Bill Text: CA SB683 | 2023-2024 | Regular Session | Introduced

California Senate Bill 683

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

Bill Title: Hotels and short-term rentals: advertised rates: mandatory fees.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Engrossed) 2024-08-30 - Ordered to inactive file on request of Assembly Member Grayson. [SB683 Detail]

Download: California-2023-SB683-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 683

Introduced by Senator Glazer
(Principal coauthor: Assembly Member Berman)
(Coauthors: Senators Newman, Wiener, and Wilk)
(Coauthors: Assembly Members Friedman and Gipson)

February 16, 2023

An act to add Section 17568.51 to the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL'S DIGEST

SB 683, as introduced, Glazer. Hotels and short-term rentals: advertised rates: mandatory fees.

The False Advertising Law (FAL) makes it a crime for a person or a firm, corporation, or association, or any employee thereof, to engage in specified false or misleading advertising practices. The Unfair Competition Law (UCL) makes various unfair competition practices unlawful, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising.

Existing law requires every keeper of a hotel, inn, or lodginghouse to post a statement of rates by the day for lodging and prohibits collection of a sum greater than that amount, as specified.

This bill would require a person that advertises a hotel room rate or short-term rental rate before the public in this state, or from this state before the public in any state, to include in the advertised rate all mandatory fees, as provided. The bill would require a hotel or a short-term rental to clearly and conspicuously disclose on its internet website a list of all mandatory fees and credit card surcharges imposed on consumers. The bill would authorize the Attorney General to bring an enforcement action and would require a court to impose a civil penalty of not more than $10,000 for each violation, depending on consideration of specified factors. The bill would also provide that a violation of its provisions constitutes an unfair and unlawful business act or practice and a false or misleading statement under the FAL and the UCL. By expanding the scope of a 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 17568.51 is added to the Business and Professions Code, immediately following Section 17568.5, to read:

17568.51.

(a) For purposes of this section, the following definitions apply:

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

(2) “Mandatory fees” means any fees, costs, or other charges that a consumer is required to pay in order to check in to a hotel or short-term rental, including, but not limited to, resort fees. “Mandatory fees” do not include taxes or fees imposed by state or local government. “Mandatory fees” do not include charges for any optional services or amenities that a consumer elects to pay.

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

(b) A person that advertises a hotel room rate or short-term rental rate before the public in this state, or from this state before the public in any state, shall do all of the following:

(1) Include in the advertised hotel room rate or short-term rental rate all mandatory fees.

(2) At the time of booking, clearly and conspicuously disclose or include in the total price all mandatory fees that will be charged in order for the consumer to book the hotel room or short-term rental. If any mandatory fees will not be charged at the time of booking, they shall be clearly and conspicuously disclosed directly under the total price and identified as fees that will be charged after the time of booking.

(3) Clearly and conspicuously disclose in the advertised hotel room rate or short-term rental rate and the total price displayed at the time of booking the amount of the credit card surcharge that will be applied, if any.

(c) A hotel or short-term rental shall clearly and conspicuously disclose on its internet website a list of all mandatory fees and credit card surcharges imposed on consumers.

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

(2) The court shall impose a civil penalty of not more than ten thousand dollars ($10,000) for each violation of this section. In determining the amount of the civil penalty, the court shall consider all 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.

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

(E) The willfulness of the misconduct.

(F) The assets, liabilities, and net worth of the person in violation of this section.

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

(4) 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.

(e) A violation of this section constitutes an unfair and unlawful business act or practice under Section 17200 and a false or misleading statement under Section 17500 and may be enforced under Chapter 5 (commencing with Section 17200) of Part 2 and Chapter 3 (commencing with Section 17500). A violation of this section is not subject to Chapter 4 (commencing with Section 1780) of Title 1.5 of Part 4 of Division 3 of the Civil Code.

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.