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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 52Introduced by Senator PrezDecember 20, 2024 An act to add Section 1947.14 to the Civil Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTSB 52, as introduced, Prez. Housing rental rates and occupancy levels: algorithmic devices.Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations.This bill would make it unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device, as defined, that advises on rental rates or occupancy levels for residential dwelling units, and would also make it unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units. The bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a tenant to file a civil action for a violation of the bill by a landlord, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Renters make up a larger share of households in California at 44 percent, compared to the United States average of 35 percent, and California has a higher percentage of renters compared to any other state other than New York, which has a rate of 46 percent.(b) Californias median rent is two thousand eight hundred dollars ($2,800), which is 40 percent higher than the national median. In the City of Los Angeles, the median rent is two thousand eight hundred dollars ($2,800), while in the City and County of San Francisco, the median rent is three thousand two hundred eighty-five dollars ($3,285).(c) Recently, algorithmic pricing software has disrupted rental housing markets in cities nationwide.(d) Algorithmic pricing technology uses proprietary lease information to gather and share rent data, setting prices that can inflate rents and vacancy rates. The public sharing of vast amounts of proprietary data can harm renters by calculating and recommending rent and occupancy levels.(e) Algorithmic pricing software has led to double-digit rent increases, higher vacancy rates, and more evictions, distorting markets by causing both rents and vacancy rates to rise simultaneously.(f) Often used by large corporate landlords, algorithmic pricing software promotes the consolidation of corporate and private equity ownership of rental housing. This occurs at the expense of landlords, both large and small, who adhere to standard practices, thereby suppressing competition and creating an unfair market advantage.(g) Investigations have been launched recently into the use of algorithmic pricing software. California and seven other states joined the United States Department of Justices antitrust lawsuit, alleging that an algorithmic intermediary collects, combines, and exploits landlords competitively sensitive information, causing renters to pay inflated prices.(h) Local governments in California have introduced ordinances to ban the use of algorithmic rent pricing software to protect renters from potential market manipulations.SEC. 2. Section 1947.14 is added to the Civil Code, to read:1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units.(b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units.(2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. (c) The following definitions apply for purposes of this section:(1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A) Algorithmic device includes a product that incorporates an algorithmic device.(B) Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 52Introduced by Senator PrezDecember 20, 2024 An act to add Section 1947.14 to the Civil Code, relating to housing. LEGISLATIVE COUNSEL'S DIGESTSB 52, as introduced, Prez. Housing rental rates and occupancy levels: algorithmic devices.Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations.This bill would make it unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device, as defined, that advises on rental rates or occupancy levels for residential dwelling units, and would also make it unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units. The bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a tenant to file a civil action for a violation of the bill by a landlord, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | Amended IN Senate April 08, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate April 08, 2025 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 52 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator PrezDecember 20, 2024 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Senator Prez | |
| 18 | 18 | December 20, 2024 | |
| 19 | 19 | ||
| 20 | - | An act to add Section 1947.14 | |
| 20 | + | An act to add Section 1947.14 to the Civil Code, relating to housing. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | SB 52, as | |
| 26 | + | SB 52, as introduced, Prez. Housing rental rates and occupancy levels: algorithmic devices. | |
| 27 | 27 | ||
| 28 | - | Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations.This bill would make it unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device, as defined, that advises on rental rates or occupancy levels for residential dwelling units, and | |
| 28 | + | Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations.This bill would make it unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device, as defined, that advises on rental rates or occupancy levels for residential dwelling units, and would also make it unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units. The bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a tenant to file a civil action for a violation of the bill by a landlord, as specified. | |
| 29 | 29 | ||
| 30 | 30 | Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations. | |
