BILL NUMBER: SB 593	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 10, 2015
	AMENDED IN SENATE  MAY 6, 2015
	AMENDED IN SENATE  APRIL 29, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator McGuire
   (Coauthor: Senator Leno)

                        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:  transient residential  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. 
Existing law also authorizes a city, county, or city and county to
impose a transient occupancy tax upon occupancies of lodgings of no
more than 30 days.  
   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
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 authorize a city, county, or city and county to
adopt an ordinance that would require a transient residential hosting
platform, as defined, to report specified information quarterly to
the city, county, or city and county, and to establish, by ordinance,
a fine or penalty on a transient residential hosting platform for
failure to provide the report. The bill would make the information in
the report confidential and require that it not be disclosed. The
bill would authorize the city, county, or city and county receiving
the report to use the report solely for transient occupancy tax and
zoning administration. The bill would also authorize a city, county,
or city and county to require a transient residential hosting
platform to collect and remit applicable transient occupancy tax.
 
   The bill, where a specified ordinance has been adopted, would
prohibit a transient residential hosting platform from facilitating
occupancy of a residential unit offered for tourist or transient use
in violation of any ordinance, regulation, or law of the city,
county, or city and county, and would authorize a city, county, or
city and county, by ordinance, to establish a civil fine or penalty
on an operator of a transient residential hosting platform for a
knowing violation of this provision.  
   This bill would also require the operator of a transient
residential hosting platform to disclose specified information
regarding insurance coverage in the transient residential hosting
platform agreement with an offeror of a residential unit.  
   Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the
writings of public officials and agencies be adopted with findings
demonstrating the interest protected by the limitation and the need
for protecting that interest.  
   This bill would make legislative findings to that effect. 

   The California Constitution requires local agencies, for the
purpose of ensuring public access to the meetings of public bodies
and the writings of public officials and agencies, to comply with a
statutory enactment that amends or enacts laws relating to public
records or open meetings and contains findings demonstrating that the
enactment furthers the constitutional requirements relating to this
purpose.  
   This bill would make legislative findings to that effect. 
   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.   (a)    This article shall be known, and
may be cited, as the Thriving Communities and Sharing Economy Act.

   (b) The Legislature finds and declares that transient residential
hosting platforms are doing business in California by facilitating
the occupancy of property located in California. 
   53171.   (a)    For purposes of
this article: 
   (1) "Hosting 
    (a)     (1)    "Transient
residential hosting  platform" means  a marketplace
that is created for the primary purpose of facilitating 
 a person or entity that facilitates  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   transient residential  hosting
platform derives revenues, including booking  fees 
 fees, subscription charges,  or advertising 
revenues, from providing or maintaining that marketplace.
"Facilitating"   revenues. "Facilitate"  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) "Transient residential hosting platform" does not include
anyone licensed to practice real estate as defined in Section 10130
of the Business and Professions Code.  
   (2) 
    (b)  "Offeror"  includes an owner or lessee
  means the owner, lessee, or other person or entity
with the legal right to occupy or authorize the occupancy  of a
residential unit. 
   (3) 
    (c)  "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   rooms 
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. 
   (d) "Tourist or transient use" means 30 days or fewer.  
   (e) "Operator" includes any corporation, partnership, or
individual that provides or maintains a transient residential hosting
platform.  
   (b) (1) Except as provided in paragraph (2), the operator of a

    53172.    All of the following shall apply only
within the jurisdiction of a city, county, or city and county that
adopts an ordinance applying this section within its jurisdiction:

    (a)     A transient residential 
hosting platform shall report quarterly to the city, county, or city
and county all of the following information: 
   (A) 
    (1)  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 
 occupied for tourist or transient use  during that
quarterly period. 
   (B) 
    (2)  The total number of nights that the residential
unit was occupied for tourist or transient use. 
   (C) 
    (3)  The amounts paid for the occupancy of that
residential  unit.   unit for tourist or
transient use.  
   (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) 
    (b)  A city, county, or city and county may, by
ordinance, establish a fine or penalty on  an operator of a
  a transient residential  hosting platform that
fails to provide a report required pursuant to this 
subdivision   section  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 
 transient residential hosting platform  an opportunity to
provide the report within 30 days of receiving the written notice,
and the  operator   transient residential
hosting platform  failed to provide the report within that
period. 
   (4) 
    (c)  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  
   (d) (1) Notwithstanding any other law, including the California
Public Records Act, as set forth in Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1, the information in the report
required pursuant to this subdivision is confidential and shall not
be disclosed.  
   (2) The city, county, or city and county receiving the report
shall use the information in the report solely for the administration
of transient occupancy tax and zoning.  
   (e) The city, county, or city and county may require a transient
residential hosting platform to collect the transient occupancy tax
imposed by that local agency, and to remit that tax to that agency.
The authority granted by this subdivision is in addition to any other
provision of state or local law that authorizes a city, county, or
city and county to require a transient residential hosting platform
or any other person or entity to collect and remit transient
occupancy tax. 
    53173.    (a)     A transient
residential  hosting platform shall not facilitate the 
rental   occupancy  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   the
occupancy will violate any ordinance, regulation, or law  of the
city, county, or city and  county   county,
 in which that residential unit is  located. 
 located, that has applied Section 53172 within its jurisdiction.
 
   (2) 
    (b)  A city, county, or city and county that has
applied Section 531   72 within its jurisdiction  may,
by ordinance, establish a civil fine or penalty on an operator of a
 transient residential  hosting platform that knowingly
violates this  subdivision   section  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.   violation to be
imposed after the city, county, or city and county has provided
written notice to the operator of a transient residential hosting
platform of the failure to abide by the respective ordinance, has
given the operator of the transient residential hosting platform an
opportunity to correct the violation within 30 days of receiving the
written notice, and the operator of the transient residential hosting
platform failed to correct the violation w   ithin that
period.  
   (3) 
    (c)  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.
 
   53174.  An operator of a transient residential hosting platform
shall disclose the following in the transient residential 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
transient residential hosting platform.
   (b) If the operator of the transient residential 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 transient residential hosting platform is excess,
secondary, or contingent upon an offeror's home or rental insurance,
the operator of the transient residential 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 transient residential hosting platform.
 
   53175.  Nothing in this article shall be construed to preempt a
city, county, or city and county law regulating operators of
transient residential hosting platforms. 
   SEC. 2.    The Legislature finds and declares that
Section 1 of this act, which adds Section 53172 to the Government
Code, imposes a limitation on the public's right of access to the
meetings of public bodies or the writings of public officials and
agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision,
the Legislature makes the following findings to demonstrate the
interest protected by this limitation and the need for protecting
that interest:  
   Where a city, county, or city and county adopts an ordinance
applying Section 53172 of the Government Code within its
jurisdiction, in order to ensure that the information disclosed to
local public agencies in the reports required by Section 53172 of the
Government Code is not used for purposes other than the limited
public purposes specified in that section, it is necessary to limit
the disclosure of those reports. 
   SEC. 3.    The Legislature finds and declares that
Section 1 of this act, which adds Section 53172 to the Government
Code, furthers, within the meaning of paragraph (7) of subdivision
(b) of Section 3 of Article I of the California Constitution, the
purposes of that constitutional section as it relates to the right of
public access to the meetings of local public bodies or the writings
of local public officials and local agencies. Pursuant to paragraph
(7) of subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings: 

   If a city, county, or city and county adopts an ordinance applying
Section 53172 of the Government Code within its jurisdiction,
limiting disclosure of a record obtained by the local public agency
for purposes of tax and zoning administration furthers the purposes
of Section 3 of Article I of the California Constitution by
appropriately balancing the interest in public disclosure with
ensuring that this information is not used for improper purposes.