Assembly Bill A10020

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10020
 
                           I N  A S S E M B L Y
 
                                May 1, 2024
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the general business law, in relation to prohibiting the
   use of algorithmic pricing by a landlord for the purpose of  determin-
   ing the amount of rent to charge a residential tenant
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 344 to read as follows:
   § 344. USE OF PRICING ALGORITHMIC IN SETTING RENT  AMOUNT  PROHIBITED.
 1.  FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A)  "PRICING ALGORITHM" SHALL MEAN ANY COMPUTATIONAL PROCESS, INCLUD-
 ING A COMPUTATIONAL PROCESS DERIVED FROM MACHINE LEARNING OR OTHER ARTI-
 FICIAL INTELLIGENCE TECHNIQUES, THAT PROCESSES DATA TO RECOMMEND OR  SET
 A PRICE OR COMMERCIAL TERM THAT IS IN OR AFFECTING INTERSTATE OR FOREIGN
 COMMERCE.
   (B)  "COORDINATOR"  SHALL  MEAN  ANY  OPERATOR  OF  A SOFTWARE OR DATA
 ANALYTICS SERVICE THAT PERFORMS A COORDINATING FUNCTION  FOR  ANY  LAND-
 LORD,  INCLUDING  A LANDLORD PERFORMING A COORDINATING FUNCTION FOR SUCH
 LANDLORD'S OWN BENEFIT.
   (C) "NONPUBLIC COMPETITOR DATA":
   (I) SHALL MEAN NONPUBLIC  DATA  THAT  IS  DERIVED  FROM  OR  OTHERWISE
 PROVIDED BY ANOTHER PERSON THAT COMPETES IN THE SAME MARKET AS A PERSON,
 OR A RELATED MARKET; AND
   (II)  DOES NOT INCLUDE INFORMATION DISTRIBUTED, REPORTED, OR OTHERWISE
 COMMUNICATED IN A WAY THAT DOES NOT REVEAL ANY UNDERLYING  DATA  FROM  A
 COMPETITOR,  SUCH  AS NARRATIVE INDUSTRY REPORTS, NEWS REPORTS, BUSINESS
 COMMENTARIES, OR GENERALIZED INDUSTRY SURVEY RESULTS.
   (D) "NONPUBLIC DATA" SHALL MEAN INFORMATION THAT IS NOT WIDELY  AVAIL-
 ABLE  OR  EASILY  ACCESSIBLE  TO THE PUBLIC, INCLUDING INFORMATION ABOUT
 ACTUAL RENT PRICES, OCCUPANCY RATES, LEASE  START  AND  END  DATES,  AND
 SIMILAR  DATA,  REGARDLESS  OF  WHETHER  SUCH  DATA IS ATTRIBUTABLE TO A
 SPECIFIC COMPETITOR OR ANONYMIZED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14977-02-4
 A. 10020                            2
 
   2. (A) IN SETTING THE AMOUNT OF RENT TO BE CHARGED TO A TENANT FOR THE
 OCCUPANCY OF A RESIDENTIAL PREMISES, INCLUDING DETERMINING ANY CHANGE IN
 THE AMOUNT OF RENT TO BE CHARGED FOR THE RENEWED OCCUPANCY OF A RESIDEN-
 TIAL PREMISES, A LANDLORD SHALL NOT EMPLOY, USE, OR RELY UPON, OR  CAUSE
 ANOTHER PERSON TO EMPLOY, USE, OR RELY UPON, AN ALGORITHMIC PRICING THAT
 USES, INCORPORATES, OR WAS TRAINED WITH NONPUBLIC COMPETITOR DATA.
   (B) A COORDINATOR SHALL NOT FACILITATE AN AGREEMENT AMONG LANDLORDS TO
 NOT COMPETE REGARDING THE RENTING OF RESIDENTIAL PREMISES.
   3.  (A)  A  LANDLORD SHALL NOT SHARE A TENANT'S PERSONAL DATA WITH ANY
 THIRD PARTY WITHOUT SUCH TENANT'S WRITTEN CONSENT.
   (B) A LANDLORD SHALL DISCLOSE TO EACH TENANT:
   (I) THE CATEGORIES OF PERSONAL DATA PROCESSED BY THE LANDLORD  AND  BY
 ANY PROCESSOR WHO PROCESSES PERSONAL DATA ON BEHALF OF SUCH LANDLORD;
   (II) THE SOURCES FROM WHICH PERSONAL DATA IS COLLECTED;
   (III) THE PURPOSES FOR PROCESSING PERSONAL DATA;
   (IV)  THE  LANDLORD'S  RETENTION  PERIOD FOR EACH CATEGORY OF PERSONAL
 DATA THAT SUCH LANDLORD PROCESSES OR WHICH IS PROCESSED  ON  SUCH  LAND-
 LORD'S  BEHALF,  OR IF THAT IS NOT POSSIBLE, THE CRITERIA USED TO DETER-
 MINE SUCH RETENTION PERIOD; AND
   (V) THE IDENTITY OF EACH THIRD PARTY TO WHOM THE  LANDLORD  DISCLOSED,
 SHARED,  TRANSFERRED,  OR  SOLD  PERSONAL  DATA, AND FOR EACH IDENTIFIED
 THIRD PARTY:
   (A) THE CATEGORIES OF PERSONAL DATA BEING  SHARED,  DISCLOSED,  TRANS-
 FERRED, OR SOLD TO THE THIRD PARTY;
   (B)  THE  PURPOSES FOR WHICH PERSONAL DATA IS BEING SHARED, DISCLOSED,
 TRANSFERRED, OR SOLD TO THE THIRD PARTY;
   (C) THE THIRD PARTY'S RETENTION PERIOD FOR EACH CATEGORY  OF  PERSONAL
 DATA  PROCESSED  BY  SUCH THIRD PARTY OR PROCESSED ON SUCH THIRD PARTY'S
 BEHALF, OR IF THAT IS NOT POSSIBLE, THE CRITERIA USED TO DETERMINE  SUCH
 RETENTION PERIOD; AND
   (D) WHETHER THE THIRD PARTY USES THE PERSONAL DATA FOR TARGETED ADVER-
 TISING.
   4.  IN  ADDITION  TO  ANY ACTION BROUGHT BY THE ATTORNEY GENERAL UNDER
 THIS ARTICLE, A TENANT INJURED BY A VIOLATION OF THIS SECTION MAY  BRING
 AN  ACTION TO RECOVER DAMAGES. A COURT MAY ALSO AWARD ATTORNEYS' FEES TO
 A PREVAILING PLAINTIFF TENANT.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have  become  a  law  and  shall  apply  to any rental agreement that is
 executed on or after the effective date of this act.