Read the full stored bill text
SB-1041, As Passed Senate, June 25, 2026
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
SUBSTITUTE FOR
SENATE BILL NO. 1041
A bill to prohibit excessive pricing for certain lodgings
during a declared state of emergency; to provide remedies and
penalties; 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 "hotel and lodging 1
pricing protection act". 2
Sec. 2. As used in this act: 3
(a) "Declaration of emergency" means a declaration of a state 4
of emergency. 5
(b) "Excessively increased price" means a price that 6
demonstrates an unjustified disparity between the average price at 7
which a specific lodging was advertised or offered for sale or rent 8
2
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
during the 30 days immediately before a declaration of emergency 1
and the price of lodging advertised, or offered for sale or rent, 2
at that specific lodging during or reasonably after a declaration 3
of emergency. As used in this subdivision, an unjustified disparity 4
is a disparity of more than 20% unless the person offering, 5
selling, or renting lodging can demonstrate that the increase in 6
price is attributable to an increase in the cost of the goods or 7
labor used in its business, an extraordinary discount in effect 8
before the declaration of emergency, a contracted price agreed to 9
before a declaration of emergency, or an adjustment in rates that 10
is regularly scheduled or consistent with season prices charged for 11
the lodging. 12
(c) "Lodging" means a building or structure kept, used, 13
maintained as, or held out to the public to be an inn, hotel, or 14
public lodging house. Lodging includes, but is not limited to, all 15
of the following: 16
(i) A full-service hotel, limited-service hotel, resort, 17
conference center, extended-stay hotel, vacation ownership, or 18
convention hotel offering permanent or temporary stays. 19
(ii) A bed and breakfast. 20
(iii) A space rented in a mobile home park or campground. 21
(iv) A short-term rental. As used in this subparagraph, "short-22
term rental" means the rental of a single-family dwelling, dwelling 23
units in a building housing 1 to 4 separate dwelling units, 24
including, but not limited to, a duplex, triplex, or quadplex, or 25
any dwelling unit or group of units in a condominium projects, for 26
terms of not more than 30 consecutive days. Short-term rental does 27
not include the rental of a hotel, motel, hotel condominium, home, 28
or condominium unit that is located within a resort that offers 29
3
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
amenities such as golf, skiing, restaurant facility, or group 1
meeting accommodation where the resort manages the rental of such 2
dwelling units, or a bed and breakfast establishment. 3
(d) "Reasonably after" means 30 days after the expiration of 4
the declared state of emergency. 5
(e) "State of emergency" means a natural or man-made disaster 6
or emergency resulting from a tornado, earthquake, flood, fire, 7
riot, storm, act of war, threat of war, military action, or period 8
of instability following a terrorist attack, or a threat to the 9
public health, for which a state of emergency is declared by the 10
governor under the laws of this state. 11
Sec. 3. During or reasonably after a declaration of emergency, 12
a person engaged in the business of offering, selling, or renting 13
lodging shall not do any of the following in a county, city, or 14
township subject to the declared state of emergency: 15
(a) Charge an excessively increased price for lodging. 16
(b) Offer lodging for sale or rent at an excessively increased 17
price. 18
Sec. 4. (1) If the attorney general or a local prosecuting 19
attorney has reasonable cause to believe that an individual has 20
information or is in possession, custody, or control of any 21
document or other tangible object relevant to an investigation for 22
a violation of this act, the attorney general or prosecuting 23
attorney may serve on the individual a written demand to appear and 24
be examined under oath, and to produce the documents or object for 25
inspection and copying. The demand must meet all of the following: 26
(a) Be served on the individual in the manner prescribed for 27
service of process under the law of this state. 28
(b) Describe the nature of the conduct constituting the 29
4
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
violation under investigation. 1
(c) Describe the document or object with sufficient 2
definiteness to permit it to be fairly identified. 3
(d) If requested, contain a copy of the written 4
interrogatories. 5
(e) Prescribe a reasonable time at which the individual must 6
appear to testify and within which the individual must answer the 7
written interrogatories and the document or object must be 8
produced. 9
(f) Advise the individual that objections to or reasons for 10
not complying with the demand may be filed with the attorney 11
general or prosecuting attorney on or before the time described in 12
subdivision (e). 13
(g) Specify a place for the taking of testimony, or for 14
production, and designate the individual who is to be the custodian 15
of the document or object. 16
(h) Contain a copy of the language provided in subsection (2) 17
with appropriate citation. 18
(2) If an individual fails to comply with the written demand 19
served under subsection (1), the attorney general or a local 20
prosecuting attorney may file an action to enforce the demand. 21
Notice of hearing and a copy of the pleadings and other relevant 22
papers must be served on the individual, who may appear in 23
opposition. If the court finds that the demand is proper, the court 24
shall order the individual to comply with the demand, subject to 25
modification as the court may prescribe. On motion by the 26
individual and for good cause shown, the court may make any further 27
order in the proceedings that justice requires to protect the 28
individual from unreasonable burden or expense. 29
5
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
(3) An action filed under subsection (2) must be filed in the 1
circuit court of the county in which the individual resides or in 2
