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AB 2721

Unfair Competition Law: hotels.

2025-2026 Regular Session Introduced by Juan Carrillo and 6 co-sponsors

Hotels must post conspicuous notices about any CBP or ICE contracts/reservations, including duration and agency, informing workers and guests.

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 2.) (June 30).
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Bill Summary · AB 2721

Summary of AB 2721 (2025-2026) – Unfair Competition Law: hotels

Basic purpose

AB 2721 adds a new requirement under California’s Unfair Competition Law (UCL) specifically for hotel operators. The bill requires hotels to disclose the existence of contracts or reservations that involve US federal agencies (United States Customs and Border Protection or Immigration and Customs Enforcement) by posting a conspicuous notice on the hotel premises. The goal is to inform workers and guests about federal agency reservations or contracts held by the hotel.

Key provisions

  • New requirement: Hotel operators must disclose, via a posted notice, the existence of any contracts or reservations the operator knows or should know the hotel has with federal agencies (specifically CBP or ICE).
  • Notice placement and visibility: The notice must be posted in a place on the hotel premises that is conspicuously displayed to both workers and guests.
  • Timing for posting:
    • Generally, the notice must be posted at least one week before the start of the reservation.
    • If a reservation is created within one week of its start date, the notice must be posted as soon as practicable.
  • Notice duration: The notice must remain prominently displayed for the duration of the reservation.
  • Content of the notice: The notice must clearly and conspicuously identify the federal agency involved and the length of the reservation.
  • Definitions: For purposes of this section, “hotel” has the same meaning as in Section 17210 of the Business and Professions Code.

Who or what is affected

  • Covered entities: Hotels operating in California that are subject to the Business and Professions Code and UCL.
  • Individuals affected: Hotel workers and hotel guests who would be informed by the posted notice about federal agency reservations/contracts.
  • Public authorities: Enforcement would fall under the California Unfair Competition Law, potentially enabling civil penalties, injunctions, and related remedies if a hotel fails to comply or engages in unfair competition related to these disclosures.

Procedural and timeline aspects

  • Author and sponsors: Introduced by Assembly Member Carrillo; principal coauthor and several coauthors listed (e.g., Gipson, Ávila Farías, González, Haney, Lee, Lowenthal, Solache).
  • Session and status:
    • Part of the 2025–2026 California Legislature.
    • As of the latest updates, the bill has progressed through committee stages with amendments and re-refer to the appropriate committee (e.g., Appropriations) for further action.
  • Effective date: The text provided does not specify an explicit effective date beyond the posting requirements tied to reservations; typical effectiveness would align with enactment following passage and signing, unless otherwise stated in the final statute.
  • Fiscal note: Local fiscal analysis indicated; the bill has a fiscal committee reference but no appropriation attached in the digest, suggesting potential minor administrative costs to hotels for compliance and some enforcement considerations under the UCL.

Practical impact and considerations

  • The bill increases transparency around hotel-federal agency engagements and could affect day-to-day hotel operations by imposing a posting duty designed to inform employees and guests.
  • Compliance would require hotels to track reservations with CBP/ICE and ensure timely, clearly visible notices are posted and maintained for the duration of those reservations.
  • From a UCL perspective, failure to comply could expose hotels to civil penalties or injunctive relief if the conduct is deemed unfair or deceptive.

Summary takeaway

AB 2721 creates a targeted disclosure obligation for hotels in California, requiring conspicuous posted notices about contracts or reservations with CBP or ICE, with defined timing and duration requirements to ensure workers and guests are informed. The bill operates under the Unfair Competition Law framework, enabling enforcement through established UCL remedies.

Compiled from official sources — confirm details with the bill’s official record.

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