Michigan House Bill HB4708

Michigan 2025-2026 Regular Session

• Introduced: 7/1/25
• Refer: 7/1/25
• Report Pass: 4/15/26
• Engrossed: 4/29/26
• Refer: 5/7/26

Caption

Watercraft: marinas; enforcement of liens; modify. Amends sec. 5 of 1998 PA 362 (MCL 570.375).

Impact

The new legislation significantly impacts state laws related to property ownership and lien enforcement as it reinforces the procedures that facility owners must follow to legally sell a property in the event of non-payment. The prioritization of paying off any existing liens before distributing surplus proceeds emphasizes a regulated approach to sale proceeds and debt reclamation. Facility owners are limited to claims against property based solely on this lien law, reducing confusion and overlap with other statutes. This clarity in the legal framework aims to protect both the owners and the lienholders involved.

Summary

House Bill 4708 amends the Michigan Marina and Boatyard Storage Lien Act. The bill outlines the conditions under which a facility owner can enforce a lien against property stored at a marina or boatyard. It stipulates that notice must be given to both property owners and all prior lienholders before a lien can be enforced. If a property owner defaults on payments for over 60 days without a prior lienholder, or over 180 days with one present, the facility owner gains the right to sell the property at a public auction. The process to notify the relevant parties and the conditions surrounding the public sale are clearly defined in the bill.

Sentiment

General sentiment regarding HB 4708 seems to lean towards approval, with discussions suggesting it provides a more structured approach to lien enforcement that benefits facility owners while still maintaining avenues for property owners to challenge assertions if necessary. However, there may be concerns regarding the strict timelines and communication requirements placed on facility owners as they enforce these liens, which could potentially be viewed as burdensome by some within the industry.

Contention

Notable points of contention surrounding the bill include the meticulous requirements for notifying all concerned parties and the potential for disputes over the distribution of sale proceeds among lienholders. There are discussions about whether the strict timelines for notice and sale might disadvantage property owners lacking immediate resources to settle debts in the stipulated time frames. This could spark further debates on the balance of interests between property owners and facility operators, particularly in the situations where the property is difficult to identify or track.