HB 2875 — regulation; short-term rentals

HB2875 - 542R - H Ver       House Engrossed         State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session COMMITTEE  ON  GOVERNMENT  HOUSE OFBILL REPRESENTATIVES2875 AMENDMENTS  TO  H.B.  AN ACT   amending sections 9-500.39 and 11-269.17, arizona revised statutes;

2875relating (Reference to printedshort-term bill)rentals. Page 3, between lines 24 and 25, insert:

"H.    (TEXT OF BILL BEGINS ON NEXT PAGE)   Be it enacted by the Legislature of the State of Arizona:

THESection 1.  Section OWNER9-500.39, OFArizona ARevised VACATIONStatutes, RENTALis ORamended SHORT-TERMto RENTALread: SHALL DISPLAY THE OWNER'S TRANSACTION PRIVILEGE TAX LICENSE IN ANY ONLINE ADVERTISEMENT FOR RENTAL OF THE UNIT.

FORSTART_STATUTE9-500.39.  Limits Aon VERIFIEDregulation VIOLATIONof OFvacation THISrentals SUBSECTION, A CITY OR TOWN MAY IMPOSE A CIVIL PENALTY OF $50 PER DAY FOR EACH DAY THE VIOLATION OCCURRED." Reletter to conform Page 6, between lines 22 and 23,short‑term insert:rentals;

"H.state preemption;

THEdefinitions OWNERA.  A OFcity Aor VACATIONtown RENTALmay ORnot SHORT-TERMprohibit RENTALvacation SHALLrentals DISPLAYor THEshort-term OWNER'Srentals. TRANSACTION PRIVILEGE TAX LICENSE IN ANY ONLINE ADVERTISEMENT FOR RENTAL OF THE UNIT.

FORB.  A Acity VERIFIEDor VIOLATIONtown OFmay THISnot SUBSECTION,restrict Athe COUNTYuse MAYof IMPOSEor Aregulate CIVILvacation PENALTYrentals OFor $50short‑term PERrentals DAYbased FORon EACHtheir DAYclassification, THEuse VIOLATIONor OCCURRED."occupancy Reletterexcept toas conformprovided Amendin titlethis tosection.  conformA And,city asor sotown amended,may itregulate dovacation passrentals JOHNor KAVANAGHshort‑term CHAIRMANrentals 2875GOVERNMENTfor 02/20/2020the 11:23following AMpurposes H:as follows:

ra1.  Protecting To protect the public's health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste and pollution control, and designation of an emergency point of contact, if the city or town demonstrates that the rule or regulation is for the primary purpose of protecting the public's health and safety.

2.  Adopting To adopt and enforcing enforce residential use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues, if the ordinance is applied in the same manner as other property classified under sections 42‑12003 and 42‑12004.

3.  Limiting To limit or prohibiting prohibit the use of a vacation rental or short‑term rental for the purposes of housing sex offenders, operating or maintaining a sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses.

4.  Requiring To require the owner of a vacation rental or short‑term rental to provide the city or town with contact information for the owner or the owner's designee who is responsible for responding to complaints in a timely manner in person, over the phone or by email at any time of day before offering for rent or renting the vacation rental or short-term rental.  This contact information shall be printed in bold twenty‑four point font and posted on the front door of the vacation rental or short-term rental.  if the property is surrounded by a fence or other barrier that restricts access to the front door, the contact information shall be posted in a location that is visible and accessible to the public.  for a verified violation of this PARAGRAPH, a city or town may impose a civil penalty of $50 for each day that the vacation rental or short-term rental is occupied.

5.  To restrict the maximum number of occupants allowed in the vacation rental or short-term rental at any one time to the lesser of the occupancy limit established by the city or town or not more than two adults per bedroom, up to four bedrooms, plus two additional adults per one thousand square feet of livable space in excess of three thousand square feet of livable space of the residence.

6.  to require the installation of safety and monitoring equipment that monitors and detects the level of noise on the property of the vacation rental or short‑term rental.  The equipment must be installed inside all vacation rentals and short-term rentals and in the outside yard or unenclosed balcony of all properties that are vacation rentals or short-term rentals.  the equipment must have the capability of notifying the owner or the owner's designee if the level of noise at the property is unreasonable or in violation of the municipal noise ordinance.  Safety and monitoring equipment is not required in an owner‑occupied residential home offered for transient use or if the owner or the owner's designee is elsewhere on the property.  For a violation of a noise restriction, the owner or the owner's designee shall notify the occupant of the noise violation.  Notice may be made by telephone call or text message.  If the noise violation continues for thirty minutes, the owner or the owner's designee shall notify the occupant of the noise violation in person.  for a verified violation of this paragraph, a city or town may impose the civil penalty prescribed in section 42-1125.02, subsection B.

7.  To prohibit smoking outside of the vacation rental or short‑term rental within one hundred feet of a residential structure.

8.  to prohibit occupants of a vacation rental or short-term rental from parking on public or private streets if on-property parking is available.  for a verified violation of this paragraph, a city or town may impose a civil penalty of $100 for each day that the vacation rental or short-term rental is occupied.