| 31 | 31 | ||
| 32 | - | This bill would make it unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device, as defined, that advises on rental rates or occupancy levels for residential dwelling units, and 2 or more persons a rental pricing algorithm, as defined, with the intent that it be used by 2 or more persons, as specified, to set rental rates, lease terms, or occupancy rates for residential premises. The bill would also make it unlawful for a landlord any person to use an algorithmic device a rental pricing algorithm to set rental rates rates, lease terms, or occupancy levels for residential dwelling units. The premises if the person knew or should have known that another person in the same or related market used or will use the rental pricing algorithm to set rental rates, lease terms, or occupancy rates for residential premises. The bill would also prohibit a person engaged in the business of providing a rental pricing algorithm that is used to set rental rates, lease terms, or occupancy rates for residential premises and that is not otherwise prohibited under these provisions from using nonpublic competitor data, as defined, pertaining to residential premises in the state. | |
| 33 | - | ||
| 34 | - | Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts. Under existing law, a violation of the Cartwright Act is punishable as a crime. The Unfair Competition Law makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified. | |
| 35 | - | ||
| 36 | - | This bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a tenant person to file a civil action for a violation of the bill by a landlord, bill, as specified. The bill would provide that a violation of its provisions is an unlawful restraint on competition within the meaning of the Cartwright Act and an act of unfair competition in violation of the Unfair Competition Law. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program. | |
| 37 | - | ||
| 38 | - | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. | |
| 39 | - | ||
| 40 | - | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 32 | + | This bill would make it unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device, as defined, that advises on rental rates or occupancy levels for residential dwelling units, and would also make it unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units. The bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a tenant to file a civil action for a violation of the bill by a landlord, as specified. | |
| 41 | 33 | ||
| 42 | 34 | ## Digest Key | |
| 43 | 35 | ||
| 44 | 36 | ## Bill Text | |
| 45 | 37 | ||
| 46 | - | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Renters make up a larger share of households in California at 44 percent, compared to the United States average of 35 percent, and California has a higher percentage of renters compared to any other state other than New York, which has a rate of 46 percent.(b) Californias median rent is two thousand eight hundred dollars ($2,800), which is 40 percent higher than the national median. In the City of Los Angeles, the median rent is two thousand eight hundred dollars ($2,800), while in the City and County of San Francisco, the median rent is three thousand two hundred eighty-five dollars ($3,285).(c) Recently, algorithmic pricing software has disrupted rental housing markets in cities nationwide.(d) Algorithmic pricing technology uses proprietary lease information to gather and share rent data, setting prices that can inflate rents and vacancy rates. The public sharing of vast amounts of proprietary data can harm renters by calculating and recommending rent and occupancy levels.(e) Algorithmic pricing software has led to double-digit rent increases, higher vacancy rates, and more evictions, distorting markets by causing both rents and vacancy rates to rise simultaneously.(f) Often used by large corporate landlords, algorithmic pricing software promotes the consolidation of corporate and private equity ownership of rental housing. This occurs at the expense of landlords, both large and small, who adhere to standard practices, thereby suppressing competition and creating an unfair market advantage.(g) Investigations have been launched recently into the use of algorithmic pricing software. California and seven other states joined the United States Department of Justices antitrust lawsuit, alleging that an algorithmic intermediary collects, combines, and exploits landlords competitively sensitive information, causing renters to pay inflated prices.(h) Local governments in California have introduced ordinances to ban the use of algorithmic rent pricing software to protect renters from potential market manipulations.SEC. 2.Section 1947.14 is added to the Civil Code, to read:1947.14 | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Renters make up a larger share of households in California at 44 percent, compared to the United States average of 35 percent, and California has a higher percentage of renters compared to any other state other than New York, which has a rate of 46 percent.(b) Californias median rent is two thousand eight hundred dollars ($2,800), which is 40 percent higher than the national median. In the City of Los Angeles, the median rent is two thousand eight hundred dollars ($2,800), while in the City and County of San Francisco, the median rent is three thousand two hundred eighty-five dollars ($3,285).(c) Recently, algorithmic pricing software has disrupted rental housing markets in cities nationwide.