Relates to the use of algorithmic pricing by landlords for the purpose of determining the amount of rent to charge a residential tenant, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7882
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 13, 2025
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general business law, in  relation  to  the  use  of
   algorithmic  pricing  by a landlord for the purpose of determining 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
 340-b to read as follows:
   § 340-B.  AGREEMENTS TO NOT COMPETE WITH RESPECT TO RESIDENTIAL RENTAL
 DWELLING  UNITS.   1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "ALGORITHM" MEANS A COMPUTATIONAL PROCESS THAT USES A SET OF RULES
 TO DEFINE A SEQUENCE OF OPERATIONS.
   (B) "ALGORITHMIC DEVICE" MEANS ANY MACHINE, DEVICE,  COMPUTER  PROGRAM
 OR COMPUTER SOFTWARE THAT ON ITS OWN OR WITH HUMAN ASSISTANCE PERFORMS A
 COORDINATING FUNCTION.
   (C)  "COORDINATING  FUNCTION"  MEANS  PERFORMING  ALL OF THE FOLLOWING
 SUBFUNCTIONS, PROVIDED, HOWEVER, THAT A PRODUCT USED FOR THE PURPOSE  OF
 ESTABLISHING  RENT  OR  INCOME  LIMITS  IN ACCORDANCE WITH THE EMERGENCY
 TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR,  AS  AMENDED,  THE  RENT
 STABILIZATION  LAW OF NINETEEN SIXTY-NINE, AS AMENDED, THE CITY RENT AND
 REHABILITATION LAW, THE  EMERGENCY  HOUSING  RENT  CONTROL  LAW,  OR  AN
 AFFORDABLE  HOUSING  PROGRAM  ADMINISTERED BY A FEDERAL, STATE, OR LOCAL
 GOVERNMENT OR OTHER POLITICAL SUBDIVISION SHALL NOT BE CONSIDERED TO  BE
 PERFORMING A COORDINATING FUNCTION:
   (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 RESIDENTIAL RENTAL  PROPERTY  OWNERS  OR
 MANAGERS,  PROVIDED  THAT  AT LEAST TWO SUCH RESIDENTIAL RENTAL PROPERTY
 OWNERS OR MANAGERS ARE NOT WHOLLY-OWNED SUBSIDIARIES OF THE SAME  PARENT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04298-04-5
 S. 7882                             2
 
 ENTITY  OR  OTHERWISE  OWNED  OR  MANAGED BY THE SAME RESIDENTIAL RENTAL
 PROPERTY OWNER OR MANAGER;
   (II) ANALYZING OR PROCESSING THE INFORMATION DESCRIBED IN SUBPARAGRAPH
 (I)  OF  THIS  PARAGRAPH  USING A SYSTEM, SOFTWARE, OR PROCESS THAT USES
 COMPUTATION, INCLUDING BY USING THAT INFORMATION TO TRAIN AN  ALGORITHM;
 AND
   (III) RECOMMENDING RENTAL PRICES, LEASE RENEWAL TERMS, IDEAL OCCUPANCY
 LEVELS,  OR  OTHER  LEASE  TERMS  AND CONDITIONS TO A RESIDENTIAL RENTAL
 PROPERTY OWNER OR MANAGER.
   (D) "RESIDENTIAL RENTAL PROPERTY OWNER OR MANAGER" MEANS ANY  INDIVID-
 UAL  OR  ENTITY THAT OWNS OR IS A BENEFICIAL OWNER OF, DIRECTLY OR INDI-
 RECTLY, IN WHOLE OR IN PART, OR MANAGES ONE OR MORE  RESIDENTIAL  RENTAL
 DWELLING UNITS IN NEW YORK STATE.
   2.  IT  SHALL BE AN UNLAWFUL VIOLATION OF THIS ARTICLE FOR A PERSON OR
 ENTITY TO KNOWINGLY OR WITH RECKLESS DISREGARD FACILITATE  AN  AGREEMENT
 BETWEEN  OR  AMONG  TWO  OR  MORE  RESIDENTIAL RENTAL PROPERTY OWNERS OR
 MANAGERS TO NOT COMPETE WITH  RESPECT  TO  RESIDENTIAL  RENTAL  DWELLING
 UNITS,  INCLUDING  BY  OPERATING OR LICENSING A SOFTWARE, DATA ANALYTICS
 SERVICE, OR ALGORITHMIC DEVICE THAT PERFORMS A COORDINATING FUNCTION  ON
 BEHALF  OF  OR BETWEEN AND AMONG SUCH RESIDENTIAL RENTAL PROPERTY OWNERS
 OR MANAGERS.
   3. IT SHALL BE CONSIDERED AN UNLAWFUL AGREEMENT IN VIOLATION  OF  THIS
 ARTICLE  FOR A RESIDENTIAL RENTAL PROPERTY OWNER OR MANAGER TO KNOWINGLY
 OR WITH RECKLESS DISREGARD SET OR ADJUST RENTAL  PRICES,  LEASE  RENEWAL
 TERMS,  OCCUPANCY  LEVELS, OR OTHER LEASE TERMS AND CONDITIONS IN ONE OR
 MORE OF THEIR RESIDENTIAL RENTAL  PROPERTIES  BASED  ON  RECOMMENDATIONS
 FROM  A SOFTWARE, DATA ANALYTICS SERVICE, OR ALGORITHMIC DEVICE PERFORM-
 ING A COORDINATING FUNCTION.
   4. NOTHING IN THIS SECTION SHALL IMPAIR OR LIMIT THE APPLICABILITY  OF
 ANY OTHER PART OF THIS ARTICLE OR ANY OTHER STATE LAW.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.