ORDINANCE NO. 1719
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ADDING CHAPTER 5. 84 TO TITLE 5 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING
LICENSING OF SHORT- TERM LODGING UNITS AND FINDING THE
ORDINANCE IS NOT A PROJECT SUBJECT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Laguna Beach, California (" City") is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, from a land use perspective, the City regulates short- tem lodging units pursuant to Chapter 25.3 of the Laguna Beach Municipal Code (" Municipal Code") to mitigate adverse impacts in zoning districts that allow residential uses posed by short- tem lodgings and to preserve the City' s existing rental housing stock consistent with the City' s General Plan; and
WHEREAS, Chapter 25.3permits certain short- temlodging units within specified zones subject to approval of an Administrative Use Permit or Conditional Use Permit, Transient Occupancy Registration Certificate from the City, and compliance with other requirements of that Chapter; and
WHEREAS, nothing herein proposes to change, alter, or otherwise modify the obligations of Chapter 25.3 and the land use obligations and controls relating to short- tem lodging units therein described; and
WHEREAS, owners of short- temlodging units must also obtain a valid business license, as required by Chapter 5. 05 of the Municipal Code; and WHEREAS, the Laguna Beach Tourism Marketing District (" LBTMD") seeks renewal of the district and its revised Master Plan, which if approved by the City Council later this spring, would become effective on July 1, 2025, to provide specific benefits directly to subject businesses by virtue of an annual specified assessment rate of gross short- tem rental, revenue as may be requested by the LBTMD and if approved by the City Council; and WHEREAS, if the renewed LBTMD is approved by the City Council with a specified assessment rate as may later be determined, and if the LBTMD Master Plan specifies the assessment shall apply to all short- tem lodging rentals, then the LBTMD assessment is further intended to be collected and remitted pursuant to the terms of Chapter 5. 84, as further described below; and
WHEREAS, the City seeks to add Chapter 5. 84 to the Municipal Code to establish a licensing system that complements the existing short- tem lodging unit zoning regulations in Chapter 25.3 to aid in increasing enforcement efforts against unlawful short- tem lodging units, to enhance collection and remittance of applicable transient occupancy tax (" TOT") and, if applicable, LBTMD assessments, and to introduce a nuisance response plan for prompt responses to complaints, among other things ( the " Ordinance"); and WHEREAS, if the Ordinance is approved, owners of short- tem lodging units will continue to be required to obtain a business license, a Transient Occupancy Registration Certificate, and an Administrative Use Permit or Conditional Use Permit as required under Chapter
25.3 of the Municipal Code; and
WHEREAS, owners will additionally need to obtain a short- tem lodging unit license; and WHEREAS, online hosting platforms facilitating bookings will be required to secure a valid business license from the City to operate legally under this Ordinance and will further be obligated to remove unauthorized short- tem lodging units, consistent with the terms of the Ordinance; and
WHEREAS, all legal prerequisites to the adoption ofthis Ordinance have been met, including but not limited to that, in accordance with Government Code section 36934, the title of this Ordinance Ord. 1719
was included on the published agenda for the introduction and passage and a copy of the full
Ordinance was made available to the public online and in print at the meeting prior to the introduction and passage.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The above recitals are hereby adopted by the City Council and incorporated as set forth in this section.
SECTION 2. Amendment. Chapter 5. 84 is hereby added to Title 5 ( Business — Taxation, Licensing) of the Laguna Beach Municipal Code to read as follows:
CHAPTER 5. 84 SHORT- TERM LODGING UNITS
5. 84. 010 Authority and Purpose
5. 84. 020 Definitions.
5. 84. 030 License Required.
5. 84. 040 License Applications.
5. 84. 050 Fees.
5. 84. 060 Licensed Occupancy.
5. 84. 070 Nuisance Response Plans.
5. 84. 080 Notice of Nuisance Response Plans.
5. 84. 090 Approval of License; Grounds for Denial, Suspension, or Revocation.
5. 84. 100 Performance Standards.
5. 84. 110 Appeals.
5. 84. 120 Surety Bonds.
5. 84. 130 Cessation of Use of a Property as Short -Term Lodging Unit.
5. 84. 140 Short -Term Rental Facilitator Responsibilities.
5. 84. 150 Violations.
5. 84. 160 Owner Reporting and Remittance Requirements.
5. 84. 170 Consistency with Existing Regulations.
5. 84. 010 Authority and Purpose.
