BILL NUMBER: SB 593 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 29, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator McGuire
FEBRUARY 27, 2015
An 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.
LEGISLATIVE COUNSEL'S DIGEST
SB 593, as amended, McGuire. Residential units for tourist or
transient use: hosting platforms.
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.
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.
This bill would also require the operator of a hosting platform to
disclose specified information regarding insurance coverage in the
hosting platform agreement with an offeror.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 12 (commencing with Section 53170) is added to
Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code,
to read:
Article 12. Thriving Communities and Sharing Economy Act
53170. This article shall be known, and may be cited, as the
Thriving Communities and Sharing Economy Act.
53171. (a) For purposes of this section
article :
(1) "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 transient use for compensation
to the offeror of that unit, and the operator of the hosting platform
derives revenues, including booking fees or advertising revenues,
from providing or maintaining that marketplace. "Facilitating"
includes, but is not limited to, the act of allowing the offeror of
the residential unit to offer or advertise the residential unit on
the Internet Web site provided or maintained by the operator.
(2) "Offeror" includes an owner or lessee of a residential unit.
(3) "Residential unit" means a dwelling unit in a private
residence, including a single-family residence, an apartment or other
leased premises, a residential condominium unit, or any other
residential real estate improvement. "Residential unit" does not
include individual guest rooms, condominium units, timeshare units,
cabins, or similar guest accommodations rented to transient guests in
a hotel, inn, or similar transient lodging establishment operated by
an innkeeper, as defined in subdivision (a) of Section 1865 of the
Civil Code.
(b) (1) Except as provided in paragraph (2), the operator of a
hosting platform shall report quarterly to the city, county, or city
and county all of the following information:
(A) The address of each residential unit that was offered on the
operator's hosting platform for occupancy for tourist or transient
use and was occupied for that use during that quarterly period.
(B) The total number of nights that the residential unit was
occupied for tourist or transient use.
(C) The amounts paid for the occupancy of that residential unit.
(2) A city, county, or city and county may, by ordinance, opt out
from receiving reports from an operator of a hosting platform under
paragraph (1) at any time and, subsequently, may, by ordinance, opt
back in to receive the reports. A city, county, or city and county
shall provide the operator of a hosting platform with 90 days'
advance notice of an ordinance adopted under this paragraph.
(3) A city, county, or city and county may, by ordinance,
establish a fine or penalty on an operator of a hosting platform that
fails to provide a report required pursuant to this subdivision not
to exceed the amount of one thousand dollars ($1,000) for the first
failure, two thousand dollars ($2,000) for the second failure, and
five thousand dollars ($5,000) for a third or subsequent failure, to
be imposed after the city, county, or city and county has provided
written notice to the operator of the failure, has given the operator
an opportunity to provide the report within 30 days of receiving the
written notice, and the operator failed to provide the report within
that period.
(4) Any civil fines or penalties shall be paid to the city,
county, or city and county that established the fine or penalty.
(c) (1) An operator of a hosting platform shall not facilitate 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.
(2) A city, county, or city and county may, by ordinance,
establish a civil fine or penalty on an operator of a hosting
platform that knowingly violates this subdivision not to exceed the
amount of one thousand dollars ($1,000) per day for the first
violation, two thousand dollars ($2,000) per day for a second
violation, and five thousand dollars ($5,000) per day for a third or
subsequent violation. An operator of a hosting platform shall be
deemed to have knowingly violated this subdivision if a city, county,
or city and county has previously provided the operator with a copy,
including a copy in electronic form, of its ordinance prohibiting
the use of a residential unit located within its boundaries for
occupancy for tourist or transient use, or the offering of that unit
for such a use, has given written notice of a known violation to the
operator, has given the operator an opportunity to cease facilitating
the rental of that residential unit within 30 days of receiving the
written notice, and the operator failed to cease within that period.
(3) Any civil fines or penalties shall be paid to the city,
county, or city and county that established the fine or penalty.
(d) A city, county, or city and county may require the operator of
a hosting platform to collect applicable transient occupancy tax
imposed by that local agency, and to remit that tax to that agency.
53172. An operator of a hosting platform shall disclose the
following in the hosting platform agreement with an offeror:
(a) That an offeror should review his or her home or renter's
insurance policy to ensure that there is appropriate insurance
coverage in the event that a person sustains an injury or loss on the
offeror's property, a person damages or causes loss to an offeror's
personal or real property, or a claim or lawsuit is made against the
offeror or otherwise arises out of activities related to the hosting
platform. If an offeror does not have the appropriate insurance
coverage, the operator of the hosting platform shall encourage the
offeror to obtain the appropriate insurance coverage protection.
(b) If the operator of the hosting platform provides insurance
coverage, that the insurance coverage is provided and the limits of
liability. If the insurance provided by the operator of the hosting
platform is excess, secondary, or contingent upon an offeror's home
or rental insurance, the operator of the hosting platform shall
explicitly explain to the offeror when the offeror's insurance is
primary or first in line to cover liabilities arising out of the
activities relating to the hosting platform.