S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9473
 
                           I N  A S S E M B L Y
 
                              March 14, 2024
                                ___________
 
 Introduced  by  M.  of A. BICHOTTE HERMELYN -- read once and referred to
   the Committee on Housing
 
 AN ACT to amend the real property law, in relation  to  prohibiting  the
   use  of  an algorithmic device by a landlord for the purpose of deter-
   mining 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. Legislative declaration. The legislature finds that the use
 of algorithmic devices has been the subject of lawsuits that allege such
 products  pose  a  heightened  risk  of  anticompetitive  conduct, price
 fixing, and collusion, all of which allegedly result in higher rents for
 residential tenants, and allegedly poses the risk  that  landlords  will
 outsource  pricing  decisions,  which  the legislature determines should
 always be made by the landlord.
   Therefore, the legislature declares that, with certain exceptions, the
 use of an algorithmic device by a landlord to set the amount of a  resi-
 dential tenant's rent is prohibited.
   § 2. The real property law is amended by adding a new section 222-a to
 read as follows:
   § 222-A. DETERMINATION OF RENT AMOUNT; USE OF AN ALGORITHMIC DEVICE IN
 SETTING  RENT  AMOUNT PROHIBITED. 1. IN SETTING THE AMOUNT OF RENT TO BE
 CHARGED TO A TENANT FOR THE OCCUPANCY OF A RESIDENTIAL PREMISES, INCLUD-
 ING DETERMINING ANY CHANGE IN THE AMOUNT OF RENT TO BE CHARGED  FOR  THE
 RENEWED  OCCUPANCY  OF  A  RESIDENTIAL  PREMISES,  A  LANDLORD SHALL NOT
 EMPLOY, USE, OR RELY UPON, OR CAUSE ANOTHER PERSON TO  EMPLOY,  USE,  OR
 RELY UPON, AN ALGORITHMIC DEVICE THAT USES, INCORPORATES, OR WAS TRAINED
 WITH NONPUBLIC COMPETITOR DATA.
   2.  A  VIOLATION OF SUBDIVISION ONE OF THIS SECTION IS A DECEPTIVE ACT
 OR PRACTICE AS PROVIDED IN  SECTION  THREE  HUNDRED  FORTY-NINE  OF  THE
 GENERAL BUSINESS LAW, AND A PERSON WHO COMMITS A VIOLATION IS SUBJECT TO
 ALL  PENALTIES  AND  REMEDIES  DESCRIBED  IN ARTICLE TWENTY-TWO-A OF THE
 GENERAL BUSINESS LAW.
   3. AS USED IN THIS SECTION:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14800-01-4
              

 A. 9473                             2
 
   A. "ALGORITHMIC DEVICE" MEANS A DEVICE THAT USES  ONE  OR  MORE  ALGO-
 RITHMS  TO PERFORM CALCULATIONS OF DATA, INCLUDING DATA CONCERNING LOCAL
 OR STATEWIDE RENT AMOUNTS BEING CHARGED TO TENANTS BY LANDLORDS, FOR THE
 PURPOSE OF ADVISING A LANDLORD CONCERNING THE AMOUNT OF  RENT  THAT  THE
 LANDLORD MAY CONSIDER CHARGING A TENANT. "ALGORITHMIC DEVICE":
   (I) INCLUDES A PRODUCT THAT INCORPORATES AN ALGORITHMIC DEVICE; AND
   (II) DOES NOT INCLUDE:
   (A)  ANY  REPORT  PUBLISHED  PERIODICALLY, BUT NO MORE FREQUENTLY THAN
 MONTHLY, BY A TRADE ASSOCIATION THAT RECEIVES RENTER DATA AND  PUBLISHES
 IT IN AN AGGREGATED AND ANONYMOUS MANNER; OR
   (B)  A  PRODUCT  USED  FOR  THE PURPOSE OF ESTABLISHING RENT OR INCOME
 LIMITS IN ACCORDANCE WITH THE AFFORDABLE HOUSING PROGRAM GUIDELINES OF A
 LOCAL GOVERNMENT, THE STATE, THE FEDERAL GOVERNMENT, OR OTHER  POLITICAL
 SUBDIVISION.
   B.  "NONPUBLIC  COMPETITOR  DATA" MEANS INFORMATION THAT IS NOT WIDELY
 AVAILABLE 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 THE DATA ARE ATTRIBUTABLE  TO  A
 SPECIFIC COMPETITOR OR ANONYMIZED, AND THAT IS DERIVED FROM OR OTHERWISE
 PROVIDED BY ANOTHER PERSON THAT COMPETES IN THE SAME MARKET AS A PERSON,
 OR A RELATED MARKET.
   C.  "RENT"  MEANS  THE TOTAL AMOUNT OF RENT, INCLUDING CONCESSIONS AND
 FEES, THAT A RESIDENTIAL TENANT IS REQUIRED TO PAY PURSUANT TO A  RENTAL
 AGREEMENT.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law and shall apply to a  landlord's  calculation  of  the
 amount of rent that the landlord charges for the occupancy of a residen-
 tial  premises  pursuant  to any rental agreement that is executed on or
 after the effective date of this act.