This Chapter is adopted pursuant to the police powers of the City for the purpose of requiring the owner or owners of short- tem lodging units to apply for and secure a license expressly authorizing such use in the manner provided for by this Chapter. The City seeks to enhance oversight of short - Ord. 1719
term lodging unit operations by establishing a short- tem lodging unit licensing system to enhance accountability for visitors, hosts, and online hosting rental facilitators.
5.4. 020 Definitions.
The definitions set forth in this Section shall govern the meaning and construction of the words and phrases used in this Chapter, except where the context of such words and phrases clearly indicates a different meaning or construction:
A) "City" means the City of Laguna Beach.
B) "City Manager" means the City Manager of the City of Laguna Beach or their designee.
C) "Code" or " Municipal Code" means the Laguna Beach Municipal Code.
D) "Good Neighbor Brochure" has the same meaning as defined in Section 25.3. 020 of this Code.
E) "LBTMD" means the Laguna Beach Tourism Marketing District.
F) "License Administrator" means the Finance Director of the City or such other City employee as may be designated by the City Manager to administer the provisions of this Chapter. The license administrator shall have the authority to make interpretations and to promulgate guidelines in order to facilitate orderly administration of this Chapter.
G)" Lodging Unit" or " Residential Unit" has the same meaning as defined in Section
25.3. 020 of this Code.
H) "Owner of a Short -Term Lodging Unit," " Owner," or "Host" means the person or persons holding fee title to a residential unit operated and used as a short- tem lodging unit, or a person or persons holding the lease estate to a residential unit that allows for short- tem lodging use and operating and using the leased residential unit as short- tem lodging unit, or the authorized agents acting on behalf of such persons, including operators of shortterm lodging units.
I) "Person" has the same meaning as defined in Section 25.3. 020 of this Code.
J) "Short -Term" has the same meaning as defined in Section 25.3. 020 of this Code.
K)" Short- termrental facilitator" means a person or entity who facilitates for consideration, regardless of whether it is collected or deducted as a fee from the transaction, the rental for occupancy of a short- tem lodging unit through a marketplace that, directly or indirectly through an agent or intermediary, authorizes a booking transaction for the rental or otherwise provides a listing of short- tem lodging units for rent. Examples include, but are 4- Ord. 1719
not limited to, VRBO. com, Airbnb. com, homestay. com, and other internet and nonintemet based services that facilitate bookings for a fee.
L) "TOT" means transient occupancy tax as regulated under Chapter 5. 05 of this M) Code.
5. 84. 030 License Required.
A) No owner or owners of a short- tem lodging unit shall rent, offer to rent, or advertise for rent a short- tem lodging unit to another person without ( i) a license approved and issued in the manner provided for by this Chapter, which must be maintained in good order; and ii) complying with the provisions of Title 5 and Chapter 25.3 of this Code and obtaining and maintaining in good order all permits, certificates, and licenses required therein and complying with any and all other local, state and federal laws. 1) A short- tem lodging unit license shall be valid from the date upon which it is first issued and shall expire upon the same date as the expiration, or earlier termination, ofthe Administrative Use Permit or Conditional Use Permit, as appropriate, applied for and obtained pursuant to Chapter 25. 23, unless sooner revoked in compliance with this Chapter. A license under this Section does not confer any rights to any person for more than the above -referenced period.
2) No short- tem lodging unit license shall be renewed automatically. A short- tem lodging unit license may be renewed through reapplication pursuant to this Chapter, but may not be renewed until the renewal of the applicable to Administrative Use Permits or Conditional Use Permits is first granted, under Chapter 25.3, . Nothing herein shall relieve any person of the requirements and obligations set forth in Chapter 25.3. It shall be the responsibility of the Owner to renew the license in compliance with this Chapter.
3) Subject to Section 5. 84. 030( A)( 1) and ( 2), the Owner shall submit an updated application or renewal form and any applicable fee to the License Administrator at least thirty ( 30 days) prior to the expiration date of the license. Upon timely submission of renewal, the license will remain effective until the license is renewed or denied. Failure to timely submit an application and renewal fee for renewal of an existing license may be deemed operating without a license and in violation of this Chapter, upon expiration of the then -issued license or unless sooner revoked.
Applications for renewal shall be in a form required by the License Administrator and include updates of all information required or submitted for the license.
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4) A short- tem lodging unit license shall be issued only to the Owner, who must also be the person listed on the permits, certificates, and licenses required by Chapter
25.3 and Title 5 of this Code.
5) A short- tem lodging unit license may not be transferred from one person to another. A short- tem lodging unit license does not run with the land and does not grant the Owner any vested right to operate as a short- tem lodging unit. Any change to the organizational structure of the owner or any change of ownership of the short- tem lodging unit requires a new short- tem lodging unit license.
