S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7906
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 19, 2023
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Housing
 
 AN ACT to amend the executive law, in relation to the use  of  automated
   decision tools to make housing decisions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The executive law is amended by adding a new section  296-b
 to read as follows:
   § 296-B. UNLAWFUL DISCRIMINATORY PRACTICES RELATING TO AUTOMATED DECI-
 SION  TOOLS.  1.   FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "AUTOMATED DECISION TOOL" MEANS ANY COMPUTATIONAL PROCESS, DERIVED
 FROM MACHINE LEARNING, STATISTICAL MODELING, DATA ANALYTICS, OR  ARTIFI-
 CIAL  INTELLIGENCE,  THAT  ISSUES  SIMPLIFIED OUTPUT, INCLUDING A SCORE,
 CLASSIFICATION, OR RECOMMENDATION, THAT IS USED TO SUBSTANTIALLY  ASSIST
 OR  REPLACE  DISCRETIONARY  DECISION MAKING FOR MAKING HOUSING DECISIONS
 THAT IMPACT NATURAL PERSONS. "AUTOMATED DECISION TOOL" DOES NOT  INCLUDE
 A TOOL THAT DOES NOT AUTOMATE, SUPPORT, SUBSTANTIALLY ASSIST, OR REPLACE
 DISCRETIONARY  DECISION-MAKING  PROCESSES  AND  THAT DOES NOT MATERIALLY
 IMPACT NATURAL PERSONS, INCLUDING, BUT NOT  LIMITED  TO,  A  JUNK  EMAIL
 FILTER, FIREWALL, ANTIVIRUS SOFTWARE, CALCULATOR, SPREADSHEET, DATABASE,
 DATA SET, OR OTHER COMPILATION OF DATA.
   (B) "DISPARATE IMPACT ANALYSIS" MEANS AN IMPARTIAL ANALYSIS, INCLUDING
 BUT  NOT  LIMITED  TO TESTING OF THE EXTENT TO WHICH USE OF AN AUTOMATED
 DECISION TOOL IS LIKELY TO RESULT IN AN ADVERSE IMPACT TO THE  DETRIMENT
 OF  ANY  GROUP  ON THE BASIS OF SEX, RACE, ETHNICITY, OR OTHER PROTECTED
 CLASS UNDER THIS ARTICLE. THE RESULTS OF SUCH ANALYSIS SHALL BE REPORTED
 TO THE LANDLORD IMPLEMENTING OR USING  AN  AUTOMATED  DECISION  TOOL.  A
 DISPARATE  IMPACT  ANALYSIS  SHALL  DIFFERENTIATE BETWEEN APPLICANTS WHO
 WERE SELECTED AND APPLICANTS WHO WERE NOT SELECTED BY THE TOOL AND SHALL
 INCLUDE A DISPARATE IMPACT ANALYSIS AS SPECIFIED IN THE  UNIFORM  STAND-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11808-01-3
              

