89R8368 ATP-D
By: Talarico H.B. No. 2491
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 121 to read as follows:
CHAPTER 121. ALGORITHMIC DEVICES USED TO DETERMINE RENT
Sec. 121.001. 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. 121.002. 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. 121.003. 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. 121.004. DECEPTIVE TRADE PRACTICE. A violation of
Section 121.003 is a deceptive trade practice actionable under
Subchapter E, Chapter 17.
SECTION 2. This Act takes effect September 1, 2025.