1 | 1 | | 25 LC 60 0109 |
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2 | 2 | | House Bill 679 |
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3 | 3 | | By: Representatives Sanchez of the 42 |
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4 | 4 | | nd |
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5 | 5 | | , Frye of the 122 |
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6 | 6 | | nd |
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7 | 7 | | , Cummings of the 39 |
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8 | 8 | | th |
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9 | 9 | | , Bell of the |
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10 | 10 | | 75 |
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11 | 11 | | th |
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12 | 12 | | , and Taylor of the 92 |
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13 | 13 | | nd |
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14 | 14 | | |
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15 | 15 | | A BILL TO BE ENTITLED |
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16 | 16 | | AN ACT |
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17 | 17 | | To amend Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal |
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18 | 18 | | 1 |
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19 | 19 | | and void contracts generally, so as to prohibit certain agreements involving rental2 |
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20 | 20 | | price-fixing as unenforceable contracts in general restraint of trade with respect to residential3 |
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21 | 21 | | rental properties; to provide for a criminal penalty; to provide for statutory construction; to4 |
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22 | 22 | | provide for a short title; to provide for an effective date and applicability; to provide for5 |
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23 | 23 | | related matters; to repeal conflicting laws; and for other purposes.6 |
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24 | 24 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
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25 | 25 | | SECTION 1.8 |
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26 | 26 | | This Act shall be known and may be cited as the "End Rental Price-Fixing Act."9 |
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27 | 27 | | SECTION 2.10 |
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28 | 28 | | The General Assembly finds that there is a housing crisis in Georgia. For many years, the11 |
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29 | 29 | | cost of living in Georgia has been low, providing benefits to existing Georgians and12 |
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30 | 30 | | encouraging future residents to move to Georgia. However, the cost of housing in Georgia13 |
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31 | 31 | | has begun to rise steeply. One factor in this recent increase is coordination among landlords14 |
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32 | 32 | | to fix rental prices. In 2024, the U.S. Department of Justice sued a Georgia landlord over15 |
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33 | 33 | | H. B. 679 |
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34 | 34 | | - 1 - 25 LC 60 0109 |
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35 | 35 | | price-fixing. This coordination not only undermines market competition, but it also threatens |
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36 | 36 | | 16 |
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37 | 37 | | the financial well-being of Georgians. The General Assembly finds, therefore, that this Act17 |
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38 | 38 | | is necessary to protect the general welfare of Georgians.18 |
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39 | 39 | | SECTION 3.19 |
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40 | 40 | | Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal and void20 |
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41 | 41 | | contracts generally, is amended by adding a new Code section to read as follows:21 |
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42 | 42 | | "13-8-5. |
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43 | 43 | | 22 |
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44 | 44 | | (a) As used in this Code section, the term:23 |
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45 | 45 | | (1) 'Agreement' means any contract, combination, or other agreement, whether verbal or24 |
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46 | 46 | | written.25 |
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47 | 47 | | (2) 'Coordinator' means an individual who uses or causes to be used a system, software,26 |
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48 | 48 | | or process that performs a coordinating function for one or more landlords that compete27 |
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49 | 49 | | in the same or a similar market, including a landlord that is performing a coordinating28 |
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50 | 50 | | function for the landlord's own benefit.29 |
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51 | 51 | | (3) 'Landlord' means the owner, lessor, or sublessor of a residential property or any30 |
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52 | 52 | | person designated as an agent or representative of the owner, lessor, or sublessor,31 |
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53 | 53 | | including, but not limited to, an agent, a resident manager, or a designated property32 |
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54 | 54 | | manager.33 |
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55 | 55 | | (4) 'Person' means any individual, partnership, association, firm, public or private34 |
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56 | 56 | | corporation, trust, or unincorporated organization. Such term shall include a coordinator35 |
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57 | 57 | | or a landlord.36 |
