WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(a) 1 A landlord shall not employ, use, or rely on or cause another person to employ, use, or rely on, an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords for the purpose of advising a landlord on the amount of rent the landlord may want to consider charging a tenant, including devices and software more commonly known as revenue management software. An algorithmic device includes a product that incorporates an algorithmic device, but does not include a report by a trade association that publishes renter data in the aggregate and anonymous manner, nor does it include a product that establishes rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, or a federal government law or program.Minn. Stat. § 504B.242, subd. 1(b) that uses, incorporates, or was trained on nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that is not widely available or easily accessed by the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data are attributable to a specific competitor or anonymized, when the data are derived from or otherwise provided by another person that competes in the same housing market or in a related housing or rental market.Minn. Stat. § 504B.242, subd. 1(c) to set the amount of rent to be charged to a tenant for a residential rental unit.
(b) For the purposes of this section, an "algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords for the purpose of advising a landlord on the amount of rent the landlord may want to consider charging a tenant, including devices and software more commonly known as revenue management software. An algorithmic device includes a product that incorporates an algorithmic device, but does not include a report by a trade association that publishes renter data in the aggregate and anonymous manner, nor does it include a product that establishes rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, or a federal government law or program.Minn. Stat. § 504B.242, subd. 1(b)" means a device that uses one or more algorithmsAlgorithm"Algorithm" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques that makes decisions.Minn. Stat. § 504B.242, subd. 2 to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords for the purpose of advising a landlord on the amount of rent the landlord may want to consider charging a tenant, including devices and software more commonly known as revenue management software. An algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords for the purpose of advising a landlord on the amount of rent the landlord may want to consider charging a tenant, including devices and software more commonly known as revenue management software. An algorithmic device includes a product that incorporates an algorithmic device, but does not include a report by a trade association that publishes renter data in the aggregate and anonymous manner, nor does it include a product that establishes rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, or a federal government law or program.Minn. Stat. § 504B.242, subd. 1(b) includes a product that incorporates an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords for the purpose of advising a landlord on the amount of rent the landlord may want to consider charging a tenant, including devices and software more commonly known as revenue management software. An algorithmic device includes a product that incorporates an algorithmic device, but does not include a report by a trade association that publishes renter data in the aggregate and anonymous manner, nor does it include a product that establishes rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, or a federal government law or program.Minn. Stat. § 504B.242, subd. 1(b), but does not include a report by a trade association that publishes renter data in the aggregate and anonymous manner, nor does it include a product that establishes rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, or a federal government law or program.
(c) For the purposes of this section, "nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that is not widely available or easily accessed by the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data are attributable to a specific competitor or anonymized, when the data are derived from or otherwise provided by another person that competes in the same housing market or in a related housing or rental market.Minn. Stat. § 504B.242, subd. 1(c)" means information that is not widely available or easily accessed by the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data are attributable to a specific competitor or anonymized, when the data are derived from or otherwise provided by another person that competes in the same housing market or in a related housing or rental market.
Subdivision 1 prohibits landlords from using algorithmic devices — including revenue management software — that use, incorporate, or were trained on nonpublic competitor data to set rent for residential rental units. The prohibition extends to indirect use: a landlord may not cause another person to employ such a device on the landlord's behalf. The defined terms are broad: nonpublic competitor data includes actual rent prices, occupancy rates, and lease dates derived from competitors, even when anonymized. The carve-outs are narrow — only trade association aggregate reports and affordable-housing-program compliance tools are excluded.
2 The use of an algorithmAlgorithm"Algorithm" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques that makes decisions.Minn. Stat. § 504B.242, subd. 2 or artificial intelligenceArtificial intelligence"Artificial intelligence" means a technology system that can learn, adapt, and make decisions based on data, often using complex algorithms.Minn. Stat. § 504B.242, subd. 2 software for background screening is prohibited when the screening tool software is likely or known to have a disproportionate and arbitrary effect on a protected class listed in section 363A.09, subdivision 1. A landlord who makes a residential rental determination using a background screening tool that violates this section is liable under section 504B.245. For the purposes of this subdivision, "algorithmAlgorithm"Algorithm" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques that makes decisions.Minn. Stat. § 504B.242, subd. 2" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligenceArtificial intelligence"Artificial intelligence" means a technology system that can learn, adapt, and make decisions based on data, often using complex algorithms.Minn. Stat. § 504B.242, subd. 2 techniques that makes decisions; and "artificial intelligenceArtificial intelligence"Artificial intelligence" means a technology system that can learn, adapt, and make decisions based on data, often using complex algorithms.Minn. Stat. § 504B.242, subd. 2" means a technology system that can learn, adapt, and make decisions based on data, often using complex algorithmsAlgorithm"Algorithm" means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques that makes decisions.Minn. Stat. § 504B.242, subd. 2.
Subdivision 2 prohibits the use of any algorithm or AI software for tenant background screening when the tool is likely or known to have a disproportionate and arbitrary effect on a protected class listed in Minn. Stat. § 363A.09, subd. 1 (Minnesota's housing discrimination statute covering race, color, creed, religion, national origin, sex, marital status, familial status, disability, sexual orientation, and public assistance status). Landlords who make rental determinations using a biased screening tool are liable under the amended § 504B.245 remedies provision. The provision does not specify who bears the burden of assessing whether a tool is biased, nor does it require pre-deployment testing — it imposes liability based on the tool's known or likely discriminatory effect.
This section is effective August 1, 2025, and applies to actions taken on or after that date.
The effective date provision establishes that § 504B.242 takes effect August 1, 2025, and applies only to actions taken on or after that date. This provides a prospective-only application — no retroactive liability for algorithmic rent-setting or biased screening tools used before that date.
3 In addition to the remedies otherwise provided by law, any person injured by a violation of section 504B.241 or 504B.242 may bring a civil action against a residential tenant screening service or landlord and recover the greater of $1,000 or actual damages, together with costs and disbursements, including costs of investigation and reasonable attorney fees, and receive other equitable relief as determined by the court. The attorney general has the authority to investigate and prosecute violations of section 504B.241.
Section 2 of the bill amends the existing remedies provision in § 504B.245 to extend the private right of action to violations of the new § 504B.242. Any person injured by a violation may bring a civil action against a residential tenant screening service or landlord and recover the greater of $1,000 or actual damages, plus costs of investigation and reasonable attorney fees, and other equitable relief. Notably, the attorney general's enforcement authority under § 504B.245 is expressly limited to violations of § 504B.241 (the pre-existing tenant screening statute) and is not extended to the new § 504B.242.