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AB-3235 Short-term lodging rates.(2019-2020)

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Date Published: 05/18/2020 09:00 PM
AB3235:v97#DOCUMENT

Amended  IN  Assembly  May 18, 2020
Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3235

Introduced by Assembly Member Chu

February 21, 2020

An act to add Section 17568.6 to the Business and Professions Code, relating to advertising.


LEGISLATIVE COUNSEL'S DIGEST


AB 3235, as amended, Chu. Short-term lodging rates.
Existing law regulates advertising, including motel and motor court rate signs. Existing law specifies that a person who violates those provisions is guilty of a misdemeanor. Existing law, upon the proclamation of a state of emergency or the declaration of a local emergency and for a period of 30 days after, prohibits the owner or operator of a hotel or motel from increasing its regular advertised rates by more than 10%, as specified. Existing law makes violation of this prohibition a misdemeanor. In addition, a violation of the provisions contained in the Penal Code is an unfair business practice and an act of unfair competition.
This bill would would, beginning on July 1, 2024, prohibit a place of short-term lodging, as defined, or an internet or mobile website, application, or other similar centralized online platform, as specified, from advertising a room rate rate, if specific travel dates are selected, that does not include all required fees, fees for the booking, lodging, or any other fee required to stay at the place of short-term lodging, as specified. The bill would make an entity that knowingly violates this provision subject to a civil penalty not exceeding $10,000 and would specify that an action to enforce this provision may be brought by a city attorney, district attorney, or the Attorney General. Because the bill would create a new crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17568.6 is added to the Business and Professions Code, immediately following Section 17568.5, to read:

17568.6.
 (a) (1) A place of short-term lodging shall not advertise a room rate, as defined in Section 17561, if specific travel dates are selected, that does not include all required fees, fees for the booking, lodging, or any other fee required to stay at the place of short-term lodging, excluding taxes and fees imposed by a local government or the state.
(2) An internet or mobile website, application, or other similar centralized online platform whereby rental of a place of short-term lodging is advertised, shall not advertise a room rate, as defined in Section 17561, if specific travel dates are selected, that does not include all required fees, fees for the booking, lodging, or any other fee required to stay at the place of short-term lodging, excluding taxes and fees imposed by a local government or the state.
(3) This subdivision is intended to clarify existing law.
(b) For purposes of this section, “short-term lodging” means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment. “Short-term lodging” also includes a short-term rental, or a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform whereby the rental is advertised and payments for the rental are securely processed, consistent with Section 19822.4 of the Government Code.
(c) (1) An entity that knowingly violates this section shall be subject to a civil penalty not exceeding ten thousand dollars ($10,000) for each violation.
(2) An action to enforce this section may be brought by a city attorney, district attorney, or the Attorney General.
(3) This section shall be liberally construed and applied to promote its underlying purpose, which is to protect consumers against unfair and deceptive business practices.
(d) This section shall become operative on July 1, 2024.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.