Maryland 2025 2025 Regular Session

Maryland Senate Bill SB609 Introduced / Bill

Filed 01/28/2025

                     
 
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