SB1996 104TH GENERAL ASSEMBLY

LRB104 09435 SPS 19495 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1996

Introduced 2/6/2025, by Sen. Graciela Guzmán

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2HHHH new

Creates the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act. Provides that a real estate lessor, or any agent or subcontractor of a real estate lessor, shall not subscribe to, contract with, or otherwise exchange anything of value in return for the services of a real estate service provider. Provides that a real estate service provider shall not facilitate an agreement to not compete between real estate lessors with respect to residential dwelling units. Provides that a violation of the provisions of the Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Provides for a private right of action. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act.

Section 5. Definitions. In this Act:

"Coordinate" and "coordinating" mean, with respect to a real estate service provider:

(1) collecting of historical or contemporaneous prices, price changes, supply levels, occupancy rates, or lease or rental contract termination and renewal dates of residential dwelling units from 2 or more real estate lessors or from public databases;

(2) analyzing or processing of the information described in paragraph (1) using a system, software, or process that uses computation; and

(3) recommending rental prices, lease terms, or occupancy levels to a real estate lessor.

"Person" means any natural person, corporation, partnership, limited liability company, firm, or association.

"Pre-dispute arbitration agreement" means an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.

"Pre-dispute joint action waiver" means an agreement, whether part of a pre-dispute arbitration agreement, that would prohibit or waive the right of one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum concerning a dispute that has not yet arisen at the time of the making of the agreement.

"Real estate service provider" means any person who performs a coordination function for any real estate lessor.

"Residential dwelling unit" means any house, apartment, accessory dwelling unit, or other unit intended to be used as a person's primary resident. "Residential dwelling unit" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.

"Real estate lessor" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unit.

Section 10. Unlawful conduct.

(a) A real estate lessor, or any agent or subcontractor of a real estate lessor, shall not subscribe to, contract with, or otherwise exchange anything of value in return for the services of a real estate service provider.

(b) A real estate service provider shall not facilitate an agreement to not compete between real estate lessors with respect to residential dwelling units.

Section 15. Enforcement and damages. A violation of any provision of this Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by that Act shall be available to him or her for the enforcement of this Act.

Section 20. Private right of action.

(a) The Attorney General or a State's Attorney may bring a civil action on behalf of any person in a court of competent jurisdiction to secure relief as provided in this Section for injury sustained by that person to the person's property that results from a violation of this Act.

(b) Any person who is injured as a result of a violation of this Act may bring a civil action in a court having jurisdiction in the county where the defendant resides or is found, or any agent of the defendant resides or is found, without respect to the amount in controversy.

(c) A court may order compensatory, injunctive, and declaratory relief, including treble damages, interest on damages, attorney's costs and fees, and any further relief the court deems appropriate.

(d) At the election of the person alleging conduct constituting a violation of this Act or the named representative of a class in a collective action alleging a violation of this Act, no pre-dispute arbitration agreement or pre-dispute joint-action waiver shall be valid or enforceable with respect to a case that is filed under federal, tribal, State, or Local law and that relates to a violation of this Act.

Section 25. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 90. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2HHHH as follows:

(815 ILCS 505/2HHHH new)

Sec. 2HHHH. Violations of the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act. A person who violates the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act commits an unlawful practice within the meaning of this Act.