S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3125
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section 1. The real property law is amended by adding  a  new  section
 227-g to read as follows:
   § 227-G. USE OF AUTOMATED DECISION 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   EVALUATION
 CONDUCTED  BY  AN  INDEPENDENT  AUDITOR.  SUCH DISPARATE IMPACT ANALYSIS
 SHALL INCLUDE, BUT NOT BE 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.  A DISPARATE  IMPACT  ANALYSIS
 SHALL  DIFFERENTIATE BETWEEN APPLICANTS WHO WERE SELECTED AND APPLICANTS
 WHO WERE NOT SELECTED BY THE TOOL.
   (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
              

 
   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.
   (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.  SUCH SUMMARY SHALL
 ALSO BE MADE ACCESSIBLE THROUGH ANY LISTING FOR  HOUSING  ON  A  DIGITAL
 PLATFORM  FOR  WHICH  THE  LANDLORD INTENDS TO USE AN AUTOMATED DECISION
 TOOL TO SCREEN APPLICANTS FOR HOUSING.
   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 THROUGH USE OF THE AUTO-
 MATED DECISION TOOL, THE REASON FOR SUCH DENIAL.
   (B) THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL  BE
 MADE  NO  LESS  THAN  TWENTY-FOUR HOURS 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 OR 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.
   § 2. This act shall take effect immediately.