SENATE BILL NO. 1154 An act to prohibit landlords from requiring certain disclosures from certain applicants for rental units; to provide exceptions; to require the promulgation of rules; to provide remedies; to prescribe civil sanctions; and to provide for the powers and duties of certain state and local governmental officers and entities. the people of the state of michigan enact: Sec. 1. This act may be cited as the "Michigan fair chance access to housing act". Sec. 3. As used in this act: (a) "Applicant" means an individual that submits a rental application to rent or lease a rental unit. (b) "Arrest record" means information that indicates that an individual has been questioned, apprehended, taken into custody or detention, held for investigation, arrested, charged, indicted, or tried for any felony, misdemeanor, or other offense by a law enforcement agency. (c) "Background check report" means a report by a law enforcement agency, court, consumer reporting agency, or tenant screening agency regarding an applicant's criminal history. (d) "Bona fide purchaser" means a person that in good faith makes a purchase without notice of any outstanding rights of others. (e) "Conditional offer" means a written offer to rent or lease a rental unit made by the landlord to an applicant that is contingent on a subsequent inquiry into the applicant's criminal record. (f) "Criminal record" means information transmitted orally, in writing, or by any other means, and obtained from any source, including, but not limited to, the individual to whom the information pertains, a government agency, or a background check report, regarding any of the following: (i) A conviction. (ii) An arrest record. (iii) A sealed, dismissed, or vacated conviction. (iv) An expunged, voided, or invalidated conviction. (v) A conviction rendered inoperative by judicial action or by statute. (vi) A determination or adjudication in the juvenile justice system. (vii) A matter considered in or processed through the juvenile justice system. (viii) Participation in or completion of a diversion program. (ix) A deferral of a diversion program. (g) "Department" means the department of attorney general. (h) "Holding deposit" means a payment requested by a landlord during the application for a rental unit to reserve a rental unit for an applicant. (i) "Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that directly or indirectly acts as a rental agent, or receives rent, other than as a bona fide purchaser, and has no obligation to deliver the rent payments to another person. (j) "Law enforcement agency" means the police department of a city, township, or village, the sheriff's department of a county, the department, the department of state police, or any other governmental law enforcement agency of this state. (k) "Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single- and 2-family dwellings. Sec. 5. (1) After the receipt of an application for a rental unit from an applicant and the payment of an application fee by that applicant, a landlord may screen the applicant to determine whether the applicant satisfies all the application criteria. For purposes of this act, application criteria include, but are not limited to, income eligibility, rental history check, credit score check, pet restrictions qualification, or other application criteria. Application criteria do not include the evaluation or consideration of the applicant's criminal record. (2) A landlord must issue a conditional offer if, after screening the application, the landlord determines that the applicant satisfies all the application criteria described under subsection (1). Sec. 7. (1) Except as otherwise provided in this act, a federal law, or a state law, a landlord shall not, either before or after the issuance of a conditional offer, evaluate a rental application based solely on an applicant's criminal record. (2) Except as otherwise required under federal or state law, a landlord shall not print, circulate, post, mail, or otherwise cause to be published a statement, advertisement, notice, or sign that indicates that a rental application will be denied based solely or in part on an individual's criminal record. Sec. 9. (1) Except as otherwise provided in subsection (2), a landlord shall not do any of the following before issuing a conditional offer to an applicant: (a) Require an applicant to complete a rental application that includes an inquiry regarding the applicant's criminal record. (b) Make an oral or written inquiry for an applicant's criminal record. (2) Subsection (1) does not apply to an inquiry regarding criminal records that are required to be disclosed under a federal law. (3) Before accepting an application fee for a rental unit, a landlord shall disclose both of the following in writing to the applicant: (a) Whether the landlord's rental application screening process includes an evaluation or a consideration of the applicant's criminal record. (b) That if subdivision (a) applies, the applicant will be provided the opportunity to provide documentary evidence of any of the following: (i) Inaccuracies in the applicant's criminal record. (ii) The applicant's rehabilitation. (iii) Other mitigating factors. (4) After the issuance of a conditional offer to an applicant, a landlord may only consider a criminal record in the applicant's history that includes any of the following: (a) A conviction for arson or human trafficking under the Michigan penal code, 1931 Act 328, MCL 750.1 to 750.568. (b) Whether the applicant is an individual who has been convicted of criminal sexual conduct under section 520b, 520c, 520d, 520e, or 520g of the Michigan penal code, 1931 PA 328, MCL 750.520b, 750.520c, 750.520d, 750.520e, and 750.520g, and is required to register as a sex offender under the sex offenders registration act, 1994 PA 295, MCL 28.721 to 28.730. (c) Any other felony convictions not listed under subdivisions (a) and (b) that have been adjudicated within 3 years immediately preceding the date the