House Bill 679 By: Representatives Sanchez of the 42nd, Frye of the 122nd, Cummings of the 39th, Bell of the 75th, and Taylor of the 92nd A BILL TO BE ENTITLED AN ACT To amend Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal and void contracts generally, so as to prohibit certain agreements involving rental price-fixing as unenforceable contracts in general restraint of trade with respect to residential rental properties; to provide for a criminal penalty; to provide for statutory construction; to provide for a short title; to provide for an effective date and applicability; to provide for related matters; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. This Act shall be known and may be cited as the "End Rental Price-Fixing Act." SECTION 2. The General Assembly finds that there is a housing crisis in Georgia. For many years, the cost of living in Georgia has been low, providing benefits to existing Georgians and encouraging future residents to move to Georgia. However, the cost of housing in Georgia has begun to rise steeply. One factor in this recent increase is coordination among landlords to fix rental prices. In 2024, the U.S. Department of Justice sued a Georgia landlord over price-fixing. This coordination not only undermines market competition, but it also threatens the financial well-being of Georgians. The General Assembly finds, therefore, that this Act is necessary to protect the general welfare of Georgians. SECTION 3. Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to illegal and void contracts generally, is amended by adding a new Code section to read as follows: "13-8-5. (a) As used in this Code section, the term: (1) 'Agreement' means any contract, combination, or other agreement, whether verbal or written. (2) 'Coordinator' means an individual who uses or causes to be used a system, software, or process that performs a coordinating function for one or more landlords that compete in the same or a similar market, including a landlord that is performing a coordinating function for the landlord's own benefit. (3) 'Landlord' means the owner, lessor, or sublessor of a residential property or any person designated as an agent or representative of the owner, lessor, or sublessor, including, but not limited to, an agent, a resident manager, or a designated property manager. (4) 'Person' means any individual, partnership, association, firm, public or private corporation, trust, or unincorporated organization. Such term shall include a coordinator or a landlord. (5) 'Price-fixing' means any agreement between two or more landlords that compete in the same or a similar market to raise, lower, change, maintain, or otherwise manipulate the rental price of two or more residential properties based on a price-fixing function. (6) 'Price-fixing function' means: (A) Collecting historical or contemporaneous rental prices, supply levels, or rental agreement termination and renewal dates of residential properties, including nonpublic information, from two or more landlords that compete in the same or a similar market; (B) Analyzing or processing the information described in subparagraph (A) of this paragraph through the use of a system, software, or process that uses computation, including, but not limited to, a computational process that uses machine learning or other artificial intelligence techniques; and (C) Recommending rental prices, rental agreement renewal terms, or ideal occupancy levels to a landlord. (7) 'Rental agreement' means any lease, rental, or other written agreement entered into by a landlord and a tenant in order for such tenant to lease, sublease, let, or accept a grant for consideration the right to possess and enjoy the use of a residential property. (8) 'Rental price' means any consideration a tenant must pay in order to lease, sublease, let, or accept a grant of the right to possess and enjoy the use of a residential property either for a fixed time or at the will of the landlord. (9) 'Residential property' means any building, structure, or portion thereof which is used or occupied as, or designed or intended for use or occupancy as, a residence. (b) No person shall enter into or cause to be entered into an agreement involving price-fixing. Any such agreement shall be deemed an unenforceable contract in general restraint of trade as provided in Code Section 13-8-2, and any person that enters into or causes to be entered into such an agreement shall, upon conviction thereof, be guilty of a felony and be punished by imprisonment for not less than one nor more than five years, or by a fine of not less than $1,000.00 nor more than $5,000.00, or by both imprisonment and fine. (c) No landlord shall set rental prices based on a price-fixing function. (d) Nothing in this Code section shall be construed to apply to, impair, or otherwise prohibit actions taken by a person or any federal, state, or local governmental entity, or any official, employee, or agent thereof, while in the exercise or performance of any power or duty imposed by a federal or state affordable or low-income housing law, program, or initiative." SECTION 4. This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall apply to all agreements related to residential property entered into on or after such date and to all renewals, modifications, or extensions of such agreements entered into on or after such date. SECTION 5. All laws and parts of laws in conflict with this Act are repealed.