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SF2087 (Legislative Session 94 (2025-2026))

Use of tenant screening software that uses nonpublic competitor data to set rent prohibition

Related bill: HF1142

AI Generated Summary

This bill, introduced in the Minnesota Senate as S.F. No. 2087, seeks to regulate the use of tenant screening and rent-setting software by landlords.

Key Provisions:

  1. Prohibition on Price-Fixing Algorithms

    • Landlords cannot use or rely on algorithmic devices that set rent based on nonpublic competitor data (e.g., confidential rent prices, occupancy rates, and lease details).
    • This includes revenue management software that suggests rental prices using proprietary data from competitors.
    • Exceptions exist for aggregate and anonymous data reports from trade associations and affordable housing programs following government guidelines.

  2. Ban on Biased Tenant Screening Software

    • Algorithms or AI-based software cannot be used for tenant background screening if they are likely or known to have a disproportionate effect on protected classes (as defined in Minnesota’s anti-discrimination laws).
    • Landlords who violate this rule could be held legally liable under existing tenant protection laws (Minnesota Statutes section 504B.245).
    • The bill defines algorithm as any computational process, including machine learning and artificial intelligence systems that analyze data to make decisions.

Overall Goal:

  • Prevent rent price manipulation by banning software that shares sensitive, nonpublic data among landlords.
  • Protect tenants from discriminatory AI-based screening systems that could disproportionately exclude people from renting based on race, gender, disability, or other protected characteristics.

If passed, this law would be codified in Minnesota Statutes Chapter 504B, which governs landlord-tenant relationships.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025HouseFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionReferred toJudiciary and Public Safety
March 02, 2025SenateFloorActionReferred toJudiciary and Public Safety
March 02, 2025HouseFloorActionReferred toJudiciary and Public Safety
March 26, 2025SenateFloorActionAuthor stricken
March 26, 2025SenateFloorActionAuthor stricken
April 02, 2025SenateFloorActionAuthor added
April 02, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Implements a prohibition on biased algorithmic tenant screening tools."
      ],
      "removed": [],
      "summary": "This legislation mentions discrimination against protected classes under section 363A.09.",
      "modified": []
    },
    "citation": "363A.09",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Clarifies the liability of landlords using discriminatory background screening tools."
      ],
      "removed": [],
      "summary": "Section 504B.245 is referenced in relation to landlord liabilities concerning screening software.",
      "modified": []
    },
    "citation": "504B.245",
    "subdivision": ""
  }
]

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