SF2087

This bill, Minnesota Senate File No. 2087, seeks to regulate the use of algorithmic and artificial intelligence-based tenant screening and rent-setting software by landlords.

Key Provisions:

1. Prohibition on Rent-Setting Algorithms Using Nonpublic Competitor Data

   • Landlords cannot use software or algorithms that incorporate or rely on nonpublic competitor data (e.g., rent prices, occupancy rates, lease details) to determine rents for residential units.
     
   • This restriction aims to prevent price-fixing practices by limiting the use of revenue management software that might exploit market-sensitive data.
     
   • Exceptions include aggregate public reports by trade associations and software that complies with affordable housing regulations.

2. Ban on Discriminatory Tenant Screening Algorithms

   • Landlords are prohibited from using artificial intelligence or algorithmic-based tenant screening software that disproportionately affects protected classes (as defined in Minnesota Human Rights Act, Section 363A.09).
     
   • If a landlord uses a biased screening tool in rental decisions, they may face legal liability under existing Minnesota landlord-tenant laws (Section 504B.245).

Purpose:

• To prevent unfair rent-setting practices that could contribute to unaffordable housing.
  
• To protect renters, especially those from protected classes, from biased tenant screening processes that could lead to discrimination.

If enacted, this law would add new tenant protections under Minnesota Statutes Chapter 504B by ensuring impartiality in rental decisions and promoting fair housing practices.