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58 | 58 | | (5) 'Price-fixing' means any agreement between two or more landlords that compete in37 |
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59 | 59 | | the same or a similar market to raise, lower, change, maintain, or otherwise manipulate38 |
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60 | 60 | | the rental price of two or more residential properties based on a price-fixing function.39 |
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61 | 61 | | (6) 'Price-fixing function' means:40 |
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62 | 62 | | H. B. 679 |
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63 | 63 | | - 2 - 25 LC 60 0109 |
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64 | 64 | | (A) Collecting historical or contemporaneous rental prices, supply levels, or rental41 |
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65 | 65 | | agreement termination and renewal dates of residential properties, including nonpublic42 |
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66 | 66 | | information, from two or more landlords that compete in the same or a similar market;43 |
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67 | 67 | | (B) Analyzing or processing the information described in subparagraph (A) of this44 |
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68 | 68 | | paragraph through the use of a system, software, or process that uses computation,45 |
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69 | 69 | | including, but not limited to, a computational process that uses machine learning or46 |
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70 | 70 | | other artificial intelligence techniques; and47 |
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71 | 71 | | (C) Recommending rental prices, rental agreement renewal terms, or ideal occupancy48 |
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72 | 72 | | levels to a landlord.49 |
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73 | 73 | | (7) 'Rental agreement' means any lease, rental, or other written agreement entered into50 |
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74 | 74 | | by a landlord and a tenant in order for such tenant to lease, sublease, let, or accept a grant51 |
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75 | 75 | | for consideration the right to possess and enjoy the use of a residential property.52 |
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76 | 76 | | (8) 'Rental price' means any consideration a tenant must pay in order to lease, sublease,53 |
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77 | 77 | | let, or accept a grant of the right to possess and enjoy the use of a residential property54 |
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78 | 78 | | either for a fixed time or at the will of the landlord.55 |
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79 | 79 | | (9) 'Residential property' means any building, structure, or portion thereof which is used56 |
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80 | 80 | | or occupied as, or designed or intended for use or occupancy as, a residence.57 |
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81 | 81 | | (b) No person shall enter into or cause to be entered into an agreement involving58 |
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82 | 82 | | price-fixing. Any such agreement shall be deemed an unenforceable contract in general59 |
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83 | 83 | | restraint of trade as provided in Code Section 13-8-2, and any person that enters into or60 |
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84 | 84 | | causes to be entered into such an agreement shall, upon conviction thereof, be guilty of a61 |
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85 | 85 | | felony and be punished by imprisonment for not less than one nor more than five years, or62 |
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86 | 86 | | by a fine of not less than $1,000.00 nor more than $5,000.00, or by both imprisonment and63 |
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87 | 87 | | fine.64 |
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88 | 88 | | (c) No landlord shall set rental prices based on a price-fixing function.65 |
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89 | 89 | | (d) Nothing in this Code section shall be construed to apply to, impair, or otherwise66 |
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90 | 90 | | prohibit actions taken by a person or any federal, state, or local governmental entity, or any67 |
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91 | 91 | | H. B. 679 |
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92 | 92 | | - 3 - 25 LC 60 0109 |
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93 | 93 | | official, employee, or agent thereof, while in the exercise or performance of any power or68 |
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94 | 94 | | duty imposed by a federal or state affordable or low-income housing law, program, or69 |
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95 | 95 | | initiative."70 |
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96 | 96 | | SECTION 4.71 |
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97 | 97 | | This Act shall become effective upon its approval by the Governor or upon its becoming law72 |
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98 | 98 | | without such approval and shall apply to all agreements related to residential property73 |
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99 | 99 | | entered into on or after such date and to all renewals, modifications, or extensions of such74 |
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100 | 100 | | agreements entered into on or after such date.75 |
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101 | 101 | | SECTION 5.76 |
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102 | 102 | | All laws and parts of laws in conflict with this Act are repealed.77 |
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103 | 103 | | H. B. 679 |
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104 | 104 | | - 4 - |
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