1 | 1 | | 2025 - 2026 LEGISLATURE |
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2 | 2 | | LRB-1569/1 |
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3 | 3 | | JAM:klm |
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4 | 4 | | 2025 SENATE BILL 142 |
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5 | 5 | | March 21, 2025 - Introduced by Senators ROYS, DASSLER-ALFHEIM, DRAKE, |
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6 | 6 | | HESSELBEIN, KEYESKI, LARSON, PFAFF, RATCLIFF and SPREITZER, cosponsored |
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7 | 7 | | by Representatives BROWN, ANDERSON, ANDRACA, ARNEY, BARE, CLANCY, |
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8 | 8 | | DESMIDT, FITZGERALD, HONG, J. JACOBSON, KIRSCH, MADISON, MCCARVILLE, |
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9 | 9 | | PALMERI, PHELPS, ROE, SINICKI, STROUD, SUBECK, TAYLOR and TENORIO. |
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10 | 10 | | Referred to Committee on Government Operations, Labor and Economic |
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11 | 11 | | Development. |
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12 | 12 | | |
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13 | 13 | | ***AUTHORS SUBJECT TO CHANGE*** |
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14 | 14 | | AN ACT to create 704.44 (11) and 704.60 of the statutes; relating to: |
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15 | 15 | | algorithmic software for residential housing, and providing a penalty. |
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16 | 16 | | Analysis by the Legislative Reference Bureau |
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17 | 17 | | This bill prohibits the use of algorithmic software in setting rental rates or |
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18 | 18 | | occupancy levels for residential dwelling units and prohibits persons from selling, |
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19 | 19 | | licensing, or providing algorithmic software to a residential landlord. XAlgorithmic |
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20 | 20 | | softwareY is defined in the bill to mean software that uses an algorithm to perform |
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21 | 21 | | calculations on nonpublic competitor data regarding rent or occupancy levels in this |
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22 | 22 | | state for the purpose of informing a landlord[s decision regarding residential |
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23 | 23 | | housing occupancy rates, whether to leave a residential unit vacant, or the amount |
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24 | 24 | | of rent that a landlord may obtain for a residential unit. The Department of |
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25 | 25 | | Agriculture, Trade and Consumer Protection, the attorney general, or a district |
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26 | 26 | | attorney may investigate violations of this bill, and the attorney general or a district |
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27 | 27 | | attorney may commence an action seeking an injunction or to recover a civil |
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28 | 28 | | forfeiture of up to $1,000 per violation. In addition, a tenant may file a civil action |
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29 | 29 | | seeking actual damages incurred as a result of a violation of the bill or $1,000 per |
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30 | 30 | | violation, whichever is greater, or for injunctive relief, or for a combination of |
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31 | 31 | | injunctive relief and damages. |
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32 | 32 | | Under the bill, if a landlord includes a provision in a lease that 1) waives the |
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33 | 33 | | landlord[s obligation to comply with the prohibition on the use of algorithmic |
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34 | 34 | | software or 2) discourages or impedes a tenant from filing an action seeking |
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36 | 36 | | 2 2025 - 2026 Legislature |
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37 | 37 | | SENATE BILL 142 |
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38 | 38 | | - 2 - LRB-1569/1 |
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39 | 39 | | JAM:klm |
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40 | 40 | | SECTION 1 |
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41 | 41 | | injunctive relief or damages stemming from the landlord[s violation of the bill[s |
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42 | 42 | | prohibitions, then the rental agreement is void and unenforceable. |
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43 | 43 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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44 | 44 | | enact as follows: |
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45 | 45 | | SECTION 1. 704.44 (11) of the statutes is created to read: |
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46 | 46 | | 704.44 (11) Waives the landlord[s obligation to comply with s. 704.60 (2) or |
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47 | 47 | | discourages or impedes a tenant from filing an action or seeking injunctive relief or |
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48 | 48 | | damages under s. 704.60 (3). |
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49 | 49 | | SECTION 2. 704.60 of the statutes is created to read: |
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50 | 50 | | 704.60 Use of algorithmic software. (1) DEFINITIONS. In this section: |
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51 | 51 | | (a) XAlgorithmic softwareY means software, including revenue management |
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52 | 52 | | software, that uses an algorithm to perform calculations on nonpublic competitor |
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53 | 53 | | data regarding rent or occupancy levels in this state for the purpose of informing a |
