Senate Bill 60 - Steeper Penalties Permitted for Short Term Rental Ordinance Infractions

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Senate Bill 60 – Steeper Penalties Permitted for Short Term Rental Ordinance Infractions

Oct 26, 2021

Governor Newsom recently signed Senate Bill 60 into law.  This legislation authorizes cities and counties to set higher monetary penalties than would otherwise be legally permissible for violations of a local short-term rental ordinance, where the violation poses a threat to public health or safety.

Under the new law, a city or county may impose a fine of up to $1,500 for a first violation, a fine of up to $3,000 for a second violation of the same ordinance within one year, and a fine of up to $5,000 for each additional violation of the same ordinance within one year.  Cities and counties are not required to adopt these steeper fines, but they can elect to do so.

The law specifies that a “short-term rental” in this context refers only to residential dwellings, or any portion thereof, that are rented to a person for 30 consecutive days or less, and does not include commercially operated hotels, motels, bed and breakfasts, and time-share properties.  The law also specifies that the new heightened fines may not be imposed for a first time offense of failure to register or pay a business license fee.