Chapter 5.63 — HOME-SHARING REGULATIONS

For purposes of this chapter, the following words or phrases shall have the following meanings:

(1)

"Booking service" means any reservation and/or payment service provided by a person who facilitates a home-sharing or vacation rental transaction between a host and a prospective guest, and for which the person collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation and/or payment of services provided for the transaction.

(2)

"Home-sharing" means an activity whereby the residents host visitors in their homes, for compensation, for periods of thirty consecutive days or less, while at least one of the dwelling unit's primary residents lives on-site, in the dwelling unit, throughout the visitors' stay.

(3)

"Host" means any person who is an owner, lessee, or sub-lessee of a residential property or unit offered for use as a vacation rental or home-share. Host also includes any person who offers, facilitates, or provides services to facilitate, a vacation rental, or home-share, including but not limited to insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit regardless of whether the person is an owner, lessee, or sub-lessee of a residential property or unit offered for use as a vacation rental or home-

share. Any person, other than an owner, lessee, or sub-lessee, who operates home-sharing or vacation rental activities exclusively on the Internet shall not be considered a host.

(4)

"Hosting platform" means a person who participates in the home-sharing or vacation rental business by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation.

(5)

"Person" means any natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, or organization of any kind.

(6)

"Platform agreement" means a signed agreement between a home-sharing hosting platform and the city, which, among other things, provides that the hosting platform will collect and submit the hotel visitor tax in accordance with Chapter 3.10 of this code to the city on behalf of home-sharing hosts and persons listed for home-sharing.

(7)

"Vacation rental" means rental of any dwelling unit, in whole or in part, within the City of Commerce, to any person(s) for exclusive transient use of thirty consecutive days or less. Exclusive transient use shall mean that none of the dwelling unit's primary residents lives on-site, in the dwelling unit, throughout any visitor's stay. Rental of units located within city-approved hotels, motels, and bed and breakfasts shall not be considered vacation rentals.

(Ord. No. 707, § 3, 4-2-2019)

(a)

Notwithstanding any provision of this code to the contrary, home-sharing shall be authorized in the city, provided that the host complies with each of the following requirements:

(1)

Obtains and maintains at all times a city business license authorizing home-sharing activity.

(2)

Operates the home-sharing activity in compliance with all business license permit conditions, which may be imposed by the city to effectuate the purpose of this chapter.

(3)

Obtains and maintains a visitor occupancy registration certificate pursuant to Chapter 3.10 of this code.

(4)

Collects and remits hotel visitor tax ("HVT"), in coordination with any hosting platform if utilized, to the city and complies with all city HVT requirements as set forth in Chapter 3.10 of this code.

(5)

Takes responsibility for and actively prevents any nuisance activities that may take place as a result of home-sharing activities.

(6)

Complies with all applicable laws, including all health, safety, building, fire protection, and rent control laws.

(7)

Complies with the regulations promulgated pursuant to this chapter.

(b)

All hosts and their respective properties, authorized by the city for home-sharing purposes pursuant to this section, shall be listed on a registry created by the city and updated periodically by the city. The city shall publish the registry, and a copy shall be sent electronically to any person upon request.

(c)

If any provision of this chapter conflicts with any provision of the zoning ordinance codified in Title 19 of this code, the terms of this chapter shall prevail.

(Ord. No. 707, § 3, 4-2-2019)

No host shall undertake, maintain, authorize, aid, facilitate, or advertise any vacation rental activity, or any home-sharing activity that does not comply with Section 5.63.020 of this code. Vacation rentals shall be prohibited in the city.

(Ord. No. 707, § 3, 4-2-2019)

(a)

Hosting platforms shall be responsible for collecting all applicable HVTs and remitting the same to the city. The hosting platform shall be considered an agent of the host for purposes of HVT collections and remittance responsibilities as set forth in Chapter 3.10 of this code. To that end, hosting platforms shall execute a platform agreement with the city.

(b)

Subject to applicable laws, hosting platforms shall disclose to the city on a regular basis each home- sharing and vacation rental listing located in the city, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay.

(c)

Hosting platforms shall not complete any booking transaction for any residential property or unit unless it is listed on the city's registry created under Section 5.63.020 subsection (b), at the time the hosting platform receives a fee for the booking transaction.

(d)

Hosting platforms shall not collect or receive a fee, directly or indirectly through an agent or intermediary, for facilitating or providing services ancillary to a vacation rental or unregistered home-share, including but not limited to insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit.

(e)

The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the city to be in violation of, or preempted by, any such law(s).

(Ord. No. 707, § 3, 4-2-2019)

The city administrator or designee may promulgate regulations, which may include, but are not limited to, permit conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, administrative subpoena procedures or insurance requirements, to implement the provisions of this chapter. No person shall fail to comply with such regulation.

(Ord. No. 707, § 3, 4-2-2019)

The city council may establish and set by resolution all fees and charges as may be necessary to effectuate the purpose of this chapter.

(Ord. No. 707, § 3, 4-2-2019)

(a)

Any host violating any provision of this chapter, or hosting platform that violates its obligations under Section 5.63.040, shall be guilty of an infraction, which shall be punishable by a fine not exceeding two hundred fifty dollars, or a misdemeanor, which shall be punishable by a fine not exceeding five hundred dollars, or by imprisonment in the county jail for a period not exceeding six months or by both such fine and imprisonment.

(b)

Any person convicted of violating any provision of this chapter in a criminal case or found to be in violation of this chapter in a civil or administrative case brought by a law enforcement agency shall be ordered to reimburse the city and other participating law enforcement agencies their full investigative costs, pay all back HVTs, and remit all illegally obtained rental revenue to the city so that it may be returned to the vacation rental or home-sharing visitors or used to compensate victims of illegal short-term rental activities.

(c)

Any host who violates any provision of this chapter, or hosting platform that violates its obligations under Section 5.63.040, shall be subject to administrative fines and administrative penalties provided for in Chapter 1.12 of this code.

(d)

Any interested person may seek an injunction or other relief to prevent or remedy violations of this chapter. The prevailing party in such an action shall be entitled to recover reasonable costs and attorney's fees.

(e)

The city may issue and serve administrative subpoenas as necessary to obtain specific information regarding home-sharing and vacation rental listings located in the city, including but not limited to, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing, and the price paid for each stay, to determine whether the home-sharing and vacation rental listings comply with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty-day period.

(f)

The remedies provided in this section are not exclusive, and nothing in this section shall preclude the use or application of any other remedies, penalties, or procedures established by law.

(Ord. No. 707, § 3, 4-2-2019)