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California Senate Bill 644 - Impact on Hotel and Short-Term Rental Bookings

Overview​

Effective July 1, 2024, the California Senate Bill No. 644 (SB 644) introduces new regulations impacting the hotel and short-term rental industry. This documentation outlines the key changes and provides guidelines for compliance, particularly for Partners utilizing our API.

Key Changes​

24-Hour Cancellation Policy​

Effective Date: July 1, 2024

Summary:

  • Hotels, third-party booking services, and hosting platforms must allow a reservation for a hotel accommodation or a short-term rental located in California to be canceled without penalty for at least 24 hours after the reservation is confirmed.
  • This policy applies to reservations made 72 hours or more before the time of check-in.
  • The refund(s) issued must be made to the original form of payment within 30 days of the cancellation.

Impact:

  • All properties within California are subject to this regulation.

California Price Display Change​

Effective Date: July 1, 2024

Summary:

  • Room rates for short-term lodgings in California must include all fees and charges, except government-imposed taxes and fees.
  • For example, hotel resort fees must be included in the room rate shown to travelers.

API Compliance Requirements​

To ensure compliance with SB 644, partners must update their systems as follows:

Displaying Pricing and Cancellation Policies​

  1. Pricing Display:

    • Room rates must include all mandatory fees and charges, excluding government-imposed taxes and fees.
    • Ensure that your API displays the total room rate inclusive of these charges.

  2. Cancellation Policies:

    • Allow fully-refundable cancellations made within 24 hours of the reservation confirmation.
    • Ensure that your API reflects the 24-hour cancellation policy for all applicable reservations.
    • Refunds must be processed to the original form of payment within 30 days of cancellation.

Liability and Compliance​

  • Any liability or claims arising from non-compliance with the above regulations will be solely attributable to the Partner.
  • Partners are responsible for the payment of any associated refunds or penalties due to non-compliance.

Action Required​

  • Confirm API Support: Ensure that your API supports displaying pricing and cancellation policies in compliance with SB 644.
  • Update Systems: Make necessary updates to your systems to reflect the new pricing display and cancellation policies.
  • Compliance Confirmation: Confirm that your API will be compliant with the applicable laws by the effective date.

For more detailed information on the legislative changes, please refer to the following legal documents:

Conclusion​

The implementation of SB 644 brings significant changes to the hotel and short-term rental industry in California. Partners are required to update their systems to comply with these new regulations. Failure to do so may result in liability and financial penalties.

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