Amended in Senate March 28, 2016

Senate Bill No. 1092

Introduced by Senator Monning

February 17, 2016

An act to amend begin delete Section end delete begin insert Sections 22592 and end insert 22594 begin delete of end delete begin insert of, and to add Section 22593 to, end insert the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL’S DIGEST

SB 1092, as amended, Monning. Advertising: Internet private residence rental listings: notice.

Existing law requires a hosting platform, as defined, to provide a specific notice to an occupant listing a residence for short-term rental on a hosting platform that states, among other things, that, if the occupant is a tenant, listing the room, home, condominium, or apartment may violate the lease or contract and could result in legal action by the landlord, including possible eviction. Existing law requires the notice to be in a particular font size and be provided immediately before the occupant lists each real property on the hosting platform’s Internet Web site in a manner that requires the occupant to interact with the hosting platform’s Internet Web site to affirmatively acknowledge he or she has read the notice.

This bill would begin delete additionally require the typeface of that notice to be clear, legible, and one of the typefaces used elsewhere on the hosting platform’s Internet Web site. end delete begin insert modify that font size requirement and would discontinue the requirement that the notice be provided immediately before the listing of each real property. The bill would require the hosting platform to additionally provide to an offeror, prior to the offeror’s listing of a residential unit for short-term rental on the hosting platform’s Internet Web site, a notice disclosing specified information regarding the availability or unavailability of insurance coverage provided by the hosting platform. The bill would require the new notice to comply with the above-described affirmative acknowledgment and modified font size requirements and would make technical and conforming changes. end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

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

22592.  

A hosting platform shall provide the following notice
to begin delete occupants end delete begin insert an offeror end insert listing a residence for short-term rental on
begin delete a end delete begin insert the end insert hosting platform:

If you are a tenant who is listing a room, home, 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, condominium, or apartment. Listing
your room, home, 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.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 22593 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 22593. end insert   

A hosting platform shall provide to an offeror, prior to
the offeror’s listing of a residential unit for short-term rental on
the hosting platform’s Internet Web site, a notice disclosing
information regarding the availability or unavailability of
insurance coverage provided by the hosting platform, as follows:

(a) If the hosting platform provides primary insurance coverage
for the offeror for any liabilities or property losses the offeror
incurs as a result of activity related to the short-term rental, the
hosting platform shall disclose the coverage limits for death,
personal injury, and property damage, and shall explicitly explain
to the offeror all of the following:

(1) That primary insurance means that the hosting platform’s
insurance coverage shall be primary to all other insurance and
first in line to cover liabilities or property losses.

(2) That the policy is not contingent on the offeror’s
homeowners’ or renters’ insurance policy first denying a claim
before the hosting platform’s primary insurance provides coverage.

(3) That the offeror should review any restrictions on coverage
under the offeror’s own homeowners’ or renters’ insurance policy
related to short-term rental activities.

(b) If the hosting platform provides only secondary or excess
insurance or does not provide insurance, the hosting platform
shall comply with all of the following:

(1) Disclose that the offeror’s homeowners’ or renters’
insurance policy may be primary and first in line to cover liabilities
or property losses.

(2) Explicitly request that the offeror review the offeror’s
homeowners’ or renters’ insurance policy to ensure that there is
appropriate insurance coverage in the event that a person sustains
an injury or loss for which the offeror is responsible, a person
damages or causes loss to the 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.

(3) Disclose that the offeror’s homeowners’ or renters’
insurance may exclude coverage arising out of activities related
to the hosting platform.

end insert

begin delete SECTION 1. end delete

begin insert SEC. 3. end insert   

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

22594.  

begin delete (a) end delete begin delete   end delete begin delete The notice required by Section 22592 end delete begin insert The notices
required by Sections 22592 and 22593 end insert 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 begin delete site
or equal to the default font size on the hosting platform’s Internet
Web site. The typeface of the notice shall be clear, legible, and
one of the typefaces used elsewhere on the hosting platform’s
Internet Web site. end delete

begin delete (b) end delete begin delete   end delete begin delete The notice shall be provided immediately before the
occupant lists each real property on the hosting platform’s Internet
Web end delete site, and shall require the begin delete occupant end delete begin insert offeror end insert to interact with
the hosting platform’s Internet Web site to affirmatively
acknowledge he or she has read the notice. This affirmative
acknowledgment may be accomplished by the inclusion of a
statement in the begin delete notice end delete begin insert notices end insert described in begin delete Section end delete begin insert Sections end insert 22592
begin insert and 22593 end insert that the begin delete occupant end delete begin insert offeror end insert acknowledges reading begin delete this
notice end delete begin insert these notices end insert before proceeding to list a real property with
the hosting platform’s Internet Web site.