HB2672 - 541R - S-Ugenti-Rita flr amend (ref COM) adopted-Adopted

Page 1, strike lines 3 and 4, insert:

"Line 35, strike "property"; after the first "of" insert "the vacation rental or short-term rental of the"; strike "violations" insert "violation""

Line 5, after the comma insert "strike "and" insert "or";"

Line 6, strike "property"; after "owner" insert "of the vacation rental or short‑term rental"

Line 7, strike "property"

Line 8, after "owner" insert "of the vacation rental or short‑term rental and the amount of the civil penalty, if assessed"

Between lines 11 and 12, insert:

"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."

Reletter to conform"

Page 1, strike lines 15 through 17, insert:

"Page 2, line 13, after "violating" strike remainder of line

Line 14, strike "B or E of this section or"

Line 15, strike "E" insert "F""

Line 19, after the quotation mark insert "; strike "property""

Line 20, after "The" insert "vacation rental or short‑term rental of the"

Line 22, after the first comma insert "strike "and" insert "or";"

Line 24, strike "property"; after "owner" insert "of the vacation rental or short‑term rental and the amount of the civil penalty, if assessed"

Page 2, between lines 3 and 4, insert:

"D. If the owner of a vacation rental or short‑term rental has provided contact information to a county pursuant to subsection B, paragraph 4 of this section and if the county issues a citation for a violation of the county's applicable laws, regulations or ordinances or a state law that occurred on the owner's vacation rental or short-term rental property, the county 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 county is not required to provide such notice."

Reletter to conform"

Strike lines 7 through 9, insert:

"Line 26, after "violating" strike remainder of line

Line 27, strike "B or E of this section or"

Line 28, strike "E" insert "F""

Page 2, strike lines 11 through 32

Strike pages 3 through 9

Page 10, strike lines 1 through 5, insert:

"Sec. 3. Title 42, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 42-1125.02, to read:

START_STATUTE42-1125.02. Civil penalties; online lodging operators; appeal; definitions

A. An online lodging operator that fails to comply with section 42‑5042 shall pay the following civil penalty:

1. For a first offense, $250.

2. For a second and any subsequent offense, $1,000.

B. If an online lodging operator received a verified violation, the online lodging operator shall pay the following civil penalty:

1. For a first verified violation received for a property, either:

(a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, $500.

(b) If the city, town or county imposed a civil penalty on the online lodging operator for the verified violation, the difference between the amount prescribed in subdivision (a) of this paragraph and the amount of the civil penalty the city, town or county imposed on the online lodging operator for the verified violation.

2. For a second verified violation received on the same property within a twelve‑month period, either:

(a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, $1,000.

3. For a third and any subsequent verified violation received on the same property within the same twelve‑month period, either:

(a) If the city, town or county did not impose a civil penalty on the online lodging operator for the verified violation, fifty percent of the gross monthly revenues of the lodging accommodation at which the violation occurred for the month in which the violation occurred or $1,500, whichever is greater.

C. If the department imposes a civil penalty pursuant to subsection B, paragraph 1 of this section and the online lodging operator appeals the civil penalty, the hearing officer may waive or lower the civil penalty based on the online lodging operator's diligence in attempting to prohibit renters from violating state law or the city's or town's applicable laws, regulations or ordinances. In determining whether to waive or lower the civil penalty, the hearing officer shall consider both of the following:

1. Whether rules that prohibit activities violating state law or the city's or town's applicable laws, regulations or ordinances were included in the advertisement for the lodging accommodation, vacation rental or short-term rental.

2. Whether the rules described in paragraph 1 of this subsection were posted in a conspicuous location inside the lodging accommodation, vacation rental or short‑term rental.

D. For the purposes of this section:

1. "Lodging accommodation" has the same meaning prescribed in section 42-5076.

2. "Online lodging marketplace" has the same meaning prescribed in section 42‑5076.

3. "Online lodging operator" has the same meaning prescribed in section 42-5076 and includes an owner of a vacation rental or short‑term rental that is not offered through an online lodging marketplace.

4. "Vacation rental" and "short-term rental" have the same meanings prescribed in section 9-500.39 or 11-269.17.

5. "Verified violation" has the same meaning prescribed in section 9‑500.39 or 11‑269.17.""END_STATUTE

Page 10, line 11, strike "adopted"

Amend title to conform

1. Requires a local government to attempt to notify a vacation or short-term rental owner within seven business days if a citation is issued on the owner's property and if contact information has been provided to the local government.

2. States that a local government is not required to provide notice of a citation to vacation or short-term rental owners if contact information has not been provided to the local government.

3. Stipulates penalty amounts based on whether a civil penalty was imposed for the verified violation.

4. Allows a hearing officer to waive or lower the civil penalty for a first verified violation if an operator appeals a civil penalty and requires the hearing officer to consider certain criteria in determining whether to waive or lower a civil penalty.

5. Makes technical and conforming changes.

Fifty-fourth Legislature Ugenti-Rita

MICHELLE UGENTI-RITA

2672FloorUGENTI-RITA

04/30/2019

11:54 AM

C: ED