1.1Senator Maye Quade moved to amend
S.F. No. 2298 as follows (...):
1.2Page 18, after line 16, insert:
1.3 "Sec. 10.
[504B.242] SCREENING ALGORITHMS.
1.4 Subdivision 1. Price fixing prohibition. (a) A landlord shall not employ, use, or rely
1.5on or cause another person to employ, use, or rely on, an algorithmic device that
uses,
1.6incorporates, or was trained on nonpublic competitor data to set the amount of rent
to be
1.7charged to a tenant for a residential rental unit.
1.8(b) For the purposes of this section, an "algorithmic device" means a device that
uses
1.9one or more algorithms to perform calculations of data, including data concerning
local or
1.10statewide rent amounts being charged to tenants by landlords for the purpose of advising
a
1.11landlord on the amount of rent the landlord may want to consider charging a tenant,
including
1.12devices and software more commonly known as revenue management software. An
1.13algorithmic device includes a product that incorporates an algorithmic device, but
does not
1.14include a report by a trade association that publishes renter data in the aggregate
and
1.15anonymous manner, nor does it include a product that establishes rent or income limits
in
1.16accordance with the affordable housing program guidelines of a local government, the
state,
1.17or a federal government law or program.
1.18(c) For the purposes of this section, "nonpublic competitor data" means information
that
1.19is not widely available or easily accessed by the public, including information about
actual
1.20rent prices, occupancy rates, lease start and end dates, and similar data, regardless
of whether
1.21the data are attributable to a specific competitor or anonymized, when the data are
derived
1.22from or otherwise provided by another person that competes in the same housing market
1.23or in a related housing or rental market.
1.24 Subd. 2. Bias algorithms prohibited. The use of an algorithm or artificial intelligence
1.25software for background screening is prohibited when the screening tool software is
likely
1.26or known to have a disproportionate and arbitrary effect on a protected class listed
in section
1.27363A.09, subdivision 1. A landlord who makes a residential rental determination using
a
1.28background screening tool that violates this section is liable under section 504B.245.
For
1.29the purposes of this subdivision, "algorithm" means a computational process, including
one
1.30derived from machine learning, statistics, or other data processing or artificial
intelligence
1.31techniques that makes decisions; and "artificial intelligence" means a technology
system
1.32that can learn, adapt, and make decisions based on data, often using complex algorithms.
2.1EFFECTIVE DATE.This section is effective August 1, 2025, and applies to actions
2.2taken on or after that date.
2.3 Sec. 11. Minnesota Statutes 2024, section 504B.245, is amended to read:
2.4504B.245 TENANT REPORT; REMEDIES.
2.5In addition to the remedies otherwise provided by law, any person injured by a violation
2.6of section
504B.241 or 504B.242 may bring a civil action against a residential tenant
2.7screening service or landlord and recover the greater of $1,000 or actual damages,
together
2.8with costs and disbursements, including costs of investigation and reasonable attorney
fees,
2.9and receive other equitable relief as determined by the court. The attorney general
has the
2.10authority to investigate and prosecute violations of section
504B.241."
2.11Renumber the sections in sequence and correct the internal references
2.12Amend the title accordingly
2.13The motion prevailed. #did not prevail. So the amendment was #not adopted.