Senate Bill S9609

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9609
 
                             I N  S E N A T E
 
                               May 16, 2024
                                ___________
 
 Introduced  by  Sens. KRUEGER, CLEARE -- read twice and ordered printed,
   and when printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation  to  prohibiting  the
   use of algorithmic systems to artificially inflate the price or reduce
   the supply of leased or rented residential dwelling units in the state

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the  "New York Preventing the Algorithmic Facilitation of Rental Housing
 Cartels Act of 2024".
   § 2. The real property law is amended by adding a new section 222-a to
 read as follows:
   § 222-A. ALGORITHMIC SYSTEMS. 1. AS USED IN THIS SECTION:
   (A) "CONSCIOUSLY PARALLEL PRICING COORDINATION" MEANS A  TACIT  AGREE-
 MENT BETWEEN TWO OR MORE RENTAL PROPERTY OWNERS TO RAISE, LOWER, CHANGE,
 MAINTAIN,  OR  MANIPULATE PRICING FOR THE PURCHASE OR SALE OF REASONABLY
 INTERCHANGEABLE PRODUCTS OR SERVICES.
   (B) "COORDINATING FUNCTION" MEANS:
   (I) COLLECTING HISTORICAL OR CONTEMPORANEOUS PRICES, SUPPLY LEVELS, OR
 LEASE OR RENTAL CONTRACT TERMINATION AND RENEWAL  DATES  OF  RESIDENTIAL
 DWELLING UNITS FROM TWO OR MORE RENTAL PROPERTY OWNERS;
   (II)  ANALYZING OR PROCESSING OF THE INFORMATION DESCRIBED IN SUBPARA-
 GRAPH (I) OF THIS PARAGRAPH USING A SYSTEM, SOFTWARE,  OR  PROCESS  THAT
 USES  COMPUTATION, INCLUDING BY USING THAT INFORMATION TO TRAIN AN ALGO-
 RITHM; AND
   (III) RECOMMENDING RENTAL PRICES, LEASE RENEWAL TERMS, OR IDEAL  OCCU-
 PANCY LEVELS TO A RENTAL PROPERTY OWNER.
   (C)  "COORDINATOR"  MEANS  ANY PERSON THAT OPERATES A SOFTWARE OR DATA
 ANALYTICS SERVICE THAT PERFORMS A COORDINATING FUNCTION FOR  ANY  RENTAL
 PROPERTY  OWNER,  INCLUDING A RENTAL PROPERTY OWNER PERFORMING A COORDI-
 NATING FUNCTION FOR THEIR OWN BENEFIT.
   (D) "DIVISION" MEANS THE DIVISION OF HOUSING AND COMMUNITY RENEWAL.
   (E) "PERSON" MEANS ANY INDIVIDUAL, CORPORATION,  PARTNERSHIP,  ASSOCI-
 ATION,  TRUSTEE,  MUNICIPALITY  OR  OTHER LEGAL ENTITY, INCLUDING CORPO-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14362-02-4
 S. 9609                             2
 
