SB 373

SENATE BILL NO. 373
A bill to amend 1978 PA 454, entitled
"Truth in renting act,"
by amending section 3 (MCL 554.633), as amended by 1998
PA 72.
the people of the state of michigan enact:
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 attorney 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) Imposes an additional charge or fee on all methods for the payment
of rent allowed under the lease agreement. For purposes of this subdivision, if
a rental agreement allows for more than 1 method for the payment of rent, the
rental agreement must have a provision that allows at least 1 method for the
payment of rent to be used without the tenant incurring an additional charge or
fee.
(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 Supreme Court relating to the law of this state.
(3) A provision or
clause of a rental agreement that violates this section is void.