Committee backs two‑year rent‑reporting pilot to add positive rental payments to credit reports

Senate Economic Development, Housing & General Affairs approved moving a bill that contains a two‑year rental payment reporting pilot program the state treasurer would implement through a contracted third‑party administrator. The program would allow participating landlords to have tenant rent payments reported to national credit reporting agencies after an individual tenant elects participation, and would require clear tenant notice and a process for removal from the program for failure to comply.

Dan Wood of the Office of Legislative Council explained the pilot's mechanics: the treasurer "contracts with a third party to administer the program" and the contractor must "enter into an agreement with 1 or more participant property owners" and ensure reporting includes only payments after the tenant elected to participate. Wood said the draft adds a requirement that the administrator develop and implement a process to remove tenants who fail program requirements, including failure to make timely rental payments. The draft also requires the participation form to state that enrollment is voluntary and that tenants may be removed for failing program rules.

Committee members pressed for clarity on reporting metrics. The bill was amended to require interim and final reports that break out the number of participants who ceased participation voluntarily and the number who were removed by the administrator, with reasons for removal (for example, failure to pay rent or failure to comply with program rules).

Not all members supported the pilot without reservation. Senator Weeks said, "I'm really not. Positive credit reporting. I'm really not," voicing concern about government involvement in credit reporting and the potential for asymmetric reporting (positive only) and for government money underwriting the program. Supporters argued the pilot could benefit tenants who consistently pay rent but lack traditional credit history and could help those rebuilding credit to demonstrate steady payments.

Budget and implementation questions remain. Committee members recalled a prior $100,000 appropriation for the pilot that had been removed in earlier drafting because the program text was dropped in another bill; members agreed to add conditional appropriation language and to make the pilot contingent on receiving funding so the program would not create an unfunded mandate. The treasurer's office representatives indicated they will need appropriation clarity to recruit landlords and operate the pilot (the committee discussed possible alternative funding sources but did not specify another source).

The committee advanced the bill (as part of draft 5.1) with the rent‑reporting pilot language and the added reporting and funding‑contingency clarifications; the measure will return for further budget and implementation details as the bill moves forward.