Relating to the use of certain algorithmic devices in the determination of residential rental prices.

The text as introduced · 474 words

90R1471 SCR-D

By: Menéndez
S.B. No. 156

A BILL TO BE ENTITLED

AN ACT

relating to the use of certain algorithmic devices in the

determination of residential rental prices.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 125 to read as follows:

CHAPTER 125. ALGORITHMIC DEVICES USED TO DETERMINE RENT

Sec. 125.001. DEFINITIONS. In this chapter:

(1) "Algorithmic device" means a device that uses one

or more algorithms to perform calculations of data. The term

includes a product that incorporates an algorithmic device. The

term does not include:

(A) a report published periodically and not more

frequently than monthly by a trade association that receives and

publishes data in an aggregated and anonymous manner; or

(B) a product used for the purpose of

establishing rent or income limits in accordance with the

affordable housing program guidelines of a political subdivision,

this state, or the federal government.

(2) "Nonpublic competitor data" means information

that:

(A) is not widely available or easily accessible

to the public, including information about actual rent prices,

occupancy rates, and lease start and end dates, regardless of

whether the data is attributable to a specific competitor or

anonymized; and

(B) is derived from or otherwise provided to a

person by another person that competes in the same or a related

market.

Sec. 125.002. APPLICABILITY. (a) This chapter does not

apply to an algorithmic device that uses, incorporates, or was

trained with nonpublic competitor data if the data includes

nonpublic executed lease data that is also made available to the

public in an aggregated and anonymous manner at no more than a

reasonable charge.

(b) For purposes of this section, data made available to the

public in an aggregated and anonymous manner includes nonpublic

executed lease data tailored for the benefit of and usefulness to

consumers and presented as a range of average rent prices for

properties in a geographic area defined by its zip code,

neighborhood, geographical radius, or other type of apartment

industry submarket.

Sec. 125.003. CERTAIN ACTIONS RELATING TO ALGORITHMIC

DEVICES USED IN DETERMINING RESIDENTIAL RENT PROHIBITED. (a) The

sale of algorithmic device services or products for the purpose of

setting or recommending the amount of rent to be charged to a tenant

for residential premises is prohibited.

(b) A person engaged in the business of providing

algorithmic device services or products for the purpose of advising

a landlord of the amount of rent that the landlord may consider

charging a tenant for residential premises may not use nonpublic

competitor data pertaining to residential properties in this state

in algorithmic calculations.

Sec. 125.004. DECEPTIVE TRADE PRACTICE. A violation of

Section 125.003 is a deceptive trade practice actionable under

Subchapter E, Chapter 17.

SECTION 2. This Act takes effect September 1, 2027.