This bill aims to enhance tenant protections in Minnesota by prohibiting the use of tenant screening software that relies on nonpublic competitor data to determine rental prices and that exhibits bias against protected classes. Specifically, it introduces new legal language under Minnesota Statutes, section 504B.242, which outlines two main provisions: the prohibition of algorithmic devices that utilize nonpublic competitor data for setting rent and the ban on background screening algorithms that disproportionately affect protected classes as defined in section 363A.09. The bill clarifies definitions related to algorithmic devices and nonpublic competitor data, ensuring that landlords cannot use such tools to unfairly influence rental decisions.

Additionally, the bill amends section 504B.245 to include violations of the new section 504B.242, allowing individuals harmed by these practices to seek damages of at least $1,000 or actual damages, along with costs and attorney fees. The attorney general is also granted the authority to investigate and prosecute violations of these provisions. The effective date for these changes is set for August 1, 2025, applying to actions taken on or after that date.

Statutes affected:
Introduction: 504B.245