(d) Algorithmic pricing technology uses proprietary lease information to gather and share rent data, setting prices that can inflate rents and vacancy rates. The public sharing of vast amounts of proprietary data can harm renters by calculating and recommending rent and occupancy levels.(e) Algorithmic pricing software has led to double-digit rent increases, higher vacancy rates, and more evictions, distorting markets by causing both rents and vacancy rates to rise simultaneously.(f) Often used by large corporate landlords, algorithmic pricing software promotes the consolidation of corporate and private equity ownership of rental housing. This occurs at the expense of landlords, both large and small, who adhere to standard practices, thereby suppressing competition and creating an unfair market advantage.(g) Investigations have been launched recently into the use of algorithmic pricing software. California and seven other states joined the United States Department of Justices antitrust lawsuit, alleging that an algorithmic intermediary collects, combines, and exploits landlords competitively sensitive information, causing renters to pay inflated prices.(h) Local governments in California have introduced ordinances to ban the use of algorithmic rent pricing software to protect renters from potential market manipulations.SEC. 2. Section 1947.14 is added to the Civil Code, to read:1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units.(b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units.(2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. (c) The following definitions apply for purposes of this section:(1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A) Algorithmic device includes a product that incorporates an algorithmic device.(B) Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 47 | 39 | ||
| 48 | 40 | The people of the State of California do enact as follows: | |
| 49 | 41 | ||
| 50 | 42 | ## The people of the State of California do enact as follows: | |
| 51 | 43 | ||
| 52 | 44 | SECTION 1. The Legislature finds and declares all of the following:(a) Renters make up a larger share of households in California at 44 percent, compared to the United States average of 35 percent, and California has a higher percentage of renters compared to any other state other than New York, which has a rate of 46 percent.(b) Californias median rent is two thousand eight hundred dollars ($2,800), which is 40 percent higher than the national median. In the City of Los Angeles, the median rent is two thousand eight hundred dollars ($2,800), while in the City and County of San Francisco, the median rent is three thousand two hundred eighty-five dollars ($3,285).(c) Recently, algorithmic pricing software has disrupted rental housing markets in cities nationwide.(d) Algorithmic pricing technology uses proprietary lease information to gather and share rent data, setting prices that can inflate rents and vacancy rates. The public sharing of vast amounts of proprietary data can harm renters by calculating and recommending rent and occupancy levels.(e) Algorithmic pricing software has led to double-digit rent increases, higher vacancy rates, and more evictions, distorting markets by causing both rents and vacancy rates to rise simultaneously.(f) Often used by large corporate landlords, algorithmic pricing software promotes the consolidation of corporate and private equity ownership of rental housing. This occurs at the expense of landlords, both large and small, who adhere to standard practices, thereby suppressing competition and creating an unfair market advantage.(g) Investigations have been launched recently into the use of algorithmic pricing software. California and seven other states joined the United States Department of Justices antitrust lawsuit, alleging that an algorithmic intermediary collects, combines, and exploits landlords competitively sensitive information, causing renters to pay inflated prices.(h) Local governments in California have introduced ordinances to ban the use of algorithmic rent pricing software to protect renters from potential market manipulations. | |
| 53 | 45 | ||
| 54 | 46 | SECTION 1. The Legislature finds and declares all of the following:(a) Renters make up a larger share of households in California at 44 percent, compared to the United States average of 35 percent, and California has a higher percentage of renters compared to any other state other than New York, which has a rate of 46 percent.(b) Californias median rent is two thousand eight hundred dollars ($2,800), which is 40 percent higher than the national median. In the City of Los Angeles, the median rent is two thousand eight hundred dollars ($2,800), while in the City and County of San Francisco, the median rent is three thousand two hundred eighty-five dollars ($3,285).(c) Recently, algorithmic pricing software has disrupted rental housing markets in cities nationwide.(d) Algorithmic pricing technology uses proprietary lease information to gather and share rent data, setting prices that can inflate rents and vacancy rates. The public sharing of vast amounts of proprietary data can harm renters by calculating and recommending rent and occupancy levels.(e) Algorithmic pricing software has led to double-digit rent increases, higher vacancy rates, and more evictions, distorting markets by causing both rents and vacancy rates to rise simultaneously.(f) Often used by large corporate landlords, algorithmic pricing software promotes the consolidation of corporate and private equity ownership of rental housing. This occurs at the expense of landlords, both large and small, who adhere to standard practices, thereby suppressing competition and creating an unfair market advantage.(g) Investigations have been launched recently into the use of algorithmic pricing software. California and seven other states joined the United States Department of Justices antitrust lawsuit, alleging that an algorithmic intermediary collects, combines, and exploits landlords competitively sensitive information, causing renters to pay inflated prices.(h) Local governments in California have introduced ordinances to ban the use of algorithmic rent pricing software to protect renters from potential market manipulations. | |
