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AB-3098 Peer-to-peer rental hosting platforms: disclosure of recording devices. (2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB3098:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3098


Introduced by Assembly Member Chau

February 21, 2020


An act to amend Sections 22590, 22592, and 22594 of, to amend the heading of Chapter 22.3 (commencing with Section 22590) of Division 8 of, and to add Section 22590.1 to, the Business and Professions Code, relating to privacy.


LEGISLATIVE COUNSEL'S DIGEST


AB 3098, as introduced, Chau. Peer-to-peer rental hosting platforms: disclosure of recording devices.
Existing law, the California Consumer Privacy Act of 2018, grants a consumer various rights in connection with a business, as defined, that collects the consumer’s personal information. Among these rights, the act authorizes a consumer to request that a business that collects a consumer’s personal information disclose to the consumer the categories and specific pieces of personal information that the business has collected. The act does not require a business to retain personal information collected for a single, one-time transaction if that information is not sold or retained by the business.
Existing law generally governs the transactions between a rental company, also referred to as a rental car company, and its customers, including, among other provisions, restrictions on a rental company’s use of electronic surveillance technology. Existing law, as part of those restrictions, prohibits a rental company from using, accessing, or obtaining any information relating to the renter’s use of the rental vehicle that was obtained using electronic surveillance technology, except under specified circumstances.
Existing law requires a hosting platform, defined as a marketplace that is created for the primary purpose of facilitating the rental of a residential unit, as specified, to provide an offeror listing a residence for short-term rental on the hosting platform with a specific notice relating to certain liability considerations and risks of listing the residence. Existing law requires the notice to be in a particular font size and be provided immediately before the offeror lists each real property on the hosting platform’s internet website in a manner that requires the offeror to interact with the hosting platform’s internet website to affirmatively acknowledge the offeror read the notice.
This bill would revise and recast those provisions relating to listings of short-term rentals of residences to, among other things, define a hosting platform to mean a marketplace that is created for the primary purpose of facilitating the rental of real or personal property, as specified. The bill would require the hosting platform to disclose conspicuously on a rental listing any recording devices operating in, on, or around the listed property. The bill would require the operator of a hosting platform to request an offeror to disclose to the hosting platform, and would require the offeror to disclose, any of those recording devices, as specified. The bill would require an offeror, upon notification of a violation of those recording device disclosure requirements, to destroy data collected by the device, to disable the device for the remainder of the rental period, and to notify the renter immediately, as specified. The bill would authorize a renter, upon notification of a violation, to render the rental agreement null and void effective immediately, and would entitle the renter to a specified refund. The bill would make a violation of these provisions punishable by a civil penalty of up to $500 for the first violation, and up to $1,000 for a subsequent violation, except as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 The heading of Chapter 22.3 (commencing with Section 22590) of Division 8 of the Business and Professions Code is amended to read:
CHAPTER  22.3. Internet Private Residence Rental Listings Peer-to-Peer Rental Hosting Platforms

SEC. 2.

 Section 22590 of the Business and Professions Code is amended to read:

22590.
 As used in this chapter, a “hosting the following terms have the following meanings:
(a) “Hosting platform” means a marketplace that is created for the primary purpose of facilitating the rental of a residential unit offered for occupancy for tourist or real or personal property, including, but not limited to, residences and vehicles, for transient use for compensation to the offeror of that unit, property, and the operator of the hosting platform derives revenues, including booking fees or advertising revenues, from providing or maintaining that marketplace. “Facilitating”
(b) “Facilitating” includes, but is not limited to, the act of allowing the offeror of the residential unit property to offer or advertise the residential unit property on the Internet Web site internet website provided or maintained by the operator.
(c) “Offeror” means a person who lists a property for rent on a hosting platform.
(d) “Recording device” means a device that collects or transmits audiovisual data, geolocation data, or any other data for which a renter has a reasonable expectation of privacy.
(e) “Residential hosting platform” means a hosting platform that facilitates the transient rental of residential units.

SEC. 3.

