The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6805

June 23, 1994

TOWNSHIPS:

Lien for nonpayment of township water bill on leased premises

A township may not place a lien on premises for nonpayment of the township's water bill when the premises is leased and the tenant is responsible under the lease for paying the bill, if an affidavit with respect to the execution of the lease has been filed with the appropriate township officer.

Honorable John D. Cherry, Jr.

State Senator

The Capitol

Lansing, MI 48913

You have asked if a township may place a lien on premises for nonpayment of the township's water bill when the premises is leased and the tenant is responsible under the lease for paying the bill.

Your letter indicates that your question is very similar to the issue considered in OAG, 1987-1988, No 6416, p 9 (January 9, 1987). That opinion concluded that a city may not place a lien upon premises for nonpayment of city water bills for which the tenant is responsible under the lease if the landlord has filed an affidavit with respect to the execution of the lease with the appropriate city officer.

That conclusion was based on the provisions of two state statutes that are still applicable. First, in 1939 PA 178, MCL 123.161 et seq; MSA 5.2531(1) et seq, the Legislature has provided for the collection of water charges by municipalities, which are defined in section 1(a) as including both cities and townships. Section 2 of that act permits municipalities to have as security for the collection of their water rates "a lien upon the house or other building ... to which ... water was supplied." But, section 5 of the act addresses premises that have been leased, as follows:

[T]his act shall not apply if a lease has been legally executed, containing a provision that the lessor shall not be liable for payment of water or sewage system bills accruing subsequent to the filing of the affidavit provided by this section. An affidavit with respect to the execution of a lease containing this provision shall be filed with the board, commission, or other official in charge of the water works system or sewage system, or both, and 20 days' notice shall be given by the lessor of any cancellation, change in, or termination of the lease. The affidavit shall contain a notation of the expiration date of the lease. [ Emphasis added.]

Second, section 3(a) of the Revenue Bond Act of 1933, 1933 PA 94, MCL 141.101 et seq; MSA 5.2731 et seq, defines the term "public corporation" as including a city or township. Section 21(3) of that statute, dealing with liens and leases, provides:

Charges for services furnished to a premises may be a lien on the premises.... However, in a case when a tenant is responsible for the payment of the charges and the governing body is so notified in writing, the notice to include a copy of the lease of the affected premises, if there is one, then the charges shall not become a lien against the premises after the date of the notice.

Each of these statutes, 1939 PA 178 and the Revenue Bond Act of 1933, apply to both cities and townships.

It is my opinion, therefore, that a township may not place a lien on premises for nonpayment of the township's water bill when the premises is leased and the tenant is responsible under the lease for paying the bill, if an affidavit with respect to the execution of the lease has been filed with the appropriate township officer.

Frank J. Kelley

Attorney General