Section 6-8-4 Prohibitions and Operational Requirements.
   A.   Compliance with laws.
      1.   A short-term rental or vacation rental must at all times comply with all federal, state, and local laws, rules and regulations including but not limited to public health, safety, sanitation, solid waste, hazardous waste, tax privilege licensing, residential rental property recording, traffic control, pollution control, noise, property maintenance, and nuisance abatement.
      2.   No person including an owner or operator shall operate a short-term rental or vacation rental in violation of this section.
   B.   Non-residential usage by short-term rentals or vacation rentals prohibited.
      1.   No short-term rental or vacation rental may be used for any non-residential use or purpose including but not limited to any of the following:
         a.   Any commercial, industrial, manufacturing, or other non-residential purpose; or
         b.   Operating a retail business, restaurant, event center, banquet space or similar use; or
         c.   Housing sex offenders; or
         d.   Operating or maintaining a structured sober living home; or
         e.   Selling liquor, controlled substances or pornography; or
         f.   Operating any adult-oriented business including nude and topless dancing.
      2.   The owner of a vacation rental or short-term rental or the owner’s designee shall not knowingly or intentionally allow the use of a vacation rental or short-term rental for a special event that would otherwise require a permit or license pursuant to this code or a state law or rule.
      3.   No person including, but not limited to, an owner, owner’s designee, tenant, guest, business, vendor or operator shall operate a short-term rental or vacation rental in violation of this section.
      4.   Representations or advertisements including online listings that advertise one of the prohibited activities pursuant to this section that reference a short-term rental or vacation rental property, house or dwelling unit location within the town is prima facie evidence that a short-term rental or vacation rental is operating in the violation of this section.
   C.   Failure to respond; penalties.
      1.   In the event of an emergency, any person designated as an emergency contact pursuant to Section 6-8-3, subsection D herein upon the request of public safety personnel shall respond in-person within one (1) hour to the physical location of the short-term rental or vacation rental for which they are a designated emergency contact.
      2.   For the purpose of this section, "in the event of an emergency" means any time police, fire or other public safety personnel respond to a short-term rental or vacation rental for a call for service including responding to a nuisance party or unlawful gathering.
      3.   An owner or owner’s designee shall (a) affirmatively respond to complaints in person, over the phone, or by email, and (b) abate the incident from which the complaint arose in a timely manner regardless of when the owner receives notice of the complaint. If such a response is due within one (1) hour under this article’s definition of “timely manner”, the response is deemed necessary to protect the peace, health, safety, and welfare of the general public, and the owner or owner’s designee shall so respond in person. If the response is due within twenty-four (24) hours, the owner or owner’s designee shall respond either in person, bv telephone, or bv email. Failure to respond to a complaint as provided herein is a violation of this article, and the owner shall be deemed responsible for such violation regardless of whether an owner’s designee has been assigned.
      4.   It shall be a civil offense for any person designated as an emergency contact upon request by public safety personnel pursuant to subsection A. of this section to either fail to respond to the physical location of the short-term rental or vacation rental for which they are a designated emergency contact or fail to arrive within one (1) hour to the physical location of the short-term rental or vacation rental for which they are a designated emergency contact. Failure to respond shall be punished by a minimum fine of five hundred ($500.00) dollars and failure to arrive within one (1) hour shall be punished bv a minimum fine of two hundred fifty ($250.00) dollars.
      5.   It shall be a civil offense for the owner of a short-term rental or vacation rental to intentionally, knowingly or recklessly have the owner's emergency contact fail to comply with the requirements of subsection A. A violation of this subsection shall be punished a minimum fine of five hundred ($500.00) dollars. Evidence such as failure of an owner to keep contact information current may be considered when determining whether the owner acted intentionally, knowingly or recklessly.
   D.   Insurance required; failure to maintain; penalty.
      1.   Unless provided by an online lodging market place that provides primary liability insurance coverage of at least five hundred thousand dollars ($500,000.00) for the short-term or vacation rental, every owner of a vacation rental or short-term rental shall maintain liability insurance to cover each vacation rental or short-term rental in the aggregate of a least five hundred thousand dollars ($500,000.00).
      2.   Within thirty (30) days of obtaining a vacation rental license issued pursuant to this article, the owner or owner's designee shall provide evidence to the town of liability insurance to cover the short-term or vacation rental in the aggregate of at least five hundred thousand dollars ($500,000.00) or evidence that each vacation rental or short rental transaction will be provided through an online lodging market place that provides equal or greater primary liability insurance coverage for the vacation rental or short-term rental.