| 55 | 47 | ||
| 56 | 48 | SECTION 1. The Legislature finds and declares all of the following: | |
| 57 | 49 | ||
| 58 | 50 | ### SECTION 1. | |
| 59 | 51 | ||
| 60 | 52 | (a) Renters make up a larger share of households in California at 44 percent, compared to the United States average of 35 percent, and California has a higher percentage of renters compared to any other state other than New York, which has a rate of 46 percent. | |
| 61 | 53 | ||
| 62 | 54 | (b) Californias median rent is two thousand eight hundred dollars ($2,800), which is 40 percent higher than the national median. In the City of Los Angeles, the median rent is two thousand eight hundred dollars ($2,800), while in the City and County of San Francisco, the median rent is three thousand two hundred eighty-five dollars ($3,285). | |
| 63 | 55 | ||
| 64 | 56 | (c) Recently, algorithmic pricing software has disrupted rental housing markets in cities nationwide. | |
| 65 | 57 | ||
| 66 | 58 | (d) Algorithmic pricing technology uses proprietary lease information to gather and share rent data, setting prices that can inflate rents and vacancy rates. The public sharing of vast amounts of proprietary data can harm renters by calculating and recommending rent and occupancy levels. | |
| 67 | 59 | ||
| 68 | 60 | (e) Algorithmic pricing software has led to double-digit rent increases, higher vacancy rates, and more evictions, distorting markets by causing both rents and vacancy rates to rise simultaneously. | |
| 69 | 61 | ||
| 70 | 62 | (f) Often used by large corporate landlords, algorithmic pricing software promotes the consolidation of corporate and private equity ownership of rental housing. This occurs at the expense of landlords, both large and small, who adhere to standard practices, thereby suppressing competition and creating an unfair market advantage. | |
| 71 | 63 | ||
| 72 | 64 | (g) Investigations have been launched recently into the use of algorithmic pricing software. California and seven other states joined the United States Department of Justices antitrust lawsuit, alleging that an algorithmic intermediary collects, combines, and exploits landlords competitively sensitive information, causing renters to pay inflated prices. | |
| 73 | 65 | ||
| 74 | 66 | (h) Local governments in California have introduced ordinances to ban the use of algorithmic rent pricing software to protect renters from potential market manipulations. | |
| 75 | 67 | ||
| 68 | + | SEC. 2. Section 1947.14 is added to the Civil Code, to read:1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units.(b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units.(2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. (c) The following definitions apply for purposes of this section:(1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A) Algorithmic device includes a product that incorporates an algorithmic device.(B) Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 69 | + | ||
| 70 | + | SEC. 2. Section 1947.14 is added to the Civil Code, to read: | |
| 71 | + | ||
| 72 | + | ### SEC. 2. | |
| 73 | + | ||
| 74 | + | 1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units.(b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units.(2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. (c) The following definitions apply for purposes of this section:(1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A) Algorithmic device includes a product that incorporates an algorithmic device.(B) Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 75 | + | ||
| 76 | + | 1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units.(b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units.(2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. (c) The following definitions apply for purposes of this section:(1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A) Algorithmic device includes a product that incorporates an algorithmic device.(B) Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 77 | + | ||
| 78 | + | 1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units.(b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units.(2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. (c) The following definitions apply for purposes of this section:(1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A) Algorithmic device includes a product that incorporates an algorithmic device.(B) Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 76 | 79 | ||
| 77 | 80 | ||
| 78 | 81 | ||
| 82 | + | 1947.14. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units. | |
| 79 | 83 | ||
| 80 | - | ||
| 84 | + | (b) (1) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential dwelling units. | |
| 81 | 85 | ||
| 82 | - | ||
| 86 | + | (2) Each month that a violation exists or continues, and each dwelling unit for which the landlord uses the algorithmic device, shall constitute a separate and distinct violation. | |
| 83 | 87 | ||
| 84 | - | ### SEC. 2. | |
| 85 | - | ||
