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HB2490 • 2026

rental price fixing; algorithmic pricing

HB2490 - rental price fixing; algorithmic pricing

Housing
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Oscar De Los Santos
Last action
2026-01-21
Official status
House second read
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Rules for Rental Price Setting

This bill makes it illegal for landlords and companies that help set rental prices to use certain computer programs with secret information about other landlords' pricing when setting rent prices, renewal terms, occupancy levels, and other conditions of renting a home.

What This Bill Does

  • Makes it against the law for landlords or companies helping them to use special computer programs (algorithmic devices) with private data from competitors to set rental prices, renewal terms, occupancy levels, and other conditions of renting a home.
  • Creates a rule that if these illegal actions happen, there's an assumption that they're breaking trade laws unless proven otherwise by strong evidence.
  • Gives the state attorney general the power to investigate and take action against anyone who breaks this law.

Who It Names or Affects

  • Landlords with five or more rental units (like apartments or houses) at any one time.
  • Companies that sell, license, or operate computer programs used by landlords to set rental prices.

Terms To Know

Algorithmic device
A special computer program that uses secret information about other landlords' pricing to advise on how much rent to charge.
Coordinating function
The ability of a program to collect and analyze data from multiple sources, like rental prices and supply levels, to suggest actions for landlords.

Limits and Unknowns

  • This law does not apply to government-sponsored housing programs or public housing.
  • Landlords with four or fewer units are exempt from this rule.
  • The bill doesn't specify when it will take effect.

Bill History

  1. 2026-01-21 House

    House second read

  2. 2026-01-20 House

    House Rules: None

  3. 2026-01-20 House

    House Commerce: None

  4. 2026-01-20 House

    House first read

Official Summary Text

HB2490 - rental price fixing; algorithmic pricing

Current Bill Text

Read the full stored bill text
HB2490 - 572R - I Ver

REFERENCE TITLE:
rental price fixing; algorithmic pricing

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2490

Introduced by

Representative
De Los Santos

AN
ACT

amending title 44, chapter 9, arizona
revised statutes, by adding article 27; relating to trade practices.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, chapter 9, Arizona Revised
Statutes, is amended by adding article 27, to read:

ARTICLE 27. PRICE REGULATIONS

START_STATUTE
44-1383.

Definitions

In this article, unless the context otherwise
requires:

1. "Algorithm" means a
computational process that uses a set of rules to define a sequence of
operations.

2. "Algorithmic device":

(
a
) Means a
computational process, machine program or software that uses one or more
algorithms, including a computational process derived from machine learning or
other artificial intelligence techniques, that processes or calculates
nonpublic competitor data to advise a landlord on how much rent to charge.�

(
b
) Does not
include a report published periodically by a trade association that receives
renter data in an aggregated and anonymous manner.� For the purposes of this
subdivision, periodic report does not include reports published that are published
more than one time per month.�

3. "Coordinating function"
means the ability to:

(
a
) Collect the
following information from two or more persons:

(
i
) Historical
prices.

(
ii
)
Contemporary prices.

(
iii
) Supply
levels.

(
iv
) Contract
termination.

(
v
) Renewal
dates from two or more persons.

(
b
) Analyze or
process information provided in subdivision of this paragraph by using a
system, software or process that computes information or uses information to
train an algorithm.

(
c
) Recommend
any of the following:

(
i
) Prices.

(
ii
) Supply.

(
iii
) Output.

(
iv
) Contract
renewal terms.

(
v
) Other
contractual or commercial terms.

4. "Coordinator" means a
person that sells, licenses the use of or operates and sells the output that is
generated from an algorithmic device that performs a coordinating function for
a residential rental property landlord.

5. "Dwelling unit" has the
same meaning prescribed in section 33-1310.

6. "Landlord" has the same
meaning prescribed in section 33-1310 or 33-1409.

7. "Nonpublic competitor
data":

(
a
) Means
Information that is Not widely available or easily accessible to the public.

(
b
) Includes
any of the following:

(
i
) Actual
rental prices.

(
ii
) Original
rental price offers.

(
iii
) Rebates
and discounts offered and accepted.

(
iv
) Additional
charges for amenities or any other fees that may be assessed.

(
v
) rental
availability.

(
vi
) Occupancy
rates.

(
vii
) Lease
start and end dates.

(
viii
) Any
other similar data regardless of whether the information is related to a
specific competitor or anonymized.

(
ix
) Information
that is provided by another person that competes in the same market or related
market.

8. "Rent" means payments
made to a landlord or the landlord's designed agent in full consideration for
the rented premises.

9. "Rental agreement" means
any oral or written agreement between a landlord and a tenant for the use and
occupancy of residential rental property.

10. "Residential rental
property":

(
a
) has the
same meaning prescribed in section 33-1901.

(
b
) Includes
any of the following:

(
i
) Dwelling
units.

(
ii
) Mobile
home spaces.

(
iii
) Recreational
vehicle spaces.

11. "Tenant" means the
person entering into a rental agreement with a landlord.
END_STATUTE

START_STATUTE
44-1383.01.

Algorithmic device use prohibited; attorney general; enforcement;
applicability

A. A coordinator or a landlord of
residential rental property may not use an algorithmic device that uses
nonpublic competitor data to perform a coordinating function of residential
rental property to:

1. Facilitate an agreement between
two or more landlords to not compete for residential agreements.�

2. Set or adjust any of the
following:

(
a
) Rental
prices.

(
b
) Renewal
terms.

(
c
) Occupancy
levels.

(
d
) Any other
term or condition that affects residential rental property.

B. The use of an algorithmic device
in violation of this section creates a rebuttable presumption of a contract or
conspiracy to restrain trade or commerce:

1. As against a coordinator when:

(
a
) The
coordinator knew or had reason to know that one or more of the coordinator's
customers competed as landlords in the same or related market and intended that
the algorithmic device or the algorithmic device's output be used in that
market.

(
b
) Two or more
of the coordinator's customers actually competed as landlords in the same or
related market and used the algorithmic device or the algorithmic device's
output.

2. As against a landlord, when two or
more landlords used the same algorithmic device or the algorithmic device's
output within the same or related market.

C. a presumption pursuant to
subsection B of this section is rebuttable by clear and convincing evidence on
a showing that the coordinator or landlord lacked knowledge and could not have
reasonably known that the algorithmic device used nonpublic competitor data.

D. An act or practice in violation of
this article is an unlawful practice under section 44-1522.� The attorney
general may investigate and take appropriate action as prescribed by chapter
10, article 7 of this title.

E. The provisions of this article are
cumulative and in addition to all other rights, remedies and penalties that may
exist at law or in equity.

F. This section applies to:

1. A landlord that has any
combination of five or more dwelling units, mobile home spaces or recreational
vehicle spaces that are rented or offered for rent at any one time.

2. a Coordinator that either sells or
licenses the use of or operates and sells the output from an algorithmic device
to any landlord.�

G. This article does not apply to:

1. The use of an algorithmic device
that is exclusively used in a federal, state or local government sponsored
housing program.

2. Public housing pursuant to title
36, chapter 12.

3. A landlord with not more than four
of any of the following:

(
a
) Dwelling
units.

(
b
) Mobile home
spaces.

(
c
) Recreational
vehicle spaces.

4. A dormitory or other residential
property that is owned by a public or private educational or training
institution.

5. Occupancy by a member of a
fraternal or social organization.

6. Transient occupancy in a hotel,
motel or recreational lodging.
END_STATUTE