1 | 1 | | 25 LC 60 0119 |
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2 | 2 | | Senate Bill 318 |
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3 | 3 | | By: Senators Merritt of the 9th, Islam Parkes of the 7th, Mallow of the 2nd, Jones II of the |
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4 | 4 | | 22nd, Harrell of the 40th and others |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | To amend Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal |
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8 | 8 | | 1 |
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9 | 9 | | and void contracts generally, so as to prohibit certain agreements involving parallel pricing2 |
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10 | 10 | | coordination as unenforceable contracts in general restraint of trade with respect to3 |
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11 | 11 | | residential rental properties; to provide for a civil penalty; to provide for educational4 |
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12 | 12 | | materials informing residents in this state of the provisions of this Act; to provide for5 |
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13 | 13 | | statutory construction; to provide for an effective date and applicability; to provide for6 |
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14 | 14 | | related matters; to repeal conflicting laws; and for other purposes.7 |
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15 | 15 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 |
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16 | 16 | | SECTION 1.9 |
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17 | 17 | | Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal and void10 |
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18 | 18 | | contracts generally, is amended by adding a new Code section to read as follows:11 |
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19 | 19 | | "13-8-5. |
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20 | 20 | | 12 |
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21 | 21 | | (a) As used in this Code section, the term:13 |
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22 | 22 | | (1) 'Agreement' means any contract, combination, or other agreement, whether verbal or14 |
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23 | 23 | | written.15 |
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24 | 24 | | (2) 'Coordinating function' means:16 |
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25 | 25 | | S. B. 318 |
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26 | 26 | | - 1 - 25 LC 60 0119 |
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27 | 27 | | (A) Collecting historical or contemporaneous rental prices, supply levels, or rental17 |
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28 | 28 | | agreement termination and renewal dates of residential properties from two or more18 |
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29 | 29 | | landlords;19 |
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30 | 30 | | (B) Analyzing or processing the information described in subparagraph (A) of this20 |
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31 | 31 | | paragraph through the use of a system, software, or process, including, but not limited21 |
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32 | 32 | | to, a computational process that uses machine learning or other artificial intelligence22 |
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33 | 33 | | techniques; and23 |
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34 | 34 | | (C) Recommending rental prices, rental agreement renewal terms, or ideal occupancy24 |
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35 | 35 | | levels to a landlord.25 |
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36 | 36 | | (3) 'Coordinator' means an individual who uses or causes to be used a system, software,26 |
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37 | 37 | | or process that performs a coordinating function for one or more landlords, including a27 |
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38 | 38 | | landlord that is performing a coordinating function for the landlord's own benefit.28 |
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39 | 39 | | (4) 'Landlord' means the owner, lessor, or sublessor of a residential property or any29 |
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40 | 40 | | person designated as an agent or representative of the owner, lessor, or sublessor,30 |
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41 | 41 | | including, but not limited to, an agent, a resident manager, or a designated property31 |
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42 | 42 | | manager.32 |
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43 | 43 | | (5) 'Parallel pricing coordination' means any agreement between two or more landlords33 |
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44 | 44 | | to raise, lower, change, maintain, or otherwise manipulate the rental price of two or more34 |
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45 | 45 | | residential properties.35 |
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46 | 46 | | (6) 'Person' means any individual, partnership, association, firm, public or private36 |
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47 | 47 | | corporation, trust, or unincorporated organization. Such term shall include a coordinator37 |
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48 | 48 | | or a landlord.38 |
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49 | 49 | | (7) 'Rental agreement' means any lease, rental, or other written agreement entered into39 |
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50 | 50 | | by a landlord and a tenant in order for such tenant to lease, sublease, let, or accept a grant40 |
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51 | 51 | | for consideration the right to possess and enjoy the use of a residential property.41 |
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52 | 52 | | S. B. 318 |
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53 | 53 | | - 2 - 25 LC 60 0119 |
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54 | 54 | | (8) 'Rental price' means any consideration a tenant must pay in order to lease, sublease,42 |
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55 | 55 | | let, or accept a grant of the right to possess and enjoy the use of a residential property43 |
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56 | 56 | | either for a fixed time or at the will of the landlord.44 |
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57 | 57 | | (9) 'Residential property' means any building, structure, or portion thereof which is used45 |
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58 | 58 | | or occupied as, or designed or intended for use or occupancy as, a residence.46 |
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59 | 59 | | (b) No person shall enter into, cause to be entered into, or perform a coordinating function47 |
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60 | 60 | | in relation to an agreement involving parallel pricing coordination. Any such agreement48 |
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61 | 61 | | shall be deemed an unenforceable contract in general restraint of trade as provided in Code49 |
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62 | 62 | | Section 13-8-2, and any person that enters into, causes to be entered into, or performs a50 |
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63 | 63 | | coordinating function in relation to the same shall be subject to a civil penalty of $1,000.0051 |
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64 | 64 | | per violation. The civil penalty provided for in this subsection shall be recoverable in a52 |
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65 | 65 | | civil action brought in any court of competent jurisdiction by the Attorney General or any53 |
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66 | 66 | | district attorney.54 |
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67 | 67 | | (c) The Department of Community Affairs shall develop and publish educational materials55 |
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68 | 68 | | informing residents of this state of the provisions of this Code section.56 |
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69 | 69 | | (d) Nothing in this Code section shall be construed to apply to, impair, or otherwise57 |
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70 | 70 | | prohibit actions taken by a person or any federal, state, or local governmental entity, or any58 |
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71 | 71 | | official, employee, or agent thereof, while in the exercise or performance of any power or59 |
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72 | 72 | | duty imposed by a federal or state affordable or low-income housing law, program, or60 |
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73 | 73 | | initiative."61 |
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74 | 74 | | SECTION 2.62 |
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75 | 75 | | This Act shall become effective upon its approval by the Governor or upon its becoming law63 |
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76 | 76 | | without such approval and shall apply to all agreements related to residential property64 |
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77 | 77 | | entered into on or after such date and to all renewals, modifications, or extensions of such65 |
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78 | 78 | | agreements entered into on or after such date.66 |
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79 | 79 | | S. B. 318 |
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80 | 80 | | - 3 - 25 LC 60 0119 |
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81 | 81 | | SECTION 3. |
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82 | 82 | | 67 |
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83 | 83 | | All laws and parts of laws in conflict with this Act are repealed.68 |
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84 | 84 | | S. B. 318 |
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85 | 85 | | - 4 - |
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