C.  Within thirty days after a verified violation, a city or town shall notify the department of revenue and the owner of the vacation rental or short-term rental of the verified violation of the city's or town's applicable laws, regulations or ordinances and, if the owner of the vacation rental or short‑term rental received the verified violation, whether the city or town imposed a civil penalty on the owner of the vacation rental or short‑term rental and the amount of the civil penalty, if assessed.  If multiple verified violations arise out of the same response to an incident at a vacation rental or short‑term rental, those verified violations are considered one verified violation for the purpose of assessing civil penalties pursuant to section 42‑1125, subsection AA 42‑1125.02, subsection B.

D.  If the owner of a vacation rental or short‑term rental has provided contact information to a city or town pursuant to subsection B, paragraph 4 of this section and if the city or town issues a citation for a violation of the city's or town's applicable laws, regulations or ordinances or a state law that occurred on the owner's vacation rental or short-term rental property, the city or town shall make a reasonable attempt to notify the owner or the owner's designee of the citation within seven business days after the citation is issued using the contact information provided pursuant to subsection B, paragraph 4 of this section.  If the owner of a vacation rental or short‑term rental has not provided contact information pursuant to subsection B, paragraph 4 of this section, the city or town is not required to provide such notice.

E.  This section does not exempt an owner of a residential rental property, as defined in section 33‑1901, from maintaining with the assessor of the county in which the property is located information required under title 33, chapter 17, article 1.

F.  A vacation rental or short-term rental may not be used for nonresidential uses, including for a special event that would otherwise require a permit or license pursuant to a city or town ordinance or a state law or rule or for a retail, restaurant, banquet space or other similar use.

g.  a vacation rental or short-term rental may not advertise to exceed the occupancy limit of the dwelling or for any nonresidential use pursuant to subsection f of this section.  for a verified violation of this subsection, a city or town may impose a civil penalty of $50 per day for each day the violation occurred.

H.  The owner of a vacation rental or short-term rental shall display the owner's transaction privilege tax license in any online advertisement for rental of the unit.

for a verified violation of this subsection, a city or town may impose a civil penalty of $50 per day for each day the violation occurred.

G.  I.  For the purposes of this section:

1.  "Transient" has the same meaning prescribed in section 42‑5070.

2.  "Vacation rental" or "short-term rental":

(a)  Means any individually or collectively owned single-family or one‑to‑four‑family house or dwelling unit or any unit or group of units in a condominium, cooperative or timeshare, that is also a transient public lodging establishment or owner‑occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42‑12001.  Vacation rental and short-term rental do (b)  Does not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use.

3.  "Verified violation" means a finding of guilt or civil responsibility for violating any state law or local ordinance relating to a purpose prescribed in subsection B, or F or G of this section that has been finally adjudicated.

END_STATUTE Sec. 2.  Section 11-269.17, Arizona Revised Statutes, is amended to read:

START_STATUTE11-269.17.  Limits on regulation of vacation rentals and short-term rentals;

state preemption;

definitions A.  A county may not prohibit vacation rentals or short-term rentals.

B.  A county may not restrict the use of or regulate vacation rentals or short‑term rentals based on their classification, use or occupancy except as provided in this section.  A county may regulate vacation rentals or short‑term rentals for the following purposes as follows:

1.  Protecting To protect the public's health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste and pollution control, and designation of an emergency point of contact, if the county demonstrates that the rule or regulation is for the primary purpose of protecting the public's health and safety.

2.  Adopting To adopt and enforcing enforce residential use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues, if the ordinance is applied in the same manner as other property classified under sections 42‑12003 and 42‑12004.

3.  Limiting To limit or prohibiting prohibit the use of a vacation rental or short‑term rental for the purposes of housing sex offenders, operating or maintaining a sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses.

4.  Requiring To require the owner of a vacation rental or short‑term rental to provide the county with contact information for the owner or the owner's designee who is responsible for responding to complaints in a timely manner in person, over the phone or by email at any time of day before offering for rent or renting the vacation rental or short‑term rental.  this contact information shall be printed in bold twenty-four point font and posted on the front door of the vacation rental or short-term rental.  if the property is surrounded by a fence or other barrier that restricts access to the front door, the contact information shall be posted in a location that is visible and accessible to the public.  for a verified violation of this paragraph, a county may impose a civil penalty of $50 for each day that the vacation rental or short-term rental is occupied.

5.  To restrict the maximum number of occupants allowed in the vacation rental or short-term rental at any one time to the lesser of the occupancy limit established by the county or not more than two adults per bedroom, up to four bedrooms, plus two additional adults per one thousand square feet of livable space in excess of three thousand square feet of livable space of the residence.

6.  To require the installation of safety and monitoring equipment that monitors and detects the level of noise on the property of the vacation rental or short‑term rental.  The equipment must be installed inside all vacation rentals and short-term rentals and in the outside yard or unenclosed balcony of all properties that are vacation rentals or short-term rentals.  the equipment must have the capability of notifying the owner or the owner's designee if the level of noise at the property is unreasonable or in violation of the county noise ordinance.  Safety and monitoring equipment is not required in an owner‑occupied residential home offered for transient use or if the owner or the owner's designee is elsewhere on the property.  For a violation of a noise restriction, the owner or the owner's designee shall notify the occupant of the noise violation.  Notice may be made by telephone call or text message.  If the noise violation continues for thirty minutes, the owner or the owner's designee shall notify the occupant of the noise violation in person.  for a verified violation of this paragraph, a county may impose the civil penalty prescribed in section 42-1125.02, subsection B.

7.  To prohibit smoking outside of the vacation rental or short‑term rental within one hundred feet of a residential structure.