HB 6478 — Summary of Purpose and Provisions
Overview
- Bill Number: HB 6478
- Title: AN ACT PROHIBITING THE USE OF CERTAIN SOFTWARE TO ESTABLISH OCCUPANCY LEVELS AND RENTAL RATES FOR THE PURPOSE OF INCREASING LANDLORD AND PROPERTY MANAGER PROFITS
- Subject: Computer software, Landlord and Tenant, Rent
- Classification: bill
- Introduced: January 24, 2025
- Status: Public Hearing 0214
- Legislative Actions:
- 2025-01-24: Ref. to Joint Committee on General Law
- 2025-02-03: Reserved for Subject Matter Public Hearing
- 2025-02-07: Public Hearing 0214
What the bill would do (purpose and intent)
- The core objective is to prohibit the use of certain software by landlords, property managers, or rental property operators to determine occupancy levels and to set rental rates with the aim of increasing profits.
- The prohibition targets software that automates or otherwise informs decisions about how full a property should be or how much rent to charge, specifically when used to enhance profit margins.
Key provisions and changes (as described in the bill’s title and subject)
- Prohibition Scope: The bill would restrict the use of “certain software” that is employed to establish occupancy thresholds and to set or adjust rental rates for the purpose of profit maximization.
- Enforcement and definitions: Details such as which software qualifies as “certain software,” what constitutes “occupancy levels” and “rental rates,” and how “profit” is defined, would be specified in the bill’s text. Those details are not provided in the summary available here.
- Applicability: The prohibitions would apply to entities involved in rental housing operations, including landlords and property managers, and could extend to software vendors that enable such practices.
Who would be affected
- Primary parties:
- Landlords and property management companies that use software tools for occupancy planning or rent setting.
- Rental property owners who rely on software to optimize occupancy and pricing strategies.
- Software providers:
- Vendors offering occupancy- or price-optimization tools for rental markets, who may face new compliance requirements or restrictions.
- Tenants:
- Potentially affected by changes in pricing practices and occupancy strategies driven by prohibitions on such software use.
Procedural and timeline aspects
- Introduction and referral: The bill was introduced on January 24, 2025 and referred to the Joint Committee on General Law.
- Public hearing process: Reserved for subject matter public hearing on February 3, 2025, with a public hearing scheduled for February 7, 2025 (Public Hearing 0214).
- Next steps: Following hearings, the committee may consider amendments, conduct further deliberations, and potentially move the bill to a floor vote. Tracking will be available through committee agendas and legislative calendars.
Potential impacts and considerations
- Compliance: Landlords and property managers may need to review pricing and occupancy practices to ensure they do not rely on prohibited software for profit-maximizing decisions.
- Market effects: If enacted, the bill could influence how rental pricing is determined, potentially prompting shifts toward alternative, non-prohibited methods.
- Enforcement and penalties: Specific enforcement mechanisms, penalties, exemptions, and effective dates would be defined in the bill’s text; these are not provided in the summary.
- Economic and privacy concerns: Depending on the definitions, there could be broader implications for data-driven property management and tenants alike.
How to follow or engage
- Monitor the official bill text and committee updates for HB 6478, particularly the General Law committee proceedings and the outcomes of Public Hearing 0214.
- Review forthcoming amendments or definitions clarifying “certain software,” “occupancy levels,” and “rental rates.”