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SB-1049 Cities and counties: ordinances: short-term rentals.(2019-2020)

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Date Published: 05/29/2020 09:00 PM
SB1049:v98#DOCUMENT

Amended  IN  Senate  May 29, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1049


Introduced by Senator Glazer
(Principal coauthor: Assembly Member Bauer-Kahan)

February 18, 2020


An act to add Section 36902 to amend Sections 25132 and 36900 of the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


SB 1049, as amended, Glazer. Local Cities and counties: ordinances: short-term rentals.
Existing law authorizes the legislative body of a city or a county to make, by ordinance, any violation of an ordinance subject to an administrative fine or penalty and limits the maximum fine or penalty amounts for infractions, to $100 for the first violation, $200 for a 2nd violation of the same ordinance within one year of the first violation, and $500 for each additional violation of the same ordinance within one year of the first violation. Existing law also sets specific monetary limits on the fines that may be imposed by city or county authorities for any violation of local building and safety codes that is an infraction, as prescribed. Existing law requires a city or county levying fines pursuant to these provisions to establish a process for granting a hardship waiver in certain cases.
This bill would authorize the legislative body of a city or county, for the violation of a short term rental ordinance that is an infraction, to impose a fine not exceeding $1,500 for a first violation, $3,000 for a 2nd violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation. The bill would define “short term rental” for purposes of these provisions to mean a residential property that is not a hotel or motel that is rented to a visitor for fewer than 30 consecutive days or less. The bill, with respect to cities, would also make these violations subject to the process for granting a hardship waiver.

Existing law authorizes a city legislative body to impose fines, penalties, and forfeitures for violations of ordinances, provided that a fine may not exceed $1,000.

This bill would authorize a city legislative body to impose a fine of up to $5,000 for a violation of a short-term rental ordinance. The bill would define “short-term rental” for these purposes as a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform where the rental is advertised and payments for the rental are securely processed.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 25132 of the Government Code is amended to read:

25132.
 (a) Violation of a county ordinance is a misdemeanor unless by ordinance it is made an infraction. The violation of a county ordinance may be prosecuted by county authorities in the name of the people of the State of California, or redressed by civil action.
(b) Every violation that is an infraction is punishable by the following:
(1) A fine not exceeding one hundred dollars ($100) for a first violation.
(2) A fine not exceeding two hundred dollars ($200) for a second violation of the same ordinance within one year of the first violation.
(3) A fine not exceeding five hundred dollars ($500) for each additional violation of the same ordinance within one year of the first violation.
(c) Notwithstanding any other law, a violation of local building and safety codes that is an infraction is punishable by the following:
(1) A fine not exceeding one hundred thirty dollars ($130) for a first violation.
(2) A fine not exceeding seven hundred dollars ($700) for a second violation of the same ordinance within one year of the first violation.
(3) (A) A fine not exceeding one thousand three hundred dollars ($1,300) for each additional violation of the same ordinance within one year of the first violation.
(B) A fine not exceeding two thousand five hundred dollars ($2,500) for each additional violation of the same ordinance within two years of the first violation if the property is a commercial property that has an existing building at the time of the violation and the violation is due to failure by the owner to remove visible refuse or failure to prohibit unauthorized use of the property.
(d) A county levying a fine pursuant to paragraphs (2) and (3) of subdivisions (b) and (c) shall establish a process for granting a hardship waiver to reduce the amount of the fine upon a showing by the responsible party that the responsible party has made a bona fide effort to comply after the first violation and that payment of the full amount of the fine would impose an undue financial burden on the responsible party.
(e) (1) Notwithstanding any other law, including subdivisions (b),(c), and (f), a violation of the short term rental ordinance that is an infraction is punishable by the following:
(A) A fine not exceeding one thousand five hundred dollars ($1,500) for a first violation.
(B) A fine not exceeding three thousand dollars ($3,000) for a second violation of the same ordinance within one year.
(C) A fine not exceeding five thousand dollars ($5,000) for each additional violation of the same ordinance within one year of the first violation.
(2) For purposes of this section, “short term rental” means a residential property that is not a hotel or motel that is rented to a visitor for fewer than 30 consecutive days or less.

