Brophy McGee Floor Amendment
Reference to: printed bill
Amendment drafted by: Leg Council
FLOOR AMENDMENT EXPLANATION
Regulation
1. Removes the prohibition on a city, town or county (local government) restricting the use of or regulating vacation rentals or short-term rentals (STRs) based on their classification, use or occupancy, rather than limiting the statutory prohibition to local government restriction or regulation of a primary or one additional residence.
2. Prohibits a local government from prohibiting STR operation solely on its status as an STR if:
a) the owner has a valid TPT license as of May 1, 2020;
b) the owner-provided contact information to the local government as of June 2, 2020, if required by city, town or county ordinance; and
c) the property on which the STR does not change in title or ownership.
3. Prohibits a local government from regulating an online lodging marketplace.
4. Allows a local government to require an STR owner to license or register the STR with the local government and requires the local government to report to the Arizona Department of Revenue (ADOR) all verified violations of a registered STR.
5. Reinstates the statutory requirement that local government noise and property maintenance ordinances be applied to STRs in the same manner as other class 3 and class 4 properties.
6. Removes the statutory authorization for local governments to adopt and enforce ordinances relating to protection of welfare and nuisance issues.
7. Removes the proposed prohibition on a corporate entity operating an STR in a residential zone.
8. Removes the 25 percent cap on housing units an owner of a multifamily housing property subject to the Arizona Residential Landlord and Tenant Act may rent as an STR.
9. Removes the statutory STR occupancy limit and allows a local government to restrict STR occupancy to either:
a) the local government's occupancy limit; or
b) two adults per bedroom, plus two adults.
10. Removes a timeshare that is a transient public lodging establishment from the definition of vacation rental or short-term rental.
11. Excludes an STR from the definition of residential rental dwelling unit relating to local government residential rental inspection programs.
Enforcement
12. Removes the proposed prohibition and civil penalty on an online lodging marketplace from advertising or supporting the advertisement of a short-term or vacation rental that fails to comply with transaction privilege tax (TPT) license and posting requirements.
13. Reinstates statutory civil penalties on an online lodging operator or STR owner that fails to comply with TPT license and posting requirements.
14. Removes the requirement that ADOR suspend an operator's or owner's TPT license for third and subsequent violations of specified short-term rental regulations and reinstates the statutory penalties.
15. Defines terms.
16. Makes technical and conforming changes.
Second Regular Session S.B. 1554
BROPHY MCGEE FLOOR AMENDMENT
SENATE AMENDMENTS TO S.B. 1554
(Reference to printed bill)
Page 1, line 5, strike "state preemption;"
Strike lines 8 through 11
Reletter to conform
Between lines 19 and 20, insert:
"2. to adopt and enforce reasonable residential use and zoning ORDINANCES."
Renumber to conform
Line 20, after "enforce" strike remainder of line
Line 21, strike "zoning ordinances, including"; strike "occupancy,"
Line 22, strike "protection of welfare,"; after "issues" strike remainder of line
Strike lines 23 and 24, insert ", if the ordinance is applied in the same manner as other property classified under sections 42-12003 and 42-12004."
Between lines 29 and 30, insert:
"5. to require the owner of a vacation rental or short-term rental to license or register the vacation rental or short-term rental with the city or town. The city or town shall report to the department of revenue all verified violations of a vacation rental or short-term rental licensed or registered by the city or town."
Renumber to conform
Strike lines 36 through 42, insert:
"7. to restrict the occupancy of a vacation rental or short-term rental to the lesser of the occupancy limit of the city or town or two adults per bedroom plus two additional adults."
Reletter to conform
Page 2, lines 12, 18 and 20, strike "B C" insert "B"; strike "4" insert "6"
Line 32, after "dwelling" insert "pursuant to subsection b of this section"
Line 33, strike "h" insert "F"; after the period insert "a violation of this subsection is not a verified violation. a city or town may impose a civil penalty for each day the property is in violation of this subsection."
Between lines 35 and 36, insert:
"i. a city or town may not regulate an online lodging marketplace."
Reletter to conform
Strike lines 37 through 42, insert:
"1. "Online lodging marketplace" has the same meaning prescribed in section 42-5076."
