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SB 254

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

2025-2026 Regular Session Introduced by Rosemary Bayer and 7 co-sponsors

Allows utility services in rental properties to be transferred from landlords to tenants, shifting utility responsibility in tenant-landlord relationships.

REFERRED TO COMMITTEE OF THE WHOLE
#housing:landlordandtenants #publicutilities:other
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Bill Summary · SB 254

Legislative bill overview

SB 254 amends Michigan's 1939 Public Utilities Act to allow the transfer of utility services from landlords to tenants. The bill modifies how utilities can be managed in rental properties and is tied to companion legislation (SB 253), suggesting a coordinated approach to utility responsibility in tenant-landlord relationships.

Why is this important

This change could shift financial and operational responsibility for utilities in rental housing. It may affect tenant affordability (if tenants gain direct control of utility accounts), landlord incentives for energy efficiency, and utility company billing practices. The implications depend entirely on implementation details in the companion bill.

Potential points of contention

  • Landlord concerns: Landlords may lose leverage over tenant behavior and face disputes over unpaid utility bills that affect property liens or eviction processes
  • Tenant protections: Unclear whether this protects tenants from disconnection or ensures they can afford direct utility accounts, or if it simply shifts burden without safeguards
  • Implementation details: The bill's substance depends heavily on SB 253; without seeing companion language, the full scope of changes is unclear

Compiled from official sources — confirm details with the bill’s official record.

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