SF4171

Purpose

• The bill updates housing protections around paying rent and handling utilities when a tenant moves out. It creates clear rules for final utility bills for submetered and apportioned utilities and strengthens tenant rights related to rent payments, including receipts for cash payments and protections if digital payment platforms fail.

Key Provisions

• Final billing for submetered utility service (Subd.3a under 216B.023)

  • If the landlord has not received the actual utility bill by the date the tenant vacates, the landlord may issue an estimated final utility bill to the tenant.
  • The estimate must be based on the immediately preceding billing period and prorated for the number of days between the end of that period and the vacancy date.
  • No additional fees may be charged, except that the landlord may include:
  • An administrative billing charge (if authorized elsewhere in the law)
  • A late payment charge (if authorized elsewhere in the law), with the late charge covering only unpaid charges from the immediately preceding billing period.

• Final billing for apportioned utility service (Subd.7a under 504B.216)

  • If the landlord has not received the actual apportioned utility bill by vacancy, they may issue an estimated final bill.
  • The estimate must use the immediately preceding billing period for the apportioned utility and be prorated for the days between the end of that period and the vacancy date.
  • No additional fees may be charged, except that the landlord may include:
  • An administrative billing charge (if authorized elsewhere)
  • A late payment charge (if authorized elsewhere), limited to late charges for the immediately preceding period.

• Receipt for rent paid in cash; digital payment platforms (504B.118)

  • Subdivision 1: Landlords must provide a written receipt for cash rent immediately upon in-person payment, or within three business days if payment is not made in person.
  • Subdivision 2: Digital payment platforms
  • a) If a landlord requires or allows rent to be paid via a digital platform, the landlord must offer an alternative payment method if the platform is not functioning, with no fee for the alternative.
  • b) If the platform is known to be not functioning, the landlord must restore access or offer an alternative method as soon as practicable.
  • c) The landlord may not take adverse action (including eviction filings or late fees) when rent is not paid due to platform or alternative method not functioning. Tenants have an affirmative defense against eviction for nonpayment if the landlord violates this section; if violated, eviction must be dismissed and the tenant may recover reasonable attorney fees and other equitable relief.
  • d) Defines digital payment platform as an electronic application or system under the landlord’s direct control or operated by a vendor under contract with the landlord that lets users conduct financial transactions.

• Final billing for apportioned utility service (summary of Sec.3, corresponding to Subd.7a)

  • Reiterates the final billing approach for apportioned utilities when the actual bill isn’t received by vacancy.
  • Stipulates allowable final charges (administrative charge and late charge) under the same conditions described for submetered utilities.

Significant Changes to Existing Law

• Introduces allowed use of estimated final utility bills for both submetered and apportioned utilities when the actual bill isn’t received by tenant vacancy, with a specified calculation method (based on the prior period and prorated to vacancy date).
• Adds explicit protections and processes for rent payments made through cash and digital platforms, including:
  • Mandatory cash payment receipts.
  • Requirements for offering alternatives if digital platforms malfunction, with no extra fees for alternatives.
  • Protections against eviction and potential affirmative defense for tenants when landlords fail to comply with digital platform requirements.
• Clarifies the inclusion of administrative billing charges and late payment charges in final utility bills, with limits tied to charges from the immediately preceding period.

Relevant Terms - final billing, submetered utility service, apportioned utility service, vacancy, prorated, administrative billing charge, late payment charge, receipt for rent paid in cash, digital payment platform, alternative payment, platform malfunction, nonfunctioning platform, eviction defense, affirmative defense, reasonable attorney fees, equitable relief