| 86 | - | 1947.16. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units. two or more persons a rental pricing algorithm with the intent that it be used by two or more persons in the same market or a related market to set or recommend rental rates, lease terms, or occupancy levels for residential premises.(b) (1)It is unlawful for a landlord any person to use an algorithmic device a rental pricing algorithm to set rental rates rates, lease terms, or occupancy levels for residential dwelling units. premises if the person knew or should have known that another person in the same or related market used or will use the rental pricing algorithm to set rental rates, lease terms, or occupancy levels for a residential premises.(c) A person engaged in the business of providing a rental pricing algorithm that is used to set or recommend rental rates, lease terms, or occupancy levels for residential premises, and that is not otherwise prohibited under subdivision (a), shall not use nonpublic competitor data pertaining to residential premises in the state.(2)(d) Each month that a violation exists or continues, and each dwelling unit residential premises for which the landlord person uses the algorithmic device, rental pricing algorithm, shall constitute a separate and distinct violation. (c)(e) The following definitions apply for purposes of this section:(1)Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A)Algorithmic device includes a product that incorporates an algorithmic device.(B)Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii)A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2)(1) (A) Nonpublic competitor data means information that is not available to the general public, nonpublic data, including information about actual rent amounts, rental rates, lease terms, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(B) Nonpublic competitor data does not include any of the following:(i) Information regarding actual rent amounts charged to a tenant, occupancy rates, and lease start and end dates that are obtained from the following publicly accessible sources:(I) Advertisements of available rental properties, including listings published on internet websites maintained by a property owner or manager.(II) Rental registries maintained by a city, county, city and county, or state or federal agency.(ii) Information obtained from the United States Census Bureau or State Census Data Center.(iii) Aggregated information distributed, reported, or otherwise communicated in a way that is not reasonably linkable to a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results, provided that such aggregated information is not derived from sources which may be considered nonpublic competitor data.(iv) Other forums, including internet websites, in which information about actual rent amounts charged to a tenant, occupancy rates, or lease start and end dates is equally accessible to tenants or prospective tenants and landlords.(2) Nonpublic data means information that is not widely available or easily accessible to the public, including public-facing data made available under terms of service that prohibit the use of that data.(3) Rental pricing algorithm means a service or product, including, but not limited to, an artificial intelligence, algorithmic program, or software tool, that uses one or more algorithms to analyze or process data regarding historical or contemporaneous rental rates, lease terms, or occupancy levels of residential premises.(A) Rental pricing algorithm includes a product that incorporates a rental pricing algorithm.(B) Rental pricing algorithm does not include either of the following:(i) A report that publishes publicly available rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purposes of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(d)(f) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant person may file a civil action for a violation of subdivision (b) this section for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party plaintiff in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph.(g) (1) Nothing in this section shall impair or limit the applicability of antitrust laws. The prohibitions described herein apply in addition to, and not in lieu of, any prohibitions described in applicable state or federal antitrust laws.(2) A violation of this section shall constitute an unlawful restraint on competition within the meaning of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) and an act of unfair competition within the meaning of the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code). The remedies and penalties provided by this section are cumulative to each other and the remedies or penalties available under all other laws of this state. | |
| 87 | - | ||
| 88 | - | 1947.16. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units. two or more persons a rental pricing algorithm with the intent that it be used by two or more persons in the same market or a related market to set or recommend rental rates, lease terms, or occupancy levels for residential premises.(b) (1)It is unlawful for a landlord any person to use an algorithmic device a rental pricing algorithm to set rental rates rates, lease terms, or occupancy levels for residential dwelling units. premises if the person knew or should have known that another person in the same or related market used or will use the rental pricing algorithm to set rental rates, lease terms, or occupancy levels for a residential premises.