HB2491 - Relating to the use of certain algorithmic devices in the determination of residential rental prices.

  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.