by

electronic notification within 2 days.

(4) A tenant shall do both of the following:

(a) Grant reasonable access to the rental unit to the landlord

and the landlord's pest management professional for inspection,

control, and treatment.

(b) Grant reasonable access to the rental unit to an

accredited canine team for inspection and follow-up.

landlord or the landlord's pest management professional.

(5) A violation of subsection (4) constitutes a serious and

continuing health hazard.

(6) A tenant shall not treat a rental unit.

Sec. 1f. (1) If a tenant or the tenant's guest causes an

infestation, the tenant shall pay the cost of control and treatment

for the rental unit and other areas where bedbugs have spread. The

cost shall be considered additional rent owed by the tenant and may

be deducted from the tenant's security deposit.

(2) Except in the case of negligence, a landlord that complies

with the requirements of section 1d is not liable for damages

arising from an infestation or from control or treatment.

(3) Notwithstanding any other provision of this act, the

landlord and tenant may agree in writing how responsibility is

assigned for control, treatment, and any other costs associated

with an infestation.

(4) In determining whether the landlord or a tenant is

responsible for an infestation in a rental unit, a court shall

consider the totality of the circumstances. The tenant is not

responsible for damages unless a court determines he or she caused

the infestation.

Sec. 1g. (1) Except as provided in subsection (2), a county or

municipality shall not adopt or enforce an ordinance that imposes

requirements on landlords or tenants for control or treatment and

that extends, revises, or conflicts with section 1d, 1e, or 1f.

(2) Subsection (1) does not prohibit the adoption of an

ordinance imposing requirements for the proper disposal of items

that are infested with bedbugs.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.