EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0609* SENATE BILL 609 N1, I3 5lr2025 CF 5lr2024 By: Senators Love and Hester Introduced and read first time: January 24, 2025 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Residential Leases – Use of Algorithmic Device by Landlord to Determine Rent – 2 Prohibition 3 FOR the purpose of prohibiting a landlord from using certain algorithmic devices to 4 determine the amount of rent to charge a residential tenant; making a violation of 5 this Act an unfair, abusive, or deceptive trade practice under the Maryland 6 Consumer Protection Act; and generally relating to a prohibition against the use of 7 certain technology by landlords to determine rent prices. 8 BY repealing and reenacting, with amendments, 9 Article – Commercial Law 10 Section 13–301(14)(xlii) 11 Annotated Code of Maryland 12 (2013 Replacement Volume and 2024 Supplement) 13 BY repealing and reenacting, without amendments, 14 Article – Commercial Law 15 Section 13–301(14)(xliii) 16 Annotated Code of Maryland 17 (2013 Replacement Volume and 2024 Supplement) 18 BY adding to 19 Article – Commercial Law 20 Section 13–301(14)(xliv) 21 Annotated Code of Maryland 22 (2013 Replacement Volume and 2024 Supplement) 23 BY adding to 24 Article – Real Property 25 Section 8–220 26 Annotated Code of Maryland 27 2 SENATE BILL 609 (2023 Replacement Volume and 2024 Supplement) 1 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2 That the Laws of Maryland read as follows: 3 Article – Commercial Law 4 13–301. 5 Unfair, abusive, or deceptive trade practices include any: 6 (14) Violation of a provision of: 7 (xlii) Section 12–6C–09.1 of the Health Occupations Article; [or] 8 (xliii) Title 14, Subtitle 48 of this article; or 9 (XLIV) SECTION 8–220 OF THE REAL PROPERTY ARTICLE; 10 OR 11 Article – Real Property 12 8–220. 13 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14 INDICATED. 15 (2) (I) “ALGORITHMIC DEVICE ” MEANS A DEVICE THAT USES ONE 16 OR MORE ALGORITHMS T O PERFORM CALCULATIO NS OF DATA, INCLUDING DATA 17 CONCERNING LOCAL OR STATEWIDE RENT AMOUN TS BEING CHARGED TO TENANTS 18 BY LANDLORDS , TO ADVISE A LANDLORD ON THE AMOUNT OF REN T THAT THE 19 LANDLORD MAY CONSIDER CHA RGING A TENANT . 20 (II) “ALGORITHMIC DEVICE ” INCLUDES A PRODUCT T HAT 21 INCORPORATES AN ALGO RITHMIC DEVICE . 22 (III) “ALGORITHMIC DEVICE ” DOES NOT INCLUDE : 23 1. A PERIODIC REPORT PUBL ISHED NOT MORE 24 FREQUENTLY THAN ONCE PER MONTH BY A TRADE ASSOCIATION THAT REC EIVES 25 RENTER DATA AND PUBL ISHES IT IN AN AGGRE GATED AND ANONYMOUS MANNER; 26 OR 27 2. A PRODUCT USED FOR THE PURPOSE OF 28 ESTABLISHING RENT OR INCOME LIMITS IN ACCORDANCE WITH THE AFFORDABLE 29 SENATE BILL 609 3 HOUSING PROGRAM GUID ELINES OF A LOCAL GO VERNMENT, THE STATE, THE 1 FEDERAL GOVERNMENT , OR ANOTHER POLITICAL SUBDIVISION. 2 (3) (I) “NONPUBLIC COMPETITOR DATA” MEANS INFORMATION 3 THAT IS: 4 1. NOT WIDELY AVAILABLE OR EASILY ACCESSIBLE TO 5 THE PUBLIC REGARDLES S OF WHETHER THE INF ORMATION IS ATTRIBUT ABLE TO A 6 SPECIFIC COMPETITOR OR ANONYMIZED ; AND 7 2. DERIVED FROM OR OTHER WISE PROVIDED TO A 8 PERSON BY ANOTHER PE RSON THAT COMPETES I N THE SAME MARKET AS THE 9 PERSON, OR IN A RELATED MARKET . 10 (II) “NONPUBLIC COMPETITOR DATA” INCLUDES INFORMATION 11 REGARDING: 12 1. ACTUAL RENT PRICES ; 13 2. OCCUPANCY RATES ; 14 3. LEASE START AND END D ATES; AND 15 4. OTHER SIMILAR INFORMA TION. 16 (4) “RENT” MEANS THE TOTAL AMOU NT OF RENT, INCLUDING ANY 17 CONCESSIONS AND FEES , THAT A RESIDENTIAL T ENANT IS REQUIRED TO PAY UNDER 18 A LEASE AGREEMENT . 19 (B) IN SETTING THE AMOUNT OF RENT TO BE CHARGE D FOR THE LEASE OF 20 RESIDENTIAL PROPERTY , INCLUDING DETERMININ G ANY CHANGE IN RENT TO BE 21 CHARGED FOR TH E RENEWAL OF A LEASE , A LANDLORD MAY NOT E MPLOY, USE, OR 22 RELY ON, OR CAUSE ANOTHER TO EMPLOY, USE, OR RELY ON, AN ALGORITHMIC 23 DEVICE THAT USES , INCORPORATES , OR WAS TRAINED WITH NONPUBLIC 24 COMPETITOR DATA . 25 (C) A VIOLATION OF THIS SE CTION IS: 26 (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 27 THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW ARTICLE; AND 28 (2) SUBJECT TO THE ENFORC EMENT AND PENALTY PR OVISIONS 29 CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE. 30 4 SENATE BILL 609 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 1 apply only prospectively and may not be applied or interpreted to have any effect on or 2 application to any landlord’s calculation of the amount of rent that the landlord charges for 3 the occupancy of a residential property under a rental agreement that is executed before 4 the effective date of this Act. 5 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 6 October 1, 2025. 7