(c) A person engaged in the business of providing a rental pricing algorithm that is used to set or recommend rental rates, lease terms, or occupancy levels for residential premises, and that is not otherwise prohibited under subdivision (a), shall not use nonpublic competitor data pertaining to residential premises in the state.(2)(d) Each month that a violation exists or continues, and each dwelling unit residential premises for which the landlord person uses the algorithmic device, rental pricing algorithm, shall constitute a separate and distinct violation. (c)(e) The following definitions apply for purposes of this section:(1)Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A)Algorithmic device includes a product that incorporates an algorithmic device.(B)Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii)A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2)(1) (A) Nonpublic competitor data means information that is not available to the general public, nonpublic data, including information about actual rent amounts, rental rates, lease terms, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(B) Nonpublic competitor data does not include any of the following:(i) Information regarding actual rent amounts charged to a tenant, occupancy rates, and lease start and end dates that are obtained from the following publicly accessible sources:(I) Advertisements of available rental properties, including listings published on internet websites maintained by a property owner or manager.(II) Rental registries maintained by a city, county, city and county, or state or federal agency.(ii) Information obtained from the United States Census Bureau or State Census Data Center.(iii) Aggregated information distributed, reported, or otherwise communicated in a way that is not reasonably linkable to a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results, provided that such aggregated information is not derived from sources which may be considered nonpublic competitor data.(iv) Other forums, including internet websites, in which information about actual rent amounts charged to a tenant, occupancy rates, or lease start and end dates is equally accessible to tenants or prospective tenants and landlords.(2) Nonpublic data means information that is not widely available or easily accessible to the public, including public-facing data made available under terms of service that prohibit the use of that data.(3) Rental pricing algorithm means a service or product, including, but not limited to, an artificial intelligence, algorithmic program, or software tool, that uses one or more algorithms to analyze or process data regarding historical or contemporaneous rental rates, lease terms, or occupancy levels of residential premises.(A) Rental pricing algorithm includes a product that incorporates a rental pricing algorithm.(B) Rental pricing algorithm does not include either of the following:(i) A report that publishes publicly available rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purposes of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(d)(f) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant person may file a civil action for a violation of subdivision (b) this section for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party plaintiff in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph.(g) (1) Nothing in this section shall impair or limit the applicability of antitrust laws. The prohibitions described herein apply in addition to, and not in lieu of, any prohibitions described in applicable state or federal antitrust laws.(2) A violation of this section shall constitute an unlawful restraint on competition within the meaning of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) and an act of unfair competition within the meaning of the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code). The remedies and penalties provided by this section are cumulative to each other and the remedies or penalties available under all other laws of this state. | |
| 89 | - | ||
| 90 | - | 1947.16. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units. two or more persons a rental pricing algorithm with the intent that it be used by two or more persons in the same market or a related market to set or recommend rental rates, lease terms, or occupancy levels for residential premises.(b) (1)It is unlawful for a landlord any person to use an algorithmic device a rental pricing algorithm to set rental rates rates, lease terms, or occupancy levels for residential dwelling units. premises if the person knew or should have known that another person in the same or related market used or will use the rental pricing algorithm to set rental rates, lease terms, or occupancy levels for a residential premises.(c) A person engaged in the business of providing a rental pricing algorithm that is used to set or recommend rental rates, lease terms, or occupancy levels for residential premises, and that is not otherwise prohibited under subdivision (a), shall not use nonpublic competitor data pertaining to residential premises in the state.(2)(d) Each month that a violation exists or continues, and each dwelling unit residential premises for which the landlord person uses the algorithmic device, rental pricing algorithm, shall constitute a separate and distinct violation. (c)(e) The following definitions apply for purposes of this section:(1)Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit.(A)Algorithmic device includes a product that incorporates an algorithmic device.