 RATIONS AND ASSOCIATIONS EXISTING UNDER OR AUTHORIZED  BY  THE  LAWS  OF
 EITHER  THE  UNITED STATES, THE LAWS OF ANY OF THE TERRITORIES, THE LAWS
 OF ANY STATE, OR THE LAWS OF ANY FOREIGN COUNTRY; PROVIDED THAT "PERSON"
 SHALL NOT INCLUDE THE STATE OR ANY STATE AGENCY.
   (F) "PRE-DISPUTE ARBITRATION AGREEMENT" MEANS AN AGREEMENT BETWEEN TWO
 OR  MORE PARTIES TO ARBITRATE A DISPUTE BETWEEN THE PARTIES THAT IS MADE
 BEFORE ANY DISPUTE HAS ARISEN.
   (G) "PRE-DISPUTE JOINT ACTION WAIVER" MEANS AN AGREEMENT  BETWEEN  TWO
 OR  MORE  PARTIES, WHICH MAY BE PART OF A PRE-DISPUTE ARBITRATION AGREE-
 MENT, THAT:
   (I) WOULD PROHIBIT OR WAIVE THE RIGHT OF A PARTY TO PARTICIPATE  IN  A
 JOINT,  CLASS, OR COLLECTIVE ACTION IN A JUDICIAL, ARBITRAL, ADMINISTRA-
 TIVE, OR OTHER FORUM RELATING TO A DISPUTE BETWEEN TWO PARTIES; AND
   (II) IS MADE BEFORE ANY DISPUTE HAS ARISEN.
   (H) "RESIDENTIAL DWELLING UNIT" MEANS ANY HOUSE, APARTMENT,  ACCESSORY
 UNIT, OR OTHER UNIT INTENDED TO BE USED AS A PRIMARY RESIDENCE; PROVIDED
 THAT  "RESIDENTIAL  DWELLING  UNIT"  DOES  NOT INCLUDE INPATIENT MEDICAL
 CARE, LICENSED LONG-TERM CARE, AND DETENTION OR CORRECTIONAL FACILITIES.
   (I) "RENTAL PROPERTY OWNER" MEANS ANY INDIVIDUAL,  CORPORATION,  PART-
 NERSHIP,  ASSOCIATION,  JOINT-STOCK  COMPANY,  TRUST,  OR UNINCORPORATED
 ORGANIZATION THAT OWNS REAL PROPERTY AND LEASES OR RENTS  SUCH  PROPERTY
 OR  ANY PORTION THEREOF IN THE FORM OF FOUR OR MORE RESIDENTIAL DWELLING
 UNITS.
   2. IT IS UNLAWFUL FOR:
   (A) A RENTAL PROPERTY OWNER, IN OR AFFECTING COMMERCE, OR ANY AGENT OR
 SUBCONTRACTOR THEREOF, TO SUBSCRIBE  TO,  CONTRACT  WITH,  OR  OTHERWISE
 EXCHANGE ANYTHING OF VALUE IN RETURN FOR THE SERVICES OF A COORDINATOR;
   (B)  A  COORDINATOR, IN OR AFFECTING COMMERCE, TO FACILITATE AN AGREE-
 MENT AMONG RENTAL PROPERTY OWNERS TO NOT COMPETE WITH RESPECT  TO  RESI-
 DENTIAL DWELLING UNITS, INCLUDING BY PERFORMING A COORDINATING FUNCTION;
 OR
   (C) ANY COORDINATOR, IN OR AFFECTING COMMERCE, TO ACQUIRE, DIRECTLY OR
 INDIRECTLY, THE WHOLE OR ANY PART OF THE STOCK OR OTHER SHARE CAPITAL OF
 ANOTHER  COORDINATOR IF THE ACQUISITION WOULD CREATE AN APPRECIABLE RISK
 OF MATERIALLY LESSENING COMPETITION, OR TEND TO  CREATE  A  MONOPOLY  OR
 MONOPSONY,  AND ANY SUCH ACQUISITION SHALL BE DEEMED A VIOLATION OF THIS
 SECTION.
   3. (A) IN ADDITION TO ANY OTHER ACTION  OR  PROCEEDING  AUTHORIZED  BY
 LAW,  THE  ATTORNEY GENERAL MAY BRING AN ACTION OR SPECIAL PROCEEDING IN
 THE SUPREME COURT, IN THE NAME AND ON BEHALF OF THE PEOPLE OF THE  STATE
 OF  NEW  YORK, AGAINST A PERSON VIOLATING THE PROVISIONS OF THIS SECTION
 TO ENJOIN SUCH PERSON FROM CONTINUING THE VIOLATION OR ENGAGING  IN  ANY
 ACTS IN FURTHERANCE THEREOF, TO COMPEL COMPLIANCE WITH THE PROVISIONS OF
 THIS  SECTION AND/OR TO RECOVER ANY MONETARY PENALTY FOR SUCH VIOLATION.
 ANY SUCH ACTION OR PROCEEDING MAY  BE  COMPROMISED  OR  DISCONTINUED  ON
 APPLICATION OF THE DEPARTMENT UPON SUCH TERMS AS THE COURT SHALL APPROVE
 AND ORDER.
   (B)  IF  THE  DEPARTMENT  HAS REASON TO BELIEVE THAT A PERSON VIOLATED
 THIS SECTION, THE DEPARTMENT MAY COMMENCE A CIVIL  ACTION,  IN  ITS  OWN
 NAME  BY  ANY  OF  ITS  ATTORNEYS  DESIGNATED BY IT FOR SUCH PURPOSE, TO
 RECOVER A CIVIL PENALTY AND SEEK OTHER APPROPRIATE RELIEF IN  ANY  COURT
 OF COMPETENT JURISDICTION.
   (C)  ALL  MONIES  RECOVERED  IN ANY SUCH ACTION OR SPECIAL PROCEEDING,
 TOGETHER WITH THE COSTS THEREOF SHALL BE PAID INTO THE STATE TREASURY TO
 THE CREDIT OF THE GENERAL FUND.
   4. IN A CIVIL ACTION UNDER THIS SECTION, A COMPLAINT:
 S. 9609                             3
 
   (A) PLAUSIBLY PLEADS A VIOLATION OF THIS SECTION AND IF THE  COMPLAINT
 CONTAINS  FACTUAL  ALLEGATIONS,  INCLUDING  ALLEGATIONS  OF  CONSCIOUSLY
 PARALLEL PRICING COORDINATION, DEMONSTRATING THAT  THE  EXISTENCE  OF  A
 CONTRACT,  COMBINATION  IN THE FORM OF TRUST OR OTHERWISE, OR CONSPIRACY
 IN RESTRAINT OF TRADE OR COMMERCE IS AMONG THE REALM OF PLAUSIBLE POSSI-
 BILITIES; AND
   (B)  NEED NOT ALLEGE FACTS TENDING TO EXCLUDE THE POSSIBILITY OF INDE-
 PENDENT ACTION.
   5. A PRE-DISPUTE ARBITRATION AGREEMENT  OR  PRE-DISPUTE  JOINT  ACTION
 WAIVER RELATING TO A VIOLATION OF THIS SECTION SHALL BE INVALID OR UNEN-
 FORCEABLE.
   6.  NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO PREEMPT ANY STATE,
 TRIBAL, CITY, OR LOCAL LAW, REGULATION,  OR  ORDINANCE  THAT  EXPLICITLY
 SUPPLEMENTS THIS SECTION.
   §  3.  Severability.  If any clause, sentence, paragraph, subdivision,
 section or part of this act shall be adjudged by any court of  competent
 jurisdiction  to  be invalid, such judgment shall not affect, impair, or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section or part thereof
 directly involved in the controversy in which such judgment  shall  have
 been rendered. It is hereby declared to be the intent of the legislature
 that  this  act  would have been enacted even if such invalid provisions
 had not been included herein.
   § 4. This act shall take effect immediately.