SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 451

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 5, 2026

      The Senate Community and Urban Affairs Committee reports favorably and with committee amendments Senate Bill No. 451.

      As amended and reported, this bill makes it unlawful to use algorithmic systems to influence the price and supply of residential rental units.  Under the bill, it is unlawful and a violation of the “New Jersey Antitrust Act” for 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 and for 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.

      A “coordinator” is defined in the bill to mean any person who operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit, excluding a government entity that sets or limits rents or sale prices through affordability controls, as defined in the bill.  “Coordinating function” is defined to mean: (1) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (2) analyzing or processing of the subject information through use of a system, software, algorithm, or other automated process that uses computation, including by using the information to train an algorithm; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) update the legislative findings and declarations to include language concerning restraint of trade and related litigation for alleged violations of State and federal antitrust law;

      (2) define the term “affordability controls” to mean a restriction on rent or sale price established pursuant to a government program;

      (3) specify that a coordinating function includes use of a system, software, algorithm, or other automated process that uses computation; and

      (4) provide an exemption from the definition of a “coordinator” for a government entity that sets or limits rents or sale prices of residential property through affordability controls in accordance with law.