HF 3951

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/07/2026 01:52 p.m.

A bill for an act
relating to housing; providing for submetered utility service final billing for vacating
tenants; modifying provisions related to the payment of rent by tenants; amending
Minnesota Statutes 2024, sections 216B.023, by adding a subdivision; 504B.118;
504B.216, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 216B.023, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Final billing for submetered utility service. new text end

new text begin If, by the date the tenant vacates
the unit, a landlord has not received from the utility provider the actual utility bill for utility
service, the landlord may issue an estimated final utility bill to the tenant. The calculation
must be based on the immediately preceding billing period for the submetered utility bill
charged to the tenant, prorated for the number of days between the end of the prior billing
period and the date the tenant vacates the unit. No additional fees or charges may be assessed,
except that nothing in this subdivision prohibits a landlord from assessing and including in
the final utility bill:
new text end

new text begin (1) an administrative billing charge authorized under subdivision 4; and
new text end

new text begin (2) a late payment charge authorized under subdivision 6, provided that the late payment
charge reflects only a late fee for unpaid charges from the immediately preceding billing
period.
new text end

Sec. 2.

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 new text end .

new text begin Subdivision 1. new text end

new text begin Receipt for rent paid in cash. new text end

A landlord receiving rent or other payments
from a tenant in cash 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. 2. new text end

new text begin Digital payment platforms. new text end

new text begin (a) If a landlord requires or permits a tenant to
pay rent and other charges using a digital payment platform, a landlord must offer a tenant
an alternative to using the digital payment platform if the platform is not functioning. No
fee may be charged to the tenant to use an alternative form of payment.
new text end

new text begin (b) If the digital payment platform is known to be not functioning, 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 (c) A landlord is prohibited from taking any adverse action, including but not limited to
filing an eviction or assessing late fees, when payment of rent or other charges is not paid
because both the digital payment platform and the alternative payment method the landlord
provided are not functioning for the tenant. The tenant has an affirmative defense against
an eviction action filed for nonpayment of rent 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 (d) For the purposes of this subdivision, "digital payment platform" means an electronic
application or system, under the direct control of the landlord or operated by a vendor under
contract with the landlord, that permits a user to conduct financial transactions.
new text end

Sec. 3.

Minnesota Statutes 2024, section 504B.216, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Final billing for apportioned utility service. new text end

new text begin If, by the date the tenant vacates
the unit, a landlord has not received from the utility provider the actual utility bill for utility
service, the landlord may issue an estimated final utility bill to the tenant. The calculation
must be based on the immediately preceding billing period for the apportioned utility bill
charged to the tenant, prorated for the number of days between the end of the prior billing
period and the date the tenant vacates the unit. No additional fees or charges may be assessed,
except that nothing in this subdivision prohibits a landlord from assessing and including in
the final utility bill:
new text end

new text begin (1) an administrative billing charge authorized under subdivision 8; and
new text end

new text begin (2) a late payment charge authorized under subdivision 9, provided that the late payment
charge reflects only a late fee for unpaid charges from the immediately preceding billing
period.
new text end