Michigan Senate Bill SB0254

Michigan 2025-2026 Regular Session

• Introduced: 4/23/25
• Refer: 4/23/25

Caption

Public utilities: other; transfer of utility to tenant; provide for. Amends sec. 1 of 1939 PA 178 (MCL 123.161) & adds sec. 4a. TIE BAR WITH: SB 0253'25

Impact

The implementation of SB 254 is expected to have significant implications for both tenants and landlords. Tenants will gain improved access to water and sewage services, as they will no longer be dependent solely on landlords to maintain utility accounts. By ensuring that tenants can take responsibility for their utilities, the bill promotes greater accountability and fairness in housing arrangements. Furthermore, this may also lead to increased competition among utility providers catering to tenants directly, which could ultimately enhance service quality.

Summary

Senate Bill 254 aims to amend Michigan's Public Act 178 of 1939, which governs the collection of water and sewage system rates and assessments. The bill introduces a new provision, specifically Section 4a, which mandates that if a community water provider receives a request from a tenant (defined as a lessee under the applicable tenant law), they are required to approve that request. This change is designed to give tenants more control over their utility services, allowing them to directly request utility service transfers from landlords or landlords' names to their own.

Contention

While proponents of SB 254 advocate for tenants' rights and autonomy in managing utility services, some concerns have been raised about the potential implications for landlords and utility providers. Critics argue that the law may place additional burdens on landlords, particularly those who manage multiple properties. There are fears that the bill could inadvertently lead to misunderstandings between landlords and tenants regarding utility responsibilities, potentially increasing disputes in landlord-tenant relationships. Additionally, utility providers may need to adjust their operating procedures to accommodate new tenant requests, which could introduce complexities in service delivery.