Move to regulate short-term rentals clears House committee

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A bill that would change zoning for short-term rental platforms cleared its first House panel, despite local officials complaining by the dozens, and despite many in favor saying changes were needed going forward.

The Workforce Development and Tourism Subcommittee approved Jacksonville Republican Rep. Jason Fischer‘s bill (HB 1011) Tuesday afternoon.

The Senate version (SB 1128), filed by Sen. Manny Diaz, has already cleared its first committee.

The bill would change how short-term rentals, such as Airbnb, VRBO, and others are zoned.

This issue has proven contentious in virtually every major metro in Florida that draws tourists, by bringing what Fischer calls “accountability” to the vacation-rental industry.

The proposed legislation protects from local regulation rentals offered via an “advertising platform,” which provides software and online access to listings for “transient public lodging establishment[s]” in the state.

Just as the state regulates public lodging (hotels and motels) and food service establishments, so too would it regulate Airbnb, VRBO, and the like via Department of Business and Professional Regulation (DBPR).

Regulations of such are only permitted if they apply to all properties, including long-term rentals and owner-occupied homes.

Laws passed before June 2011 will be grandfathered. However, laws from the intervening nine years would be limited, Fischer said, with local zoning not just “singling out” short-term rentals.

In turn, owners of rented properties have certain obligations.

Primary among them: A display of their Vacation Rental Dwelling License.

The bill also has provisions that tighten regulations on the short-term rental services themselves.

Among them are requirements for display of license, sales tax, and tourist development tax information.

Quarterly verification is required, along with a stipulation that noncompliant properties are removed from platforms within 15 days.

Additionally, Fischer contends that “audits” of properties, together with the “power of enforcement,” would facilitate tax collection efficiencies.

The measure has proven controversial in the way that perceived legislative erosions of home rule often are. Rep. Tracie Davis described it as a “preemption” bill, and Fischer agreed.

“There are some folks who will scream local control and home rule,” Fischer said, “and nothing can be done to make them happy.”

Indeed, discontent was a running theme during public testimony.

Opposition groups included Florida Silver Haired Legislature and Miami Homes for All, along with a broad cross-section of local leaders from South Florida and representatives of local governments throughout the state, including Flagler County, St. Augustine, and Jacksonville Beach.

As well, the Mayor of Plantation bemoaned “party houses” being rented out in once-quiet family neighborhoods. Other local officials pointed out how short-term rentals have been used to facilitate pornographic films and human trafficking in some cases, and how in others, the terpene-heavy waft of marijuana causes neighbors to despair about failing drug tests at work, an effect that has largely been disproven.

Other concerns: that DPBR, with a staff of six people dedicated to the task, would be outmatched trying to regulate proceedings in the 67 counties.

A lawyer from Monroe County took issue with the grandfathering clause, saying that vacation rentals come at the expense of workforce housing in the Keys.

And speaking on behalf of the Florida Restaurant and Lodging Association, Samantha Padgett said the bill didn’t go far enough with requirements, such as removing problematic listings.

The League of Cities weighed in also, saying that different localities require different solutions.

“HB 1011 should be amended to protect homesteaded and owner-occupied properties by focusing on investor-owned and LLC-run properties that typically bring the majority of public safety incidents,” the group suggested, urging a “partnership with the Department of Business and Professional Regulation” for its member cities on this issue.

The Florida Chamber of Commerce, James Madison Institute, and Florida Realtors, conversely, were among the supportive groups.

Both the House and Senate bills have two committee stops ahead, and what is clear is that public outcry and committee work will bring changes if it is to pass.

“If we do not pass the bill out of committee, it will die and we will not be able to make changes,” asserted Rep. Ana Maria Rodriguez, one of a number of Republicans who voted the bill up despite “concerns.”