      3.   The owner or owner’s designee of vacation rental or short-term rental shall provide proof of compliance with subsection A above upon demand by the town.
      4.   It shall be unlawful for the owner or operator of a short-term rental or vacation rental to fail to comply with the insurance requirements as specified herein.
      5.   A violation of this section is a civil offense and shall be punished by a minimum fine of five hundred dollars ($500.00). Upon a showing that the owner or operator has obtained the required insurance, the court may reduce the fine pursuant to this section to one hundred dollars ($100.00).
   E.   Advertising license number required; penalty.
      1.   It shall be unlawful for the owner, operator or owner’s designee of a short-term rental or vacation rental to fail to display or list a town short-term rental license number on each advertisement for a short-term rental or vacation rental located within the town.
      2.   In addition to the transaction privilege tax license number that must be included in the short-term rental’s listing, the owner shall complete and prominently display the following statement in the short-term rental’s online lodging marketplace or other listing:
         a.   All dwelling units, including vacation rentals and short-term rentals shall have a maximum single family size of six (6) adults eighteen (18) years of age and older (and their related dependent children under the age of eighteen (18) years).
         b.   Non-residential uses, including retail restaurant, banquet space, event center, or other similar use is prohibited.
      3.   A violation of this section is a civil offense and shall be punished bv a minimum fine of five hundred dollars ($500.00). Upon a showing that the owner, operator or owner’s designee has come into compliance with this section, the court may reduce the fine pursuant to this section to one hundred dollars ($100.00).
   F.   Additional health and public safety regulations.
      1.   The health and public safety regulations in this section are for the primary purpose of protecting the health and safety of the public as short-term rentals and vacation rentals create unique public health and safety issues.
      2.   No person owning or operating a short-term rental or vacation rental shall: leave trash or garbage within public view, except in proper collection containers for the purpose of collection in accordance with the residential collection schedule outlined in Article 5-5, Section 5-5-1 of the Carefree Town Code.
      3.   Any person owning or operating a short-term rental or vacation rental shall ensure that every short-term rental or vacation rental has working smoke alarms and carbon monoxide (CO) alarms, which may require the installation and maintenance of several detection units and maintained annually as required under National Fire Protection Association (NFPA) 72. The owner or owner’s designee shall keep and make available for inspection upon request by the fire marshal a record of all inspections and maintenance activities.
      4.   Fire extinguisher. A portable, multi-purpose fire extinguisher shall be installed, inspected, and maintained as reguired under NFPA 10 in any kitchen area and on each floor of a short-term or vacation rental and within twenty (20) feet of every outdoor fire feature, fire pit, patio heater, fireplace, or other areas with fire. The extinguisher(s) shall be installed on the wall in an open common area or in an enclosed space with appropriate markings visibly showing the location of the fire extinguisher.
      5.   Fire safety and emergency evacuation map. The owner shall provide and prominently display a map of the short-term rental showing the following information; safe routes of egress in the event of a fire or other emergency; the location of telephone(s) required under this article; the location of fire detection and suppression equipment; and any additional information relevant to such emergency preparedness measures. Such maps shall include the full property address, emergency information (911), and owner contact information.
      6.   Local phone service. At least one working landline, or another similar fixed telephone that operates through cable or a “voice over internet” system, with the ability to call 911 and receive inbound calls shall be available on every floor of the short-term or vacation rental.
      7.   The owner or owner’s designee of a short-term rental or vacation rental shall have the property cleaned between stays. It shall be a defense to any prosecution of this subsection that the owner or owner’s designee followed the cleaning standards outlined in the Maricopa County Environmental Health Code, Chapter 10, Section 2 relating to transient dwelling establishments.
      8.   The owner or owner’s designee of a short-term rental or vacation rental shall ensure that the property receives regular (at least bi-monthly) pest control treatments to keep the interior of all buildings and structures and exterior area of the premises free from infestation of insects, rodents, and other noxious pests where such infestation threatens the health, safety, or welfare of a person or persons.
      9.   The owner of a short-term or vacation rental that includes a swimming pool, spa or hot tub that is accessible to the renters shall comply with the barrier requirements outlined in Carefree Town Code Chapter 5, Article 5-3, Private Pools Barrier Code. Owners of short-term or vacation rentals shall have six (6) months from the effective date of this article to come into compliance with this subsection.
