BILL NUMBER: SB 1092 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 21, 2016
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Monning
FEBRUARY 17, 2016
An act to amend Sections 22592 and 22594 of, and to add
Section 22593 to, of 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 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 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, 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
an offeror listing a residence for short-term rental on the hosting
platform:
If
(a) 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.
(b) You should review any restrictions on coverage under your
homeowners' or renters' insurance policy related to short-term rental
activities to ensure that there is appropriate insurance coverage in
the event that a person sustains an injury or loss for which you are
responsible, a person damages or causes loss to your personal or
real property, or a claim or lawsuit is made against you or otherwise
arises out of activities related to this hosting platform.
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.
SEC. 3. SEC. 2. Section 22594 of the
Business and Professions Code is amended to read:
22594. (a) The notices
notice required by Sections
Section 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, site or equal to the default font
size on the hosting platform's Internet Web site.
(b) The notice shall be provided
immediately before the offeror lists each real property on the
hosting platform's Internet Web site, and shall require the
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 notices notice
described in Sections Section 22592
and 22593 that the offeror acknowledges reading
these notices this notice before
proceeding to list a real property with the hosting platform's
Internet Web site.