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