Bill Text: MI HB4035 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Housing; landlord and tenants; provision in lease to waive right to a jury trial; allow. Amends sec. 3 of 1978 PA 454 (MCL 554.633).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-01-22 - Printed Bill Filed 01/22/2015 [HB4035 Detail]

Download: Michigan-2015-HB4035-Introduced.html

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HOUSE BILL No. 4035

January 21, 2015, Introduced by Rep. Forlini and referred to the Committee on Judiciary.

 

     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 not include a provision

 

that does 1 or more of the following:

 

     (a) Waives or alters a remedy available to the parties when if

 

the premises are in a condition that violates the covenants of

 

fitness and habitability required pursuant to under section 39 of

 

1846 RS 84, 66, MCL 554.139.

 

     (b) Provides that the parties waive a right established by

 

1972 PA 348, MCL 554.601 to 554.616, which 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 to a notice or procedure required by law in a

 

judicial proceeding arising under the rental agreement. This

 

subdivision does not prohibit a waiver of the right to trial by

 

jury.

 

     (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 ensure

 

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.

 

     (2) A rental agreement shall 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 provision or clause of a rental agreement that violates

 

this section is void.