Sacramento, CA –A bill that created a simple solution to a growing problem – communities being swamped by issues related to online vacation rentals – will continue to move forward next legislative session when it proceeds as a two-year bill, Senator Mike McGuire announced this week.

“We’re just getting started,” said Senator Mike McGuire, the bill’s author. “Unfortunately, we were unable to find common ground prior to the Senate’s legislative deadline, but I’m committed to providing communities with the tools and resources they need to keep our neighborhoods safe, maintain our streets and keep our parks open.”

“I’m looking forward to working with all sides of this issue to drive a common-sense solution that will proactively deal with the growing challenges associated with online vacation rental businesses,” said Senator Mike McGuire.

The coalition supporting SB 593 continues to grow with seven members of the Los Angeles City Council endorsing the legislation along with United States Senator Dianne Feinstein.  

In her letter of support for SB 593, Senator Feinstein wrote: “I support local governments’ ability to pass and enforce ordinances on short term rentals, particularly those negotiated through online reservation systems. The unrestricted rise of online hosting companies for short-term stays in private homes has made it more difficult to track and regulate these properties. Many cities and counties have expressed concern about protecting the residential nature of neighborhoods and collecting transient occupancy taxes.”

SB 593 garnered a broad show of support from local law enforcement, counties and cities, business organizations, labor organizations, and individuals who want their neighborhoods back. The bill was overwhelmingly approved in both the Senate Transportation and Housing Committee and the Senate Governance and Finance Committee.

SB 593 was introduced to assist local jurisdictions in their regulation of local laws and collection of Tourist Taxes. More than 430 California cities and 56 counties impose a Tourist Tax on overnight stays. Where vacation rentals are illegal by local law, the bill would have prohibited online vacation rental businesses from making a rental.

Currently, cities and counties have to fight individually with online vacation rental companies like Airbnb to obtain the information they need to enforce local laws and collect taxes on overnight stays. Online vacation rental businesses have been able to skirt local laws and communities are bearing the brunt of the burden brought on by these mostly unregulated vacation rentals. Whole neighborhoods are being turned into hotel zones as partiers use vacation rentals as crash pads and affordable housing stock diminishes as long-term rentals are snatched up to turn a quick profit.

West Hollywood Mayor Lindsey Horvath has been a strong advocate for the legislation. “The City of West Hollywood supports this bill because it is a practical solution that allows local governments to make local decisions. SB 593 prevents a one-size-doesn't-fit-all solution from Sacramento. It protects local control and provides the tools needed to address the impacts of short-term rentals on housing affordability and quality of life.”

California State Association of Counties Executive Director Matt Cate echoed his organization’s support for the bill. “We support the Senator’s legislation to ensure cities and counties can collect transient occupancy taxes that fund critical services in our communities.”

Other supporters include: California Police Chiefs Association, California Professional Firefighters, California Alliance of Retired Americans (900,000 members strong) California State Association of Counties (representing all 58 California counties), The California League of Cities (with upcoming amendments), The Rural County Representatives of California (representing rural California counties), The Association of Los Angeles Deputy Sheriffs & Riverside Sheriffs Assn., California Apartment Association, Association of California Insurance Companies, California Association of Code Enforcement Officers, California Labor Federation, California Narcotic Officers Association, San Francisco Apartment Association & the San Francisco Tenants Union and many more.

Senator Mike McGuire (D-Healdsburg) represents Northern California’s Second Senate District.

For more information or questions, please contact Kerrie Lindecker, Communications Coordinator, at 707-319-3654, or email her at kerrie.lindecker@sen.ca.gov.