The arguments we most often hear, especially on social media, for why regulations on short-term rentals might not get passed in Arizona is that Republicans in the Arizona State Legislature are opposed to any sort of rules regarding short-term rentals or the increasingly prevalent commercialization of them by investors rather than residents. This, of course, implies the tacit support of outnumbered Democrats in the legislature.
However, the people making these erroneous arguments have failed to do the basic research regarding how Senate Bill 1350 got passed in the first place.
The bill was sponsored by then-Arizona State Sen. Debbie Lesko, now a U.S. congresswoman representing District 8. A member of the Freedom Caucus, both liberals and conservatives have called Lesko’s amendments in committee “stupid” and “ridiculous” unable to gain support from her own party. But SB 1350 was one the bills she did get passed in Arizona before her failing upward into Congress.
When the vote on SB 1350 went to the Senate floor, it was passed by 14 Republicans and 11 Democrats — 83%. On the House side was passed by 23 Democrats and 29 Republicans — 86%. The only people who oppose the bill were nine Republicans — three senators and six representatives. The only two Democrats who did not vote loudly in favor … just abstained.
Had they voted, it would not have changed the final result, but more likely they would have voted in the affirmative because at the time the bills passage was being discussed as a way for homeowners, especially elderly and poorer ones, could make additional money to help with a mortgage.
After all, this is how short-term rental lobbyists and Lesko — parroting talking points by short-term rental lobbyists — were pitching the bill to lawmakers.
The prospect of an explosion of for-profit, out-of-state, commercial and corporate vacation rental companies turning a profit by buying up and converting their residential rental properties into mini-hotels really wasn’t a topic of discussion during bill hearings. In all likelihood, that probably wasn’t the end goal of the industry either. Most CEOs of short-term rental website platforms weren’t greedily rubbing their hands Montgomery Burns-style and groaning “let’s destroy Arizona’s housing market, mwah-hah-hah.”
Rather, at least from the public meetings, they were just pushing lawmakers to loosen regulations to allow rentals to operate. The “no touching, no regulations whatsoever” bit of SB 1350 is what went too far and its exploitation has since decimated the housing market of small towns like ours.
Usually when bills like this come before legislatures, the discussion is about the short-term benefits, mitigations and political calculus rather than long-term, for-profit capitalization. Democrats thought allowing homeowners to earn extra income was a good idea while Republicans touted property rights and, to a lesser extent, the ability to negate “burdensome” government regulations, which has been a conservative goal since the era of Ronald Reagan.
Neither side appeared to consider the long-term implications if municipal regulations could be willfully ignored to build de facto hotels in residential areas and more than 80% voted for it. American leaders do not play the long game and most have the foresight of a Great Dane.
That said, there’s nothing preventing Arizona state legislators from implementing regulations to allow towns, cities and counties to have some regulations over vacation rentals such as those recently passed in Paradise Valley and Scottsdale which impose strict fines for big offenders.
Likewise, Arizona Gov. Doug Ducey will sign whatever bill is sent before him that has a majority legislators behind it. He doesn’t see rentals as a “legacy” despite what inept Sedona City Council members may claim in the 2022 election.
Politically, Ducey is a coward, not an autarch. He caves under pressure and never sticks to his guns. We saw this during the COVID-19 pandemic as he shifted policies depending on the political winds, faced a revolt from his own party and could not bring himself to fully implement or fully reject mask mandates — instead improperly and illegally delegating executive powers to local governments. Ducey has no political future and will be out of office at the end of 2022.
If the legislature passes short-term rental reform, Ducey will sign, ergo, Arizonans should pressure lawmakers to get regulations passed.
Christopher Fox Graham
Managing Editor
