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LTC 253-2017 Senate Bill 188 and House Bill 425 (Short Term Rentals)MIAMIBEACH OFFICE OF THE CITY ATTORNEY, Raul J. Aguila, City Attorney LTC No. 253-2017 TO: FROM: DATE: SUBJECT: Mayor Philip Levine Members of the City Commission City Manager Jimmy Morales City Attorney Raul J. Aguil May 12, 2017 Senate Bill 188 and House Bill 425 (Short -Term Rentals) LETTER TO COMMISSION The purpose of this LTC is to notify the Mayor and City Commission of the failure of Senate Bill 188 and House Bill 425 to be enacted into law by the Florida Legislature this year. These two (2) Bills sought to further preempt local governments by nullifying local government vacation rental (short-term) regulations, and mandating that a local referendum be held to maintain the validity of those grandfathered ordinances that were enacted by any local governments prior to June 1,2011. A Brief Legislative History The Florida Legislature originally preempted vacation rental regulation to the State in 2011. This prevented local governments from enacting any new law, ordinance, or regulation that prohibited, restricted the use of, or regulated vacation rentals based on classification, use, or occupancy. The 2011 legislation exempted (grandfathered) any local law, ordinance, or regulation that was enacted by a local government on or prior to June 1, 2011. The Florida Legislature narrowed the preemption authority to the State in 2014, which permitted local governments to regulate vacation rentals, provided those regulations did not prohibit, or regulate the duration or frequency of, the vacation rental. The City enacted its ordinance(s) prior to June 1, 2011, which triggered the grandfather provision set forth in the State statute, and authorized the City to continue its enforcement of those ordinances that prohibited transient rentals or occupancy, as specifically codified in Sections 142-109, 142-905 and 142-1111 of the City Code. The Current Legislative Amendments There were multiple attempts to strengthen the preemption authority of the State in these two (2) Bills during the Legislative session which, if enacted, would have adversely impacted the City's ability to continue to prohibit those illegal transient rentals throughout the City. The proposed legislation would have prohibited the City from enacting, amending or enforcing any of its ordinances for vacation rentals (short-term rentals) that established different regulatory requirements for non -vacation rentals (long-term rentals). Any ordinance that the City would have enacted would have to be uniformly applied to both Tong -term and short-term properties (e.g., minimum time period for rentals, management contact person or renovation requirements as set forth in Sections 142-109 and 142-1111). A committee substitute for HB 425 sought to resurrect a provision that Senator Greg Steube was attempting with SB 188, which was to Letter to Commission Re Senate Bill 188 and House Bill 425 (Short -Term Rentals) May 12, 2017 Page 2 of 2 establish a "one size fits all" concept throughout the entire State of Florida, irrespective of the negative applicability of such an amendment to single family zoning districts. The one notable aspect of the Bill was a provision that required a vacation rental owner to submit a copy of the vacation rental license (the license is issued by the Department of Business and Professional Regulations) to the City. Meaning that, a property owner would be legally required to obtain a license from the State, and provide the City with a copy of the certificate of registration (required under Section 212.18 of the Florida Statutes) setting forth the emergency contact information for the vacation rental property. Regrettably, this provision stated that the "submission of such documents and information is for informational purposes only." It essentially accomplished nothing of benefit to the City. The most troubling provision promulgated by the Legislature was its attempt to nullify the City's grandfather status with respect to Section 142-109, 142-905 and 142-1111. This measure of the failed legislation would have subjected the City's transient rental and occupancy ordinances to a local referendum in order to continue the validity of its grandfather status. The referendum would have required at least two-thirds of the City's electors to vote in support of the referendum in order to ratify the legitimacy of these Ordinances. Conclusion It is anticipated that Senator Steube (and others in the Legislature) will continue their attempts to pursue these measures during the Legislative Session in 2018. The City Attorney's Office strongly recommends that the City maintain an active role in lobbying the Legislature in Tallahassee, in order to properly identify those legal issues surrounding these measures, the negative and detrimental effects on the City's governmental interests, and in particular, any future attempt by the Legislature to preempt the City on the subject matter of vacation rentals. RJA/AB/sc