Arizona HB 2490: liquor licenses; municipalities; disapproval

Status: house second reading (as of 2017-02-09)

State: Arizona · Session: 53rd-1st-regular · Bill: HB 2490

Subjects: ALCOHOLIC BEVERAGES, BOARDS, COMMISSIONS AND COMMITTEES -- CURRENT, DEPARTMENT OF LIQUOR LICENSES AND CONTROL, LIQUOR LICENSES, MUNICIPALITIES

Sponsors: Athena Salman

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_STATUTE44-1383. 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_STATUTE44-1383.01. 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 alg

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