SB559: SB559 "Fair Business Practices Act of 1975"; any person from facilitating noncompete agreements between residential rental property owners or managers, including by use of algorithmic coordinating functions; prohibit

26 LC 49 2678 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 O fficial Code of Georgia1 Annotated, relating to the "Fair Business Practices Act of 1975," so as to prohibit any person2 from facilitating noncompete agreements between residential ren tal property owners or3 managers, including by use of algorithmic coordinating functions; to prohibit rental property4 owners or managers from setting or adjusting rental prices, lease renewal terms, occupancy5 levels, or other lease terms and conditions based on recommendations from software, data6 analytics service, or algorithmic devices; to provide for defin itions; to provide for related7 matters; to provide an effective date and for applicability; to repeal conflicting laws; and for8 other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, the12 relating to "Fair Business Practices Act of 1975," is amended by adding a new Code section13 to read as follows:14 "10-1-393.22.15 (a) As used in this Code section, the term:16 S. B. 559 - 1 - 26 LC 49 2678 (1) 'Algorithm' means a computational process that uses a set of rules to define a17 sequence of operations.18 (2) 'Algorithmic device' means any machine, device, computer p rogram, or computer19 software that, on its own or with human assistance, performs a coordinating function.20 (3) 'Coordinating function' means performing all of the follow ing subfunctions;21 provided, however, that a product used for the purpose of estab lishing rent or income22 limits in accordance with an affordable housing program administered by a federal, state,23 or local government or other political subdivision of this state shall not be considered to24 be performing a coordinating function:25 (A) Collecting historical or contemporaneous prices, supply levels, or lease or rental26 contract termination and renewal dates of residential dwelling units from two or more27 residential rental property owners or managers, provided that a t least two such28 residential rental property owners or managers are not wholly owned subsidiaries of the29 same parent entity or otherwise owned or managed by the same re sidential rental30 property owner or manager;31 (B) Analyzing or processing the information described in subpa ragraph (A) of this32 paragraph using a system, software, or process that uses comput ation, including by33 using such information to train an algorithm; and34 (C) Recommending rental prices, lease renewal terms, occupancy levels, or other lease35 terms and conditions to a residential rental property owner or manager.36 (4) 'Residential dwelling unit' means:37 (A) A single-family dwelling, including attached structures such as porches and stoops;38 or39 (B) A single-family dwelling unit in a structure that contains more than one separate40 residential dwelling unit, and in which each such unit is used or occupied, or intended41 to be used or occupied, in whole or in part, as the home or res idence of one or more42 persons.43 S. B. 559 - 2 - 26 LC 49 2678 (5) 'Residential rental property owner or manager' means any i ndividual or entity that44 owns or is a beneficial owner of, directly or indirectly, in wh ole or in part, or manages45 one or more residential dwelling units in this state.46 (b) It shall be an unlawful, unfair, and deceptive trade pract ice for any person, firm, or47 corporation doing business in this state to knowingly or with reckless disregard facilitate48 an agreement between or among two or more residential rental pr operty owners or49 managers to not compete with respect to the renting or leasing of residential dwelling units,50 including by operating or licensing a software, data analytics service, or algorithmic device51 that performs a coordinating function on behalf of or between and among such residential52 rental property owners or managers.53 (c) It shall be considered an unlawful agreement in violation of this Code section for a54 residential rental property owner or manager to knowingly or with reckless disregard set55 or adjust rental prices, lease renewal terms, occupancy levels, or other lease terms and56 conditions in one or more of their residential rental properties based on recommendations57 from a software, data analytics service, or algorithmic device performing a coordinating58 function.59 (d) Nothing in this Code section shall impair or limit the applicability of any other part of60 this article, Chapter 7 of Title 44, or any other state law."61 SECTION 2.62 This Act shall become effective on July 1, 2026, and shall appl y to all contracts and other63 agreements entered into or that become effective on or after such date. 64 SECTION 3.65 All laws and parts of laws in conflict with this Act are repealed.66 S. 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