ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4872

with committee amendments

STATE OF NEW JERSEY

DATED:  OCTOBER 24, 2024

      The Assembly Housing Committee reports favorably and with committee amendments Assembly Bill No. 4872.

      As amended, this bill prohibits the facilitation of agreements among rental property owners who restrict competition with respect to residential dwelling units.  Under the bill, it is unlawful and a violation of the “New Jersey Antitrust Act” for: (1) a rental property owner, or any agent, representative, or subcontractor thereof, to subscribe to, contract with, or otherwise exchange any form of consideration in return for the use of services of a coordinator; (2) the owner of a coordinator to facilitate an agreement among rental property owners that restricts competition with respect to residential dwelling units, including by performing a coordinating function; and (3) two or more rental property owners to engage in consciously parallel pricing coordination.  The bill provides that the provisions of the bill would not apply to the actions of an owner of multiple properties related exclusively to multiple properties controlled by the same rental property owner or to multiple listing services or their members.

      A “coordinator” is defined in the bill to mean any software, data analytics service, or entity that performs a coordinating function for any rental property owner, with certain exceptions.  “Coordinating function” is defined to mean (1) collecting nonpublic information; (2) analyzing or processing nonpublic information through use of a system, software, algorithm, or other automated process; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.  “Nonpublic information” is defined as information including but not limited to prices, supply levels, security deposits, ideal occupancy levels, lease contract termination, renewal dates of residential dwelling units or any other material lease terms from two or more rental property owners that is less than 365 days old and is not available for use or purchase by the public.  “Consciously parallel pricing coordination” is defined to mean a tacit or express agreement between two or more rental property owners to raise, lower, change, maintain, or manipulate pricing for the purchase or sale of reasonably interchangeable products or services unless required to do so in accordance with certain governmental rental price restriction programs.

      The bill further stipulates that current enforcement provisions of the New Jersey Antitrust Act will apply to violations committed pursuant to this bill.

      Lastly, the Department of Law and Public Safety, in conjunction with the Department of Community Affairs, is required to develop and undertake a public education program designed to inform the citizens of this State of the provisions of the bill.  A component of this program is to include information posted on the website of each department dedicated to the provisions of the bill and the steps a consumer is to take if the consumer suspects a violation.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

· clarify the definition of “consciously parallel pricing coordination;”

· provide an exemption for owners of multiple properties for actions related exclusively to multiple properties controlled by the same rental property owner;

· specify that a “coordinating function” pertains to nonpublic data;

· define “nonpublic data;”

· revise the definition of a “coordinator” to mean a software, data analytics services, or entity that performs a coordinating function and not the previous definition of a person who operates a software or data analytics service performing a coordinating function;

· specify that the definition of a “coordinator” does not include certain software, data analytics services, and entities;

· clarify that certain government entities that set or limit rents or sale prices are not included in the definition of a “coordinator;”

· specify that the owner of a coordinator which facilitates an agreement among rental property owners that restricts competition, including by performing a coordinating function, has violated section 3 of the bill;

· omit the provision in the bill, as introduced, that described a civil action that may be filed pursuant to the bill;

· provide an exemption for multiple listing services and their members; and

· make other related and technical changes.