Bill Text: CA AB537 | 2023-2024 | Regular Session | Amended

California Assembly Bill 537

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

Bill Title: Short-term lodging: advertising: rates.

Spectrum: Partisan Bill (Democrat 19-0)

Status: (Passed) 2023-10-13 - Chaptered by Secretary of State - Chapter 805, Statutes of 2023. [AB537 Detail]

Download: California-2023-AB537-Amended.html

Amended IN Senate June 15, 2023

Amended IN Assembly May 18, 2023

Amended IN Assembly April 19, 2023

Amended IN Assembly April 12, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 537

Introduced by Assembly Member Berman
(Principal coauthor: Senator Glazer)
(Coauthors: Assembly Members Addis, Aguiar-Curry, Bauer-Kahan, Bryan, Friedman, Garcia, Haney, Jackson, Kalra, Maienschein, Papan, Petrie-Norris, Robert Rivas, Ting, Ward, Wicks, and Wilson)

February 08, 2023

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

LEGISLATIVE COUNSEL'S DIGEST

AB 537, as amended, Berman. Short-term lodging: advertising: rates.

Existing law makes it unlawful for any owner or operator of a motel, motor court, or like establishment to post or maintain outdoor advertising signs relating to room rates that has any untrue, misleading, false, or fraudulent representations, and specified other requirements on outdoor signs for those establishments. Existing law also prohibits an owner or operator of a hotel or motel from increasing the hotel or motel’s rates upon the proclamation of a state of emergency by the President of the United States or the Governor or upon the declaration of a local emergency, as specified.

This bill would prohibit a place of short-term lodging, as defined, from advertising or offering a room rate, if specific travel dates are selected, that does not include all taxes and fees required to stay at the short-term lodging. The bill would prohibit an internet website, application, or other similar centralized online platform whereby rental of a place of short-term lodging is advertised or offered from advertising or offering a room rate, if specific travel dates are selected, that does not include all taxes and fees required stay at the short-term lodging. The bill would make a ~~knowing~~ violation of those provisions subject to a specified civil penalty not to exceed $10,000 and would authorize an action to enforce those provisions to be brought by a city attorney, district attorney, county counsel, or the Attorney General. The bill would make the bill’s provisions operative on July 1, 2024.

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

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) (1) A place of short-term lodging shall not advertise or offer a room rate, as defined in Section 17561, if specific travel dates are selected, that does not include all taxes and fees required to stay at the short-term lodging.

(2) An internet website, application, or other similar centralized online platform whereby rental of a place of short-term lodging is advertised or offered, shall not advertise or offer a room rate, as defined in Section 17561, if specific travel dates are selected, that does not include all taxes and fees required to stay at the short-term lodging.

(b) For purposes of this section, “short-term lodging” means any hotel, motel, bed and breakfast inn, or other similar transient lodging ~~establishment.~~ establishment in this state. “Short-term lodging” also includes a short-term rental, or a residential property located in California that is rented to a visitor for ~~fewer than 30 days~~ 30 consecutive days or less through a centralized online platform whereby the rental is advertised or offered and payments for the rental are securely processed.

(c) (1) An entity that ~~knowingly~~ knew or should have known that its advertising or offering 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, county counsel, or the Attorney General.

(d) This section shall become operative on July 1, 2024.