1.1 A bill for an act
1.2 relating to housing; prohibiting the use of tenant screening software that uses
1.3 nonpublic competitor data to set rent; prohibiting the use of tenant screening
1.4 software that is biased against protected classes; amending Minnesota Statutes
1.5 2024, section 504B.245; proposing coding for new law in Minnesota Statutes,
1.6 chapter 504B.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [504B.242] SCREENING ALGORITHMS.
1.9 Subdivision 1.Price fixing prohibition.(a) A landlord shall not employ, use, or rely
1.10on or cause another person to employ, use, or rely on, an algorithmic device that uses,
1.11incorporates, or was trained on nonpublic competitor data to set the amount of rent to be
1.12charged to a tenant for a residential rental unit.
1.13 (b) For the purposes of this section, an "algorithmic device" means a device that uses
1.14one or more algorithms to perform calculations of data, including data concerning local or
1.15statewide rent amounts being charged to tenants by landlords for the purpose of advising a
1.16landlord on the amount of rent the landlord may want to consider charging a tenant, including
1.17devices and software more commonly known as revenue management software. An
1.18algorithmic device includes a product that incorporates an algorithmic device, but does not
1.19include a report by a trade association that publishes renter data in the aggregate and
1.20anonymous manner, nor does it include a product that establishes rent or income limits in
1.21accordance with the affordable housing program guidelines of a local government, the state,
1.22or a federal government law or program.
1.23 (c) For the purposes of this section, "nonpublic competitor data" means information that
1.24is not widely available or easily accessed by the public, including information about actual
1Section 1.
25-02044 as introduced01/16/25 REVISOR XX/AC
SENATE
STATE OF MINNESOTA
S.F. No. 2087NINETY-FOURTH SESSION
(SENATE AUTHORS: MAYE QUADE, Abeler, Port, Boldon and Housley)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/03/2025
Referred to Judiciary and Public Safety 2.1rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether
2.2the data are attributable to a specific competitor or anonymized, when the data are derived
2.3from or otherwise provided by another person that competes in the same housing market
2.4or in a related housing or rental market.
2.5 Subd. 2.Bias algorithms prohibited.The use of an algorithm or artificial intelligence
2.6software for background screening is prohibited when the screening tool software is likely
2.7or known to have a disproportionate and arbitrary effect on a protected class listed in section
2.8363A.09, subdivision 1. A landlord who makes a residential rental determination using a
2.9background screening tool that violates this section is liable under section 504B.245. For
2.10the purposes of this subdivision, "algorithm" means a computational process, including one
2.11derived from machine learning, statistics, or other data processing or artificial intelligence
2.12techniques that makes decisions; and "artificial intelligence" means a technology system
2.13that can learn, adapt, and make decisions based on data, often using complex algorithms.
2.14 EFFECTIVE DATE.This section is effective August 1, 2025, and applies to actions
2.15taken on or after that date.
2.16 Sec. 2. Minnesota Statutes 2024, section 504B.245, is amended to read:
2.17 504B.245 TENANT REPORT; REMEDIES.
2.18 In addition to the remedies otherwise provided by law, any person injured by a violation
2.19of section 504B.241 or 504B.242 may bring a civil action against a residential tenant
2.20screening service or landlord and recover the greater of $1,000 or actual damages, together
2.21with costs and disbursements, including costs of investigation and reasonable attorney fees,
2.22and receive other equitable relief as determined by the court. The attorney general has the
2.23authority to investigate and prosecute violations of section 504B.241.
2Sec. 2.
25-02044 as introduced01/16/25 REVISOR XX/AC