UNOFFICIAL COPY 25 RS BR 1079
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AN ACT relating to the use of algorithmic devices in setting the amount of rent to 1
be charged to a residential tenant. 2
WHEREAS, recent national data indicates that landlords of residential rental 3
housing use property management software to collude and raise residential rental housing 4
prices; and 5
WHEREAS, landlords engaging with the software supply real-time prices and 6
additional lease information to companies managing the software, who proceed to use 7
algorithms to fix rental prices; and 8
WHEREAS, the use of these algorithmic devices has been the subject of lawsuits 9
and poses a heightened risk of anticompetitive conduct, price fixing, and collusion, all of 10
which result in higher rents for residential tenants; and 11
WHEREAS, several municipalities around the country have prohibited the use of 12
algorithmic devices in setting rent; 13
NOW, THEREFORE, 14
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 15
SECTION 1. A NEW SECTION OF KRS CHAPTER 383 IS CREATED TO 16
READ AS FOLLOWS: 17
(1) As used in this section, "algorithmic device": 18
(a) Means a device that uses one (1) or more algorithms to perform 19
calculations of data, including data concerning local or statewide rent 20
amounts being charged to tenants by landlords, for the purpose of advising 21
a landlord concerning the amount of rent that the landlord may consider 22
charging a tenant; 23
(b) Includes a product that incorporates an algorithmic device; and 24
(c) Does not include a product designed internally and used exclusively by a 25
landlord or a landlord's affiliates. 26
(2) A landlord shall not employ, use, or rely upon, or cause another person to 27 UNOFFICIAL COPY 25 RS BR 1079
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employ, use, or rely upon, an algorithmic device in setting the amount of rent to 1
be charged to a tenant for the occupancy of a dwelling unit. 2
(3) A violation of this section shall be deemed an unfair, false, misleading, or 3
deceptive practice in the conduct of trade or commerce in violation of KRS 4
367.170. 5
Section 2. Section 1 of this Act applies to a landlord's calculation of the amount 6
of rent for a rental agreement executed on or after the effective date of this Act. 7