SF 2421

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/28/2025 11:26 a.m.

A bill for an act
relating to landlord and tenant; requiring landlords to provide an alternative payment
method to a digital platform; clarifying a prohibition on disclosure of victim
information; limiting rate for billing tenants for apportioned utility service;
amending Minnesota Statutes 2024, sections 504B.118; 504B.206, subdivision 2;
504B.216, subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 504B.118, is amended to read:

504B.118 deleted text begin RECEIPT FOR RENT PAID IN CASH deleted text end new text begin PAYMENT OF RENT; DIGITAL
PLATFORMS new text end .

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Digital payment platform" means an electronic application or system that permits
a user to conduct financial transactions. Digital payment platform includes electronic funds
transfers.
new text end

new text begin (c) "Electronic funds transfers" means a transfer of money, other than a transaction
originated by check, draft, or similar paper instrument, that is initiated through an electronic
terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or
authorizing a financial institution to debit or credit a consumer's account, including, but not
limited to, through the use of an automated clearing house system or alternative payment
system.
new text end

new text begin Subd. 2. new text end

new text begin Receipt for rent. new text end

A landlord receiving rent or other payments from a tenant in
cash new text begin or money order new text end must provide a written receipt for payment immediately upon receipt
if the payment is made in person, or within three business days if payment in cash is not
made in person.

new text begin Subd. 3. new text end

new text begin Digital platforms. new text end

new text begin (a) If a landlord requires or permits a tenant to pay rent and
other charges via a digital platform, the landlord must offer a tenant an alternative to using
the digital platform if the payment capability is unavailable.
new text end

new text begin (b) A tenant may request an alternative to using a digital platform if the tenant has a
physical, technological, or financial access barrier that prevents the tenant from using the
digital platform to pay rent and charges. Financial access barriers include the lack of a credit
or debit card or a bank account.
new text end

new text begin (c) No fee may be charged to the tenant to use the digital platform or any alternative.
new text end

new text begin (d) If the digital payment platform is known to be unavailable for use, the landlord must
restore access to the digital payment platform or offer an alternative means of payment as
soon as practicable.
new text end

new text begin (e) A landlord is prohibited from taking any adverse action, including but not limited to
filing an eviction or assessing any late fees, when payment of rent or other charges is not
timely because the digital payment platform or the alternative payment method is unavailable
for use by the tenant. The tenant has an affirmative defense against an eviction action if the
landlord violates this section. Upon a showing that the landlord has violated this section,
the eviction action must be dismissed and the tenant is entitled to reasonable attorney fees
and any other equitable relief the court deems appropriate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 504B.206, subdivision 2, is amended to read:

Subd. 2.

Treatment of information.

(a) A landlord must not disclose:

(1) any information provided to the landlord by a tenant in the written notice required
under subdivision 1, paragraph (b);

(2) any information contained in the qualifying document;

(3) the address or location to which the tenant has relocated; or

(4) the status of the tenant as a victim of violence.

(b) The information referenced in paragraph (a) must not be entered into any shared
database or provided to any person or entity but may be used when required as evidence in
an eviction proceeding, action for unpaid rent or damages arising out of the tenancy, claims
under section 504B.178, with the consent of the tenant, or as otherwise required by law.

new text begin (c) The requirements of this subdivision to treat the information enumerated in paragraph
(a) are paramount and supersede any other document or form signed by the tenant, including
but not limited to any release of information form.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end A landlord who violates this section is liable to the tenant for statutory damages
of $2,000, plus reasonable attorney fees and costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 504B.216, subdivision 5, is amended to read:

Subd. 5.

Apportionment generally.

(a) Apportionment of electricity is prohibited.

(b) Landlords must not bill tenants for apportioned utility service under this section less
frequently than the landlord is billed by the utility new text begin and at a rate that exceeds the rate charged
to the landlord by the utility provider new text end .

(c) A landlord who apportions utility service must, upon a tenant's request, provide:

(1) a copy of the current actual natural gas or water and sewer utility bill from the utility
provider that is being apportioned; and

(2) a copy of past natural gas or water and sewer utility bills for which the tenant received
an apportioned utility bill for the preceding two years or from the time the current landlord
acquired the building, whichever is the most recent.

(d) A landlord must include in the lease or in a separate written notice a list of the tenant's
rights under paragraph (c).

(e) A landlord who apportions utility service must comply with section 216B.023,
subdivisions 5, 7, and 8. A landlord who apportions natural gas is also subject to section
216B.024.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end