Bill Summary – FastDemocracy

LEGISLATIVE GENERAL COUNSEL                                              H.B. 180
Approved for Filing: R.H. Rees 6                                    st
                                                                          1 Sub. (Buff)
         6 02-19-24 10:24 AM 6
                      Representative Gay Lynn Bennion proposes the following substitute bill:
                           SHORT-TERM RENTAL AMENDMENTS
                                         2024 GENERAL SESSION
                                             STATE OF UTAH
                                 Chief Sponsor: Gay Lynn Bennion
                                    Senate Sponsor: ____________
 6
 LONG TITLE
 General Description:
           This bill enacts provisions regarding short-term residential rentals.
 Highlighted Provisions:
           This bill:
           < requires municipalities and counties that allow short-term rentals and have adopted
 an ordinance or regulation requiring a permit for a short-term rental to consider
 ordinances or regulations to promote the health, safety, and welfare of short-term
 rental occupants;
           < requires the issuance of a permit by a municipality or county and that the State Tax
 Commission issue a sales tax license to operate the short-term rental;
           < provides considerations for a municipality or county issuing a short-term rental
 permit;
           < authorizes municipalities and counties to enact ordinances to ensure compliance        1 stSub. H.B. 180
 with applicable requirements; and
           < imposes requirements and limitations on a licensed and permitted owner of a
 short-term rental.
 Money Appropriated in this Bill:
           None
     *HB0180S01*
       1st Sub. (Buff) H.B. 180                                                 02-19-24 10:24 AM
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 ENACTS:
        10-9a-538, Utah Code Annotated 1953
        17-27a-534, Utah Code Annotated 1953
        57-31-101, Utah Code Annotated 1953
        57-31-201, Utah Code Annotated 1953
        57-31-202, Utah Code Annotated 1953
35
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 10-9a-538 is enacted to read:
        10-9a-538. Short-term rentals.
        (1) As used in this section, "short-term rental" means the same as that term is defined
 in Section 57-31-101.
        (2) A municipality that allows short-term rentals within the municipality and has
 adopted an ordinance or regulation requiring a permit for a short-term rental shall include in the
 ordinance or regulation provisions the municipality considers appropriate to promote the public
 health, public safety, and general welfare of the short-term rental occupants.
        (3) In issuing a permit for a short-term rental, a municipality shall comply with Title
 57, Chapter 31, Short-term Rentals.
        Section 2. Section 17-27a-534 is enacted to read:
        17-27a-534. Short-term rentals.
        (1) As used in this section, "short-term rental" means the same as that term is defined
 in Section 57-31-101.
        (2) A county that allows short-term rentals within an unincorporated area of the county
 and has adopted an ordinance or regulation requiring a permit for a short-term rental shall
 include in the ordinance or regulation provisions the county considers appropriate to promote
 the public health, public safety, and general welfare of the short-term rental occupants.
        (3) In issuing a permit for a short-term rental, a county shall comply with Title 57,
 Chapter 31, Short-term Rentals.
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       02-19-24 10:24 AM                                                        1st Sub. (Buff) H.B. 180
           Section 3. Section 57-31-101 is enacted to read:
                                CHAPTER 31. SHORT-TERM RENTALS
                                          Part 1. General Provisions
           57-31-101. Definitions.
           As used in this chapter:
           (1) "Owner" means the individual who:
           (a) owns the property that is operated as a short-term rental; or
           (b) owns the largest percentage of an interest in a corporation, limited liability
 company, partnership, or other entity that owns the property that is operated as a short-term
 rental.
           (2) (a) "Short-term rental" means any of the following, offered for use as residential
 lodging, in exchange for compensation, for a period of less than 30 consecutive days:
           (i) a single-family residence;
           (ii) a unit of a multi-family residence that is a duplex, triplex, or fourplex;
           (iii) a town home;
           (iv) a condominium unit;
           (v) an accessory dwelling unit, as defined in Section 10-9a-103; or
           (vi) a bedroom, with an egress window, within a structure described in Subsections
 (3)(a)(i) through (v).
