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2 | 2 | | SENATE DOCKET, NO. 1607 FILED ON: 1/16/2025 |
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3 | 3 | | SENATE . . . . . . . . . . . . . . No. 994 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Cindy F. Friedman |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act prohibiting algorithmic rent setting. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :Cindy F. FriedmanFourth MiddlesexJulian CyrCape and Islands2/13/2025 1 of 3 |
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16 | 16 | | SENATE DOCKET, NO. 1607 FILED ON: 1/16/2025 |
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17 | 17 | | SENATE . . . . . . . . . . . . . . No. 994 |
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18 | 18 | | By Ms. Friedman, a petition (accompanied by bill, Senate, No. 994) of Cindy F. Friedman and |
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19 | 19 | | Julian Cyr for legislation to prohibit algorithmic rent setting. Housing. |
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20 | 20 | | The Commonwealth of Massachusetts |
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21 | 21 | | _______________ |
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22 | 22 | | In the One Hundred and Ninety-Fourth General Court |
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23 | 23 | | (2025-2026) |
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24 | 24 | | _______________ |
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25 | 25 | | An Act prohibiting algorithmic rent setting. |
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26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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27 | 27 | | of the same, as follows: |
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28 | 28 | | 1 SECTION 1. Chapter 186 of the General Laws is hereby amended by adding the |
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29 | 29 | | 2following section:- |
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30 | 30 | | 3 Section 15G. (a) As used in this section, the following words shall have the following |
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31 | 31 | | 4meanings unless the context clearly requires otherwise: |
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32 | 32 | | 5 "Algorithmic device", any computational process, including a computational process |
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33 | 33 | | 6derived from machine learning or other artificial intelligence techniques, that processes or |
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34 | 34 | | 7calculates nonpublic competitor data for the purpose of advising a lessor or landlord concerning |
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35 | 35 | | 8the amount of rent that the lessor or landlord may consider charging a tenant; provided, however |
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36 | 36 | | 9that "algorithmic device" shall not include: (i) any report published periodically, but not more |
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37 | 37 | | 10frequently than monthly, by a trade association that receives renter data and publishes it in an |
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38 | 38 | | 11aggregated and anonymous matter; or (ii) a product used for the purpose of establishing rent or 2 of 3 |
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39 | 39 | | 12income limits in accordance with the affordable housing program guidelines of a local |
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40 | 40 | | 13government, the commonwealth, the federal government or other political subdivision. |
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41 | 41 | | 14 “Coordinating function”, any action that includes: (i) collecting historical or |
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42 | 42 | | 15contemporaneous prices, supply levels or lease or rental contract termination and renewal dates |
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43 | 43 | | 16of residential dwelling units from two or more rental property lessors or landlords; (ii) analyzing |
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44 | 44 | | 17or processing of historical or contemporaneous prices, supply levels or lease or rental contract |
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45 | 45 | | 18termination and renewal dates of residential dwelling units from two or more rental property |
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46 | 46 | | 19lessors or landlords through use of a system, software or process that uses computation, |
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47 | 47 | | 20including by using the information to train an algorithm; and (iii) recommending rental prices, |
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48 | 48 | | 21lease renewal terms or ideal occupancy levels to a rental property lessor or landlord. |
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49 | 49 | | 22 "Coordinator", any person who operates an algorithmic device, software or data analytics |
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50 | 50 | | 23service that performs a coordinating function for any residential rental property lessor or |
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51 | 51 | | 24landlord, including a residential rental property lessor or landlord performing a coordinating |
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52 | 52 | | 25function for their own benefit. |
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53 | 53 | | 26 "Nonpublic competitor data", information that is not widely available or easily accessible |
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54 | 54 | | 27to the public, including information about actual rent prices, occupancy rates, lease start and end |
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55 | 55 | | 28dates, and similar data, regardless of whether the data are attributable to a specific competitor or |
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56 | 56 | | 29anonymized, and that is derived from or otherwise provided by another person that competes in |
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57 | 57 | | 30the same market as a person, or a related market. |
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58 | 58 | | 31 “Person”, any natural person or persons, or any corporation, partnership, company, trust |
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59 | 59 | | 32or association of persons. 3 of 3 |
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60 | 60 | | 33 "Residential Dwelling Unit", any house, apartment, accessory unit or other unit intended |
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61 | 61 | | 34to be used as a primary residence in the state. |
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62 | 62 | | 35 (b) In setting the amount of rent to be charged to a tenant for the occupancy of a |
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63 | 63 | | 36residential dwelling unit, determining any change in the amount of rent to be charged to a tenant |
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64 | 64 | | 37for the renewed occupancy of a residential dwelling unit, or otherwise determining what amount |
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65 | 65 | | 38to charge a tenant to rent a residential dwelling unit, or determining occupancy levels of |
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66 | 66 | | 39residential dwelling units, no lessor or landlord shall employ, use or rely upon an algorithmic |
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67 | 67 | | 40device or coordinator. |
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68 | 68 | | 41 (c) A violation of this section shall constitute a violation of section 2 of Chapter 93A. |
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69 | 69 | | 42 SECTION 2. This act shall take effect 90 days after its passage. |
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