SB 157: Attorney General; Antitrust; Rental Housing; Price-fixing; Public Education Program; Penalties
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-02-28
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Prohibits the use of algorithmic price-setting in Hawaii's rental market. Requires the Department of the Attorney General to develop and undertake a public education program regarding the prohibition. Establishes fines and penalties. Effective 7/1/2050. (SD2)
Prohibits the use of algorithmic price-setting in Hawaii's rental market. Requires the Department of the Attorney General to develop and undertake a public education program regarding the prohibition. Establishes fines and penalties. Effective 7/1/2050. (SD1)
Prohibits the use of algorithmic price-setting in Hawaii's rental market. Requires the Department of the Attorney General to develop and undertake a public education program regarding the prohibition.
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THE SENATE |
S.B. NO. |
157 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ANTITRUST.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds and declares that Hawaii is in the midst of an affordable housing crisis, with the highest median rent in the nation. Data shows that more than half of renters in Hawaii are housing cost burdened, which means an individual spends more than thirty per cent of the individual's income on rent.
The legislature further finds that recent national data indicates that landlords of residential rental housing use property management software to collude and raise residential rental housing prices, which may have contributed to recent increases in the State. Landlords engaging with the property management software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices. As a result, competition decreases and rental prices typically increase.
The legislature acknowledges that a leading property management software company in the United States hinted at the outcome of using its software by stating on its website that the software enables landlords to "outperform the market" by two to five per cent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 per cent.
Therefore, the purpose of this Act is to prevent artificially inflated rental prices by prohibiting the use of algorithmic price-setting in Hawaii's rental market.
SECTION 2. Chapter 480, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§480- Rent price-fixing; declared unlawful; civil actions; public education program. (a) It shall be unlawful and a violation of this chapter for:
(1) A coordinator to perform a coordinating function;
(2) A coordinator to facilitate an agreement among rental property owners that restricts competition with respect to the pricing, lease terms, or ideal occupancy levels for residential dwelling units; or
(3) Two or more rental property owners to engage in consciously parallel pricing coordination.
(b) In a civil action filed pursuant to this section, a complaint:
(1) Plausibly pleads a violation of section 480-4(a) if the complaint contains factual allegations demonstrating that the existence of a contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and
(2) Need not allege facts tending to exclude the possibility of independent action.
(c) The department of the attorney general shall develop and implement a public education program to inform the citizens of the State about this section. A component of the public education program shall include information posted on the website of the department of the attorney general and the steps a consumer may take if the consumer suspects a violation of this section.
(d) The department of the attorney general shall adopt rules pursuant to chapter 91 for the purposes of this section.
(e) For the purposes of this section:
"Consciously parallel pricing coordination" means a tacit 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.
"Coordinating function" means:
(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 information described in paragraph (1) through use of a system, software, or 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.
"Coordinator" means 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.
"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities."
SECTION 3. Section 480-16, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any person who violates section 480-4, 480-6,
480-9, [or] 480-17, or 480- , including any
principal, manager, director, officer, agent, servant, or employee, who had
engaged in or has participated in the determination to engage in an activity
that has been engaged in by any association, firm, partnership, trust,
or corporation, which activity is a violation of section 480-4, 480-6, 480-9, [or]
480-17, [is punishable if] or 480- , shall be
punished as follows in the discretion of the court:
(1) If the person
is a natural person, by a fine not exceeding $100,000 or [by]
imprisonment not exceeding three years, or [by] both [such fine and
imprisonment, in the discretion of the court; if]; or
(2) If the
person is not a natural person [then], by a fine not exceeding
$1,000,000."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
Attorney General; Antitrust; Rental Housing; Price-fixing; Public Education Program; Penalties
Description:
Prohibits the use of algorithmic price-setting in Hawaii's rental market. Requires the Department of the Attorney General to develop and undertake a public education program regarding the prohibition. Establishes fines and penalties. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
157 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ANTITRUST.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds and declares that Hawaii is in the midst of an affordable housing crisis, with the highest median rent in the nation. Data shows that more than half of renters in Hawaii are housing cost burdened, which means an individual spends more than thirty per cent of the individual's income on rent.
The legislature further finds that recent national data indicates that landlords of residential rental housing use property management software to collude and raise residential rental housing prices, which may have contributed to recent increases in the State. Landlords engaging with the property management software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices. As a result, competition decreases and rental prices typically increase.
The legislature acknowledges that a leading property management software company in the United States hinted at the outcome of using its software by stating on its website that the software enables landlords to "outperform the market" by two to five per cent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 per cent.
