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SB-1424 Hotel and private residence rental reservations: cancellation: refunds.(2023-2024)

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Date Published: 04/25/2024 09:00 PM
SB1424:v98#DOCUMENT

Amended  IN  Senate  April 25, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1424


Introduced by Senator Glazer
(Coauthor: Assembly Member Berman)

February 16, 2024


An act to amend amend, repeal, and add Sections 1748.80 and 1748.81 of the Civil Code, relating to business.


LEGISLATIVE COUNSEL'S DIGEST


SB 1424, as amended, Glazer. Hotel and private residence rental reservations: cancellation: refunds.
Existing law requires a hotel, third-party booking service, hosting platform, or short-term rental, as defined, to allow a reservation for a hotel accommodation or a short-term rental located in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in. Existing law requires the hotel, third-party booking service, hosting platform, or short-term rental, if a consumer cancels a reservation pursuant to that provision, to issue a refund to a consumer for all amounts paid to the hosting platform, hotel, third-party booking service, or short-term rental to the original form of payment within 30 days of the cancellation of the reservation. Existing law authorizes the Attorney General and certain other public attorneys, to bring an action to enforce these provisions and requires a court to impose a civil penalty of not more than $10,000 for each violation.
This bill would expand these provisions provisions, beginning on July 1, 2026, to also apply to a reservation made in California for a hotel accommodation or short-term rental that is advertised in California.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 1748.80 of the Civil Code is amended to read:

1748.80.
 (a) For purposes of this chapter:

(a)

(1) “Hosting platform” has the same meaning as defined in Section 22590 of the Business and Professions Code.

(b)(1)

(2) (A) “Hotel” means a hotel, motel, bed and breakfast inn, or other similar transient lodging establishment located in this state.

(2)

(B) “Hotel” does not include a residential hotel, as defined in Section 50519 of the Health and Safety Code.

(c)

(3) “Third-party booking service” means a person that facilitates the booking of a hotel room or short-term rental in this state.

(d)

(4) “Short-term rental” means a residential dwelling, or any portion of a residential dwelling, that is rented to a person or persons for 30 or fewer consecutive days and that is located in this state.
(b) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 2.

 Section 1748.80 is added to the Civil Code, to read:

1748.80.
 (a)  For purposes of this chapter:
(1) “Hosting platform” has the same meaning as defined in Section 22590 of the Business and Professions Code.
(2) (A) “Hotel” means a hotel, motel, bed and breakfast inn, or other similar transient lodging establishment located or advertised in this state.
(B) “Hotel” does not include a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(3) “Third-party booking service” means a person that facilitates the booking of a hotel room or short-term rental.
(4) “Short-term rental” means a residential dwelling, or any portion of a residential dwelling, that is rented to a person or persons for 30 or fewer consecutive days and that is located or advertised in this state.
(b) This section shall become operative on July 1, 2026.

SEC. 3.

 Section 1748.81 of the Civil Code is amended to read:

1748.81.
 (a) A hosting platform, hotel, third-party booking service, or short-term rental shall allow a reservation for a hotel accommodation or a short-term rental located in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in.
(b) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 4.

 Section 1748.81 is added to the Civil Code, to read:

1748.81.
 (a)  A hosting platform, hotel, third-party booking service, or short-term rental shall allow a reservation for a hotel accommodation or a short-term rental located in California or a reservation made in California for a hotel accommodation or a short-term rental advertised in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in.
(b) This section shall become operative on July 1, 2026.

SECTION 1.Section 1748.80 of the Civil Code is amended to read:
1748.80.

For purposes of this chapter:

(a)“Hosting platform” has the same meaning as defined in Section 22590 of the Business and Professions Code.

(b)(1)“Hotel” means a hotel, motel, bed and breakfast inn, or other similar transient lodging establishment located or advertised in this state.

(2)“Hotel” does not include a residential hotel, as defined in Section 50519 of the Health and Safety Code.

(c)“Third-party booking service” means a person that facilitates the booking of a hotel room or short-term rental.

(d)“Short-term rental” means a residential dwelling, or any portion of a residential dwelling, that is rented to a person or persons for 30 or fewer consecutive days and that is located or advertised in this state.

SEC. 2.Section 1748.81 of the Civil Code is amended to read:
1748.81.

A hosting platform, hotel, third-party booking service, or short-term rental shall allow a reservation for a hotel accommodation or a short-term rental located or advertised in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in.