A Bill for an Act
Page 1, Line 101Concerning pricing coordination by landlords, and, in
Page 1, Line 102connection therewith, prohibiting landlords from
Page 1, Line 103using coordinators, prohibiting coordinators from
Page 1, Line 104facilitating agreements that reduce competition
Page 1, Line 105between landlords, and prohibiting two or more
Page 1, Line 106landlords from engaging in consciously parallel
Page 1, Line 107pricing coordination.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill prohibits:
- A landlord or an agent, a representative, or a subcontractor of a landlord from subscribing to, contracting with, or otherwise exchanging any form of consideration in return for the services of a coordinator;
- A coordinator from facilitating an agreement among landlords that restricts competition with respect to dwelling units, which includes performing a coordinating function; or
- 2 or more landlords from engaging in consciously parallel pricing coordination.
A violation is deemed to be an illegal restraint of trade or commerce and is punishable in accordance with the "Colorado State Antitrust Act of 2023".
The division of housing within the department of local affairs is required to develop and undertake a public education program designed to inform Colorado residents of the provisions of the bill.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly
Page 2, Line 3finds that:
Page 2, Line 4(a) Under existing law, specifically section 6-4-104, Colorado
Page 2, Line 5Revised Statutes, it is illegal to enter into or engage in any of the
Page 2, Line 6following in restraint of trade or commerce:
Page 2, Line 7(I) A contract;
Page 2, Line 8(II) A combination in the form of a trust or other form of
Page 2, Line 9combination; or
Page 2, Line 10(III) A conspiracy.
Page 2, Line 11(2) The general assembly also finds that:
Page 2, Line 12(a) When a landlord or an agent, a representative, or a
Page 2, Line 13subcontractor of a landlord subscribes to, contracts with, or otherwise
Page 2, Line 14exchanges any form of consideration in return for the services of a
Page 2, Line 15coordinator, such action has the effect of restraining trade or commerce;
Page 3, Line 1(b) When a coordinator facilitates an agreement among landlords
Page 3, Line 2that restricts competition with respect to dwelling units, including by
Page 3, Line 3performing a coordinating function, such action has the effect of
Page 3, Line 4restraining trade or commerce; and
Page 3, Line 5(c) When 2 or more landlords engage in consciously parallel
Page 3, Line 6pricing coordination, such action has the effect of restraining trade or
Page 3, Line 7commerce.
Page 3, Line 8(3) Therefore, the general assembly declares that the provisions
Page 3, Line 9of this act deeming certain actions to be illegal restraints of trade or
Page 3, Line 10commerce in violation of section 6-4-104, Colorado Revised Statutes, are
Page 3, Line 11a clarification of existing law.
Page 3, Line 12SECTION 2. In Colorado Revised Statutes, add 38-12-703 as
Page 3, Line 13follows:
Page 3, Line 1438-12-703. Consciously parallel pricing coordination by
Page 3, Line 15landlords prohibited - use of coordinators prohibited - illegal
Page 3, Line 16restraint of trade or commerce - public education program -
Page 3, Line 17definitions - repeal. (1) As used in this section, unless the context
Page 3, Line 18otherwise requires:
Page 3, Line 19(a) "Consciously parallel pricing coordination" means a
Page 3, Line 20tacit agreement between two or more landlords to raise, lower,
Page 3, Line 21change, maintain, or manipulate the price of rent to be paid by
Page 3, Line 22tenants.
Page 3, Line 23(b) "Coordinating function" means:
Page 3, Line 24(I) Collecting historical or contemporaneous prices,
Page 3, Line 25supply levels, or lease or rental contract termination and
Page 3, Line 26renewal dates of dwelling units from two or more landlords;
Page 3, Line 27(II) Analyzing or processing the information described in
Page 4, Line 1subsection (1)(b)(I) of this section through the use of a system,
Page 4, Line 2software, or process that uses computation, including by
Page 4, Line 3computation of the information to train an algorithm; and
Page 4, Line 4(III) Recommending rent prices, lease renewal terms, or
Page 4, Line 5ideal occupancy levels to a landlord.
Page 4, Line 6(c) "Coordinator" means an individual who operates a
Page 4, Line 7software or data analytics service that performs a
Page 4, Line 8coordinating function for one or more landlords, including a
Page 4, Line 9landlord that is performing a coordinating function for the
Page 4, Line 10landlord's own benefit.
Page 4, Line 11(d) "Dwelling unit" has the meaning set forth in section
Page 4, Line 1238-12-502 (3); except that "dwelling unit" does not include an
Page 4, Line 13inpatient medical care facility, a licensed long-term care
Page 4, Line 14facility, or a detention or correctional facility.
Page 4, Line 15(e) "Landlord" has the meaning set forth in section
Page 4, Line 1638-12-502 (5).
Page 4, Line 17(f) "Rental agreement" has the meaning set forth in
Page 4, Line 18section 38-12-502 (7).
Page 4, Line 19(g) "Tenant" has the meaning set forth in section 38-12-502
Page 4, Line 20(9).
Page 4, Line 21(2) It is unlawful for:
Page 4, Line 22(a) A landlord or an agent, a representative, or a
Page 4, Line 23subcontractor of a landlord to subscribe to, contract with, or
Page 4, Line 24otherwise exchange any form of consideration in return for the
Page 4, Line 25services of a coordinator;
Page 4, Line 26(b) A coordinator to facilitate an agreement among
Page 4, Line 27landlords that restricts competition with respect to dwelling
Page 5, Line 1units, including by performing a coordinating function; or
Page 5, Line 2(c) Two or more landlords to engage in consciously
Page 5, Line 3parallel pricing coordination.
Page 5, Line 4(3) A violation of subsection (2) of this section is deemed
Page 5, Line 5to be an illegal restraint of trade or commerce in violation of
Page 5, Line 6section 6-4-104 and is punishable in accordance with the
Page 5, Line 7"Colorado State Antitrust Act of 2023", article 4 of title 6.
Page 5, Line 8(4) (a) A tenant plausibly pleads a violation of the
Page 5, Line 9"Colorado State Antitrust Act of 2023", article 4 of title 6, if
Page 5, Line 10the complaint contains factual allegations demonstrating that
Page 5, Line 11the existence of a contract, combination in the form of trust or
Page 5, Line 12otherwise, or conspiracy in restraint of trade or commerce is
Page 5, Line 13among the realm of plausible possibilities.
Page 5, Line 14(b) A tenant need not allege facts tending to exclude the
Page 5, Line 15possibility of independent action.
Page 5, Line 16(5) (a) The division of housing within the department of
Page 5, Line 17local affairs shall develop and undertake a public education
Page 5, Line 18program designed to inform Colorado residents of the
Page 5, Line 19provisions of this section.
Page 5, Line 20(b) This subsection (5) is repealed, effective July 1, 2027.
Page 5, Line 21SECTION 3. Act subject to petition - effective date -
Page 5, Line 22applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 5, Line 23the expiration of the ninety-day period after final adjournment of the
Page 5, Line 24general assembly; except that, if a referendum petition is filed pursuant
Page 5, Line 25to section 1 (3) of article V of the state constitution against this act or an
Page 5, Line 26item, section, or part of this act within such period, then the act, item,
Page 5, Line 27section, or part will not take effect unless approved by the people at the
Page 6, Line 1general election to be held in November 2026 and, in such case, will take
Page 6, Line 2effect on the date of the official declaration of the vote thereon by the
Page 6, Line 3governor.
Page 6, Line 4(2) This act applies to conduct occurring on or after the applicable
Page 6, Line 5effective date of this act.