Amended in Senate April 6, 2015

Senate BillNo. 593


Introduced by Senator McGuire

February 27, 2015


begin deleteAn act to amend Sections 7507 and 7508 of the Revenue and Taxation Code, relating to taxation. end deletebegin insertAn act to add Article 12 (commencing with Section 53170) to Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, relating to local government.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 593, as amended, McGuire. begin deleteMotor Vehicle Fuel Tax Law: license: revocation. end deletebegin insertResidential units for tourist or transient use: hosting platforms.end insert

begin insert

The California Constitution authorizes a county or city to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.

end insert
begin insert

This bill would require an operator of a hosting platform, as defined, to report specified information quarterly to the city, county, or city and county. The bill would authorize a city, county, or city and county, by ordinance, to opt out from receiving reports and to subsequently opt back in, with 90 days’ advance notice of that ordinance to the operator of a hosting platform and to impose a fine or penalty on an operator that fails to provide the report, as specified. The bill would prohibit an operator of a hosting platform from facilitating the rental of a residential unit offered for occupancy for tourist or transient use, if such a use of that residential unit, or the offering of that residential unit for such a use, is prohibited by an ordinance of the city, county, or city and county in which that residential unit is located. The bill would authorize a city, county, or city and county, by ordinance, to establish a fine or penalty on an operator of a hosting platform, as specified, for a knowing violation of this provision. The bill would also authorize a city, county, or city and county to require an operator of a hosting platform to collect and remit applicable local transient occupancy tax.

end insert
begin delete

The Motor Vehicle Fuel Tax Law, which imposes a tax on motor vehicle fuel removed from a refinery or terminal rack in this state, or entered into this state, or sold in this state, requires that every supplier, industrial user, pipeline operator, train operator, and vessel operator be licensed by the State Board of Equalization for purposes of that law. That law requires, before revoking any license, the board to notify the licensee to show cause, within 10 days after the notice is given, why his or her license should not be revoked, and requires the board to allow the person the opportunity to show cause for why the license should not be revoked.

end delete
begin delete

This bill would instead require that cause to be shown in writing and within 14 days after the notice is given.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteyes end deletebegin insertnoend insert. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertArticle 12 (commencing with Section 53170) is
2added to Chapter 1 of Part 1 of Division 2 of Title 5 of the end insert
begin insert3Government Codeend insertbegin insert, to read:end insert

begin insert

4 

5Article begin insert12.end insert  Thriving Communities and Sharing Economy Act
6

 

7

begin insert53170.end insert  

This article shall be known, and may be cited, as the
8Thriving Communities and Sharing Economy Act.

9

begin insert53171.end insert  

(a) For purposes of this section:

10(1) “Hosting platform” means a marketplace that is created
11for the primary purpose of facilitating the rental of a residential
12unit offered for occupancy for tourist or transient use for
13compensation to the offeror of that unit, and the operator of the
14hosting platform derives revenues, including booking fees or
15advertising revenues, from providing or maintaining that
16marketplace. “Facilitating” includes, but is not limited to, the act
17of allowing the offeror of the residential unit to offer or advertise
18the residential unit on the Internet Web site provided or maintained
19by the operator.

P3    1(2) “Offeror” includes an owner or lessee of a residential unit.

2(3) “Residential unit” means a dwelling unit in a private
3residence, including a single-family residence, an apartment or
4other leased premises, a residential condominium unit, or any
5other residential real estate improvement. “Residential unit” does
6not include individual guest rooms, condominium units, timeshare
7units, cabins, or similar guest accommodations rented to transient
8guests in a hotel, inn, or similar transient lodging establishment
9operated by an innkeeper, as defined in subdivision (a) of Section
101865 of the Civil Code.

11(b) (1) Except as provided in paragraph (2), the operator of a
12hosting platform shall report quarterly to the city, county, or city
13and county all of the following information:

14(A) The address of each residential unit that was offered on the
15operator’s hosting platform for occupancy for tourist or transient
16use and was occupied for that use during that quarterly period.

17(B) The total number of nights that the residential unit was
18occupied for tourist or transient use.

19(C) The amounts paid for the occupancy of that residential unit.

20(2) A city, county, or city and county may, by ordinance, opt
21out from receiving reports from an operator of a hosting platform
22under paragraph (1) at any time and, subsequently, may, by
23ordinance, opt back in to receive the reports. A city, county, or
24city and county shall provide the operator of a hosting platform
25with 90 days’ advance notice of an ordinance adopted under this
26paragraph.

27(3) A city, county, or city and county may, by ordinance,
28establish a fine or penalty on an operator of a hosting platform
29that fails to provide a report required pursuant to this subdivision
30not to exceed the amount of one thousand dollars ($1,000) for the
31first failure, two thousand dollars ($2,000) for the second failure,
32and five thousand dollars ($5,000) for a third or subsequent failure,
33to be imposed after the city, county, or city and county has provided
34written notice to the operator of the failure, has given the operator
35an opportunity to provide the report within 30 days of receiving
36the written notice, and the operator failed to provide the report
37within that period.

38(4) Any civil fines or penalties shall be paid to the city, county,
39or city and county that established the fine or penalty.

P4    1(c) (1) An operator of a hosting platform shall not facilitate
2the rental of a residential unit offered for occupancy for tourist or
3transient use if such a use of that residential unit, or the offering
4of that residential unit for such a use, is prohibited by an ordinance
5of the city, county, or city and county in which that residential unit
6is located.

7(2) A city, county, or city and county may, by ordinance,
8establish a civil fine or penalty on an operator of a hosting platform
9that knowingly violates this subdivision not to exceed the amount
10of one thousand dollars ($1,000) per day for the first violation,
11two thousand dollars ($2,000) per day for a second violation, and
12five thousand dollars ($5,000) per day for a third or subsequent
13violation. An operator of a hosting platform shall be deemed to
14have knowingly violated this subdivision if a city, county, or city
15and county has previously provided the operator with a copy,
16including a copy in electronic form, of its ordinance prohibiting
17the use of a residential unit located within its boundaries for
18occupancy for tourist or transient use, or the offering of that unit
19for such a use, has given written notice of a known violation to
20the operator, has given the operator an opportunity to cease
21facilitating the rental of that residential unit within 30 days of
22receiving the written notice, and the operator failed to cease within
23that period.

24(3) Any civil fines or penalties shall be paid to the city, county,
25or city and county that established the fine or penalty.

26(d) A city, county, or city and county may require the operator
27of a hosting platform to collect applicable transient occupancy
28tax imposed by that local agency, and to remit that tax to that
29agency.

end insert
begin delete30

SECTION 1.  

Section 7507 of the Revenue and Taxation Code
31 is amended to read:

32

7507.  

Before revoking any license, the board shall notify the
33licensee to show cause in writing, within 14 days after the notice
34is given, why his or her license should not be revoked. The notice
35shall be given in the manner prescribed in Section 7671 for giving
36notice of a deficiency determination.

end delete
begin delete37

SEC. 2.  

Section 7508 of the Revenue and Taxation Code is
38amended to read:

39

7508.  

The board may cancel any license issued under this part
40immediately upon surrender thereof, but before revoking a license,
P5    1the board shall allow the person an opportunity to show cause in
2writing as provided in Section 7507.
3

end delete

CORRECTIONS:

Text--Page 3.




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Corrected 4-10-15—See last page.     98