conditional offer was issued. (5) A landlord may withdraw a conditional offer based solely on an applicant's criminal record under subsection (4), if the landlord determines that the withdrawal is necessary to fulfil a substantial, legitimate, and nondiscriminatory interest. In making the determination under this subsection, a landlord is required to conduct an individualized assessment of the applicant. A landlord shall do all of the following: (a) Notify the applicant in writing that an individualized assessment will be conducted. (b) Provide reasonable time for the applicant to provide mitigating evidence to support the individualized assessment. Mitigating evidence may include any of the following: (i) A written statement from a parole officer or a member of law enforcement explaining whether the applicant is rehabilitated. (ii) Documentary evidence that shows proof of employment or job readiness training. (iii) Documentation of participation in or completion of a substance use disorder treatment. (iv) Character references from past housing providers, employers, or other members of the community. (c) Consider all of the following factors: (i) The nature and severity of the criminal offense. (ii) The age of the applicant at the time of the occurrence of the criminal offense. (iii) The time that has elapsed since the occurrence of the criminal offense. (iv) Any information provided by the applicant or on the applicant's behalf about the applicant's rehabilitation and good conduct since the occurrence of the criminal offense. (v) Whether the criminal offense occurred on or was connected to a rental property that was rented or leased by the applicant. (vi) Whether the criminal offense has a direct and specific negative impact on the safety of other individuals or property. (6) If a landlord withdraws a conditional offer in accordance with subsection (5), the landlord must, within 24 hours after withdrawing the conditional offer, do all of the following: (a) Send a written document by mail or email to the applicant that does all of the following: (i) Informs the applicant of the withdrawal of the conditional offer, including the specific reasons for the withdrawal. (ii) Informs the applicant that the applicant has the right to file a complaint with the department. (iii) Informs the applicant that within 14 days of receiving the written document notifying the applicant of the withdrawal of the conditional offer, the applicant has the right to request, in writing, a copy of all the documents that the landlord relied on in making the determination to withdraw the conditional offer. (b) Return any application fee or holding deposit collected from the applicant. (7) If an applicant requests a copy of the documents that the landlord relied on in making the determination to withdraw the conditional offer, the landlord shall provide the documents requested, free of charge, within 10 days after receiving the request. Sec. 11. (1) A landlord that complies with this act is immune from liability in a civil action arising out of any of the following: (a) The landlord's decision to rent or lease to an individual with a criminal record or who was otherwise convicted of a criminal offense. (b) The landlord's failure to conduct a criminal background check. (2) A landlord shall not interfere with, restrain, or deny the exercise of or an attempt to exercise a right under this act. Sec. 13. The department may investigate a complaint that alleges a violation of this act and enforce this act under the Michigan consumer protection act, 1976 PA 331, MCL 445.901 to 445.922. Sec. 15. (1) A record submitted to or obtained by the department that contains the criminal record of an applicant is confidential unless disclosure is required under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. (2) The department shall retain a complaint and response filed under this act for at least 3 years. Sec. 17. (1) Not more than 90 days after the effective date of this act, the department shall create a form that contains all of the following information: (a) A summary of an applicant's rights under this act. (b) A list of legal resources that are available to an applicant who alleges that a landlord violated this act. (2) The department shall have copies of the form available in its office and make the form easily accessible on its website. (3) Beginning 30 days after the department creates the form required under subsection (1), all of the following apply: (a) The form must be attached as an addendum to a lease agreement provided to a tenant in this state. (b) The form must be attached to a rental application and must be signed or initialed by the applicant. (c) A landlord shall post the form in a common area on the rental property. As used in this subdivision, "common area" means a portion of a rental property that is generally accessible to all occupants of the rental property. Common area includes, but is not limited to, a hallway, stairway, laundry and recreational room, mailbox room, playground, community center, or garage. Sec. 19. The department may promulgate rules in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this act. Sec. 21. If any portion of this act or the application of this act to any person or circumstance is found to be invalid by a court, the invalidity does not affect the remaining portions or applications of this act that can be given effect without the invalid portion or application, if those remaining portions are not determined by the court to be inoperable. To this end, this act is declared to be severable. Sec. 23. This act must be liberally construed to effectuate its purpose, and the remedies provided are in addition to any other remedies provided by law. Sec. 25. This act does not apply to a landlord that does not conduct a criminal background check. Enacting section 1. This act does not take effect unless Senate Bill No. 1155 .____ or House Bill No.____ (request no. 06618'24) of the 102nd Legislature is enacted into law.
