Bill Text: CA AB3235 | 2019-2020 | Regular Session | Introduced

California Assembly Bill 3235 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Short-term lodging rates.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-05-21 - In committee: Set, first hearing. Failed passage. Reconsideration granted. [AB3235 Detail]

Download: California-2019-AB3235-Introduced.html

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 3235

Introduced by Assembly Member Chu

February 21, 2020

An act to add Section 17568.6 to the Business and Professions Code, relating to advertising.

LEGISLATIVE COUNSEL'S DIGEST

AB 3235, as introduced, Chu. Short-term lodging rates.

Existing law regulates advertising, including motel and motor court rate signs. Existing law specifies that a person who violates those provisions is guilty of a misdemeanor. Existing law, upon the proclamation of a state of emergency or the declaration of a local emergency and for a period of 30 days after, prohibits the owner or operator of a hotel or motel from increasing its regular advertised rates by more than 10%, as specified. Existing law makes violation of this prohibition a misdemeanor. In addition, a violation of the provisions contained in the Penal Code is an unfair business practice and an act of unfair competition.

This bill would prohibit a place of short-term lodging, as defined, from advertising a room rate that does not include all required fees, as specified. The bill would make an entity that knowingly violates this provision subject to a civil penalty not exceeding $10,000 and would specify that an action to enforce this provision may be brought by a city attorney, district attorney, or the Attorney General. Because the bill would create a new crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 17568.6 is added to the Business and Professions Code, immediately following Section 17568.5, to read:

17568.6.

(a) A place of short-term lodging shall not advertise a room rate, as defined in Section 17561, that does not include all required fees, excluding taxes and fees imposed by a local government or the state.

(b) For purposes of this section, “short-term lodging” means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment.

(c) (1) An entity that knowingly violates this section shall be subject to a civil penalty not exceeding ten thousand dollars ($10,000) for each violation.

(2) An action to enforce this section may be brought by a city attorney, district attorney, or the Attorney General.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.