5. 84. 040 License Applications.
A)pplications for a license required by this Chapter shall be submitted by an owner, in a form approved by the License Administrator, containing all information required by the License Administrator, including the following:
1) A nuisance response plan containing the information required by this Chapter; 2) A Transient Occupancy Registration Certificate, as required by Chapter 25.3 and issued by the City pursuant to Chapter 5. 05 of this Code; 3) A surety bond in the amount of $ 1, 500. 0 issued by a responsible surety company
and in the form approved by the City Attorney and required by this Chapter; 4) A license application fee in an amount established in the manner provided for by this Chapter; and
5) A written declaration affirming that, at least 30 days prior to issuance of the license, occupants of all residences and businesses located within 200 feet of the proposed short- tem lodging unit have been notified of the proposed license and have been informed. This notification must be in writing in a form pre - approved by the City detailing the proposed use and including the contact information of the Owner, from whom the City can seek additional information or register concerns or objections. 6) Any other information and/ or additional forms deemed necessary by the License Administrator, City Manager, or other departments to which the application for a license is referred.
B) The owner shall provide a notice of issuance of the short- tem lodging unit license to everyone who files a written request for such notice.
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5. 84. 050 Fees.
All fees set forth in this Chapter, including any license or renewal application fees and the fees charged incident to the amendment of a nuisance response plan, shall be established by the City Council by resolution.
5. 84. 060 Licensed Occupancy.
Every license issued by the City under this Chapter shall specify the maximum number of overnight occupants allowed at the short- tem lodging unit and the maximum number of vehicles associated with the overnight occupancy of the short- tem lodging unit which can be parked at the property in accordance with the occupancy and parking standards set forth in Section 25.3. 040 of this Code.
5. 84. 070 Nuisance Response Plans.
A) No owner of a short- tem lodging unit be granted a license under this Chapter without first submitting a nuisance response plan approved by the City. Each nuisance response plan accompanying an application for a license required by this Chapter shall contain the following information and otherwise be in a form required by the License Administrator:
1) The mailing address and telephone number of the owner of the residential unit or units to be used as a short- tem lodging unit pursuant to the license. 2) In accordance with Section 25.3. 040( F), the name, address, and telephone number of the person( s) who will be available by telephone, and who will be responsible for promptly responding to or causing a prompt response to a nuisance complaint arising out of the occupancy or use of the short- tem rental( s) by tenants, their visitors and/ ortheir guests. For the purposes of this Chapter, a return telephone call to a complainant within 60 minutes of the initial complaint shall be deemed prompt."
i) No more than a total of three persons shall be designated in the response plan as a person responsible for responding to or causing a response to a nuisance complaint; and
ii) Only one such person shall be designated as the person responsible for responding to a nuisance complaint during any particular hours of the day, different days in a week, and/ or different weeks of the year. 3) The manner of responding to or causing a
response to a nuisance complaint,
including, but not limited to, the manner in which the complainant or complainants Ord. 1719
will be notified of the response and the method of documenting prompt responses and timely corrective action.
4) The manner of assuring timely corrective action to remedy the conditions that caused the nuisance complaint. For the purposes of this Chapter, "timely corrective action" shall include, at a minimum, a telephone call to the primary adult occupant of the short- tem lodging unit within 60 minutes of the initial nuisance complaint.
In addition to the initial contact, the owner or designated agent shall:
i) Document the Complaint and Response: Maintain a written or digital record of the complaint, including the date, time, nature of the complaint, name of the complainant (ifprovided), and the time and method of response.
This record shall be made available to the City upon request. ii) Verify Issue Resolution: After contacting the primary occupant, the owner or designated agent must verify that corrective actions were taken to address the nuisance ( e.g., reduction of noise, removal of unauthorized vehicles).
This may include follow- up communication with the complainant, if appropriate.
iii) Escalation Procedures: If the issue persists after the initial corrective action, the owner or designated agent must take further steps to resolve the nuisance, which may include an on - site visit or contact law enforcement if necessary. Persistent violations may trigger enforcement actions under this Chapter.
iv) Reporting to the City: In cases where the nuisance complaint results in intervention beyond an initial phone call ( e.g., repeat complaints, law enforcement involvement), the owner must notify the City within 48 hours and include a
summary of the incident and corrective actions taken.
5) The number of off- street parking spaces, maximum number of allowed overnight occupants, and number of bedrooms available at the short- tem lodging unit, as authorized pursuant to the use permit granted pursuant to Chapter 25.3.
