SB 142

This bill prohibits the use of algorithmic software in setting rental rates or occupancy levels for residential dwelling units and prohibits persons from selling, licensing, or providing algorithmic software to a residential landlord. “Algorithmic software” is defined in the bill to mean software that uses an algorithm to perform calculations on nonpublic competitor data regarding rent or occupancy levels in this state for the purpose of informing a landlord’s decision regarding residential housing occupancy rates, whether to leave a residential unit vacant, or the amount of rent that a landlord may obtain for a residential unit. The Department of Agriculture, Trade and Consumer Protection, the attorney general, or a district attorney may investigate violations of this bill, and the attorney general or a district attorney may commence an action seeking an injunction or to recover a civil forfeiture of up to $1,000 per violation. In addition, a tenant may file a civil action seeking actual damages incurred as a result of a violation of the bill or $1,000 per violation, whichever is greater, or for injunctive relief, or for a combination of injunctive relief and damages.

Under the bill, if a landlord includes a provision in a lease that 1) waives the landlord’s obligation to comply with the prohibition on the use of algorithmic software or 2) discourages or impedes a tenant from filing an action seeking injunctive relief or damages stemming from the landlord’s violation of the bill’s prohibitions, then the rental agreement is void and unenforceable.