NOTICE OF DAMAGE TO RENTAL PROP. S.B. 539 (S-1):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 539 (Substitute S-1 as reported)
Sponsor: Senator Sarah Anthony
Committee: Housing and Human Services
CONTENT
The bill would amend the landlord-tenant Act to specify that a landlord would not have to
send a check to a tenant with the difference between a tenant's security deposit and the
damages claimed against the security deposit as currently required by the Act if the landlord
instead sent the difference to the tenant's bank account through direct deposit or electronic
transfer or to the tenant through an internet or mobile payment application. The landlord
would have to send the amount within 10 days of mailing the required notice of damages
claimed against a tenant's security deposit.
MCL 554.609
BRIEF RATIONALE
Currently, landlords must return the difference in claimed damages and the amount of the
security deposit by a check or money order. According to testimony before the Senate
Committee on Housing and Human Services, digital transactions are an increasingly popular
and safe way to transfer funds, and often a recipient will have access to digitally transferred
funds sooner than funds received by check or money order. It has been suggested to allow a
landlord to transfer the difference through direct deposit or electronic transfer or to the tenant
through an internet or mobile payment application.
PREVIOUS LEGISLATION
(This section does not provide a comprehensive account of previous legislative efforts on this subject matter.)
The bill is similar to House Bill 6148 of the 2021-2022 Legislative Session.
Legislative Analyst: Eleni Lionas
FISCAL IMPACT
The bill would have no fiscal impact on State or local government
Date Completed: 5-23-24 Fiscal Analyst: Elizabeth Raczkowski
floor\sb539 Bill Analysis @ www.senate.michigan.gov/sfa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not
constitute an official statement of legislative intent.


Statutes affected:
Substitute (S-1): 554.609
Senate Introduced Bill: 554.609
As Passed by the Senate: 554.609