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Cities and counties have been unable to obtain this information due to the fact that OVRB's pass their <br />responsibility to individual homeowners. This lack of oversight and enforcement presents a gap in <br />accountability, and as a result, local laws and regulations are not being followed. <br />Sen. Mike McGuire's Thriving Communities and Sharing Economy Act (SB 593) will provide local <br />jurisdictions with the data and framework necessary to collect TOT revenues from short-term rentals, to <br />pay for vital local services; or conversely, the data necessary to help cities enforce local regulations <br />designed to ensure the safety of the public and residents living adjacent to short-term rentals, if those <br />rental are not allowed. <br />Specifically, SB 593 would: 1) Prohibit the operators of short-term residential hosting platforms from <br />advertising residential units for tourist or transient use if such use will violate any ordinance, regulation, <br />or law, within the applicable city that opts into the bill's provisions; 2) Require short-term rental housing <br />platforms to collect and remit applicable transient occupancy tax (if short-term rentals are allowed in the <br />city and the collection of TOT is required by the city); and 3) Require the confidential quarterly reporting <br />of the address of each residential unit that was occupied for tourist or transient use during the quarterly <br />period, the total number of nights the residential unit was occupied for tourist or transient use, and the <br />amounts paid for the occupancy of the residential unit for tourist or transient use. <br />The premise of SB 593 is simple: reinforce local laws already on the books. Where vacation rentals are <br />legal, the bill will assist local jurisdictions in their regulation and collection of Transient Occupancy <br />Taxes, (TOT) as more than 430 cities and 56 counties impose a TOT. Where vacation rentals are illegal <br />by local ordinance, the bill will prohibit online vacation rental businesses from making a rental. <br />The Thriving Communities and Sharing Economies Act will empower local control, provide desperately <br />needed funding for parks, local roads, fire and police services, and promote safe neighborhoods. SB 593 <br />will require online vacation rental businesses to disclose information to cities and counties and/or collect <br />and disperse Transient Occupancy Tax dollars — projected to be in the hundreds of millions of dollars <br />statewide. <br />The emerging short term rental industry is an important segment of the state economic fabric and an issue <br />of statewide importance. SB 593 would assist in facilitating a shared economy that will be beneficial to <br />California's cities and their residents. <br />Lea rue of California Cities Staff Analysis on Resolution N . 3 <br />Staff: Dan Carrigg <br />Committees: Housing, Community & Economic Development; Revenue & Taxation <br />Summary: <br />This Resolution seeks to highlight and increase support for SB 593 (McGuire), which is pending in the, <br />Legislature. SB 593, titled the Thriving Communities and Sharing Economy Act, seeks to bolster local <br />efforts to regulate and collect transient occupancy taxes from the temporary rental of residential houses, <br />condominiums, rooms, and apartments for tourists and transient use. The League is currently in support <br />of this legislation. <br />Badkraraund: <br />The City of West Hollywood and other cities are sponsoring the resolutioTi in an effort to cacpand <br />awareness of the issue among cities and encourage additional support for SB 593. They view the <br />15 <br />