Senate Bill 559
By: Senators Rahman of the 5th, James of the 28th, Jones II of the 22nd, Halpern of the 39th,
Merritt of the 9th and others
A BILL TO BE ENTITLED
AN ACT
To amend Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia
Annotated, relating to the "Fair Business Practices Act of 1975," so as to prohibit any person
from facilitating noncompete agreements between residential rental property owners or
managers, including by use of algorithmic coordinating functions; to prohibit rental property
owners or managers from setting or adjusting rental prices, lease renewal terms, occupancy
levels, or other lease terms and conditions based on recommendations from software, data
analytics service, or algorithmic devices; to provide for definitions; to provide for related
matters; to provide an effective date and for applicability; to repeal conflicting laws; and for
other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, the
relating to "Fair Business Practices Act of 1975," is amended by adding a new Code section
to read as follows:
<ins>"10-1-393.22.
(a) As used in this Code section, the term:
</ins>
<ins>(1) 'Algorithm' means a computational process that uses a set of rules to define a
sequence of operations.
(2) 'Algorithmic device' means any machine, device, computer program, or computer
software that, on its own or with human assistance, performs a coordinating function.
(3) 'Coordinating function' means performing all of the following subfunctions;
provided, however, that a product used for the purpose of establishing rent or income
limits in accordance with an affordable housing program administered by a federal, state,
or local government or other political subdivision of this state shall not be considered to
be performing a coordinating function:
(A) Collecting historical or contemporaneous prices, supply levels, or lease or rental
contract termination and renewal dates of residential dwelling units from two or more
residential rental property owners or managers, provided that at least two such
residential rental property owners or managers are not wholly owned subsidiaries of the
same parent entity or otherwise owned or managed by the same residential rental
property owner or manager;
(B) Analyzing or processing the information described in subparagraph (A) of this
paragraph using a system, software, or process that uses computation, including by
using such information to train an algorithm; and
(C) Recommending rental prices, lease renewal terms, occupancy levels, or other lease
terms and conditions to a residential rental property owner or manager.
(4) 'Residential dwelling unit' means:
(A) A single-family dwelling, including attached structures such as porches and stoops;
or
(B) A single-family dwelling unit in a structure that contains more than one separate
residential dwelling unit, and in which each such unit is used or occupied, or intended
to be used or occupied, in whole or in part, as the home or residence of one or more
persons.
</ins>
<ins>(5) 'Residential rental property owner or manager' means any individual or entity that
owns or is a beneficial owner of, directly or indirectly, in whole or in part, or manages
one or more residential dwelling units in this state.
(b) It shall be an unlawful, unfair, and deceptive trade practice for any person, firm, or
corporation doing business in this state to knowingly or with reckless disregard facilitate
an agreement between or among two or more residential rental property owners or
managers to not compete with respect to the renting or leasing of residential dwelling units,
including by operating or licensing a software, data analytics service, or algorithmic device
that performs a coordinating function on behalf of or between and among such residential
rental property owners or managers.
(c) It shall be considered an unlawful agreement in violation of this Code section for a
residential rental property owner or manager to knowingly or with reckless disregard set
or adjust rental prices, lease renewal terms, occupancy levels, or other lease terms and
conditions in one or more of their residential rental properties based on recommendations
from a software, data analytics service, or algorithmic device performing a coordinating
function.
(d) Nothing in this Code section shall impair or limit the applicability of any other part of
this article, Chapter 7 of Title 44, or any other state law."
</ins> SECTION 2.
This Act shall become effective on July 1, 2026, and shall apply to all contracts and other
agreements entered into or that become effective on or after such date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.