B) At any time, the owner of a short- tem lodging unit may request to change the content of the nuisance response plan approved incident to the issuance of the license by filing an amended nuisance response plan with the License Administrator, in accordance with this Chapter. Such amended nuisance response plan shall contain all of the information and be in the form required by this Section and shall be accompanied by an amended response plan fee in an amount established in the manner provided for by this Chapter.
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5. 84. 080 Notice of Nuisance Response Plans.
Prior to occupancy of the short- tem lodging unit and promptly following the approval and issuance of a license required by this Chapter, or the approval of an amended nuisance response plan in the manner provided for by this Chapter, the owner shall provide proof satisfactory to the License Administrator that the nuisance response plan has been mailed by first class mail addressed to the owner or occupant of every property, any part of which is located within a 200 - foot radius of the property that is to be used and occupied as a short- tem lodging unit, pursuant to such license.
5. 84. 090 Approval of License, Grounds for Denial, Suspension or Revocation.
A) Upon receipt of an application for a license required by this Chapter, the License Administrator will review the application and supporting documents and will approve and issue a license to the owner of the short- tem lodging unit that is the subject of the application. The license authorizes the use and occupancy of such property as a short- tem lodging unit if the License Administrator finds that the required application fee has been paid, that the requirements of the short- tem lodging unit license application as set forth in this Chapter have been satisfied, and that the nuisance response plan and surety bond submitted with the application conform to the City' srequirements.
B) Notwithstanding the preceding paragraph:
1) Issuance of a short- tem lodging unit license under this Chapter does not constitute approval, or aright to approval, of any other license, certificate, permit, or entitlement required under State law or this Code to rent, offer to rent, or advertise for rent a short- tem lodging unit to another person.
2) The License Administrator is hereby authorized to promulgate written requirements and policies relating to operations of short- tem lodging units to implement the intent of this Chapter and may amend them from time to time as the License Administrator deems appropriate. Those requirements shall include, but are not limited to, the performance standards, as set forth in Section 5. 84. 100. Noncompliance with those requirements and standards may result in revocation of a license, as determined by the license administrator, in consultation with the City Attorney, and shall be conducted pursuant to the procedures as further set forth in this Chapter.
3) A license shall be denied if a short- tem lodging unit license issued to the owner or for the property has been suspended or revoked in the prior three years.
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4) A license application shall not be processed while an enforcement action by the City for violations of this Chapter or any section ofthe Code is pending, unless the approval is required to resolve the enforcement action. 5) No license shall be renewed unless all City fees and taxes owed by the applicant are paid in full, including the renewal fee.
C) In addition to any other remedy provided by this Chapter, a license issued pursuant to this Chapter may be suspended, modified, or revoked for a violation of this Chapter, for a violation of any other law on the premises of the short- tem lodging unit, or for the maintenance of such other condition as may be shown to be injurious to the public health and safety. Revocation proceedings may be initiated by the City Manager or City Attorney and shall be conducted pursuant to the procedures set forth in Section 5. 84. 110.
5. 84. 100 Performance Standards.
Each owner, and each tenant or occupant of a short- tem lodging unit, shall at all times comply with or cause compliance with the performance standards applicable to short- tem lodging units they own, lease, or occupy, as established by this Section.
A) The owner shall ensure that the short- tem lodging unit complies with all current applicable codes regarding fire, building and safety, and all other relevant laws and ordinances.
B) No person shall list, offer to rent, or advertise for rent a short- tem lodging unit without including in the listing, offer, or advertisement the license number issued pursuant to this Chapter. On any listing, offer, or advertisement, the City license number applicable to the short- tem lodging unit property issued pursuant to this Chapter shall be displayed in the form " Laguna Beach License No. " The short- tem lodging unit license number must be displayed in a readable font size, which may be adjusted to fit the format of the hosting platform, provided it remains legible to the average user.
C) The owner shall require the primary overnight and daytime occupant of the short- tem lodging unit to be an adult 18 years of age or older. This adult shall provide a telephone number to the owner and shall be accessible to the owner by telephone at all times.
D) Prior to occupancy, the owner shall obtain the name, address, and driver' s license number or a
copy ofthe passport of the primary adult occupant of the short- tem lodging unit. The owner shall require that adult to sign a formal acknowledgement that he or she is legally responsible for compliance of all occupants of the short- tem lodging unit or their guests with all provisions of this Chapter. This information shall be provided by the responsible party identified in the nuisance response plan upon request of any police officer or employee of the City authorized to enforce this Chapter or State law. 10- Ord. 1719
E) The owner shall limit overnight occupancy of the short- tem lodging unit to a specific number of occupants, in accordance with Section 25.3. 040( A) of this Code.