(e)

(f) (1) Notwithstanding any other law, including subdivisions (b) and (b), (c), and (e), a violation of an event permit requirement that is an infraction is punishable by the following:
(A) A fine not exceeding one hundred fifty dollars ($150) for the first violation of an event permit requirement.
(B) A fine not exceeding seven hundred dollars ($700) for a second occurrence of the same violation of an event permit requirement by the same owner or operator within three years of the first violation.
(C) A fine not exceeding two thousand five hundred dollars ($2,500) for each additional occurrence of the same violation of an event permit requirement by the same owner or operator within three years of the first violation.
(2) (A) For purposes of this subdivision, “violation of an event permit requirement” means failure to obtain a permit required for a professionally organized special event on private property that is commercial in nature, or from which the owner or operator derives a commercial benefit.
(B) For purposes of this paragraph, the following definitions apply:
(i) “Commercial in nature” means that a primary purpose of the special event is to derive an economic benefit resulting from the holding of the event through admission charges or sales of merchandise that occur as part of the event.
(ii) “Commercial benefit” means any remuneration received in exchange for allowing the property on which the event occurs to be used for the event, including any remuneration that results from the rental of the property for a term of less than 31 consecutive days.

SEC. 2.

 Section 36900 of the Government Code is amended to read:

36900.
 (a) Violation of a city ordinance is a misdemeanor unless by ordinance it is made an infraction. The violation of a city ordinance may be prosecuted by city authorities in the name of the people of the State of California, or redressed by civil action.
(b) Every violation determined to be an infraction is punishable by the following:
(1) A fine not exceeding one hundred dollars ($100) for a first violation.
(2) A fine not exceeding two hundred dollars ($200) for a second violation of the same ordinance within one year.
(3) A fine not exceeding five hundred dollars ($500) for each additional violation of the same ordinance within one year.
(c) Notwithstanding any other provision of law, a violation of local building and safety codes determined to be an infraction is punishable by the following:
(1) A fine not exceeding one hundred thirty dollars ($130) for a first violation.
(2) A fine not exceeding seven hundred dollars ($700) for a second violation of the same ordinance within one year.
(3) (A) A fine not exceeding one thousand three hundred dollars ($1,300) for each additional violation of the same ordinance within one year of the first violation.
(B) A fine not exceeding two thousand five hundred dollars ($2,500) for each additional violation of the same ordinance within two years of the first violation if the property is a commercial property that has an existing building at the time of the violation and the violation is due to failure by the owner to remove visible refuse or failure to prohibit unauthorized use of the property.
(d) (1) Notwithstanding any other law, including subdivisions (b) and (c), a violation of a short term rental ordinance that is an infraction is punishable by the following:
(A) A fine not exceeding one thousand five hundred dollars ($1,500) for a first violation.
(B) A fine not exceeding three thousand dollars ($3,000) for a second violation of the same ordinance within one year.
(C) A fine not exceeding five thousand dollars ($5,000) for each additional violation of the same ordinance within one year of the first violation.
(2) For purposes of this section, “short term rental” means a residential property that is not a hotel or motel that is rented to a visitor for fewer than 30 consecutive days or less.

(d)

(e) A city levying a fine pursuant to paragraphs (2) and (3) of subdivisions (b) and (c) (c), and paragraph (1) of subdivision (d), shall establish a process for granting a hardship waiver to reduce the amount of the fine upon a showing by the responsible party that the responsible party has made a bona fide effort to comply after the first violation and that payment of the full amount of the fine would impose an undue financial burden on the responsible party.

SECTION 1.Section 36902 is added to the Government Code, to read:
36902.

(a)Notwithstanding Section 36901 or any other law, a city legislative body may impose a fine of up to five thousand dollars ($5,000) for each violation of a short-term rental ordinance.

(b)For purposes of this section, “short-term rental” means a residential property that is rented to a visitor for fewer than 30 days through a centralized online platform where the rental is advertised and payments for the rental are securely processed.