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54 | 54 | | landlord[s decision regarding residential housing occupancy rates, whether to leave |
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55 | 55 | | a residential unit vacant, or the amount of rent that a landlord may obtain for a |
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56 | 56 | | residential unit. XAlgorithmic softwareY includes a product or device that |
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57 | 57 | | incorporates algorithmic software. XAlgorithmic softwareY does not include any of |
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58 | 58 | | the following: |
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59 | 59 | | 1. A publication of existing aggregated rental data if the publication does not |
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60 | 60 | | recommend rental rates or occupancy levels for future leases. |
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61 | 61 | | 2. A product used for the purpose of establishing rent or income limits in |
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62 | 62 | | accordance with affordable housing guidelines or requirements of a local, state, or |
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63 | 63 | | federal program. |
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64 | 64 | | (b) XNonpublic competitor dataY means housing-related information that is |
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85 | 85 | | SENATE BILL 142 |
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86 | 86 | | - 3 - LRB-1569/1 |
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87 | 87 | | JAM:klm |
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88 | 88 | | SECTION 2 |
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89 | 89 | | not available to the general public regarding actual amounts charged for rent, |
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90 | 90 | | occupancy rates, lease start and end dates, or similar data, regardless of whether |
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91 | 91 | | the information is attributable to, derived from, or otherwise provided by a person |
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92 | 92 | | that competes in the same or related market. |
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93 | 93 | | (2) ALGORITHMIC SOFTWARE. (a) No person shall sell, license, or provide to a |
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94 | 94 | | residential landlord algorithmic software. |
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95 | 95 | | (b) No person may use algorithmic software to set rental rates or occupancy |
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96 | 96 | | levels for residential dwelling units. |
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97 | 97 | | (3) ENFORCEMENT AND PENALTY. (a) The department of agriculture, trade |
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98 | 98 | | and consumer protection, the attorney general, or a district attorney may |
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99 | 99 | | investigate an alleged violation of sub. (2). |
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100 | 100 | | (b) The attorney general or a district attorney may commence an action in the |
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101 | 101 | | name of the state to restrain by temporary or permanent injunction a violation of |
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102 | 102 | | sub. (2) or to recover a civil forfeiture of up to $1,000 per violation. The court shall |
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103 | 103 | | award the attorney general or district attorney court costs and, notwithstanding s. |
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104 | 104 | | 814.04 (1), reasonable attorney fees, if the attorney general or district attorney is |
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105 | 105 | | the prevailing party in the action. Each month in which a violation exists or |
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106 | 106 | | continues constitutes a separate offense. Each dwelling unit for which a person has |
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107 | 107 | | used algorithmic software in violation of sub. (2) (b) constitutes a separate offense. |
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108 | 108 | | (c) A tenant may file a civil action for a violation of sub. (2) on behalf of himself |
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109 | 109 | | or herself, or on behalf of himself or herself and all persons similarly situated, for |
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110 | 110 | | actual damages incurred as a result of a violation of sub. (2), or damages of $1,000 |
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111 | 111 | | per violation, whichever is greater, or for injunctive relief, or for a combination of |
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112 | 112 | | damages and injunctive relief. The court shall award the tenant court costs and, |
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136 | 136 | | 24 2025 - 2026 Legislature |
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137 | 137 | | SENATE BILL 142 |
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138 | 138 | | - 4 - LRB-1569/1 |
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139 | 139 | | JAM:klm |
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140 | 140 | | SECTION 2 |
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141 | 141 | | notwithstanding s. 814.04 (1), reasonable attorney fees if the tenant is the |
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142 | 142 | | prevailing party in the action. The court may also award any equitable relief to a |
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143 | 143 | | prevailing party as may be determined by the court if the tenant, or the tenant and |
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144 | 144 | | all persons similarly situated, is the prevailing party in the action. |
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145 | 145 | | (END) |
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