1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0817* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 817 |
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8 | 8 | | N1, I3 5lr2024 |
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9 | 9 | | CF SB 609 |
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10 | 10 | | By: Delegates Palakovich Carr and Stewart |
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11 | 11 | | Introduced and read first time: January 29, 2025 |
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12 | 12 | | Assigned to: Environment and Transportation |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Residential Leases – Use of Algorithmic Device by Landlord to Determine Rent – 2 |
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19 | 19 | | Prohibition 3 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of prohibiting a landlord from using certain algorithmic devices to 4 |
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22 | 22 | | determine the amount of rent to charge a residential tenant; making a violation of 5 |
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23 | 23 | | this Act an unfair, abusive, or deceptive trade practice under the Maryland 6 |
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24 | 24 | | Consumer Protection Act; and generally relating to a prohibition against the use of 7 |
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25 | 25 | | certain technology by landlords to determine rent prices. 8 |
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26 | 26 | | |
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27 | 27 | | BY repealing and reenacting, with amendments, 9 |
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28 | 28 | | Article – Commercial Law 10 |
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29 | 29 | | Section 13–301(14)(xlii) 11 |
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30 | 30 | | Annotated Code of Maryland 12 |
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31 | 31 | | (2013 Replacement Volume and 2024 Supplement) 13 |
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32 | 32 | | |
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33 | 33 | | BY repealing and reenacting, without amendments, 14 |
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34 | 34 | | Article – Commercial Law 15 |
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35 | 35 | | Section 13–301(14)(xliii) 16 |
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36 | 36 | | Annotated Code of Maryland 17 |
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37 | 37 | | (2013 Replacement Volume and 2024 Supplement) 18 |
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38 | 38 | | |
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39 | 39 | | BY adding to 19 |
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40 | 40 | | Article – Commercial Law 20 |
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41 | 41 | | Section 13–301(14)(xliv) 21 |
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42 | 42 | | Annotated Code of Maryland 22 |
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43 | 43 | | (2013 Replacement Volume and 2024 Supplement) 23 |
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44 | 44 | | |
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45 | 45 | | BY adding to 24 |
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46 | 46 | | Article – Real Property 25 |
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47 | 47 | | Section 8–220 26 |
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48 | 48 | | Annotated Code of Maryland 27 2 HOUSE BILL 817 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | (2023 Replacement Volume and 2024 Supplement) 1 |
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52 | 52 | | |
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53 | 53 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2 |
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54 | 54 | | That the Laws of Maryland read as follows: 3 |
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55 | 55 | | |
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56 | 56 | | Article – Commercial Law 4 |
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57 | 57 | | |
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58 | 58 | | 13–301. 5 |
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59 | 59 | | |
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60 | 60 | | Unfair, abusive, or deceptive trade practices include any: 6 |
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61 | 61 | | |
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62 | 62 | | (14) Violation of a provision of: 7 |
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63 | 63 | | |
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64 | 64 | | (xlii) Section 12–6C–09.1 of the Health Occupations Article; [or] 8 |
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65 | 65 | | |
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66 | 66 | | (xliii) Title 14, Subtitle 48 of this article; or 9 |
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67 | 67 | | |
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68 | 68 | | (XLIV) SECTION 8–220 OF THE REAL PROPERTY ARTICLE; 10 |
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69 | 69 | | OR 11 |
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70 | 70 | | |
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71 | 71 | | Article – Real Property 12 |
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72 | 72 | | |
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73 | 73 | | 8–220. 13 |
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74 | 74 | | |
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75 | 75 | | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14 |
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76 | 76 | | INDICATED. 15 |
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77 | 77 | | |
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78 | 78 | | (2) (I) “ALGORITHMIC DEVICE ” MEANS A DEVICE THAT USES ONE 16 |
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79 | 79 | | OR MORE ALGORITHMS T O PERFORM CALCULATIO NS OF DATA, INCLUDING DATA 17 |
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80 | 80 | | CONCERNING LOCAL OR STATEWIDE RENT AMOUN TS BEING CHARGED TO TENANTS 18 |
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81 | 81 | | BY LANDLORDS , TO ADVISE A LANDLORD ON THE AMOUNT OF RENT T HAT THE 19 |
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82 | 82 | | LANDLORD MAY CONSIDER CHA RGING A TENANT . 20 |
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83 | 83 | | |
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84 | 84 | | (II) “ALGORITHMIC DEVICE ” INCLUDES A PRODUCT T HAT 21 |
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85 | 85 | | INCORPORATES AN ALGO RITHMIC DEVICE . 22 |