F) The owner shall limit the number of vehicles associated with the overnight occupancy of the short- tem rental in accordance with Section 25.3. 040( B) of this Code.
G) Each lease or rental agreement for a short- tem lodging unit shall include the following terms, notifications, and disclosures, which terms shall also be posted in a conspicuous location inside the unit:
1) The maximum number of overnight occupants and day use visitors that are permitted.
2) The maximum number of vehicles that overnight occupants may park at the shortterm rental. 3) Notification that on -street parking is extremely limited in some areas of the City. 4) The trash pick- up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property. 5) Notification that the occupant may be cited or fined by the City and/ orimmediately evicted by the owner pursuant to State law, in addition to any other remedies available at law, for violating any other provisions of this Chapter. 6) Notification that failure to conform to the occupancy requirements of the short- tem lodging unit is a violation of this Chapter.
7) Notification that amplified sound, including radios, televisions and other electronic devices are subject to the City' s
Noise Ordinance as set forth in Chapter 7. 25 of
this Code.
8) A prohibition on illegal loud parties, along with notification of the City' sright to recover the costs of special enforcement needed to address certain loud parties. 9) The name of the managing agency, agent, rental manager, local contact person, or owner of the unit, and a telephone number at which that party may be reached at all times.
10) A
copy of the Good Neighbor Brochure which may from time to time be prepared by the License Administrator. These guidelines may include location - specific information, such as neighborhood quiet hours, local speed limits, and the prohibition of fires and fireworks in beach areas.
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11) Notification that the property is part of the City of Laguna Beach' s Short - Term Lodging Unit Program.
12) A copy of this Chapter ofthe Laguna Beach Municipal Code, as it may be amended from time to time.
H) Upon receipt of a nuisance complaint or upon notification of an allegation that any occupant or guest of the short- tem lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of the Laguna Beach Municipal Code or any State law, the owner shall promptly respond and take timely corrective action in accordance with the nuisance response plan to prevent a recurrence of such conduct by those occupants or guests. Failure of the owner to respond promptly or to take timely corrective action regarding the condition, operation, or conduct of occupants of the short- tem lodging unit shall be a violation of this Chapter. An owner is not required or authorized to act as a peace officer or to intervene in situations that pose a risk to personal safety. The owner, or his or her agent, shall maintain records of the name, violation, date, and time of each complaint, disturbance, response, and corrective action.
I) The owner shall cause a
copy of the nuisance response plan to be posted in a conspicuous place within the property being rented or otherwise occupied.
J) The owner shall annually provide to the license administrator written confirmation of compliance with all elements of the performance standards and the approved nuisance response plan and confirming that the nuisance response plan is current and accurate.
K) These performance standards may be modified by the license administrator upon request of the owner based upon site - specific circumstances for the purpose of allowing reasonable accommodation of a short- tem lodging unit occupant as may be required by State or Federal disability laws. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short- tem lodging unit would not be allowed.
L) Listings advertising minimum stays of 31 days but found to be rented for shorter durations may be considered presumptively noncompliant. Owner shall ensure that all displays, website pop- up, calendar functions or any other website displays are consistent. The burden shall be on the owner to demonstrate lawful rental durations.
5.4. 110 Appeals.
Any party may file a written request with the City Clerk for a hearing before the City Manager or designee within 10 days following a decision by the License Administrator to grant, deny, or revoke a short- tem lodging unit license. All appeals must be accompanied by payment of the 12- Ord. 1719
required fee established by City Council resolution. The public shall be provided notice of the hearing consistent with the requirements of this Code. The hearing shall be opened no more than 45 days following the request for hearing being received by the City. A decision shall be made by the City Manager or designee within 10 days of the hearing. The decision of the City Manager shall be final.
5. 84. 120 Surety Bonds.
A) Each surety bond accompanying an application for a license required by this Chapter shall be issued by a surety licensed to do business in the State of California that has an A. M.
Best Financial Strength Rating of at least " A-", shall name the City as the bond obligee, and shall be conditioned on the payment of any administrative fine assessed in the manner provided for by Chapter 1.5 of this Code within the time provided for therein if:
1) The administrative fine was assessed either against the licensee or against any tenant or other person occupying or using the short- tem lodging unit operated pursuant to such license; and
2) Arose out of a violation of this Chapter, or the occupancy or use of such short- tem lodging unit in a manner that violated any provision of this Code.
B) At any time following the issuance of a license required by this Chapter, the licensee may file a substitute surety bond with the license administrator issued by a surety that meets the requirements of this Section. Upon determining that such substitute bond conforms to such requirements, the license administrator shall return the bond being replaced by the substitute surety bond to the licensee.