           (b) "Short-term rental" does not include:
           (i) a unit within a qualified low-income building, as defined in Section 42(c), Internal
 Revenue Code;
           (ii) a structure for which a certificate of occupancy has not been issued;
           (iii) a space within a structure for which a certificate of occupancy has not been issued;
           (iv) a structure or unit that is sublet;
           (v) a hotel;
           (vi) a motel; or
           (vii) an inn.
           Section 4. Section 57-31-201 is enacted to read:
                                  Part 2. Short-term Rental Requirements
           57-31-201. Permits -- Designated local contact -- Course requirement.
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        1st Sub. (Buff) H.B. 180                                                  02-19-24 10:24 AM
         (1) (a) An owner may not operate a residential property as a short-term rental unless:
         (i) as applicable:
         (A) the municipality in which the proposed short-term rental is located issues the
 owner a permit to operate the short-term rental; or
         (B) the county in whose unincorporated area the proposed short-term rental is located
 issues the owner a permit to operate the short-term rental; and
         (ii) the State Tax Commission issues the owner a sales and use tax license for the
 short-term rental.
         (b) A municipality or county that issues a permit to operate a short-term rental shall
 require the owner of the short-term rental to:
         (i) designate as a local contact for the short-term rental an individual who resides
 within a distance from the short-term rental as determined by the municipality or county;
         (ii) certify that:
         (A) the owner will, during the entire period of operation of the short-term rental,
 maintain a local contact for the short-term rental; and
         (B) the individual designated as a local contact for the short-term rental has not been
 designated as a local contact for a limited number of other short-term rentals, as determined by
 the municipality or county;
         (c) A municipality or county that issues a permit to allow an owner to operate a
 short-term rental shall consider whether:
         (i) the owner and the designated local contact have completed a short-term rental
 education course that is:
         (A) provided by a college, university, or professional organization; and
         (B) approved by the municipality or county that issues the permit; and
         (ii) the applicable municipal or county requirements for obtaining a permit for a
 short-term rental are met.
         (2) A municipality or county may revoke a permit to authorize the operation of a
 short-term rental if:
         (a) an owner fails to maintain for the short-term rental an individual as a local contact
 who lives within a distance of the short-term rental, as determined by the municipality or
 county; or
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        02-19-24 10:24 AM                                                      1st Sub. (Buff) H.B. 180
        (b) an individual designated as a local contact for the short-term rental is designated at
 the same time as a local contact for a limited number of other short-term rentals, as determined
 by the municipality or county.
        (3) A municipality or county may enact ordinances to ensure compliance with the
 requirements of this part.
        (4) An owner shall ensure that the name and telephone number of the designated local
 contact is posted in a conspicuous place within the short-term rental.
        (5) An owner shall include the owner's short-term rental permit number in any listing
 or advertisement that offers the short-term rental for reservation or occupancy.
        Section 5. Section 57-31-202 is enacted to read:
        57-31-202. Safety requirements -- Limitations.
        (1) (a) Subject to Subsection (1)(b) and except as provided in Subsection (1)(c), an
 owner may not allow more than four occupants in a short-term rental described in Subsections
 57-31-101(3)(a)(i) through (v).
        (b) An owner may allow three additional occupants in a short-term rental described in
 Subsection (1)(a) for each additional bedroom after the first bedroom in the short-term rental.
        (c) A municipality or county may exempt a specific short-term rental unit from the
 occupancy limitation provided in Subsection (1)(b).
        (2) An owner shall ensure that a short-term rental has:
        (a) interconnected functioning smoke alarms, with a smoke alarm in each sleeping
 area, a smoke alarm in each hallway leading to a sleeping area, and at least one smoke alarm on
 each level;
        (b) a carbon monoxide alarm on each level; and
        (c) a fire extinguisher on each level with a minimum classification of 2A10BC.
        (3) Except as provided in Subsection (4), an owner may not:
        (a) subdivide an area within a short-term rental into multiple short-term rental units; or
        (b) accommodate more than one reservation at a time in a single short-term rental.
        (4) The municipality or county that issues the permit to a property owner may, after
 inspection of the property, issue an exemption to the requirements of Subsection (3).
        Section 6. Effective date.
        This bill takes effect on May 1, 2024.
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