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86 | 86 | | |
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87 | 87 | | (III) “ALGORITHMIC DEVICE ” DOES NOT INCLUDE : 23 |
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88 | 88 | | |
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89 | 89 | | 1. A PERIODIC REPORT PUBLISHED NO T MORE 24 |
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90 | 90 | | FREQUENTLY THAN ONCE PER MONTH BY A TRADE ASS OCIATION THAT RECEIV ES 25 |
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91 | 91 | | RENTER DATA AND PUBL ISHES IT IN AN AGGRE GATED AND ANONYMOUS MANNER; 26 |
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92 | 92 | | OR 27 |
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93 | 93 | | |
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94 | 94 | | 2. A PRODUCT USED FOR THE PURPOSE OF 28 |
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95 | 95 | | ESTABLISHING RENT OR INCOME LIMITS IN ACC ORDANCE WITH THE AFF ORDABLE 29 HOUSE BILL 817 3 |
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96 | 96 | | |
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97 | 97 | | |
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98 | 98 | | HOUSING PROGRAM GUID ELINES OF A LOCAL GOVERNMENT , THE STATE, THE 1 |
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99 | 99 | | FEDERAL GOVERNMENT , OR ANOTHER POLITICAL SUBD IVISION. 2 |
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100 | 100 | | |
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101 | 101 | | (3) (I) “NONPUBLIC COMPETITOR DATA” MEANS INFORMATION 3 |
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102 | 102 | | THAT IS: 4 |
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103 | 103 | | |
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104 | 104 | | 1. NOT WIDELY AVAILABLE OR EASILY ACCESSIBLE TO 5 |
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105 | 105 | | THE PUBLIC REGARDLES S OF WHETHER THE INFORMATIO N IS ATTRIBUTABLE TO A 6 |
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106 | 106 | | SPECIFIC COMPETITOR OR ANONYMIZED ; AND 7 |
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107 | 107 | | |
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108 | 108 | | 2. DERIVED FROM OR OTHER WISE PROVIDED TO A 8 |
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109 | 109 | | PERSON BY ANOTHER PERSON TH AT COMPETES IN THE S AME MARKET AS THE 9 |
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110 | 110 | | PERSON, OR IN A RELATED MARKET . 10 |
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111 | 111 | | |
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112 | 112 | | (II) “NONPUBLIC COMPETITOR DATA” INCLUDES INFORMATION 11 |
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113 | 113 | | REGARDING: 12 |
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114 | 114 | | |
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115 | 115 | | 1. ACTUAL RENT PRICES ; 13 |
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116 | 116 | | |
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117 | 117 | | 2. OCCUPANCY RATES ; 14 |
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118 | 118 | | |
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119 | 119 | | 3. LEASE START AND END D ATES; AND 15 |
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120 | 120 | | |
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121 | 121 | | 4. OTHER SIMILAR INFORMATION . 16 |
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122 | 122 | | |
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123 | 123 | | (4) “RENT” MEANS THE TOTAL AMOU NT OF RENT, INCLUDING ANY 17 |
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124 | 124 | | CONCESSIONS AND FEES , THAT A RESIDENTIAL T ENANT IS REQUIRED TO PAY UNDER 18 |
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125 | 125 | | A LEASE AGREEMENT . 19 |
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126 | 126 | | |
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127 | 127 | | (B) IN SETTING THE AMOUNT OF RENT TO BE CHARGE D FOR THE LEASE OF 20 |
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128 | 128 | | RESIDENTIAL PROPERTY, INCLUDING DETERMININ G ANY CHANGE IN RENT TO BE 21 |
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129 | 129 | | CHARGED FOR THE RENE WAL OF A LEASE, A LANDLORD MAY NOT EMPLOY, USE, OR 22 |
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130 | 130 | | RELY ON, OR CAUSE ANOTHER TO EMPLOY, USE, OR RELY ON, AN ALGORITHMIC 23 |
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131 | 131 | | DEVICE THAT USES , INCORPORATES , OR WAS TRAINED WITH NONPUBLIC 24 |
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132 | 132 | | COMPETITOR DATA . 25 |
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133 | 133 | | |
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134 | 134 | | (C) A VIOLATION OF THIS SE CTION IS: 26 |
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135 | 135 | | |
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136 | 136 | | (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 27 |
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137 | 137 | | THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW ARTICLE; AND 28 |
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138 | 138 | | |
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139 | 139 | | (2) SUBJECT TO THE ENFORC EMENT AND PENALTY PR OVISIONS 29 |
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140 | 140 | | CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE. 30 4 HOUSE BILL 817 |
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141 | 141 | | |
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142 | 142 | | |
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143 | 143 | | |
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144 | 144 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 1 |
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145 | 145 | | apply only prospectively and may not be applied or interpreted to have any effect on or 2 |
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146 | 146 | | application to any landlord’s calculation of the amount of rent that the landlord charges for 3 |
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147 | 147 | | the occupancy of a residential property under a rental agreement that is executed before 4 |
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148 | 148 | | the effective date of this Act. 5 |
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149 | 149 | | |
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150 | 150 | | SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effec t 6 |
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151 | 151 | | October 1, 2025. 7 |
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