 A. 7906                             2
 
 ARDS AND GUIDELINES PROMULGATED BY THE UNITED STATES DEPARTMENT OF HOUS-
 ING AND URBAN DEVELOPMENT.
   (C) "HOUSING DECISION" MEANS TO SCREEN APPLICANTS FOR HOUSING.
   2.  IT  SHALL  BE UNLAWFUL FOR A LANDLORD TO IMPLEMENT OR USE AN AUTO-
 MATED DECISION TOOL THAT FAILS TO COMPLY WITH THE FOLLOWING PROVISIONS:
   (A) NO LESS THAN  ANNUALLY,  A  DISPARATE  IMPACT  ANALYSIS  SHALL  BE
 CONDUCTED  TO  ASSESS  THE  ACTUAL IMPACT OF ANY AUTOMATED DECISION TOOL
 USED BY ANY LANDLORD TO SELECT APPLICANTS FOR HOUSING WITHIN THE  STATE.
 SUCH  DISPARATE  IMPACT  ANALYSIS  SHALL BE PROVIDED TO THE LANDLORD BUT
 SHALL BE PUBLICLY FILED AND SHALL BE SUBJECT TO  ALL  APPLICABLE  PRIVI-
 LEGES.
   (B)  A  SUMMARY  OF  THE MOST RECENT DISPARATE IMPACT ANALYSIS OF SUCH
 TOOL AS WELL AS THE DISTRIBUTION DATE OF THE TOOL TO WHICH THE  ANALYSIS
 APPLIES  SHALL BE MADE PUBLICLY AVAILABLE ON THE WEBSITE OF THE LANDLORD
 PRIOR TO THE IMPLEMENTATION OR USE OF SUCH TOOL.
   (C) NO LESS THAN ANNUALLY, ANY LANDLORD USING  AN  AUTOMATED  DECISION
 TOOL  SHALL  PROVIDE  TO  THE  DIVISION  SUCH SUMMARY OF THE MOST RECENT
 DISPARATE IMPACT ANALYSIS PROVIDED TO THE LANDLORD ON THAT TOOL.
   3. (A) ANY LANDLORD THAT USES AN AUTOMATED  DECISION  TOOL  TO  SCREEN
 APPLICANTS  FOR  HOUSING SHALL NOTIFY EACH SUCH APPLICANT OF THE FOLLOW-
 ING:
   (I) THAT AN AUTOMATED DECISION TOOL WILL BE USED  IN  CONNECTION  WITH
 THE ASSESSMENT OR EVALUATION OF SUCH APPLICANT;
   (II) THE CHARACTERISTICS THAT SUCH AUTOMATED DECISION TOOL WILL USE IN
 THE ASSESSMENT OF SUCH APPLICANT;
   (III)  INFORMATION ABOUT THE TYPE OF DATA COLLECTED FOR SUCH AUTOMATED
 DECISION TOOL,  THE  SOURCE  OF  SUCH  DATA,  AND  THE  LANDLORD'S  DATA
 RETENTION POLICY; AND
   (IV)  IF  AN  APPLICATION  FOR  HOUSING IS DENIED, THE REASON FOR SUCH
 DENIAL.
   (B) THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL  BE
 MADE  NO  LESS  THAN  TEN BUSINESS DAYS BEFORE THE USE OF SUCH AUTOMATED
 DECISION TOOL AND SHALL ALLOW SUCH APPLICANT TO REQUEST  AN  ALTERNATIVE
 SELECTION PROCESS OR ACCOMMODATION.
   4.  THE ATTORNEY GENERAL MAY INITIATE AN INVESTIGATION IF A PREPONDER-
 ANCE OF THE EVIDENCE, INCLUDING THE SUMMARY OF THE MOST RECENT DISPARATE
 IMPACT ANALYSIS ESTABLISHES A SUSPICION OF  A  VIOLATION.  THE  ATTORNEY
 GENERAL  MAY  ALSO  INITIATE  IN ANY COURT OF COMPETENT JURISDICTION ANY
 ACTION OF PROCEEDING THAT MAY BE APPROPRIATE OR NECESSARY FOR CORRECTION
 OF ANY VIOLATION ISSUED PURSUANT TO THIS  SECTION,  INCLUDING  MANDATING
 COMPLIANCE  WITH  THE PROVISIONS OF THIS SECTION OR SUCH OTHER RELIEF AS
 MAY BE APPROPRIATE.
   5. THE COMMISSIONER MAY INITIATE AN INVESTIGATION IF  A  PREPONDERANCE
 OF THE EVIDENCE, INCLUDING A SUMMARY OF THE MOST RECENT DISPARATE IMPACT
 ANALYSIS  ESTABLISHES  A  SUSPICION OF A VIOLATION. THE COMMISSIONER MAY
 ALSO INITIATE IN  A  COURT  OF  COMPETENT  JURISDICTION  ANY  ACTION  OR
 PROCEEDING  THAT  MAY  BE APPROPRIATE OR NECESSARY FOR THE CORRECTION OF
 ANY VIOLATION ISSUED  PURSUANT  TO  THIS  SECTION,  INCLUDING  MANDATING
 COMPLIANCE  WITH  THE PROVISIONS OF THIS SECTION OR SUCH OTHER RELIEF AS
 MAY BE APPROPRIATE.
   § 2. This act shall take effect immediately.