Renumber to conform
Page 3, line 6, strike the first comma insert "or"; strike "or timeshare,"
Line 10, strike "Vacation rental and short-term rental do"
Line 18, strike "B C, D, H or F i" insert "B or F"
Between lines 19 and 20, insert:
"Sec. 2. Section 9-1301, Arizona Revised Statutes, is amended to read:
9-1301. Definitions
In this chapter, unless the context otherwise requires:
1. "Building code" means the construction codes that were in force at the time of building construction, including plumbing and mechanical codes, electric codes, residential construction codes, energy conservation codes and existing building construction codes, and includes any property maintenance codes, neighborhood preservation codes, anti-blight codes or other similar codes, however denominated. With respect to mobile homes as defined in section 33‑1409, building code means the federal construction codes applicable to homes constructed after June 15, 1976, and the Arizona codes applicable to homes constructed before that date.
2. "Citywide residential rental property inspection program" means any program that includes systematic or periodic inspections of a majority of rental properties in the city or town that have not previously been found to meet the requirements of section 9-1302.
3. "Exterior inspection" means the visual inspection of any portion of a residential dwelling unit that can be seen from a public street or other right‑of‑way, or that can be seen from an adjacent property if a complaint or consent is received from the adjacent property owner, lawful resident or lawful tenant.
4. "Initial inspection" means the first inspection of a residential rental dwelling unit after the establishment by ordinance or resolution of a residential rental inspection program.
5. "Interior inspection" means a physical or visual inspection of the interior of a residential rental dwelling unit and other portions of a residential rental dwelling unit that are not visible from a public street, right‑of‑way or neighboring property that is made for the purpose of looking for building code violations.
6. "Mobile home park" has the same meaning as prescribed in section 33‑1409.
7. "Multifamily housing" means site built buildings containing residential dwelling units, but does not include mobile home parks.
8. 7. "Owner" means the person, corporation, limited liability company, partnership, limited partnership, trust or real estate investment trust shown on the lawfully recorded title to the property.
9. 8. "Residential dwelling unit" means a building or structure or part of a building or structure that is used for a home or residence by one or more persons who maintain a household. It also means a mobile home regardless of ownership of the land.
10. 9. "Residential rental dwelling unit" means a dwelling unit that is leased or rented to one or more tenants. A dwelling unit that is occupied in part by the owner of the dwelling unit is not a residential rental dwelling unit unless a tenant occupies a part of the dwelling unit that has its own cooking and sleeping areas, a bathroom and a separate entrance, unless otherwise provided in a zoning ordinance of the city or town. Residential rental dwelling unit does not include an owner occupied owner‑occupied mobile home in a mobile home park that is not owned by the landlord of the mobile home park or a vacation rental or short-term rental as defined in section 9-500.39.
11. 10. "Residential rental licensing requirement" means a requirement established by a city or town that property owners or property managers obtain a license or permit from the city or town, with or without an associated fee, before they can legally engage in the rental of dwelling units in the city or town.
12. 11. "Residential rental registration requirement" means any requirement established by a city or town for rental housing owners or managers to submit information to the city or town as already required to be submitted to the county assessor under section 33-1902."
Renumber to conform
Page 3, line 23, strike "state preemption;"
Strike lines 27 through 30
Reletter to conform
Between lines 38 and 39, insert:
"2. to adopt and enforce reasonable residential use and zoning ORDINANCES."
Renumber to conform
Line 39, after "enforce" strike remainder of line
Line 40, strike "zoning ordinances, including"; strike "occupancy,"
Line 41, strike "protection of welfare,"; after "issues" strike remainder of line
Strike lines 42 and 43, insert ", if the ordinance is applied in the same manner as other property classified under sections 42-12003 and 42-12004."
Page 4, between lines 3 and 4, insert:
"5. to require the owner of a vacation rental or short-term rental to license or register the vacation rental or short-term rental with the county. the county shall report to the department of revenue all verified violations of a vacation rental or short-term rental licensed or registered by the county."
Renumber to conform
Strike lines 10 through 16, insert:
"7. to restrict the occupancy of a vacation rental or short-term rental to the lesser of the occupancy limit of the county or two adults per bedroom plus two additional adults."
Reletter to conform
Lines 29, strike "B C" insert "B"
Line 30, strike "4" insert "6"
Lines 36 and 38, strike "B C" insert "B"; strike "4" insert "6"
Page 5, line 4, after "dwelling" insert "pursuant to subsection b of this section"
Line 5, strike "h" insert "f"; after the period insert "a violation of this subsection is not a verified violation. a county may impose a civil penalty for each day the property is in violation of this subsection."
