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S07882 Summary:

S07882 Actions:

S07882 Committee Votes:

S07882 Floor Votes:

S07882 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7882
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                      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:
 
     1    Section 1. The general business law is amended by adding a new section
     2  340-b to read as follows:
     3    § 340-b.  Agreements to not compete with respect to residential rental
     4  dwelling  units.   1. As used in this section, the following terms shall
     5  have the following meanings:
     6    (a) "Algorithm" means a computational process that uses a set of rules
     7  to define a sequence of operations.
     8    (b) "Algorithmic device" means any machine, device,  computer  program
     9  or computer software that on its own or with human assistance performs a
    10  coordinating function.
    11    (c)  "Coordinating  function"  means  performing  all of the following
    12  subfunctions, provided, however, that a product used for the purpose  of
    13  establishing  rent  or  income  limits  in accordance with the emergency
    14  tenant protection act of nineteen seventy-four,  as  amended,  the  rent
    15  stabilization  law of nineteen sixty-nine, as amended, the city rent and
    16  rehabilitation law, the  emergency  housing  rent  control  law,  or  an
    17  affordable  housing  program  administered by a federal, state, or local
    18  government or other political subdivision shall not be considered to  be
    19  performing a coordinating function:
    20    (i) collecting historical or contemporaneous prices, supply levels, or
    21  lease  or  rental  contract termination and renewal dates of residential
    22  dwelling units from two or more residential rental  property  owners  or
    23  managers,  provided  that  at least two such residential rental property
    24  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
 
     1  entity  or  otherwise  owned  or  managed by the same residential rental
     2  property owner or manager;
     3    (ii) analyzing or processing the information described in subparagraph
     4  (i)  of  this  paragraph  using a system, software, or process that uses
     5  computation, including by using that information to train an  algorithm;
     6  and
     7    (iii) recommending rental prices, lease renewal terms, ideal occupancy
     8  levels,  or  other  lease  terms  and conditions to a residential rental
     9  property owner or manager.
    10    (d) "Residential rental property owner or manager" means any  individ-
    11  ual  or  entity that owns or is a beneficial owner of, directly or indi-
    12  rectly, in whole or in part, or manages one or more  residential  rental
    13  dwelling units in New York state.
    14    2.  It  shall be an unlawful violation of this article for a person or
    15  entity to knowingly or with reckless disregard facilitate  an  agreement
    16  between  or  among  two  or  more  residential rental property owners or
    17  managers to not compete with  respect  to  residential  rental  dwelling
    18  units,  including  by  operating or licensing a software, data analytics
    19  service, or algorithmic device that performs a coordinating function  on
    20  behalf  of  or between and among such residential rental property owners
    21  or managers.
    22    3. It shall be considered an unlawful agreement in violation  of  this
    23  article  for a residential rental property owner or manager to knowingly
    24  or with reckless disregard set or adjust rental  prices,  lease  renewal
    25  terms,  occupancy  levels, or other lease terms and conditions in one or
    26  more of their residential rental  properties  based  on  recommendations
    27  from  a software, data analytics service, or algorithmic device perform-
    28  ing a coordinating function.
    29    4. Nothing in this section shall impair or limit the applicability  of
    30  any other part of this article or any other state law.
    31    §  2.  This  act  shall take effect on the sixtieth day after it shall
    32  have become a law.