The proposed bill introduces the "Fair Chance in Housing Credit Reports Act" as a new chapter in Title 34 of the General Laws, aimed at regulating the use of credit history in rental applications. It defines key terms such as "applicant," "conditional offer," "housing provider," and "rental dwelling unit." The bill stipulates that if a landlord uses credit history as a criterion in considering a rental application, they may only consider credit history from the past three years immediately preceding the date of the application. If a rental application is denied based on credit history from within this three-year period, the landlord is required to provide the prospective tenant with a written notice of the denial that states the reason for denial, making a good-faith effort to do so within twenty calendar days after the decision.

Additionally, the bill establishes civil penalties for housing providers who violate these provisions, with fines not exceeding one thousand dollars for the first violation, five thousand dollars for the second violation, and ten thousand dollars for each subsequent violation, all collectible by the attorney general. It empowers the Rhode Island Commission for Human Rights to address complaints related to violations of the act, requiring the commission to attempt informal resolution methods before instituting formal hearings. The legislation also prohibits retaliation against individuals exercising their rights under this act, ensuring protections for those who oppose discriminatory practices. The act will take effect upon passage.