HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 215

57th legislature - STATE OF NEW MEXICO - first session, 2025

 

 

 

 

 

 

 

AN ACT

RELATING TO PROPERTY; ENACTING A NEW SECTION OF THE UNIFORM OWNER-RESIDENT RELATIONS ACT; PROHIBITING THE USE OF ARTIFICIAL INTELLIGENCE TO MANIPULATE RENT PRICING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Uniform Owner-Resident Relations Act is enacted to read:

     "[NEW MATERIAL] ARTIFICIAL INTELLIGENCE MANIPULATION OF RENT PRICING.--

          A. As used in this section:

                (1) "consciously parallel pricing coordination" means a tacit agreement between two or more owners of separate properties to raise, lower, change, maintain or manipulate pricing of rent for the separate properties;

                (2) "coordinating function" means:

                     (a) collecting historical or contemporaneous prices, supply levels or lease or rental contract termination and renewal dates of dwelling units from two or more rental property owners;

                     (b) analyzing or processing of the information described in Subparagraph (a) of this paragraph through use of a system, software or process that uses computation, including by using the information to train an algorithm; and

                     (c) recommending rent prices, lease renewal terms or occupancy levels to an owner; and

                (3) "coordinator" means a person who operates a software or data analytics service that performs a coordinating function for an owner, including a rental property owner performing a coordinating function for the rental property owner's own benefit. "Coordinator" does not include:

                     (a) a government entity that sets or limits rent or sale prices in accordance with a rental price restriction program; or

                     (b) a software or data analytics service or entity that: 1) generates or uses any report that provides rental data in an aggregated manner and does not recommend rent prices, fees, occupancy rates or other rental contract terms for future leases; or 2) provides or uses rental data for the purpose of conducting research, statistics, testing or training for software development.

          B. It is unlawful for:

                (1) an owner or an agent of an owner to subscribe to, contract with or otherwise exchange a form of consideration in return for the use of services of a coordinator;

                (2) a coordinator to facilitate an agreement among owners of separate properties that restricts competition with respect to residential dwelling units, including by performing a coordinating function; or

                (3) two or more rental property owners to engage in consciously parallel pricing coordination."

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