(B)Algorithmic device does not include either of the following:(i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii)A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(2)(1) (A) Nonpublic competitor data means information that is not available to the general public, nonpublic data, including information about actual rent amounts, rental rates, lease terms, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market.(B) Nonpublic competitor data does not include any of the following:(i) Information regarding actual rent amounts charged to a tenant, occupancy rates, and lease start and end dates that are obtained from the following publicly accessible sources:(I) Advertisements of available rental properties, including listings published on internet websites maintained by a property owner or manager.(II) Rental registries maintained by a city, county, city and county, or state or federal agency.(ii) Information obtained from the United States Census Bureau or State Census Data Center.(iii) Aggregated information distributed, reported, or otherwise communicated in a way that is not reasonably linkable to a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results, provided that such aggregated information is not derived from sources which may be considered nonpublic competitor data.(iv) Other forums, including internet websites, in which information about actual rent amounts charged to a tenant, occupancy rates, or lease start and end dates is equally accessible to tenants or prospective tenants and landlords.(2) Nonpublic data means information that is not widely available or easily accessible to the public, including public-facing data made available under terms of service that prohibit the use of that data.(3) Rental pricing algorithm means a service or product, including, but not limited to, an artificial intelligence, algorithmic program, or software tool, that uses one or more algorithms to analyze or process data regarding historical or contemporaneous rental rates, lease terms, or occupancy levels of residential premises.(A) Rental pricing algorithm includes a product that incorporates a rental pricing algorithm.(B) Rental pricing algorithm does not include either of the following:(i) A report that publishes publicly available rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases.(ii) A product used for the purposes of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program.(d)(f) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.(2) A tenant person may file a civil action for a violation of subdivision (b) this section for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party plaintiff in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph.(g) (1) Nothing in this section shall impair or limit the applicability of antitrust laws. The prohibitions described herein apply in addition to, and not in lieu of, any prohibitions described in applicable state or federal antitrust laws.(2) A violation of this section shall constitute an unlawful restraint on competition within the meaning of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) and an act of unfair competition within the meaning of the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code). The remedies and penalties provided by this section are cumulative to each other and the remedies or penalties available under all other laws of this state. | |
| 91 | - | ||
| 92 | - | ||
| 93 | - | ||
| 94 | - | 1947.16. (a) It is unlawful for any person to sell, license, or otherwise provide to a landlord an algorithmic device that advises on rental rates or occupancy levels that may be achieved for residential dwelling units. two or more persons a rental pricing algorithm with the intent that it be used by two or more persons in the same market or a related market to set or recommend rental rates, lease terms, or occupancy levels for residential premises. | |
| 95 | - | ||
| 96 | - | (b) (1)It is unlawful for a landlord any person to use an algorithmic device a rental pricing algorithm to set rental rates rates, lease terms, or occupancy levels for residential dwelling units. premises if the person knew or should have known that another person in the same or related market used or will use the rental pricing algorithm to set rental rates, lease terms, or occupancy levels for a residential premises. | |
| 97 | - | ||
| 98 | - | (c) A person engaged in the business of providing a rental pricing algorithm that is used to set or recommend rental rates, lease terms, or occupancy levels for residential premises, and that is not otherwise prohibited under subdivision (a), shall not use nonpublic competitor data pertaining to residential premises in the state. | |
| 99 | - | ||
| 100 | - | (2) | |
| 101 | - | ||
| 102 | - | ||
| 103 | - | ||
| 104 | - | (d) Each month that a violation exists or continues, and each dwelling unit residential premises for which the landlord person uses the algorithmic device, rental pricing algorithm, shall constitute a separate and distinct violation. | |
| 105 | - | ||
| 106 | - | (c) | |
| 107 | - | ||
| 108 | - | ||
| 109 | - | ||
| 110 | - | (e) The following definitions apply for purposes of this section: | |
| 88 | + | (c) The following definitions apply for purposes of this section: | |
| 111 | 89 | ||
| 112 | 90 | (1) Algorithmic device means a device commonly known as revenue management software that uses one or more algorithms to perform calculations of nonpublic competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for a unit. | |
| 113 | 91 | ||
| 114 | - | ||
| 115 | - | ||
| 116 | 92 | (A) Algorithmic device includes a product that incorporates an algorithmic device. | |
| 117 | - | ||
| 118 | - | ||
| 119 | 93 | ||
| 120 | 94 | (B) Algorithmic device does not include either of the following: | |
