Bill Text: CA SB644 | 2023-2024 | Regular Session | Introduced

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

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Bill Title: Hotel and private residence rental reservations: cancellation: refunds.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Passed) 2023-10-10 - Chaptered by Secretary of State. Chapter 718, Statutes of 2023. [SB644 Detail]

Download: California-2023-SB644-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 644

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Introduced by Senator Glazer
(Coauthors: Senators Allen, Archuleta, Cortese, Dodd, Hurtado, Limón, Newman, Rubio, Umberg, and Wiener)
(Coauthor: Assembly Member Gipson)

February 16, 2023

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An act to add the heading of Chapter 1 (commencing with Section 1748.40) and to add Chapter 2 (commencing with Section 1748.80) Title 1.3.5 of Part 4 of Division 3 of, the Civil Code, relating to business.

LEGISLATIVE COUNSEL'S DIGEST

SB 644, as introduced, Glazer. Business practices: hotel and private residence rental reservations: refunds.

The Unfair Competition Law (UCL) makes various unfair competition practices unlawful, including any unlawful, unfair, or fraudulent business act or practice.

Existing law regulates consumer refunds specific to certain industries under specified circumstances.

This bill would require a hotel, third-party booking service, hosting platform, and short-term rental, as defined, to allow a reservation to be canceled without penalty if the cancellation is commenced within 24 hours of the reservation being finalized so long as the reservation is made 24 hours or more prior to the day of check-in. This bill would require the hotel, third-party booking service, hosting platform, and short-term rental to issue the refund to the customer for the full amount of the reservation, including fees, to the original form of payment within 30 days of the cancellation of the reservation.

This bill would authorize the Attorney General to bring an enforcement action and recommend a civil penalty, as provided. The bill would require a court to impose a civil penalty of not more than $10,000 for each violation, pursuant to consideration of specified factors. This bill would provide that a violation of its provisions constitutes an unfair and unlawful business act or practice under the UCL. The bill would provide that a violation of its provisions does not constitute a crime or serve as a basis for a private right of action.

Digest Key

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

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Bill Text

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

SECTION 1.

 The heading of Chapter 1 (commencing with Section 1748.40) is added to Title 1.3.5 of Part 4 of Division 3 of the Civil Code, to read:

CHAPTER  1. Prepaid Debit Cards

SEC. 2.

 Chapter 2 (commencing with Section 1748.80) is added to Title 1.3.5 of Part 4 of Division 3 of the Civil Code, to read:

CHAPTER  2. Hotel and Private Residence Rental Reservation Refunds

1748.80.

 For purposes of this chapter, the following definitions shall apply:

(a) “Hosting platform” has the same meaning as that term is defined in Section 22590 of the Business and Professions Code.

(b) “Hotel” means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment, but it shall not include any residential hotel as defined in Section 50519 of the Health and Safety Code.

(c) “Third-party booking service” means a person that facilitates the booking of a hotel room or short-term rental in this state.

(d) “Short-term rental” means a residential dwelling, or any portion of a residential dwelling, that is rented to a person or persons for 30 consecutive days or less.

1748.81.

 Every hosting platform, hotel, third-party booking service, and short-term rental shall allow a reservation to be canceled without penalty for at least 24 hours after the reservation is made if the reservation is made 24 hours or more prior to the time of check-in. The 24-hour window starts from the moment the reservation is finalized.

1748.82.

 Where a refund is due, the hosting platform, hotel, third-party booking service, or short-term rental shall issue the refund to the consumer to the original form of payment within 30 days of the cancellation of the reservation. The refund shall include a refund of all fees charged to the consumer for optional services that the consumer did not use.

1748.83.

 (a) (1) The Attorney General may bring an enforcement action in a court of competent jurisdiction against any person who violates this chapter.

(2) The Attorney General may recommend a civil penalty pursuant to the factors in paragraph (3) if it determines that there has been a violation of this chapter.

(3) The court shall assess a civil penalty of not more than ten thousand dollars ($10,000) for each violation. In determining the amount of the civil penalty, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including, but not limited to, all of the following:

(A) The nature and seriousness of the misconduct.

(B) The number of violations.

(C) The persistence of the misconduct.

(D) The length of time over which the misconduct occurred.

(E) The willfulness of the misconduct.

(F) The hosting platform, hotel, third-party booking service, and short-term rental’s assets, liabilities, and net worth.

(4) Each day that a person remains in violation of this chapter shall constitute a single violation.

(5) The penalties provided by this subdivision are in addition to any other civil, criminal, and administrative penalties or sanctions provided by law, and do not supplant, but are cumulative to, other penalties or sanctions.

(b) (1) A violation of this chapter constitutes an unfair and unlawful business act or practice under Section 17200 of the Business and Professions Code and may be enforced under Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.

(2) A violation of this chapter is not subject to the Consumers Legal Remedies Act (Title 1.5 (commencing with Section 1750) of Part 4).

(3) Notwithstanding any other law, a violation of this chapter shall not constitute a crime.

(4) Notwithstanding any other law, nothing in this chapter shall serve as the basis for a private right of action.