HF 1178

  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.