Amended in Senate April 21, 2016

Amended in Senate March 28, 2016

Senate BillNo. 1092


Introduced by Senator Monning

February 17, 2016


An act to amend Sections 22592 and 22594begin delete of, and to add Section 22593 to,end deletebegin insert ofend 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 wouldbegin delete 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 requirementsend deletebegin insert require that notice to also include a statement advising the offeror to review any restrictions on coverage under the offeror’s homeowners’ or renters’ insurance policy related to short-term rental activities, as specified,end insert 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:

P2    1

SECTION 1.  

Section 22592 of the Business and Professions
2Code
is amended to read:

3

22592.  

A hosting platform shall provide the following notice
4to an offeror listing a residence for short-term rental on the hosting
5platform:


begin delete

7 If

end delete

8begin insert(a)end insertbegin insertend insertbegin insertIfend insert you are a tenant who is listing a room, home,
9condominium, or apartment, please refer to your rental contract
10or lease, or contact your landlord, prior to listing the property to
11determine whether your lease or contract contains restrictions that
12would limit your ability to list your room, home, condominium,
13or apartment. Listing your room, home, condominium, or apartment
14may be a violation of your lease or contract, and could result in
15legal action against you by your landlord, including possible
16eviction.


begin insert

18
(b) You should review any restrictions on coverage under your
19homeowners’ or renters’ insurance policy related to short-term
20rental activities to ensure that there is appropriate insurance
21coverage in the event that a person sustains an injury or loss for
22which you are responsible, a person damages or causes loss to
23your personal or real property, or a claim or lawsuit is made
24against you or otherwise arises out of activities related to this
25hosting platform.

end insert

begin insertend insert
begin delete
27

SEC. 2.  

Section 22593 is added to the Business and Professions
28Code
, to read:

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22593.  

A hosting platform shall provide to an offeror, prior to
2the offeror’s listing of a residential unit for short-term rental on
3the hosting platform’s Internet Web site, a notice disclosing
4information regarding the availability or unavailability of insurance
5coverage provided by the hosting platform, as follows:

6(a) If the hosting platform provides primary insurance coverage
7for the offeror for any liabilities or property losses the offeror
8incurs as a result of activity related to the short-term rental, the
9hosting platform shall disclose the coverage limits for death,
10personal injury, and property damage, and shall explicitly explain
11to the offeror all of the following:

12(1) That primary insurance means that the hosting platform’s
13insurance coverage shall be primary to all other insurance and first
14in line to cover liabilities or property losses.

15(2) That the policy is not contingent on the offeror’s
16homeowners’ or renters’ insurance policy first denying a claim
17before the hosting platform’s primary insurance provides coverage.

18(3) That the offeror should review any restrictions on coverage
19under the offeror’s own homeowners’ or renters’ insurance policy
20related to short-term rental activities.

21(b) If the hosting platform provides only secondary or excess
22insurance or does not provide insurance, the hosting platform shall
23comply with all of the following:

24(1) Disclose that the offeror’s homeowners’ or renters’ insurance
25policy may be primary and first in line to cover liabilities or
26property losses.

27(2) Explicitly request that the offeror review the offeror’s
28homeowners’ or renters’ insurance policy to ensure that there is
29appropriate insurance coverage in the event that a person sustains
30an injury or loss for which the offeror is responsible, a person
31damages or causes loss to the offeror’s personal or real property,
32or a claim or lawsuit is made against the offeror or otherwise arises
33out of activities related to the hosting platform.

34(3) Disclose that the offeror’s homeowners’ or renters’ insurance
35may exclude coverage arising out of activities related to the hosting
36platform.

end delete
37

begin deleteSEC. 3.end delete
38
begin insertSEC. 2.end insert  

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

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22594.  

begin insert(a)end insertbegin insertend insert Thebegin delete noticesend deletebegin insert noticeend insert required bybegin delete Sectionsend deletebegin insert Sectionend insert
2 22592begin delete and 22593end delete shall be in a font size that is equal to or greater
3than 100 percent of the standard font size of the other paragraphs
4on the hosting platform’s Internet Webbegin delete site,end deletebegin insert site or equal to the
5default font size on the hosting platform’s Internet Web site.end insert

6begin insert(b)end insertbegin insertend insertbegin insertThe notice shall be provided immediately before the offeror
7lists each real property on the hosting platform’s Internet Web
8site,end insert
and shall require the offeror to interact with the hosting
9platform’s Internet Web site to affirmatively acknowledge he or
10she has read the notice. This affirmative acknowledgment may be
11accomplished by the inclusion of a statement in thebegin delete noticesend deletebegin insert noticeend insert
12 described inbegin delete Sectionsend deletebegin insert Sectionend insert 22592begin delete and 22593end delete that the offeror
13acknowledges readingbegin delete these noticesend deletebegin insert this noticeend insert before proceeding
14to list a real property with the hosting platform’s Internet Web
15site.



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