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Bill > SF2087


MN SF2087

MN SF2087
Use of tenant screening software that uses nonpublic competitor data to set rent prohibition


summary

Introduced
03/03/2025
In Committee
03/03/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to housing; prohibiting the use of tenant screening software that uses nonpublic competitor data to set rent; prohibiting the use of tenant screening software that is biased against protected classes; amending Minnesota Statutes 2024, section 504B.245; proposing coding for new law in Minnesota Statutes, chapter 504B.

AI Summary

This bill introduces two key provisions to regulate tenant screening practices in Minnesota. First, it prohibits landlords from using algorithmic devices (like revenue management software) that rely on nonpublic competitor data to set rental prices. The bill defines nonpublic competitor data as private information about rent prices, occupancy rates, and lease details obtained from other housing market competitors. Second, the bill bans the use of background screening algorithms or artificial intelligence tools that have a disproportionate or arbitrary effect on protected classes as defined in Minnesota's human rights statute. Landlords who violate these provisions can be held liable and potentially face civil actions where they may be required to pay $1,000 or actual damages, along with legal costs. The bill's provisions will become effective on August 1, 2025, and aim to prevent unfair pricing and screening practices in the rental housing market by ensuring transparency and preventing discriminatory screening methods. The legislation seeks to protect tenants from potentially exploitative or biased technological tools used in the rental application and pricing processes.

Committee Categories

Justice

Sponsors (5)

Last Action

Author added Fateh (on 04/03/2025)

bill text


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