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 prohibitions: first, landlords are barred from using algorithmic devices that incorporate nonpublic competitor data for setting rent; second, the use of algorithms or artificial intelligence for background screening is prohibited if they disproportionately affect protected classes as defined in section 363A.09. The bill clarifies definitions related to algorithmic devices and nonpublic competitor data, ensuring transparency in how rental prices are determined.
Additionally, the bill amends section 504B.245 to include violations of the new section 504B.242, allowing individuals harmed by such violations to seek remedies, including monetary damages and attorney fees. The effective date for these provisions is set for August 1, 2025, applying to actions taken on or after that date. This legislative effort seeks to create a fairer housing market by addressing potential discrimination and unethical practices in tenant screening and rent setting.
Statutes affected: Introduction: 504B.245