Between lines 7 and 8, insert:
"i. a county may not regulate an online lodging marketplace."
Reletter to conform
Strike lines 9 through 14, insert:
"1. "Online lodging marketplace" has the same meaning prescribed in section 42-5076."
Renumber to conform
Line 20, strike the first comma insert "or"; strike "or timeshare,"
Line 31, strike "B C, D, H or F i" insert "B or F"
Page 5, between lines 32 and 33, insert:
"Sec. 4. Section 11-1701, Arizona Revised Statutes, is amended to read:
11-1701. Definitions
In this chapter, unless the context otherwise requires:
1. "Building code" means the construction codes that were in force at the time of building construction, including plumbing and mechanical codes, electric codes, residential construction codes, energy conservation codes and existing building construction codes, and includes any property maintenance codes, neighborhood preservation codes, anti-blight codes or other similar codes, however denominated. With respect to mobile homes as defined in section 33‑1409, building code means the federal construction codes applicable to homes constructed after June 15, 1976, and the state codes applicable to homes constructed before that date.
2. "Countywide residential rental property inspection program" means any program that includes systematic or periodic inspections of a majority of rental properties in the county that have not been previously found to meet the requirements of section 11‑1702.
3. "Exterior inspection" means the visual inspection of any portion of a residential dwelling unit that can be seen from a public street or other right‑of‑way, or that can be seen from an adjacent property if a complaint or consent is received from the adjacent property owner, lawful resident or lawful tenant.
4. "Initial inspection" means the first inspection of a residential rental dwelling unit after the establishment by ordinance or resolution of a residential rental inspection program.
5. "Interior inspection" means a physical or visual inspection of the interior of a residential rental dwelling unit and other portions of a residential rental dwelling unit that are not visible from a public street, right‑of‑way or neighboring property that is made for the purpose of looking for building code violations.
6. "Mobile home park" has the same meaning prescribed in section 33‑1409.
7. "Multifamily housing" means site built buildings containing residential dwelling units, but does not include mobile home parks.
8. 7. "Owner" means the person, corporation, limited liability company, partnership, limited partnership, trust or real estate investment trust shown on the lawfully recorded title to the property.
9. 8. "Residential dwelling unit" means a building or structure or part of a building or structure that is used for a home or residence by one or more persons who maintain a household, including a mobile home regardless of ownership of the land.
10. 9. "Residential rental dwelling unit" means a dwelling unit that is leased or rented to one or more tenants. A dwelling unit that is occupied in part by the owner of the dwelling unit is not a residential rental dwelling unit unless a tenant occupies a part of the dwelling unit that has its own cooking and sleeping areas, a bathroom and a separate entrance, unless otherwise provided in a zoning ordinance of the county. Residential rental dwelling unit does not include an owner occupied owner‑occupied mobile home in a mobile home park that is not owned by the landlord of the mobile home park or a vacation rental or short-term rental as defined in section 11-269.17.
11. 10. "Residential rental licensing requirement" means a requirement established by a county that property owners or property managers obtain a license or permit from the county, with or without an associated fee, before they can legally engage in the rental of dwelling units in the county.
12. 11. "Residential rental registration requirement" means any requirement established by a county for rental housing owners or managers to submit information to the county as already required to be submitted to the county assessor under section 33‑1902."
Renumber to conform
Page 5, strike lines 38 through 44, insert:
"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."
Page 6, line 24, after the comma strike remainder of line
Strike lines 25 through 38, insert "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.
(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."
Page 7, after line 21, insert:
"Sec. 6. Applicability; definitions
A. Notwithstanding sections 9‑500.39 and 11‑269.17, Arizona Revised Statutes, as amended by this act, a city, town or county may not prohibit the operation of a vacation rental or short‑term rental based solely on its status as a vacation rental or short‑term rental if the owner of the vacation rental or short‑term rental has both of the following:
1. As of May 1, 2020, a valid transaction privilege tax license.
2. As of June 2, 2020, provided the owner's or the owner's designee's contact information to the city, town or county in which the vacation rental or short‑term rental is located, if required by a city, town or county ordinance.
B. Subsection A of this section does not apply if the property on which the vacation rental or short-term rental is located changes title or ownership.
C. For the purposes of this section, "vacation rental" or "short‑term rental" have the same meanings prescribed in section 9‑500.39 or 11‑269.17, Arizona Revised Statutes, as amended by this act."
Amend title to conform