Amendments for HB25-1004
House Journal, February 21
49 HB25-1004 be amended as follows, and as so amended, be referred to
50 the Committee of the Whole with favorable
51 recommendation:
52
53 Amend printed bill, strike everything below the enacting clause and
54 substitute:
55
1 "SECTION 1. Legislative declaration. (1) The general
2 assembly finds that:
3 (a) Agreements or conspiracies between competitors to fix prices
4 or other commercial terms are illegal under current Colorado law, and
5 algorithmic devices have made illegal agreements more challenging to
6 detect; and
7 (b) In recent years, several lawsuits have been filed alleging that
8 the use of algorithmic devices by landlords to set prices and other
9 commercial terms in the residential housing market results in higher rents
10 and constrained housing supply for residential tenants; and
11 (c) A recent White House study titled "The Cost of
12 Anticompetitive Pricing Algorithms in Rental Housing" estimated that in
13 2023, the cost to renters of anticompetitive pricing was $3.8 billion, and
14 the cost to renters in the Denver metro area was the second highest of any
15 metro area in the country.
16 (2) Therefore, the general assembly declares that, with certain
17 exceptions, the distribution and use of an algorithmic device by a service
18 provider or landlord to set rents and other certain commercial terms
19 regarding the occupancy of rental housing is prohibited.
20 SECTION 2. In Colorado Revised Statutes, add 38-12-703 as
21 follows:
22 38-12-703. Determination of rent amount - sale, distribution,
23 and use of algorithmic devices prohibited - illegal restraint of trade
24 or commerce - definitions. (1) (a) THE SALE OR DISTRIBUTION FOR
25 CONSIDERATION OF AN ALGORITHMIC DEVICE WITH THE INTENT THAT IT BE
26 USED BY TWO OR MORE LANDLORDS IN THE SAME MARKET OR A RELATED
27 MARKET TO SET OR RECOMMEND THE AMOUNT OF RENT, LEVEL OF
28 OCCUPANCY, OR OTHER COMMERCIAL TERM ASSOCIATED WITH THE
29 OCCUPANCY OF A RESIDENTIAL PREMISES IS PROHIBITED.
30 (b) THE USE OF AN ALGORITHMIC DEVICE BY A PERSON TO SET OR
31 RECOMMEND THE AMOUNT OF RENT, LEVEL OF OCCUPANCY, OR OTHER
32 COMMERCIAL TERM ASSOCIATED WITH THE OCCUPANCY OF A RESIDENTIAL
33 PREMISES IS PROHIBITED IF THE PERSON KNEW OR SHOULD HAVE KNOWN
34 THAT ANOTHER PERSON USED THE ALGORITHMIC DEVICE, OR AN
35 ALGORITHMIC DEVICE TRAINED ON SUBSTANTIALLY SIMILAR DATA, TO SET
36 OR RECOMMEND THE AMOUNT OF RENT, LEVEL OF OCCUPANCY, OR OTHER
37 COMMERCIAL TERM ASSOCIATED WITH THE OCCUPANCY OF A RESIDENTIAL
38 PREMISES IN THE SAME MARKET OR A RELATED MARKET.
39 (c) A PERSON ENGAGED IN THE BUSINESS OF PROVIDING
40 ALGORITHMIC DEVICE SERVICES OR PRODUCTS THAT ARE USED TO SET OR
41 RECOMMEND THE AMOUNT OF RENT, LEVEL OF OCCUPANCY, OR OTHER
42 COMMERCIAL TERM ASSOCIATED WITH THE OCCUPANCY OF A RESIDENTIAL
43 PREMISES SHALL NOT USE NONPUBLIC COMPETITOR DATA PERTAINING TO
44 RESIDENTIAL PROPERTIES IN COLORADO IN ALGORITHMIC CALCULATIONS.
45 (2) A VIOLATION OF SUBSECTION (1) OF THIS SECTION IS AN
46 ILLEGAL RESTRAINT OF TRADE OR COMMERCE IN VIOLATION OF SECTION
47 6-4-104 AND IS PUNISHABLE IN ACCORDANCE WITH THE "COLORADO
48 STATE ANTITRUST ACT OF 2023", ARTICLE 4 OF TITLE 6.
49 (3) AS USED IN THIS SECTION:
50 (a) "ALGORITHMIC DEVICE" MEANS A DEVICE THAT USES ONE OR
51 MORE ALGORITHMS TO PERFORM CALCULATIONS OF DATA, INCLUDING
52 DATA CONCERNING LOCAL OR STATEWIDE RENT AMOUNTS BEING CHARGED
53 TO TENANTS BY LANDLORDS, FOR THE PURPOSE OF ADVISING A LANDLORD
54 CONCERNING THE AMOUNT OF RENT, LEVEL OF OCCUPANCY, OR OTHER
55 COMMERCIAL TERM ASSOCIATED WITH RENTAL HOUSING. "ALGORITHMIC
56 DEVICE":
1 (I) INCLUDES A PRODUCT THAT INCORPORATES AN ALGORITHMIC
2 DEVICE; AND
3 (II) DOES NOT INCLUDE:
4 (A) A PRODUCT THAT PROVIDES INFORMATION TO THE PUBLIC AND
5 NOT FOR THE PURPOSE OF RECOMMENDING OR SETTING A COMMERCIAL
6 TERM BY TWO OR MORE PERSONS IN THE SAME MARKET OR A RELATED
7 MARKET, SO LONG AS THE INFORMATION WAS NOT TRAINED USING
8 NONPUBLIC COMPETITOR DATA; OR
9 (B) A PRODUCT USED FOR THE PURPOSE OF ESTABLISHING RENT OR
10 INCOME LIMITS IN ACCORDANCE WITH THE AFFORDABLE HOUSING
11 PROGRAM GUIDELINES OF THE STATE, THE FEDERAL GOVERNMENT, A
12 LOCAL GOVERNMENT, OR OTHER POLITICAL SUBDIVISION.
13 (b) "NONPUBLIC COMPETITOR DATA" MEANS NONPUBLIC DATA,
14 INCLUDING INFORMATION ABOUT ACTUAL RENT PRICES, OCCUPANCY
15 RATES, LEASE START AND END DATES, AND SIMILAR DATA, REGARDLESS OF
16 WHETHER THE DATA ARE ATTRIBUTABLE TO A SPECIFIC COMPETITOR OR
17 ANONYMIZED, THAT ARE DERIVED FROM OR OTHERWISE PROVIDED BY A
18 PERSON THAT COMPETES IN THE SAME MARKET, OR IN A RELATED MARKET,
19 AS ANOTHER PERSON.
20 (c) "NONPUBLIC DATA" MEANS INFORMATION THAT IS NOT WIDELY
21 AVAILABLE OR EASILY ACCESSIBLE TO THE PUBLIC, INCLUDING
22 PUBLIC-FACING DATA MADE AVAILABLE UNDER TERMS OF SERVICE THAT
23 PROHIBIT THE USE OF THAT DATA.
24 (d) "RENT" MEANS THE TOTAL AMOUNT OF RENT, INCLUDING
25 CONCESSIONS AND FEES, THAT A RESIDENTIAL TENANT IS REQUIRED TO
26 PAY PURSUANT TO A RENTAL AGREEMENT.
27 SECTION 3. In Colorado Revised Statutes, add 6-4-123 as
28 follows:
29 6-4-123. Pleading standards. A PLAINTIFF PLAUSIBLY PLEADS A
30 VIOLATION OF SECTION 6-4-104 IF THE COMPLAINT CONTAINS FACTUAL
31 ALLEGATIONS DEMONSTRATING THAT THE EXISTENCE OF A CONTRACT,
32 COMBINATION IN THE FORM OF TRUST OR OTHERWISE, OR CONSPIRACY IN
33 RESTRAINT OF TRADE OR COMMERCE IS AMONG THE REALM OF PLAUSIBLE
34 POSSIBILITIES. A PLAINTIFF NEED NOT ALLEGE FACTS TENDING TO
35 EXCLUDE THE POSSIBILITY OF INDEPENDENT ACTION.
36 SECTION 4. Act subject to petition - effective date -
37 applicability. (1) This act takes effect at 12:01 a.m. on the day following
38 the expiration of the ninety-day period after final adjournment of the
39 general assembly; except that, if a referendum petition is filed pursuant
40 to section 1 (3) of article V of the state constitution against this act or an
41 item, section, or part of this act within such period, then the act, item,
42 section, or part will not take effect unless approved by the people at the
43 general election to be held in November 2026 and, in such case, will take
44 effect on the date of the official declaration of the vote thereon by the
45 governor.
46 (2) This act applies to conduct occurring on or after the applicable
47 effective date of this act.".
48
49 Page 1, strike lines 101 through 107 and substitute "CONCERNING
50 PRICING COORDINATION BY LANDLORDS.".
51
52
House Journal, March 25
7 Amendment No. 1, Business Affairs & Labor Report, dated February 20,
8 2025, and placed in member’s bill file; Report also printed in House
9 Journal, February 21, 2025.
10
11 Amendment No. 2, by Representative Mabrey:
12
13 Amend the Business Affairs and Labor Committee Report, dated
14 February 20, 2025, page 2, strike lines 8 through 13 and substitute
15 "PREMISES IS PROHIBITED IF:
16 (I) THE PERSON KNEW OR SHOULD HAVE KNOWN THAT ANOTHER
17 PERSON USED THE ALGORITHMIC DEVICE TO SET OR RECOMMEND THE
18 AMOUNT OF RENT, LEVEL OF OCCUPANCY, OR OTHER COMMERCIAL TERM
19 ASSOCIATED WITH THE OCCUPANCY OF A RESIDENTIAL PREMISES; AND
20 (II) THE CIRCUMSTANCES SUGGEST THAT THE PERSON ADHERED TO
21 OR PARTICIPATED IN A SCHEME TO FIX THE AMOUNT OF RENT, LEVEL OF
22 OCCUPANCY, OR OTHER COMMERCIAL TERM ASSOCIATED WITH THE
23 OCCUPANCY OF A RESIDENTIAL PREMISES.".
24
25 Amendment No. 3, by Representative Woodrow:
26
27 Amend the Business Affairs and Labor Committee Report, dated
28 February 20, 2025, page 1, strike line 27 and substitute "CONSIDERATION
29 OF AN ALGORITHMIC DEVICE IS PROHIBITED IF:
30 (I) THE ALGORITHMIC DEVICE IS SOLD OR DISTRIBUTED WITH THE
31 INTENT THAT IT WILL BE".
32
33 Page 2, line 4, strike "PREMISES IS PROHIBITED." and substitute "PREMISES;
34 AND
35 (II) THE DEVICE SETS OR RECOMMENDS THE AMOUNT OF RENT,
36 LEVEL OF OCCUPANCY, OR OTHER COMMERCIAL TERM ASSOCIATED WITH
37 THE OCCUPANCY OF A RESIDENTIAL PREMISES BASED ON DATA OR
38 ANALYSIS THAT IS SIMILAR FOR EACH LANDLORD.".
39
40 Amendment No. 4, by Representative Mabrey:
41
42 Amend the Business Affairs and Labor Committee Report, dated
43 February 20, 2025, page 2, after line 23 insert:
44
45 "(3) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
46 CONTRARY, A PERSON THAT PROVIDES AN ESTIMATED AMOUNT OF RENT,
47 LEVEL OF OCCUPANCY, OR OTHER COMMERCIAL TERM ASSOCIATED WITH
48 THE OCCUPANCY OF A RESIDENTIAL PREMISES DOES NOT USE AN
49 ALGORITHMIC DEVICE TO SET OR RECOMMEND THE AMOUNT OF RENT,
50 LEVEL OF OCCUPANCY, OR OTHER COMMERCIAL TERM ASSOCIATED WITH
51 THE OCCUPANCY OF A RESIDENTIAL PREMISES AS PROHIBITED BY
52 SUBSECTION (1)(b) OF THIS SECTION SO LONG AS THE PERSON:
53
1 (a) DEVELOPS THE ESTIMATE USING PUBLICLY AVAILABLE DATA;
2 AND
3 (b) MAKES THE ESTIMATE AVAILABLE TO THE PUBLIC AT NO
4 COST.".
5
6 Renumber succeeding subsection accordingly.
7
8 Amendment No. 5, by Representative Woodrow:
9
10 Amend the Business Affairs and Labor Committee Report, dated
11 February 20, 2025, page 2, after line 23 insert:
12
13 "(3) EXCEPT AS DESCRIBED IN SUBSECTION (2) OF THIS SECTION,
14 THIS SECTION SHALL NOT BE CONSTRUED TO LIMIT OR IMPAIR THE
15 APPLICABILITY OF ANY STATE OR FEDERAL ANTITRUST LAW. THE
16 PROHIBITIONS DESCRIBED IN SUBSECTION (1) OF THIS SECTION APPLY IN
17 ADDITION TO, AND NOT IN LIEU OF, ANY PROHIBITIONS DESCRIBED IN
18 APPLICABLE STATE OR FEDERAL ANTITRUST LAWS.".
19
20 Renumber succeeding subsection accordingly.
21
22 Amendment No. 6, by Representative Mabrey:
23
24 Amend the Business Affairs and Labor Committee Report, dated
25 February 20, 2025, page 2, line 39, strike "OR".
26
27 Page 2, strike line 43 and substitute "LOCAL GOVERNMENT, OR OTHER
28 POLITICAL SUBDIVISION; OR
29 (C) A MULTIPLE LISTING SERVICE.
30 (b) "MULTIPLE LISTING SERVICE" MEANS A SERVICE AVAILABLE ON
31 EQUAL TERMS TO SUBSCRIBERS THAT LISTS PROPERTIES FOR RENT OR SALE
32 BUT DOES NOT SET, RECOMMEND, OR PROVIDE NONPUBLIC COMPETITOR
33 DATA ABOUT THE RENT, LEVEL OF OCCUPANCY, OR OTHER COMMERCIAL
34 TERM ASSOCIATED WITH THE OCCUPANCY OF A RESIDENTIAL PREMISES.".
35
36 Reletter succeeding paragraphs accordingly.
37
38 As amended, ordered engrossed and placed on the Calendar for Third
39 Reading and Final Passage.
40
Senate Journal, April 16
After consideration on the merits, the Committee recommends that HB25-1004 be
amended as follows, and as so amended, be referred to the Committee of the Whole with
favorable recommendation.
Amend reengrossed bill, page 3, line 15, strike "ANALYSIS" and substitute "A
FORMULA".
Page 4, line 6, strike "ALGORITHMIC CALCULATIONS." and substitute "SETTING
OR RECOMMENDING THE AMOUNT OF RENT, LEVEL OF OCCUPANCY, OR OTHER
COMMERCIAL TERM ASSOCIATED WITH THE OCCUPANCY OF A RESIDENTIAL
PREMISES FOR RESIDENTIAL PROPERTIES IN COLORADO.".