5. 84. 130 Cessation of Use of a Property as Short -Term Lodging Unit.
Where the owner of property used and occupied as a short- tem lodging unit pursuant to a license approved and issued in the manner provided for by this Chapter determines to cease such use, the property owner shall promptly cause a notice of such determination to be filed with the License Administrator. Within 30 days following confirmation that there are no pending enforcement actions arising from violations of this Chapter, the License Administrator shall return the surety bond provided to the City to the licensee.
5. 84. 140 Short -Term Rental Facilitator Responsibilities.
A) A short- tem rental facilitator must have a current, valid business license from the City to facilitate any booking for a short- tem lodging unit within the City, if such license is required under Chapter 5. 08 ofthis Code. This requirement applies to all short- tem rental platforms and facilitators operating in the City, regardless of size or market share.
B) A short- tem rental facilitator that facilitates bookings for any short- tem lodging unit in the City shall provide a mandatory field in which a host or owner must enter their respective 13- Ord. 1719
short- tem lodging unit license for the property prior to listing a short- tem lodging unit on its platform or marketplace. The short- tem rental facilitator shall cause the short- tem lodging unit license to be visible to any person viewing the listing for the specified property, in the form required by Section 5. 84. 100( B), above. The short- tem lodging unit license number shall be no longer than fifteen ( 15) characters and may be alphanumeric, as determined by the City.
C) Before allowing an owner to list a short- tem lodging unit on its platform, a short- tem rental facilitator shall advise the owner of the following:
1) The City regulates short- tem lodging units. Short- tem lodging units are only allowed in accordance with Chapter 5. 84 and Chapter 25.3 of the Laguna Beach Municipal Code.
2) A short- tem lodging unit in Laguna Beach is only legal if the owner has a valid short- tem lodging unit license issued by the City pursuant to Chapter 5. 84, business license issued by the City, and Administrative Use Permit or Conditional Use Permit as required by Chapter 25.3 of the Laguna Beach Municipal Code. 3) The owner must provide a valid short- tem lodging unit license number issued under this Chapter in the listing, or the listing must be taken down. 4) Failure to provide a valid short- tem lodging unit license number with the listing may also subject the owner to civil and criminal enforcement action by the City, in addition to restrictions by the short- tem rental facilitator.
D) Subject to all applicable laws, short- tem rental facilitators shall, upon written request by the City, promptly disclose to the City each short- tem lodging unit listing located in the City, the short- tem lodging unit license, the host ID, listing ID, names of the persons responsible for each such listing, the address of each such listed property, the length of each stay for each such listing (with dates), the price paid for each stay, and such other information necessary for the City to identify the property to both ensure compliance with its laws regulating short- tem lodging units and effectively enforce the payment of TOT and LBTMD assessments.
E) If, in the course of facilitating a booking transaction, a short- tem rental facilitator collects rent and applicable federal, state, and local taxes from a guest, the short- tem rental facilitator must also collect and, at least quarterly, remit the following to the City:
1) TOT, in accordance with the requirements of Chapters 5. 05 and 25.3 of this Code; and
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2) If the Laguna Beach Tourism Marketing District ( LBTMD) is renewed and applies to short- tem lodging, a short- tem rental facilitator hosting platforms shall be required to collect and remit both TOT and LBTMD assessments from guests, subject to City approval and applicable law.
3) TOT and LBTMD returns shall be confidential taxpayer information subject to
5. 05.70 of the Laguna Beach Municipal Code and shall not be divulged to any other department or official of the locality or any other political subdivision. Such information shall be used by Laguna Beach City officials only for local TOT/ LBTMD purposes only.
F) Subject to all applicable laws, the City may require an audit or other examination of the records of the short- tem rental facilitator documenting the receipt of the local tax and/ or assessment due and payable to the City. Any costs associated with such audit or examination shall be paid for by the City.
G), In the event a short- tem rental facilitator does not collect any applicable federal, state, and local taxes from a guest, the short- tem rental facilitator must display a general notice stating that transient occupancy taxes and applicable assessments ( such as LBTMD) may apply. This requirement may be satisfied by providing a link to the City' s designated website that includes current information on TOT and LBTMD rates and collection obligations.
H) Any data disclosed by short- tem rental facilitators pursuant to this Chapter shall be subject to applicable privacy protections under state and federal law. The City shall not disclose such data publicly, except as required by law or court order.
