Bill Summary – FastDemocracy

HOUSE BILL NO. 5766
     May 30, 2024, Introduced by Reps. Brenda Carter, Wilson, Weiss, Price, O'Neal, Hope, Morgan
       and Tsernoglou and referred to the Committee on Economic Development and Small Business.
          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 sections 3, 9, 10, 11, 12, and 13 (MCL 554.603,
609, 554.610, 554.611, 554.612, and 554.613).
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 3. A landlord shall not require a security deposit unless
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 he the landlord notifies the tenant no later than 14 days from the
 date a tenant assumes possession in a written instrument of the
 landlord's name, and address, for receipt of communications email
 address, cellular telephone number, or any other means of receiving
 written communication under this act, the name and address of the
 financial institution or surety required by section 4, and the
 tenant's obligation to provide in writing a forwarding mailing
 address, an email address, a cellular telephone number, or any
 other means of receiving written communication to the landlord
 within 4 days after termination of occupancy. The notice shall must
 include the following statement in 12 point boldface type which
 that is at least 4 points larger than the body of the notice or
 lease agreement: "You must notify your landlord in writing within 4
 days after you move of a forwarding mailing address, an email
 address, a cellular telephone number, or any other means of
 receiving written communication where you can be reached and where
 you will receive mail, email, text messages, or written
 communication; otherwise your landlord shall be is relieved of
 sending you an itemized list of damages and the penalties adherent
 to that failure." Failure to provide the information relieves the
 tenant of his the tenant's obligation relative to notification of
 notify the landlord of his the tenant's forwarding mailing address,
 email address, cellular telephone number, or any other means of
 receiving written communication.
       Sec. 9. (1) In case of damage to the rental unit or other
 obligation against the security deposit, the landlord shall mail
 send to the tenant, within 30 15 days after the termination of
 occupancy, a notice of damages that contains an itemized list of
 damages claimed for which the security deposit may be used as
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 provided in section 7, including the estimated cost of repair of
 each property damaged item and the amounts and bases on which he
 the landlord intends to assess the tenant. The list shall The
 notice of damages must include the following statement in 12 point
 boldface type that must be at least 4 points larger than the body
 of the notice: "You must respond to this notice by mail, email, or
 text message, within 7 days after receipt of the notice, otherwise
 you will forfeit the amount claimed for damages.".
       (2) The notice of damages required under subsection (1) must
 be sent to the tenant in a manner reasonably calculated to give
 actual notice of damages claimed for which the security deposit may
 be used as provided in section 7, including, but not limited to,
 any of the following:
       (a) By ordinary mail.
       (b) By email. For purposes of this subdivision, the landlord
 must ensure that the notice of damages is sent to an email address
 that the tenant provided to the landlord or previously used to
 communicate with the landlord.
       (c) In any other manner of transmitting written communication
 that the landlord has previously used to communicate with the
 tenant and the tenant has previously accepted, or that the tenant
 has notified the landlord is a manner of contacting the tenant. The
 manner of transmitting written communication under this subdivision
 includes, but is not limited to, text messages on a wireless 2-way
 communication device.
       (3) Either of the following applies to a notice of damages
 sent pursuant to subsection (1):
       (a) If a landlord sends the notice of damages to a tenant by
 ordinary mail, the notice of damages must be accompanied by a check
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 or money order for the difference between the damages claimed and
 the amount of the security deposit held by the landlord and shall
 must not include any damages that were claimed on a previous
 termination inventory checklist prior to the tenant's occupancy of
 the rental unit. The notice of damages shall include the following
 statement in 12 point boldface type which shall be at least 4
 points larger than the body of the notice: "You must respond to
 this notice by mail within 7 days after receipt of same, otherwise
 you will forfeit the amount claimed for damages.".
       (b) If a landlord sends the notice of damages by any means
 described in subsection (2)(b) or (c), the landlord shall send the
 check or money order described under subdivision (a) by ordinary
 mail to the tenant within 7 days after sending the notice of
 damages to the tenant.
