REFERENCE TITLE: short-term rentals; regulation

 

 

 

 

State of Arizona

House of Representatives

Fifty-fourth Legislature

First Regular Session

2019

 

 

HB 2728

 

Introduced by

Representatives Blanc: Andrade, Fernandez, Longdon, Powers Hannley, Rodriguez, Sierra, Teller, Terán, Tsosie, Senators Mendez, Quezada

 

 

AN ACT

 

amending sections 9-500.39, 9-1301, 11-269.17 and 11-1701, arizona revised statutes; relating to local regulation.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 9-500.39, Arizona Revised Statutes, is amended to read:

START_STATUTE9-500.39.  Limits on regulation of vacation rentals and short‑term rentals; state preemption; definitions

A.  A city or town may not prohibit vacation rentals or short-term rentals.

B.  A city or town may not restrict the use of or regulate vacation rentals or short‑term rentals based on their classification, use or occupancy.  A city or town may regulate vacation rentals or short‑term rentals for the following purposes as follows:

1.  Protection of 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.  In the same manner as a business that is subject to the transient lodging classification pursuant to section 42-5070.  This paragraph does not subject the activities of an online lodging marketplace as defined in section 42-5076 to the transient lodging classification prescribed in section 42-5070.

C.  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.

D.  For the purposes of this section:

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

2.  "Vacation rental" or "short-term rental" 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 not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use.END_STATUTE

Sec. 2.  Section 9-1301, Arizona Revised Statutes, is amended to read:

START_STATUTE9-1301.  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:

(a)  An owner occupied mobile home in a mobile home park that is not owned by the landlord of the mobile home park. 

(b)  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. END_STATUTE

Sec. 3.  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.  A county may regulate vacation rentals or short-term rentals for the following purposes as follows:

1.  Protection of 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.  In the same manner as a business that is subject to the transient lodging classification pursuant to section 42-5070.  This paragraph does not subject the activities of an online lodging marketplace as defined in section 42-5076 to the transient lodging classification prescribed in section 42-5070.

C.  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.

D.  For the purposes of this section:

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

2.  "Vacation rental" or "short-term rental" 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 not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use. END_STATUTE

Sec. 4.  Section 11-1701, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1701.  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:

(a)  An owner occupied mobile home in a mobile home park that is not owned by the landlord of the mobile home park.

(b)  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. END_STATUTE