I) In addition to any penalty provisions provided by this Chapter or law, in the event a shortterm rental facilitator permits a listing that does not display a valid short- tem lodging license the City may provide notice to the applicable short- tem rental facilitator of the non - compliant listing. Within fourteen ( 14) business days thereof, the short- tem rental facilitator shall remove the listing for the respective property until such time as that property has obtained a valid short- tem rental license .. Violation of this subsection ( J) shall constitute and separate and distinct violation of this Chapter in addition to any other violations.
J) Notwithstanding the foregoing, nothing in this Chapter shall be interpreted to exempt shortterm rental facilitator from complying with all requirements established in Chapter 25.3. 15- Ord. 1719
5. 84. 150 Violations.
A) Misdemeanors. Any violation of this Chapter is a misdemeanor punishable in the manner provided for by Section 1. 04.25 of this Code. Violations include, but are not limited to, the following:
1) Rental, listing, offering, or advertising for rental of a dwelling unit located on any property within the City by the owner of the property as a short- tem lodging unit without a short- tem lodging unit license authorizing such use that has been approved and issued in the manner required by this Chapter, or without including in the listing, offer, or advertisement, the requisite short- tem lodging license number, as required herein;
2) Failure of the owner of a short- tem lodging unit issued a license in the manner required by this Chapter or the owner' s
designated agent to respond to a nuisance
complaint arising out of the occupancy and use of the short- tem rental by a tenant, or the tenant' svisitors or guests in the manner and within the time required by a nuisance response plan approved by the license administrator incident to the issuance of such license;
3) Failure of the owner of a short- tem lodging unit issued a license in the manner required by this Chapter to keep a nuisance response plan required by the Chapter on file with the license administrator containing the name of the current person or persons responsible for responding to a nuisance complaint within the time required by this Chapter;
4) Failure of the owner of a short- tem lodging unit issued a license in the manner required by this Chapter to keep a valid surety bond required by this Chapter on file with the license administrator at all times such license remains in effect; 5) Failure to comply with or cause compliance with any performance standard listed in this Chapter.
6) Failure of the short- tem rental facilitator to require the requisite license and use numbers prior to the listing of any short- tem lodging rental unit; report the information to the City as required by Section 5. 84. 140; or otherwise remove unauthorized listings, in accordance with Section 5.4. 140( h).
B) Fines. In addition or as an altemative to any other remedy provided by state law or this Code, the City may issue an administrative citation to the owner, occupant, hosting platform, or operator of a short- tem lodging unit pursuant to Chapter 1.5 of this Code if there is any violation of this Chapter committed, caused, or maintained by such person for each day of such violation. In such case, the City shall issue said citation. The first violation 16- Ord. 1719
shall result in a fine of $1, 000. A second violation within a 12 - month period shall result in a fine of $3, 000. A third or subsequent violation within a 12 - month period shall result in a fine of $ 5, 000 and may trigger license suspension or revocation..
C) Notwithstanding anything to the contrary in in any other provision of this Code, the City Council may authorize by resolution fines for misdemeanors, infractions, and administrative citations specific to violations of this Chapter. Any owner found to have rented a unit without a valid short- tem lodging unit license shall be liable for the payment of back TOT and LBTMD assessments for the period the unit was rented illegally, in addition to applicable fines. The City may pursue recovery through any lawful means, including liens or collection agencies.
D) Anyone found to have violated this Chapter or any other LBMC section dealing with shortterm lodging units may be subject to short- tem lodging unit license revocation or denial of a future application for a short- tem lodging unit license at the discretion of the License Administrator.
E) If a license to operate a short- tem lodging unit is revoked, then the owner of the subject property to whom the license issued must wait a minimum of three ( 3) years before applying for a new license to operate a short- tem lodging unit. This prohibition shall not just apply to the unit or units subject to the short- tem lodging unit license that is revoked; but shall apply to the owner for any property in the City.
5. 84. 160 Reporting and Remittance Requirements.
A) An owner of a licensed short- tem lodging unit must submit to the License Administrator each quarter a
report detailing the TOT collected in the manner required under Chapter
25.3 of this Code and in accordance with Chapter 5. 05. In addition to the information required under Chapter 25.3, each report shall set forth the amount of LBTMD assessment revenues required to be collected by the owner, in accordance with all applicable laws and regulations, for each night in which the short- tem lodging unit was rented in the preceding quarter, if not collected through a respective hosting platform.
B) In the event LBTMD revenues are not collected through a hosting platform, an owner must report and remit such revenues for the preceding quarter at the time that TOT payments are remitted to the City.
5. 84. 170 Consistency with Existing Regulations.
