Bill would require landlords to prove background checks were done or refund fee; apartment association raises implementation concerns

Representative Hendricks introduced House Bill 1395, which would require a landlord who charges a tenant for a background check to produce evidence that the check was performed and, if the landlord cannot do so, to refund the fee.

Sponsor Representative Hendricks told the committee the bill responds to renters who pay for screening but receive no record or explanation when denied, leaving applicants uncertain whether a check occurred or what information led to denial. He said the bill is not intended to micromanage landlord practices but to give applicants a way to confirm the paid service was actually performed. The sponsor said common screening is performed by third-party consumer-reporting services.

Jeremy Petron of the North Dakota Apartment Association testified in opposition or with concerns. He said landlord groups are generally willing to provide a receipt or record, but implementing the bill raised practical issues: (1) security of records transmitted by email, (2) timing because third-party vendors may not return invoices for 30 days, and (3) criminal-background checks across states can take longer than seven days. Petron said landlords already provide adverse-action letters tied to credit checks under the federal Fair Credit Reporting Act when an applicant is denied for credit reasons.

Committee members asked about the common fee range for tenant screening. Petron said typical application fees range from about $45 to $65 and usually cover credit verification, criminal-history checks, income verification and rental references. Representative Koppelman asked whether a full refund would be fair in all situations; the sponsor said the bill's purpose is to protect applicants who paid and received no evidence the check was done.

The committee collected testimony and held the bill for further consideration; no committee vote was recorded during this hearing.