BILL NUMBER: SB 1092 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Monning
FEBRUARY 17, 2016
An act to amend Section Sections 22592 and
22594 of of, and to add Section 22593
to, 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 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. 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.
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. Section 22592 of the
Business and Professions Code is amended to read:
22592. A hosting platform shall provide the following notice to
occupants an offeror listing a
residence for short-term rental on a the
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.
SEC. 2. Section 22593 is added to the
Business and Professions Code , to read:
22593. 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.
SECTION 1. SEC. 3. Section 22594 of
the Business and Professions Code is amended to read:
22594. (a) The
notice required by Section 22592 The notices required
by Sections 22592 and 22593 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
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.
(b) The notice
shall be provided immediately before the occupant lists each real
property on the hosting platform's Internet Web site, and
shall require the occupant offeror 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 notice notices
described in Section Sections 22592
and 22593 that the occupant
offeror acknowledges reading this notice
these notices before proceeding to list a real property
with the hosting platform's Internet Web site.