 Section 22590.1 is added to the Business and Professions Code, to read:

22590.1.
 (a) (1) A hosting platform shall conspicuously disclose on a rental listing any recording devices operating in, on, or around the listed property.
(2) Before allowing an offeror to list that property for rent on a hosting platform, the operator of the hosting platform shall request the offeror to disclose to the hosting platform any recording devices operating in, on, or around the listed property.
(3) An offeror, upon request by the hosting platform pursuant to paragraph (2), shall disclose to the hosting platform any devices known by the offeror, or which reasonably should be known by the offeror, to be operating in, on, or around the listed property.
(b) (1) Within 24 hours of receipt of a notice of a violation of subdivision (a) from the hosting platform, the renter, or any other party with knowledge of the violation, the offeror shall do both of the following:
(A) Destroy any data collected during the rental period by a recording device not disclosed to a renter as required by subdivision (a).
(B) Disable, or instruct the renter or another party to disable, for the remainder of the rental period a recording device not disclosed to a renter as required by subdivision (a).
(2) If an offeror receives notification of a violation of this section from a party other than the renter, the offeror shall immediately notify the renter of any recording devices that were not disclosed as required by subdivision (a), and the nature of any data collected by those devices.
(c) (1) A renter who was not provided a disclosure required by this section may, upon identification or notification of the violation, render the rental agreement for that property null and void effective immediately.
(2) A penalty shall not be imposed on a renter for exercising their right to nullify the rental agreement pursuant to this subdivision.
(3) A renter who exercises their right to nullify the rental agreement pursuant to this subdivision shall be entitled to a full refund of any payment rendered for use of the property that was not realized as a result of this exercise.
(d) (1) In addition to any other penalty provided by law and subject to paragraph (5), a violation of this section shall be punishable by a civil penalty of up to five hundred dollars ($500) for the first violation, and up to one thousand dollars ($1,000) for any subsequent violation.
(2) The offeror and the hosting platform shall be severally liable for any penalties resulting from a violation of this section.
(3) Each device that is not disclosed as required by this section shall be considered a separate violation of this section.
(4) (A) Except as provided in subparagraph (B), each day the offeror fails to cure a violation of subdivision (b) or (c) after 24 hours from receipt of notice of violation shall be considered a separate violation of that subdivision.
(B) If the offeror is not capable of curing, or instructing another party to cure, a violation of subdivision (b) or (c) within 24 hours of notice, the offeror shall cure the violation within 24 hours of achieving that capability, and each day the offeror fails to cure the violation after achieving that capability shall be considered a separate violation of that subdivision.
(5) Civil penalties imposed on the offeror for violations of this section shall not cumulatively exceed five thousand dollars ($5,000) per property rental to which those violations pertain.

SEC. 4.

 Section 22592 of the Business and Professions Code is amended to read:

22592.
 A residential hosting platform shall provide the following notice to an offeror listing a residence for short-term rental on the hosting platform:
(a) If you are a tenant who is listing a room, home, mobilehome, condominium, or apartment, please refer to your rental contract or lease, or contact your landlord, prior to listing the property to determine whether your lease or contract contains restrictions that would limit your ability to list your room, home, mobilehome, condominium, or apartment. Listing your room, home, mobilehome, condominium, or apartment may be a violation of your lease or contract, and could result in legal action against you by your landlord, including possible eviction.
(b) You should review any restrictions on coverage under your homeowners’ or renters’ insurance policy related to short-term rental activities to ensure that there is appropriate insurance coverage in the event that a person sustains an injury or loss for which you are responsible, a person damages or causes loss to your personal or real property, or a claim or lawsuit is made against you or otherwise arises out of activities related to this hosting platform.

SEC. 5.

 Section 22594 of the Business and Professions Code is amended to read:

22594.
 (a) The notice required by Section 22592 shall be in a font size that is equal to or greater than 100 percent of the standard font size of the other paragraphs on the hosting platform’s Internet Web site internet website or equal to the default font size on the hosting platform’s Internet Web site. internet website.
(b) The notice shall be provided immediately before the offeror lists each real property on the hosting platform’s Internet Web site, internet website, and shall require the offeror to interact with the hosting platform’s Internet Web site internet website to affirmatively acknowledge he or she that the offeror has read the notice. This affirmative acknowledgment may be accomplished by the inclusion of a statement in the notice described in Section 22592 that the offeror acknowledges reading this notice before proceeding to list a real property with the hosting platform’s Internet Web site. internet website.