Bill Text: NY A03125 | 2025-2026 | General Assembly | Introduced

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Bill Title: Relates to the use of automated decision tools by landlords for making housing decisions; sets conditions and rules for use of such tools.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced) 2025-01-23 - referred to housing [A03125 Detail]

Download: New_York-2025-A03125-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          3125

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    January 23, 2025
                                       ___________

        Introduced  by  M.  of  A.  ROSENTHAL, GLICK, LEVENBERG, SHIMSKY, SIMON,
          BURDICK, JACKSON -- read once and referred to the Committee on Housing

        AN ACT to amend the real property law, in relation to the use  of  auto-
          mated decision tools to make housing decisions

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The real property law is amended by adding  a  new  section
     2  227-g to read as follows:
     3    § 227-g. Use of automated decision tools. 1.  For the purposes of this
     4  section, the following terms shall have the following meanings:
     5    (a) "Automated decision tool" means any computational process, derived
     6  from  machine learning, statistical modeling, data analytics, or artifi-
     7  cial intelligence, that issues simplified  output,  including  a  score,
     8  classification,  or recommendation, that is used to substantially assist
     9  or replace discretionary decision making for  making  housing  decisions
    10  that  impact natural persons. "Automated decision tool" does not include
    11  a tool that does not automate, support, substantially assist, or replace
    12  discretionary decision-making processes and  that  does  not  materially
    13  impact  natural  persons,  including,  but  not limited to, a junk email
    14  filter, firewall, antivirus software, calculator, spreadsheet, database,
    15  data set, or other compilation of data.
    16    (b)  "Disparate  impact  analysis"  means  an   impartial   evaluation
    17  conducted  by  an  independent  auditor.  Such disparate impact analysis
    18  shall include, but not be limited to, testing of the extent to which use
    19  of an automated decision tool is likely to result in an  adverse  impact
    20  to  the  detriment of any group on the basis of sex, race, ethnicity, or
    21  other protected class under this article.  A disparate  impact  analysis
    22  shall  differentiate between applicants who were selected and applicants
    23  who were not selected by the tool.
    24    (c) "Housing decision" means to screen applicants for housing.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05259-01-5
        A. 3125                             2

     1    2. It shall be unlawful for a landlord to implement or  use  an  auto-
     2  mated decision tool that fails to comply with the following provisions:
     3    (a)  No  less  than  annually,  a  disparate  impact analysis shall be
     4  conducted to assess the actual impact of  any  automated  decision  tool
     5  used  by any landlord to select applicants for housing within the state.
     6  Such disparate impact analysis shall be provided to the landlord.
     7    (b) A summary of the most recent disparate  impact  analysis  of  such
     8  tool  as well as the distribution date of the tool to which the analysis
     9  applies shall be made publicly available on the website of the  landlord
    10  prior  to  the  implementation  or use of such tool.  Such summary shall
    11  also be made accessible through any listing for  housing  on  a  digital
    12  platform  for  which  the  landlord intends to use an automated decision
    13  tool to screen applicants for housing.
    14    3. (a) Any landlord that uses an automated  decision  tool  to  screen
    15  applicants  for  housing shall notify each such applicant of the follow-
    16  ing:
    17    (i) That an automated decision tool will be used  in  connection  with
    18  the assessment or evaluation of such applicant;
    19    (ii) The characteristics that such automated decision tool will use in
    20  the assessment of such applicant;
    21    (iii)  Information about the type of data collected for such automated
    22  decision tool,  the  source  of  such  data,  and  the  landlord's  data
    23  retention policy; and
    24    (iv)  If an application for housing is denied through use of the auto-
    25  mated decision tool, the reason for such denial.
    26    (b) The notice required by paragraph (a) of this subdivision shall  be
    27  made  no  less  than  twenty-four hours before the use of such automated
    28  decision tool and shall allow such applicant to request  an  alternative
    29  selection process or accommodation.
    30    4.  The attorney general may initiate an investigation if a preponder-
    31  ance of the evidence, including the summary of the most recent disparate
    32  impact analysis establishes a suspicion of  a  violation.  The  attorney
    33  general  may  also  initiate  in any court of competent jurisdiction any
    34  action or proceeding that may be appropriate or necessary for correction
    35  of any violation issued pursuant to this  section,  including  mandating
    36  compliance  with  the provisions of this section or such other relief as
    37  may be appropriate.
    38    § 2. This act shall take effect immediately.