SENATE BILL NO. 1154
An act to prohibit landlords from requiring certain disclosures from certain applicants for rental units; to provide exceptions; to require the promulgation of rules; to provide remedies; to prescribe civil sanctions; and to provide for the powers and duties of certain state and local governmental officers and entities.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "Michigan fair chance access to housing act".
Sec. 3. As used in this act:
(a) "Applicant" means an individual that submits a rental application to rent or lease a rental unit.
(b) "Arrest record" means information that indicates that an individual has been questioned, apprehended, taken into custody or detention, held for investigation, arrested, charged, indicted, or tried for any felony, misdemeanor, or other offense by a law enforcement agency.
(c) "Background check report" means a report by a law enforcement agency, court, consumer reporting agency, or tenant screening agency regarding an applicant's criminal history.
(d) "Bona fide purchaser" means a person that in good faith makes a purchase without notice of any outstanding rights of others.
(e) "Conditional offer" means a written offer to rent or lease a rental unit made by the landlord to an applicant that is contingent on a subsequent inquiry into the applicant's criminal record.
(f) "Criminal record" means information transmitted orally, in writing, or by any other means, and obtained from any source, including, but not limited to, the individual to whom the information pertains, a government agency, or a background check report, regarding any of the following:
(i) A conviction.
(ii) An arrest record.
(iii) A sealed, dismissed, or vacated conviction.
(iv) An expunged, voided, or invalidated conviction.
(v) A conviction rendered inoperative by judicial action or by statute.
(vi) A determination or adjudication in the juvenile justice system.
(vii) A matter considered in or processed through the juvenile justice system.
(viii) Participation in or completion of a diversion program.
(ix) A deferral of a diversion program.
(g) "Department" means the department of attorney general.
(h) "Holding deposit" means a payment requested by a landlord during the application for a rental unit to reserve a rental unit for an applicant.
(i) "Landlord" means any of the following:
(i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part.
(ii) A person authorized to exercise any aspect of the management of the premises, including a person that directly or indirectly acts as a rental agent, or receives rent, other than as a bona fide purchaser, and has no obligation to deliver the rent payments to another person.
(j) "Law enforcement agency" means the police department of a city, township, or village, the sheriff's department of a county, the department, the department of state police, or any other governmental law enforcement agency of this state.
(k) "Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single- and 2-family dwellings.
Sec. 5. (1) After the receipt of an application for a rental unit from an applicant and the payment of an application fee by that applicant, a landlord may screen the applicant to determine whether the applicant satisfies all the application criteria. For purposes of this act, application criteria include, but are not limited to, income eligibility, rental history check, credit score check, pet restrictions qualification, or other application criteria. Application criteria do not include the evaluation or consideration of the applicant's criminal record.
(2) A landlord must issue a conditional offer if, after screening the application, the landlord determines that the applicant satisfies all the application criteria described under subsection (1).
Sec. 7. (1) Except as otherwise provided in this act, a federal law, or a state law, a landlord shall not, either before or after the issuance of a conditional offer, evaluate a rental application based solely on an applicant's criminal record.
(2) Except as otherwise required under federal or state law, a landlord shall not print, circulate, post, mail, or otherwise cause to be published a statement, advertisement, notice, or sign that indicates that a rental application will be denied based solely or in part on an individual's criminal record.
Sec. 9. (1) Except as otherwise provided in subsection (2), a landlord shall not do any of the following before issuing a conditional offer to an applicant:
(a) Require an applicant to complete a rental application that includes an inquiry regarding the applicant's criminal record.
(b) Make an oral or written inquiry for an applicant's criminal record.
(2) Subsection (1) does not apply to an inquiry regarding criminal records that are required to be disclosed under a federal law.
(3) Before accepting an application fee for a rental unit, a landlord shall disclose both of the following in writing to the applicant:
(a) Whether the landlord's rental application screening process includes an evaluation or a consideration of the applicant's criminal record.
(b) That if subdivision (a) applies, the applicant will be provided the opportunity to provide documentary evidence of any of the following:
(i) Inaccuracies in the applicant's criminal record.
(ii) The applicant's rehabilitation.
(iii) Other mitigating factors.
(4) After the issuance of a conditional offer to an applicant, a landlord may only consider a criminal record in the applicant's history that includes any of the following:
(a) A conviction for arson or human trafficking under the Michigan penal code, 1931 Act 328, MCL 750.1 to 750.568.
(b) Whether the applicant is an individual who has been convicted of criminal sexual conduct under section 520b, 520c, 520d, 520e, or 520g of the Michigan penal code, 1931 PA 328, MCL 750.520b, 750.520c, 750.520d, 750.520e, and 750.520g, and is required to register as a sex offender under the sex offenders registration act, 1994 PA 295, MCL 28.721 to 28.730.
