1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
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. [DEFINITION.] For the purpose of this 1.9 section, "prelease deposit" means payment given to a landlord 1.10 from a prospective tenant of a residential dwelling unit before 1.11 a lease has been agreed to, which is separate from a reasonable 1.12 charge to cover the costs of conducting a background check. 1.13 Subd. 2. [LIMITATIONS.] A prelease deposit may be required 1.14 if the prelease deposit is required in a written agreement that 1.15 includes: 1.16 (1) the circumstances under which it will be returned; 1.17 (2) when it will be returned; and 1.18 (3) the means available for resolving a dispute, including 1.19 the remedies provided in subdivision 3. 1.20 Subd. 3. [REMEDIES.] In addition to any other remedies, a 1.21 landlord who violates this section is liable to the payor of the 1.22 prelease deposit for twice the amount of the deposit paid, plus 1.23 costs and reasonable attorney fees.