HOUSE BILL No. 5199

 

 

December 12, 2013, Introduced by Reps. Schor, Darany, Singh, Callton, LaVoy, Durhal, Segal, Cavanagh, Knezek and Haines and referred to the Committee on Judiciary.

 

     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), as amended by

 

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

 

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; to provide civil sanctions; and to

 

provide penalties.

 

     Sec. 1. As used in this act:

 

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

 

     (b) "Bedbug infestation" or "infestation" means the presence

 

of bedbugs or signs of their presence. "Infested with bedbugs" or

 

"infested" has a corresponding meaning.

 

     (c) "Control measures" means any of the following:

 

     (i) Scheduling or otherwise arranging for treatment.

 

     (ii) Performing treatment.

 

     (d) "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 the premises, including a person who, directly or

 

indirectly, acts as a rental agent or receives rent, other than as

 

a bona fide purchaser, and who has no obligation to deliver the

 

receipts to another person.

 

     (e) "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.

 

     (f) "Preparation measures" means all of the following:

 

     (i) Providing access to the rental unit for inspections for

 

bedbugs and treatment.

 


     (ii) Proper disposal of property that is infested but not

 

suitable for control measures.

 

     (iii) Proper disposal of waste.

 

     (iv) Cleaning, vacuuming, moving furniture, and otherwise

 

preparing the interior of the rental unit for an inspection or

 

treatment.

 

     (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" 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 required prepayment of rent other than the first full

 

rental period of the lease agreement; any sum required to be paid

 

as rent in any rental period in excess of the average rent for the

 

term; and 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. 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.

 

     (j) (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.

 

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

 

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

 

consideration.

 

     (l) "Treatment" means measures to eradicate bedbugs, including,

 

but not limited to, chemical, pesticide, temperature, or trapping

 


methods. "Treat" has a corresponding meaning.

 

     Sec. 1d. (1) Within 5 days after receiving written or oral

 

notice from a tenant that a rental unit may have a bedbug

 

infestation, the landlord shall conduct an inspection of the rental

 

unit for bedbugs.

 

     (2) If an inspection reveals that a rental unit is infested

 

with bedbugs, the landlord shall within 7 days contact a pest

 

management professional to arrange for the prompt inspection of

 

adjoining rental units for bedbugs and prompt control measures. The

 

landlord shall provide reasonable assistance with inspection and

 

control measures as directed by the pest management professional.

 

     (3) A landlord shall not offer for rent a rental unit that the

 

landlord knows or suspects is infested.

 

     (4) Before renting a rental unit, a landlord shall disclose to

 

a prospective tenant whether the rental unit or any adjoining

 

rental unit has been treated for bedbugs in the past 180 days.

 

     (5) Upon request from a tenant or prospective tenant of a

 

rental unit, a landlord shall disclose the last date or dates on

 

which the rental unit and any adjoining rental units were inspected

 

for an infestation and whether the rental unit or units were found

 

to be free of infestation.

 

     (6) A landlord shall offer reasonable assistance to a tenant

 

who is not able to perform preparation measures required under

 

section 1e. If the landlord proposes to charge for the reasonable

 

assistance, the landlord shall disclose to the tenant an estimate

 

of the amount the landlord will charge and obtain and disclose at

 

least 1 estimate for the same assistance from an unaffiliated third

 


party. After making this disclosure, the landlord may provide

 

financial or other assistance requested by the tenant for

 

preparation measures. The landlord may charge the tenant a

 

reasonable amount for any such assistance not exceeding the

 

estimated amount, subject to a reasonable repayment schedule, not

 

to exceed 6 months, unless an extension is otherwise agreed to by

 

the landlord and the tenant.

 

     Sec. 1e. (1) A tenant shall promptly notify a landlord if the

 

tenant knows of or suspects an infestation of bedbugs in the

 

tenant's rental unit.

 

     (2) Upon receiving reasonable notice, a tenant shall grant the

 

landlord, the landlord's agent, or the landlord's pest control

 

agent and its employees access to the rental unit for purposes of

 

an inspection or control measures. Twenty-four hours' notice is

 

presumed to be reasonable for purposes of this subsection and

 

subsection (3). The notice shall include reasons for and the scope

 

of the request for access to the rental unit. The initial

 

inspection shall include only a visual inspection and manual

 

inspection of the tenant's bedding and upholstered furniture.

 

However, the pest management professional and its employees may

 

inspect items other than bedding and upholstered furniture if such

 

an inspection is considered reasonable by the pest management

 

professional. If the pest management professional finds bedbugs in

 

the rental unit or in an adjoining unit, the pest management

 

professional and its employees may have additional access to the

 

tenant's personal property in the rental unit as determined

 

reasonable by the pest management professional considering standard

 


practices in the pest management industry.

 

     (3) Upon receiving reasonable notice, a tenant shall perform

 

reasonable preparation measures as set forth by the landlord and

 

the pest management professional.

 

     Sec. 1f. (1) A violation of section 1d or 1e by a landlord is

 

a violation of the covenant under section 39(1)(b) of 1846 RS 66,

 

MCL 554.139.

 

     (2) A landlord who violates section 1d or 1e is liable to the

 

tenant for $250.00 or actual damages, whichever is greater, plus

 

actual, reasonable attorney fees.

 

     (3) A local unit of government may adopt an ordinance to

 

prohibit a landlord from violating section 1d or 1e. A violation of

 

the ordinance is a municipal civil infraction. The ordinance shall

 

provide a civil fine of not more than $100.00 per day for a

 

violation.

 

     (4) If a tenant fails to comply with reasonable requests for

 

preparation measures as set forth in sections 1d and 1e, the

 

landlord may bring an action against the tenant in circuit court

 

for the protection of the rental property or other tenants. The

 

landlord may bring the action on his or her own behalf or, upon

 

written authority, on behalf of an aggrieved tenant, or on behalf

 

of both. The court may order injunctive relief or award damages to

 

a plaintiff for losses suffered as a direct result of the tenant's

 

failure to comply with reasonable requests for preparation measures

 

as set forth in sections 1d and 1e. The court may issue a temporary

 

order for interim relief. If the court issues an order granting the

 

landlord access to the premises, the order shall provide that the

 


landlord shall not enter the premises until at least 24 hours have

 

elapsed after the order is served upon the tenant.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 97th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. ____ or House Bill No. ____ (request no.

 

02116'13).

 

     (b) Senate Bill No. ____ or House Bill No. ____ (request no.

 

02664'13).

 

     (c) Senate Bill No. ____ or House Bill No. ____ (request no.

 

03143'13).