Therefore, the purpose of this Act is to prevent artificially inflated rental prices by prohibiting the use of algorithmic price-setting in Hawaii's rental market.
SECTION 2. Chapter 480, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§480- Rent price-fixing; declared unlawful; civil actions; public education program. (a) It shall be unlawful and a violation of this chapter 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) 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; or
(3) Two or more rental property owners to engage in consciously parallel pricing coordination.
(b) In a civil action filed pursuant to this section, a complaint:
(1) Plausibly pleads a violation of section 480-4(a) if the complaint contains factual allegations demonstrating that the existence of a contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and
(2) Need not allege facts tending to exclude the possibility of independent action.
(c) The department of the attorney general shall develop and implement a public education program to inform the citizens of the State about this section. A component of the public education program shall include information posted on the website of the department of the attorney general and the steps a consumer may take if the consumer suspects a violation of this section.
(d) The department of the attorney general shall adopt rules pursuant to chapter 91 for the purposes of this section.
(e) For the purposes of this section:
"Consciously parallel pricing coordination" means a tacit 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.
"Coordinating function" means:
(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 information described in paragraph (1) through use of a system, software, or 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.
"Coordinator" means 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.
"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities."
SECTION 3. Section 480-16, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any person who violates section 480-4, 480-6,
480-9, [or] 480-17, or 480- , including any
principal, manager, director, officer, agent, servant, or employee, who had
engaged in or has participated in the determination to engage in an activity
that has been engaged in by any association, firm, partnership, trust,
or corporation, which activity is a violation of section 480-4, 480-6, 480-9, [or]
480-17, [is punishable if] or 480- , shall be
punished as follows in the discretion of the court:
(1) If the person
is a natural person, by a fine not exceeding $100,000 or [by]
imprisonment not exceeding three years, or [by] both [such fine and
imprisonment, in the discretion of the court; if]; or
(2) If the
person is not a natural person [then], by a fine not exceeding
$1,000,000."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
Attorney General; Antitrust; Rental Housing; Price-fixing; Public Education Program; Penalties
Description:
Prohibits the use of algorithmic price-setting in Hawaii's rental market. Requires the Department of the Attorney General to develop and undertake a public education program regarding the prohibition. Establishes fines and penalties. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
157 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO ANTITRUST.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds and declares that Hawaii is in the midst of an affordable housing crisis, with the highest median rent in the nation. Data shows that more than half of renters in Hawaii are housing cost burdened, which means an individual spends more than thirty per cent of income on rent.
The legislature further finds that recent national data indicates that landlords of residential rental housing use property management software to collude and raise residential rental housing prices, which may have contributed to recent increases in the State. Landlords engaging with the property management software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices. As a result, competition decreases and rental prices typically increase.
The legislature acknowledges that a leading property management software company in the United States hinted at the outcome of using its software by stating on its website that it enables landlords to "outperform the market" by two to five per cent, with a company executive publicly stating that the software could be responsible for rent increases of up to 14.5 per cent.
Therefore, the purpose of this Act is to prevent artificially inflated rental prices by prohibiting the use of algorithmic price-setting in Hawaii's rental market.
SECTION 2. Chapter 480, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§480- Rent price-fixing; declared unlawful; civil actions; public education program. (a) It shall be unlawful and a violation of this chapter 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) 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; or
(3) Two or more rental property owners to engage in consciously parallel pricing coordination.
(b) In a civil action filed pursuant to this section, a complaint:
(1) Plausibly pleads a violation of section 480-4(a), if the complaint contains factual allegations demonstrating that the existence of a contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and
(2) Need not allege facts tending to exclude the possibility of independent action.
(c) The department of the attorney general shall develop and undertake a public education program to inform the citizens of the State about this section. A component of the public education program shall include information posted on the website of the department of the attorney general and the steps a consumer may take if the consumer suspects a violation of this section.
(d) The department of the attorney general shall adopt rules pursuant to chapter 91 for the purposes of this section.
(e) For the purposes of this section:
"Consciously parallel pricing coordination" means a tacit 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.
"Coordinating function" means:
(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 information described in paragraph (1) through use of a system, software, or 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.
"Coordinator" means 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.
"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence in the State. "Residential dwelling unit" shall not include inpatient medical care, licensed long-term care, or detention or correctional facilities."