       Sec. 10. Failure by the landlord to comply with the notice of
 damages requirement within the 30 15 days after the termination of
 occupancy , constitutes agreement by the landlord that no damages
 are due and he that the landlord shall immediately remit to the
 tenant immediately the full security deposit to the tenant.
       Sec. 11. The tenant shall notify the landlord in writing at
 the address, email address, cellular telephone number, or any other
 means of receiving written communication given under section 4 3
 within 4 days after termination of his the tenant's occupancy of an
 a forwarding mailing address, an email address, a cellular
 telephone number, or any other means of receiving written
 communication at which communications pursuant to this act may be
 received under this act. Failure to comply with this requirement
 relieves the landlord of the requirement of notice of damages but
 does not prejudice a tenant's subsequent claim for the security
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 deposit.
       Sec. 12. (1) If a landlord claims damages to a rental unit and
 gives notice of damages as required, the tenant upon receipt of the
 list of damages shall respond by ordinary mail to the address
 provided by the landlord as required by section 3 within 7 days,
 indicating in detail his the tenant's agreement or disagreement to
 the damage charges listed. For the purposes of this section the
 date of mailing shall be considered the date of the tenant's
 response.
       (2) The written response required under subsection (1) must be
 made in a manner reasonably calculated to give actual notice of the
 tenant's agreement or disagreement to the damage charges listed to
 the landlord, including, but not limited to, any of the following:
       (a) By ordinary mail. For purposes of this subdivision, the
 date of the mailing is considered the date of the tenant's
 response.
       (b) By email. For purposes of this subdivision, the tenant
 must ensure that the written response is sent to an email address
 that the landlord provided to the tenant or previously used to
 communicate with the tenant.
       (c) By personal delivery of the written response to the
 landlord, signed by the landlord, and of which the tenant retains a
 copy or image.
       (d) In any other manner of transmitting written communication
 that the tenant has previously used to communicate with the
 landlord and the landlord has previously accepted, or that the
 landlord has notified the tenant is a manner of contacting the
 landlord. The manner of transmitting written communication under
 this subdivision includes, but is not limited to, text messages on
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 a wireless 2-way communication device.
       Sec. 13. (1) Within 45 days after termination of the occupancy
 and not thereafter after the 45 days, the landlord may commence an
 action in a court of competent jurisdiction for a money judgment
 for damages which he has claimed that the landlord claims or in
 lieu thereof return the balance of the security deposit held by him
 the landlord to the tenant or any amount mutually agreed upon in
 writing by the parties. A landlord shall is not be entitled to
 retain any portion of a security deposit for damages claimed unless
 he has any of the following apply:
       (a) The landlord first obtained obtains a money judgment for
 the disputed amount. or filed
       (b) The landlord files with the court satisfactory proof of an
 inability to obtain service on the tenant. or unless:
       (c) (a) The tenant has failed to provide a forwarding mailing
 address, an email address, a cellular telephone number, or any
 other means of receiving written communication as required by under
 section 11.
       (d) (b) The tenant has failed to respond to the notice of
 damages as required by under section 12.
       (e) (c) The parties have agreed in writing to the disposition
 of the balance of the deposit claimed by the landlord.
       (d) The amount claimed is entirely based upon accrued and
 unpaid rent equal to the actual rent for any full rental period or
 portion thereof during which the tenant has had actual or
 constructive possession of the premises.
       (2) This section does not prejudice a landlord's right to
 retain any security deposit funds as satisfaction or partial
 satisfaction of a money judgment obtained pursuant to summary
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 proceedings filed pursuant to under chapter 57 of Act No. 236 of
 the Public Acts of 1961, as amended, being sections 600.5701 to
 600.5759 of the Compiled Laws of 1948 the revised judicature act of
 1961, 1961 PA 236, MCL 600.5701 to 600.5759, or other proceedings
 at law. Failure of the landlord to comply fully with this section
 constitutes waiver of all claimed damages and makes him the
 landlord liable to the tenant for double the amount of the security
 deposit retained.
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Statutes affected: 
House Introduced Bill: 554.603