1.1                          A bill for an act 
  1.2             relating to landlords and tenants; regulating the 
  1.3             taking of prelease deposits; providing for a civil 
  1.4             penalty; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 504. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [504.38] [PRELEASE DEPOSIT.] 
  1.8      Subdivision 1.  [DEFINITIONS.] For the purpose of this 
  1.9   section, "prelease deposit" means payment to a landlord from a 
  1.10  prospective tenant of a residential dwelling unit before the 
  1.11  prospective tenant and the landlord have entered into a rental 
  1.12  agreement.  "Prelease deposit" does not include the payment of a 
  1.13  reasonable applicant screening fee used to conduct a background 
  1.14  check on the prospective tenant. 
  1.15     Subd. 2.  [LIMITATIONS.] A landlord may not accept a 
  1.16  prelease deposit from a prospective tenant exceeding one-half of 
  1.17  the first month's rent if the monthly rent on the dwelling unit 
  1.18  is less than $800.  A prelease deposit may be accepted only if 
  1.19  the landlord and tenant enter into a prior written agreement 
  1.20  that includes: 
  1.21     (1) the circumstances under which it will be returned; 
  1.22     (2) when it will be returned; and 
  1.23     (3) the means available for resolving a dispute, including 
  1.24  the remedies provided in subdivision 3. 
  1.25     A prelease deposit must be returned within five business 
  2.1   days of the occurrence of a circumstance described pursuant to 
  2.2   clause (1). 
  2.3      Subd. 3.  [REMEDIES.] In addition to any other remedies, a 
  2.4   landlord who violates this section is liable to the payor of the 
  2.5   prelease deposit for twice the amount of the prelease deposit 
  2.6   paid.