Texas 2025 - 89th Regular

Texas House Bill HB2491 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R8368 ATP-D
2	2	By: Talarico H.B. No. 2491
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the use of certain algorithmic devices in the
10	10	determination of residential rental prices.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
13	13	amended by adding Chapter 121 to read as follows:
14	14	CHAPTER 121. ALGORITHMIC DEVICES USED TO DETERMINE RENT
15	15	Sec. 121.001. DEFINITIONS. In this chapter:
16	16	(1) "Algorithmic device" means a device that uses one
17	17	or more algorithms to perform calculations of data. The term
18	18	includes a product that incorporates an algorithmic device. The
19	19	term does not include:
20	20	(A) a report published periodically and not more
21	21	frequently than monthly by a trade association that receives and
22	22	publishes data in an aggregated and anonymous manner; or
23	23	(B) a product used for the purpose of
24	24	establishing rent or income limits in accordance with the
25	25	affordable housing program guidelines of a political subdivision,
26	26	this state, or the federal government.
27	27	(2) "Nonpublic competitor data" means information
28	28	that:
29	29	(A) is not widely available or easily accessible
30	30	to the public, including information about actual rent prices,
31	31	occupancy rates, and lease start and end dates, regardless of
32	32	whether the data is attributable to a specific competitor or
33	33	anonymized; and
34	34	(B) is derived from or otherwise provided to a
35	35	person by another person that competes in the same or a related
36	36	market.
37	37	Sec. 121.002. APPLICABILITY. (a) This chapter does not
38	38	apply to an algorithmic device that uses, incorporates, or was
39	39	trained with nonpublic competitor data if the data includes
40	40	nonpublic executed lease data that is also made available to the
41	41	public in an aggregated and anonymous manner at no more than a
42	42	reasonable charge.
43	43	(b) For purposes of this section, data made available to the
44	44	public in an aggregated and anonymous manner includes nonpublic
45	45	executed lease data tailored for the benefit of and usefulness to
46	46	consumers and presented as a range of average rent prices for
47	47	properties in a geographic area defined by its zip code,
48	48	neighborhood, geographical radius, or other type of apartment
49	49	industry submarket.
50	50	Sec. 121.003. CERTAIN ACTIONS RELATING TO ALGORITHMIC
51	51	DEVICES USED IN DETERMINING RESIDENTIAL RENT PROHIBITED. (a) The
52	52	sale of algorithmic device services or products for the purpose of
53	53	setting or recommending the amount of rent to be charged to a tenant
54	54	for residential premises is prohibited.
55	55	(b) A person engaged in the business of providing
56	56	algorithmic device services or products for the purpose of advising
57	57	a landlord of the amount of rent that the landlord may consider
58	58	charging a tenant for residential premises may not use nonpublic
59	59	competitor data pertaining to residential properties in this state
60	60	in algorithmic calculations.
61	61	Sec. 121.004. DECEPTIVE TRADE PRACTICE. A violation of
62	62	Section 121.003 is a deceptive trade practice actionable under
63	63	Subchapter E, Chapter 17.
64	64	SECTION 2. This Act takes effect September 1, 2025.