(c) Any other felony convictions not listed under subdivisions (a) and (b) that have been adjudicated within 3 years immediately preceding the date the conditional offer was issued.
(5) A landlord may withdraw a conditional offer based solely on an applicant's criminal record under subsection (4), if the landlord determines that the withdrawal is necessary to fulfil a substantial, legitimate, and nondiscriminatory interest. In making the determination under this subsection, a landlord is required to conduct an individualized assessment of the applicant. A landlord shall do all of the following:
(a) Notify the applicant in writing that an individualized assessment will be conducted.
(b) Provide reasonable time for the applicant to provide mitigating evidence to support the individualized assessment. Mitigating evidence may include any of the following:
(i) A written statement from a parole officer or a member of law enforcement explaining whether the applicant is rehabilitated.
(ii) Documentary evidence that shows proof of employment or job readiness training.
(iii) Documentation of participation in or completion of a substance use disorder treatment.
(iv) Character references from past housing providers, employers, or other members of the community.
(c) Consider all of the following factors:
(i) The nature and severity of the criminal offense.
(ii) The age of the applicant at the time of the occurrence of the criminal offense.
(iii) The time that has elapsed since the occurrence of the criminal offense.
(iv) Any information provided by the applicant or on the applicant's behalf about the applicant's rehabilitation and good conduct since the occurrence of the criminal offense.
(v) Whether the criminal offense occurred on or was connected to a rental property that was rented or leased by the applicant.
(vi) Whether the criminal offense has a direct and specific negative impact on the safety of other individuals or property.
(6) If a landlord withdraws a conditional offer in accordance with subsection (5), the landlord must, within 24 hours after withdrawing the conditional offer, do all of the following:
(a) Send a written document by mail or email to the applicant that does all of the following:
(i) Informs the applicant of the withdrawal of the conditional offer, including the specific reasons for the withdrawal.
(ii) Informs the applicant that the applicant has the right to file a complaint with the department.
(iii) Informs the applicant that within 14 days of receiving the written document notifying the applicant of the withdrawal of the conditional offer, the applicant has the right to request, in writing, a copy of all the documents that the landlord relied on in making the determination to withdraw the conditional offer.
(b) Return any application fee or holding deposit collected from the applicant.
(7) If an applicant requests a copy of the documents that the landlord relied on in making the determination to withdraw the conditional offer, the landlord shall provide the documents requested, free of charge, within 10 days after receiving the request.
Sec. 11. (1) A landlord that complies with this act is immune from liability in a civil action arising out of any of the following:
(a) The landlord's decision to rent or lease to an individual with a criminal record or who was otherwise convicted of a criminal offense.
(b) The landlord's failure to conduct a criminal background check.
(2) A landlord shall not interfere with, restrain, or deny the exercise of or an attempt to exercise a right under this act.
Sec. 13. The department may investigate a complaint that alleges a violation of this act and enforce this act under the Michigan consumer protection act, 1976 PA 331, MCL 445.901 to 445.922.
Sec. 15. (1) A record submitted to or obtained by the department that contains the criminal record of an applicant is confidential unless disclosure is required under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(2) The department shall retain a complaint and response filed under this act for at least 3 years.
Sec. 17. (1) Not more than 90 days after the effective date of this act, the department shall create a form that contains all of the following information:
(a) A summary of an applicant's rights under this act.
(b) A list of legal resources that are available to an applicant who alleges that a landlord violated this act.
(2) The department shall have copies of the form available in its office and make the form easily accessible on its website.
(3) Beginning 30 days after the department creates the form required under subsection (1), all of the following apply:
(a) The form must be attached as an addendum to a lease agreement provided to a tenant in this state.
(b) The form must be attached to a rental application and must be signed or initialed by the applicant.
(c) A landlord shall post the form in a common area on the rental property. As used in this subdivision, "common area" means a portion of a rental property that is generally accessible to all occupants of the rental property. Common area includes, but is not limited to, a hallway, stairway, laundry and recreational room, mailbox room, playground, community center, or garage.
Sec. 19. The department may promulgate rules in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this act.
Sec. 21. If any portion of this act or the application of this act to any person or circumstance is found to be invalid by a court, the invalidity does not affect the remaining portions or applications of this act that can be given effect without the invalid portion or application, if those remaining portions are not determined by the court to be inoperable. To this end, this act is declared to be severable.
Sec. 23. This act must be liberally construed to effectuate its purpose, and the remedies provided are in addition to any other remedies provided by law.
Sec. 25. This act does not apply to a landlord that does not conduct a criminal background check.
Enacting section 1. This act does not take effect unless Senate Bill No. 1155 .____ or House Bill No.____ (request no. 06618'24) of the 102nd Legislature is enacted into law.