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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of certain algorithmic devices in the |
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determination of residential rental prices. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 121 to read as follows: |
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CHAPTER 121. ALGORITHMIC DEVICES USED TO DETERMINE RENT |
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Sec. 121.001. DEFINITIONS. In this chapter: |
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(1) "Algorithmic device" means a device that uses one |
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or more algorithms to perform calculations of data. The term |
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includes a product that incorporates an algorithmic device. The |
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term does not include: |
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(A) a report published periodically and not more |
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frequently than monthly by a trade association that receives and |
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publishes data in an aggregated and anonymous manner; or |
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(B) a product used for the purpose of |
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establishing rent or income limits in accordance with the |
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affordable housing program guidelines of a political subdivision, |
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this state, or the federal government. |
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(2) "Nonpublic competitor data" means information |
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that: |
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(A) is not widely available or easily accessible |
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to the public, including information about actual rent prices, |
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occupancy rates, and lease start and end dates, regardless of |
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whether the data is attributable to a specific competitor or |
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anonymized; and |
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(B) is derived from or otherwise provided to a |
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person by another person that competes in the same or a related |
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market. |
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Sec. 121.002. APPLICABILITY. (a) This chapter does not |
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apply to an algorithmic device that uses, incorporates, or was |
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trained with nonpublic competitor data if the data includes |
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nonpublic executed lease data that is also made available to the |
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public in an aggregated and anonymous manner at no more than a |
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reasonable charge. |
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(b) For purposes of this section, data made available to the |
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public in an aggregated and anonymous manner includes nonpublic |
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executed lease data tailored for the benefit of and usefulness to |
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consumers and presented as a range of average rent prices for |
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properties in a geographic area defined by its zip code, |
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neighborhood, geographical radius, or other type of apartment |
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industry submarket. |
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Sec. 121.003. CERTAIN ACTIONS RELATING TO ALGORITHMIC |
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DEVICES USED IN DETERMINING RESIDENTIAL RENT PROHIBITED. (a) The |
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sale of algorithmic device services or products for the purpose of |
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setting or recommending the amount of rent to be charged to a tenant |
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for residential premises is prohibited. |
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(b) A person engaged in the business of providing |
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algorithmic device services or products for the purpose of advising |
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a landlord of the amount of rent that the landlord may consider |
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charging a tenant for residential premises may not use nonpublic |
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competitor data pertaining to residential properties in this state |
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in algorithmic calculations. |
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Sec. 121.004. DECEPTIVE TRADE PRACTICE. A violation of |
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Section 121.003 is a deceptive trade practice actionable under |
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Subchapter E, Chapter 17. |
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SECTION 2. This Act takes effect September 1, 2025. |