which the individual maintains a principal place of business within 3
this state, or in the circuit court for the county of Ingham. 4
(4) The fact that an investigative demand has been issued is 5
not confidential, but the testimony taken and material produced 6
during the investigation must be kept confidential unless an 7
enforcement action is brought against a person for violation of 8
this act. Once the action is filed, the investigative material may 9
be disclosed in the course of discovery, pursuant to a protective 10
order if the court considers appropriate, and in support of or 11
opposition to the claims and defenses raised in the action, but in 12
all other respects remains confidential. 13
Sec. 5. (1) The attorney general may bring a class action on 14
behalf of persons residing in or injured in this state for the 15
actual damages caused by conduct prohibited under section 3 to 16
recover actual damages or $100.00, whichever is greater. 17
(2) On motion of the attorney general and without bond in an 18
action brought under this section, the court may make an 19
appropriate order to do any of the following: 20
(a) Reimburse persons who have suffered damages. 21
(b) Carry out a transaction in accordance with the aggrieved 22
persons' reasonable expectations. 23
(c) Strike or limit the application of unconscionable clauses 24
of contracts to avoid an unconscionable result. 25
(d) Grant other appropriate relief. 26
(3) The court after a hearing may appoint a receiver or order 27
sequestration of the defendant's assets if it appears to the 28
satisfaction of the court that the defendant threatens or is about 29
6
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
to remove, conceal, or dispose of the defendant's assets to the 1
detriment of members of the class. 2
(4) If at any stage of the proceedings under this section the 3
court requires that notice be sent to the class, the attorney 4
general may petition the court to require the defendant to bear the 5
cost of the notice. In determining whether to impose the cost on 6
the defendant, the court shall consider the probability that the 7
attorney general will succeed on the merits of the action. 8
(5) If the defendant shows by a preponderance of the evidence 9
that a violation of this act resulted from a bona fide error 10
notwithstanding the maintenance of procedures reasonably adopted to 11
avoid the error, the amount of recovery must be limited to actual 12
damages. 13
(6) The attorney general shall not bring an action under this 14
section more than 4 years after the occurrence of the method, act, 15
or practice that is the subject of the action and not more than 1 16
year after the last payment in a transaction involving the method, 17
act, or practice that is the subject of the action, whichever 18
period of time ends on a later date. 19
Sec. 6. (1) The attorney general may bring an action for 20
appropriate injunctive or other equitable relief and civil 21
penalties in the name of the people of this state for a violation 22
of this act. The court may impose a civil fine for each violation 23
of this act. For an individual, the civil fine must not be more 24
than $10,000.00 per violation. For a person other than an 25
individual, the civil fine must not be more than $500,000.00 per 26
violation. 27
(2) This state, a political subdivision, or a public agency 28
injured directly or indirectly by a violation of this act may bring 29
7
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
an action for appropriate injunctive or other equitable relief, 1
actual damages sustained by reason of a violation of this act and, 2
as determined by the court, interest on those damages from the date 3
of the complaint, and taxable costs. If the trier of fact finds 4
that the violation is flagrant, it may increase recovery to an 5
amount not to exceed 3 times the actual damages sustained by reason 6
of the violation. 7
Sec. 7. A person that violates section 3 with the intent to 8
accomplish a result prohibited by this act is guilty of a 9
misdemeanor punishable by imprisonment for not more than 1 year or 10
a fine of not more than $10,000.00, or both, if an individual, or a 11
fine of not more than $500,000.00 if a person other than an 12
individual. 13
Sec. 8. The remedies provided in this act are cumulative. 14
Sec. 9. If a witness has been or may be called to testify or 15
provide other information at a proceeding under or related to this 16
act, the circuit court for the county in which the proceeding is or 17
may be held may issue, on application of the attorney general, 18
asserting that in the attorney general's judgment the testimony or 19
other information may be necessary to the public interest and that 20
the witness has refused or is likely to refuse to testify, an order 21
requiring the witness to give testimony or provide other 22
information that the witness refuses to give or provide on the 23
basis of the privilege against self-incrimination, if the court 24
provides in its order that the witness shall not be prosecuted or 25
subjected to any penalty or forfeiture for, or on account of, any 26
transaction, occurrence, matter, or thing to which the witness 27
testifies or provides other information or evidence, documentary or 28
otherwise, and that the testimony, information, or evidence must 29
8
Final Page
OOH S00807'25 (S-1)_SB1041_APS_1 hmgc93
not be used against the witness in any criminal investigation, 1
proceeding, or trial, except a prosecution for perjury for giving a 2
false statement or for otherwise failing to comply with the order. 3
Sec. 10. This act does not exempt, limit, or impair the 4
attorney general's ability to investigate, determine, or impose 5
liability under the Michigan consumer protection act, 1976 PA 331, 6
MCL 445.901 to 445.922, or any other law of this state. 7
Sec. 11. This act does not prohibit an owner from evicting a 8
tenant for a lawful reason. 9
Enacting section 1. This act does not take effect unless all 10
of the following bills of the 103rd Legislature are enacted into 11
law: 12
(a) Senate Bill No. 1042 or House Bill No. 6102. 13
(b) Senate Bill No. 1043 or House Bill No. 6104. 14