This Chapter is intended to supplement Chapters 25.3 and 5. 05 of the Laguna Beach Municipal Code in relation to short- tem lodging unit operations within the City. The standards 17- Ord. 1719
and obligations established in those Chapters shall remain in effect and continue to apply concurrently, and are to be interpreted consistently, with those set forth in this Chapter 5. 84.
SECTION 3. Effect of Amendment. To the extent any provision of this Ordinance repeals, amends, or supersedes any previous approvals, such repeal or replacement will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Ordinance' seffective date. Any such repealed or superseded part of previous approvals will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.
SECTION 4. No Conflict with Federal or State Law. Nothing in this Chapter is intended to create any requirement, power, or duty that is in conflict with any federal or state law.
SECTION 5. CEQA. The requirements of the California Environmental Quality Act CEQA") do not apply to the proposed action as it is not a " project" because there is no substantial evidence to show that the proposed action has the potential to result in a direct or reasonably foreseeable indirect physical change to the environment. ( 14 Cal. Code Regs. § 15378( a).) In establishing Chapter 5. 84 to the Laguna Beach Municipal Code, the City is merely exercising general policy making and establishing regulations for the licensing of short- tem lodging units, and does not authorize any specific development or physical activity. (14 Cal. Code Regs. § 15378( b)( 2).) Therefore, the proposed activity is not subject to CEQA. (14 Cal. Code Regs. § 15060( c)( 3).)
SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
18- Ord. 1719
SECTION 7. Certification. The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accordance with California Law.
SECTION S. Records. The documents and materials that constitute the record of proceedings on which this Ordinance has been based are located at City Hall, 505 Forest Avenue, Laguna Beach, CA 92651. The custodian of the record of proceedings is the City Clerk.
SECTION 9. Effective Date. This Ordinance shall take thirty days after its passage and adoption pursuant to California Government Code section 36937.
ADOPTED this 24th day of June, 2025.
Alex Rounaghi, Mayor
ATTESTED ON: LOti l WG-./
Date)
Ann Marie McKay, City Clerk
APPROVED AS TO FORM:
Megan baldi, City tomey
19- Ord. 1719
L Ann Marie McKay, City Clerk of the City of Laguna Beach, do hereby certify that the foregoing Ordinance No. 1719 was introduced at a regular meeting of the City Council on June 10, 2025, and was finally adopted at a regular meeting of the City Council of said City held on June 24, 2025, by the following vote:
AYES: COUNCILMEIVIBER( S): Jones, Kempf, Whalen, Orgill, Rounaghi NOES: COUNCILMEMBER( S): None
ABSTAIN: COUNCBLMEMBER( S): None
ABSENT: COUNCILMEMBER( S):No
Citye?, City of Laguna Beach,
20- Ord. 1719
Ens ,Angeles Times
MEDIA GROUP
PROOF OF PUBLICATION
2015. 5 C. P.)
STATE OF CALIFORNIA
County of Orange
I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the action for which the attached notice was published.
I am a principal clerk of the Newport Harbor News Press Combined With Daily Pilot, which was adjudged a newspaper of general circulation on June 19, 1952, Cases A24831 for the City of Newport Beach, County of Orange, and State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date( s):
June 19, 2025
I certify ( or declare) under penalty of perjury that the foregoing is true and correct.
Dated at Fountain Valley, California on this 24th day of June, 2025.. 02 rsig
10540 Talbert Avenue
Fountain Valley, CA 92708
8003174- Newport Harbor News Press Combined With Daily Pilot
Ens Angeles Times
MEDIA GROUP
Sold To:
City of Laguna Beach- CA11071920
505 Forest Ave
Laguna Beach, CA 92651
Bill To:
City of Laguna Beach- CA11071920
505 Forest Ave
Laguna Beach, CA 92651
CITYOF LAGUNA BEACH:
ADOPTION OF ORDINANCE NO. 1719
REGARDING THE LICENSING SCHEME FOR SHORTTERM RENTAL UNITS Ordinance No. 1719 titled AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF LAGUNA BEACH,
CALIFORNIA ADDING CHAPTER 5. 84 TO TITLE 5 OF
THE LAGUNA BEACH MUNICIPAL CODE REGARDING
LICENSING OF SHORT- TERM LODGING UNITS AND
FINDING THE ORDINANCE IS NOT SUBJECT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT' was
introduced at the City Council meeting of June 10,
2025, and is scheduled to be adopted on June 24,
2025, on the following 5. 0 vote: AYES: Jones,
Kempf, Whalen, Orgill, Rounaghi, NOES: None;
ABSENT: None, ABSTAIN: None.
Ann Marie McKay, City Clerk
8003174- Newport Harbor News Press Combined With Daily Pilot Paget M1