November 09, 2023, Introduced by Senators BAYER, CHANG, IRWIN, GEISS, SHINK and HERTEL and referred to the Committee on Housing and Human Services.

A bill to amend 1978 PA 454, entitled

"Truth in renting act,"

by amending sections 2 and 3 (MCL 554.632 and 554.633), section 3 as amended by 1998 PA 72.

the people of the state of michigan enact:

Sec. 2. As used in this act:

(a) "Rent" means the amount paid under a rental agreement for the use or occupancy of a rental unit. Beginning on the effective date of the amendatory act that added this subdivision, rent includes the cost of providing essential services to a tenant that are necessary for the use or occupancy of a rental unit. For purposes of this subdivision, essential services that are necessary for use and occupancy of a rental unit include heat, safe and clean hot and cold running water, sewer, electric, gas service, safe and operable plumbing and sewerage systems, ventilation, electrical, drainage, roofing systems, trash removal, pest and vermin control, snow removal, lawn care, locks for exterior doors, latches for windows, and cooking appliances or a refrigerator that is supplied by the landlord and is in compliance with applicable federal, state, and local safety standards.

(b) (a) "Rental agreement" means a written agreement embodying that incorporates the terms and conditions concerning the use and occupancy of residential premises, but does not include an agreement the terms of which are limited to 1 or more of the following: the

(i) The identity of the parties. , a

(ii) A description of the premises. , the

(iii) The rental period. , the

(iv) The total rental amount due. , the

(v) The amount of rental payments. , and the

(vi) The times at which that payments are due.

(c) (b) "Residential premises" means a house, building, structure, shelter, or mobile home, or portion thereof, of the house, building, structure, shelter, or mobile home, used as a dwelling, home, residence, or living place by 1 or more human beings. "Residential premises" individuals. Residential premises includes an apartment unit, a boardinghouse, a rooming house, a mobile home, a mobile home space, and a single or multiple family single- or multiple-family dwelling, but does not include a hotel, a motel, motor home, or other tourist accommodation, when used as a temporary accommodation for guests or tourists, or premises used as the principal place of residence of the owner and rented occasionally during temporary absences including vacation or sabbatical leave.

Sec. 3. (1) A rental agreement shall must not include a provision that does 1 or more of the following:

(a) Waives or alters a remedy available to the parties when the premises are in a condition that violates the covenants of fitness and habitability required pursuant to under section 39 of 1846 RS 84, MCL 554.139.

(b) Provides that the parties waive a right established by 1972 PA 348, MCL 554.601 to 554.616 , which that regulates security deposits.

(c) Excludes or discriminates against a person in violation of the Elliott-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to 37.2804, or the persons with disabilities civil rights act, 1976 PA 220, MCL 37.1101 to 37.1607.

(d) Provides for a confession of judgment by a party.

(e) Exculpates the lessor from liability for the lessor's failure to perform, or negligent performance of, a duty imposed by law. This subdivision does not apply to a provision that releases a party from liability arising from loss, damage, or injury caused by fire or other casualty for which insurance is carried by the other party, under a policy that permits waiver of liability and waives the insurer's rights of subrogation, to the extent of any recovery by the insured party under the policy.

(f) Waives or alters a party's right to demand a trial by jury or any other right of notice or procedure required by law in a judicial proceeding arising under the rental agreement.

(g) Provides that a party is liable for legal costs or attorney's fees incurred by another party, in connection with a dispute arising under the rental agreement, in excess of costs or fees specifically permitted by statute.

(h) Provides for the acquisition by the lessor of a security interest in any personal property of the tenant to assure payment of rent or other charges arising under the rental agreement, except as specifically allowed by law.

(i) Provides that rental payments may be accelerated if the rental agreement is breached by the tenant, unless the provision also includes a statement that the tenant may not be liable for the total accelerated amount because of the landlord's obligation to minimize damages, and that either party may have a court determine the actual amount owed, if any.

(j) Waives or alters a party's rights with respect to possession or eviction proceedings provided in section 2918 of the revised judicature act of 1961, 1961 PA 236, MCL 600.2918, or with respect to summary proceedings to recover possession as provided in chapter 57 of the revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to 600.5759.

(k) Releases a party from a duty to mitigate damages.

(l) Provides that a lessor may alter a provision of the rental agreement after its commencement without the written consent of the tenant, or, in the case of a rental agreement between a consumer cooperative that provides housing and a member of the consumer cooperative, without the approval of the board of directors of the cooperative or other appropriate body elected by members who are also tenants of the cooperative, except that an agreement may provide for the following types of adjustments to be made upon on written notice of not less than 30 days:

(i) Changes required by federal, state, or local law or rule or regulation.

(ii) Changes in rules relating to the property that are required to protect the physical health, safety, or peaceful enjoyment of tenants and guests.

(iii) Changes in the amount of rental payments to cover additional costs in operating the rental premises incurred by the lessor because of increases in ad valorem property taxes, charges for the electricity, heating fuel, water, or sanitary sewer services consumed at the property, or increases in premiums paid for liability, fire, or worker compensation insurance.

(m) Violates the Michigan consumer protection act, 1976 PA 331, MCL 445.901 to 445.922.

(n) Requires the tenant to give the lessor a power of attorney.

(o) Except as otherwise provided in subsection (3), imposes a charge or fee that is any of the following:

(i) Not reasonable.

(ii) Not connected to any of the following:

(A) A nonessential service that is provided to the tenant at the tenant's option and is directly and primarily beneficial to the tenant.

(B) The tenant's failure to meet a lawful obligation under the rental agreement.

(iii) Connected to a service provided to a tenant by a third party.

(iv) For a tenant's failure to provide notice of nonrenewal of a rental agreement that is greater than 1 month.

(v) For a tenant's payment of rent after its due date and any grace period that exceeds the lesser of $30.00 or 3% of the rent.

(vi) For a lawful method a tenant uses to pay rent or other charges or fees.

(p) Imposes a charge or fee to the length of tenancy after the initial term.

(q) Applies a tenant's payment to the tenant's rental obligation only after it is applied to other charges or fees.

(r) Requires arbitration of any existing or subsequent controversy or dispute that arises under the rental agreement.

(s) Prohibits a tenant from paying rent or other charges or fees by a lawful method.

(2) A rental agreement shall must not include a clause or provision that, not less than 90 days before the execution of the rental agreement, has been prohibited by statute or declared unenforceable by a published decision of the supreme court of this state or the United States supreme court relating to the law of this state.

(3) A landlord may require a tenant to arrange and pay for a service provided by a public utility to the tenant for the tenant's rental unit. The landlord shall not impose any additional cost or surcharge for any service provided by a public utility to a tenant. As used in this subsection, "public utility" means that term as defined in section 1 of 1972 PA 299, MCL 460.111.

(4) (3) A provision or clause of a rental agreement that violates this section is void.