SECTION 3. Section 480-16, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any person who violates section 480-4, 480-6,
480-9, [or] 480-17, or 480- , including any
principal, manager, director, officer, agent, servant, or employee, who had
engaged in or has participated in the determination to engage in an activity
that has been engaged in by any association, firm, partnership, trust,
or corporation, which activity is a violation of section 480-4, 480-6, 480-9, [or]
480-17, [is punishable if] or 480- , shall be
punished as follows in the discretion of the court:
(1) If the person
is a natural person, by a fine not exceeding $100,000 or [by]
imprisonment not exceeding three years, or [by] both [such fine and
imprisonment, in the discretion of the court; if]; or
(2) If the
person is not a natural person [then], by a fine not exceeding
$1,000,000."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Attorney General; Antitrust; Rental Housing; Price-fixing; Public Education Program
Description:
Prohibits the use of algorithmic price-setting in Hawaii's rental market. Requires the Department of the Attorney General to develop and undertake a public education program regarding the prohibition.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 6, 2025 | Referred to CPC, JHA, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 104) in amended form (SD 2). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 28, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 28, 2025 | Reported from JDC/WAM (Stand. Com. Rep. No. 986) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 26, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 21, 2025 | The committee(s) on JDC/WAM will hold a public decision making on 02-26-25 10:05AM; Conference Room 211 & Videoconference. |
| Feb 10, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC/WAM. |
| Feb 10, 2025 | Reported from CPN (Stand. Com. Rep. No. 167) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC/WAM. |
| Jan 28, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Jan 23, 2025 | The committee(s) on CPN has scheduled a public hearing on 01-28-25 9:30AM; Conference Room 229 & Videoconference. |
| Jan 17, 2025 | Referred to CPN, JDC/WAM. |
| Jan 15, 2025 | Introduced and passed First Reading. |
| Jan 13, 2025 | Pending Introduction. |
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Date
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Description
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Location
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Votes
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| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 26, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Judiciary |
Passed |
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| Jan 28, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| American Economic Liberties Project | ** Support | |
| Department of the Attorney General | ** Against | |
| Hawaiʻi Civil Rights Commission | ** Support | |
| Maui Housing Hui | ** Support |
STAND. COM. REP. NO. 986
Honolulu, Hawaii
RE: S.B. No. 157
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 157, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO ANTITRUST,"
beg leave to report as follows:
The purpose and intent of this measure is to prevent artificially inflated rental prices by prohibiting the use of algorithmic price-setting in Hawaii's rental market.
Your Committees received testimony in support of this measure from the Hawaiʻi Civil Rights Commission.
Your Committees received testimony in opposition to this measure from the Department of the Attorney General.
Your Committees received comments on this measure from the Hawaiʻi Association of REALTORS, TechNet, and Maui Chamber of Commerce.
Your Committees find that the State is in the midst of an affordable housing crisis, with the highest median rent in the nation. Your Committees also find that landlords of residential housing use property management software to raise rental housing prices, which may have contributed to recent increases in the State. Landlords engaging with the property management software supply real-time prices and additional lease information to companies managing the software, who proceed to use algorithms to fix rental prices. As a result, competition decreases and rental prices typically increase. This measure will help to address the cost of housing in the State by deterring monopolies or near-monopolies and promoting fair competition in the State's housing market.
Your Committees have amended this measure by:
(1) Deleting language that would have prohibited 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) Prohibiting a coordinator from performing coordinating functions; and
(3) Clarifying that a coordinator is prohibited from facilitating an agreement among rental property owners that restricts competition with respect to the pricing, lease terms, or ideal occupancy levels for residential dwelling units.
As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 157, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 157, S.D. 2.
Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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________________________________ KARL RHOADS, Chair |
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STAND. COM. REP. NO. 167
Honolulu, Hawaii
RE: S.B. No. 157
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 157 entitled:
"A BILL FOR AN ACT RELATING TO ANTITRUST,"
begs leave to report as follows:
The purpose and intent of this measure is to prevent artificially inflated rental prices by prohibiting the use of algorithmic price-setting in Hawaii's rental housing market.
Your Committee received testimony in support of this measure from the American Economic Liberties Project, Maui Housing Hui, and one individual.
Your Committee received comments on this measure from the Hawaiʻi Association of REALTORS and Maui Chamber of Commerce.
Your Committee finds that landlords and property managers in local rental housing markets are sharing private data regarding their rental properties, including current rent prices, available square footage, vacancy levels, and the number of applicants for a particular unit. Your Committee also finds that third-party price setters use that data to recommend rent and occupancy levels and advise landlords to hold some units off the market to raise the price of a unit, creating artificial scarcity and displacing renters in the State. Because Hawaii already has the highest median rent in the nation, this measure will help ensure units are filled via competitive pricing, rather than through cooperation to set prices.
Your Committee has amended this measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 157, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 157, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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Discussed in Hearing
1MIN
Senate Standing Committee on Commerce and Consumer Protection
Bill Author
Bill Co-Author(s):