| 121 | 95 | ||
| 122 | - | ||
| 123 | - | ||
| 124 | 96 | (i) A report that publishes existing rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases. | |
| 125 | - | ||
| 126 | - | ||
| 127 | 97 | ||
| 128 | 98 | (ii) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program. | |
| 129 | 99 | ||
| 100 | + | (2) Nonpublic competitor data means information that is not available to the general public, including information about actual rent amounts, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market. | |
| 130 | 101 | ||
| 102 | + | (d) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action. | |
| 131 | 103 | ||
| 132 | - | (2) | |
| 133 | - | ||
| 134 | - | ||
| 135 | - | ||
| 136 | - | (1) (A) Nonpublic competitor data means information that is not available to the general public, nonpublic data, including information about actual rent amounts, rental rates, lease terms, occupancy rates, lease start and end dates, and similar data, regardless of whether the information is attributable to a specific competitor or anonymized, and regardless of whether the information is derived from or otherwise provided by another person that competes in the same or a related market. | |
| 137 | - | ||
| 138 | - | (B) Nonpublic competitor data does not include any of the following: | |
| 139 | - | ||
| 140 | - | (i) Information regarding actual rent amounts charged to a tenant, occupancy rates, and lease start and end dates that are obtained from the following publicly accessible sources: | |
| 141 | - | ||
| 142 | - | (I) Advertisements of available rental properties, including listings published on internet websites maintained by a property owner or manager. | |
| 143 | - | ||
| 144 | - | (II) Rental registries maintained by a city, county, city and county, or state or federal agency. | |
| 145 | - | ||
| 146 | - | (ii) Information obtained from the United States Census Bureau or State Census Data Center. | |
| 147 | - | ||
| 148 | - | (iii) Aggregated information distributed, reported, or otherwise communicated in a way that is not reasonably linkable to a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results, provided that such aggregated information is not derived from sources which may be considered nonpublic competitor data. | |
| 149 | - | ||
| 150 | - | (iv) Other forums, including internet websites, in which information about actual rent amounts charged to a tenant, occupancy rates, or lease start and end dates is equally accessible to tenants or prospective tenants and landlords. | |
| 151 | - | ||
| 152 | - | (2) Nonpublic data means information that is not widely available or easily accessible to the public, including public-facing data made available under terms of service that prohibit the use of that data. | |
| 153 | - | ||
| 154 | - | (3) Rental pricing algorithm means a service or product, including, but not limited to, an artificial intelligence, algorithmic program, or software tool, that uses one or more algorithms to analyze or process data regarding historical or contemporaneous rental rates, lease terms, or occupancy levels of residential premises. | |
| 155 | - | ||
| 156 | - | (A) Rental pricing algorithm includes a product that incorporates a rental pricing algorithm. | |
| 157 | - | ||
| 158 | - | (B) Rental pricing algorithm does not include either of the following: | |
| 159 | - | ||
| 160 | - | (i) A report that publishes publicly available rental data in an aggregated manner but does not recommend rental rates or occupancy levels for future leases. | |
| 161 | - | ||
| 162 | - | (ii) A product used for the purposes of establishing rent or income limits in accordance with the affordable housing program guidelines of a local, state, or federal program. | |
| 163 | - | ||
| 164 | - | (d) | |
| 165 | - | ||
| 166 | - | ||
| 167 | - | ||
| 168 | - | (f) (1) The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action. | |
| 169 | - | ||
| 170 | - | (2) A tenant person may file a civil action for a violation of subdivision (b) this section for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party plaintiff in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. | |
| 171 | - | ||
| 172 | - | (g) (1) Nothing in this section shall impair or limit the applicability of antitrust laws. The prohibitions described herein apply in addition to, and not in lieu of, any prohibitions described in applicable state or federal antitrust laws. | |
| 173 | - | ||
| 174 | - | (2) A violation of this section shall constitute an unlawful restraint on competition within the meaning of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) and an act of unfair competition within the meaning of the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code). The remedies and penalties provided by this section are cumulative to each other and the remedies or penalties available under all other laws of this state. | |
| 175 | - | ||
| 176 | - | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 177 | - | ||
| 178 | - | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 179 | - | ||
| 180 | - | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 181 | - | ||
| 182 | - | ### SEC. 3. | |
| 104 | + | (2) A tenant may file a civil action for a violation of subdivision (b) for damages, injunctive relief, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorneys fees and costs to the tenant if the tenant is the prevailing party in the action. A lease provision that limits a tenant from recovering attorneys fees shall not be enforceable against a tenants claim for attorneys fees that arise under this paragraph. |