- Newsom vetoed hotel guest disclosure bill.
- AAHOA cited operational and legal challenges.
- Its members own about 61 percent of California hotels.
CALIFORNIA GOV. GAVIN Newsom vetoed AB 2721 on Sept. 30. The bill would have required hotels to disclose certain federal immigration enforcement reservations.
Newsom said it raised consumer privacy and public safety concerns.
"While the intent of the author is laudable, this bill introduces considerable consumer privacy and public safety concerns by compelling hotel operators to disclose this guest information not just to their employees, but to the public," Newsom said in his veto message.
He said the requirement could conflict with state privacy laws.
He also said public disclosure could lead to demonstrations or other disruptions at hotels, creating risks for workers, guests and demonstrators.
Newsom said hotel employees should have information about their rights when dealing with federal immigration officers.
“The lawmakers should revisit the issue next year with a focus on employee safety and transparency,” he said.
The bill, sponsored by Assemblymember Juan Carrillo, covered reservations or contracts involving U.S. Immigration and Customs Enforcement and Customs and Border Protection. Hotels that knew or should have known of such a reservation would have had to give public notice. They also would have had to tell guests who asked at check-in about the potential presence of the agencies.
The bill would have been enforced under California's Unfair Competition Law, with hotel liability capped at $5,000. Its provisions would have expired Jan. 1, 2029.
AAHOA welcomed the veto
Pictured are AAHOA Chairman Rahul Patel and President and CEO Laura Lee Blake. Photo credit: AAHOA
The association opposed the bill during the legislative process and submitted a formal veto request after the bill passed. It said its members own about 61 percent of California hotels.
"Hotel owners need clear and workable requirements that allow them to focus on serving their guests and operating their businesses," said Rahul Patel, AAHOA chairman.
AAHOA said the bill created legal uncertainty and operational burdens. It also cited the difficulty of deciding when a reservation fell under the law and of complying with the public-notice rules.
"This veto is a clear win for California hotel owners and common sense," said Laura Lee Blake, AAHOA president and CEO. "Hotel owners should never be put in a position where they are expected to disclose information about who may be staying at their hotel, potentially compromising the privacy and safety of their guests."
The association said similar proposals are emerging in other states. The association said it will continue working with industry partners and policymakers on how such legislation could affect hotel owners, employees and guests.
AAHOA leaders met with lawmakers and congressional staff during its Sept. 15 to 16 National Leadership & Advocacy Conference in Washington, D.C. They called for higher Small Business Administration loan limits, sanctions for frivolous lawsuits, a joint-employer standard for franchisees and competition in credit card network routing.