      10.   The following notice must be completed in 14-point or larger bold font, on a laminated or otherwise similarly shielded paper, and prominently displayed on the inside of the front door and the primary door to the backyard or a conspicuous location near each such door. The notice shall include information regarding the location of any fire or life safety equipment such as fire extinguishers and the Town of Carefree nuisance waste disposal regulations.
      "USE OF THIS PROPERTY FOR ANY OF THE FOLLOWING PURPOSES IS PROHIBITED; VIOLATORS MAY BE SUBJECT TO SUBSTANTIAL PENALTIES:
         i.   Any commercial, industrial, manufacturing, or other non-residential purpose; or
         ii.   Operating a retail business, restaurant, event center, banquet space or similar use;
         iii.   Housing sex offenders; or
         iv.   Operating or maintaining a structured sober living home; or
         v.   Selling liquor, controlled substances or pornography; or
         vi.   Operating any adult-oriented business, including nude and topless dancing; or
         vii.   Any uses prohibited under Section 9-500.39, Arizona Revised Statutes, or federal, state or local law; or
         viii.   Any use that constitutes a substantial disturbance of the quiet enjoyment and peace, health, safety or general welfare of private or public property through a nuisance party or unlawful gathering, including, but not limited to, excessive noise or traffic, obstruction of public streets by crowds or vehicles, public drunkenness, the service of alcohol to minors, fights, disturbances of the peace, litter, spirituous liquor served to, or in the possession of, or consumed by, any minor, or where illegal drugs are in the possession of, or consumed by, any person.
         ix.   The occupancy of this premises is limited to a single family of one (1) to six (6) adults and, if any, their related dependent children as defined in Article II of the Carefree Zoning Ordinance,
         x.   None of the following may occur where such acts may reasonably be viewed by the public whether at ground level or from a reasonable vantage point of a nearby property, such as a deck or balcony:
            •   Urination or defecation;
            •   Nudity; or
            •   Sexual acts.
      UNLESS THE TOWN EXPRESSLY PERMITS SUCH A USE IN WRITING, USE OF THIS PROPERTY FOR ANY OF THE FOLLOWING PURPOSES IS PROHIBITED; VIOLATORS MAY BE SUBJECT TO SUBSTANTIAL PENTALTIES:
         Use for any nonresidential use, including:
         i.   For a special event that would otherwise require a permit or license pursuant to town ordinance, or a state law or rule; or
         ii.   Operating a retail business, restaurant, event center, banquet space, or similar use.
      Your local contact person’s name is                       and can be reached by phone 24 hours a day, seven days a week, at                                       .
   G.   Sex offender background checks.
      1.   Within twenty-four (24) hours of every booking, the owner or owner’s designee shall perform a background check on every guest or renter of a short-term rental or vacation rental to ensure that there are no sex offenders at the short-term rental or vacation rental. However, this requirement may be satisfied by the owner providing evidence that the online lodging marketplace on which the short-term or vacation rental is booked conducted a sex offender background check of every guest.
      2.   An owner or owner’s designee shall retain a printout (either in hard copy or electronic form) of the background check on each guest or renter for twelve (12) months after the booking date. Records of each background check shall be made available for inspection by the town upon demand during normal business hours.
      3.   It shall be a civil offense for owners or owners’ designees who fail to comply with the requirements of this section and they shall be punished by a mandatory minimum fine of one thousand dollars ($1.000.00). The court shall not suspend any part of any fine required bv this section.
      4.   It shall be a civil offense for a person to intentionally or knowingly book a short-term or vacation rental on behalf of a sex offender when the person booking the reservation will not be staying at the vacation rental or short-term rental. A violation of this subsection shall be punished bv a mandatory minimum fine of one thousand dollars ($1.000.00). The court shall not suspend any part of any fine required by this section.
      5.   The requirements of this section are satisfied and/or waived if the online lodging marketplace on which the short-term rental or vacation rental is advertised performs the background check.
      6.   For the purposes of this section, booking means the act of securing a reservation for the use of a short-term or vacation rental.
   H.   Verified violation penalties.
      1.   In addition to any other penalty pursuant to this code, and notwithstanding any other law, the following civil penalties shall be imposed by the town upon the owner of a short-term rental or vacation rental related to the same short-term rental property within the same twelve (12)-month period:
         a.   Up to five hundred dollars ($500.00) or up to an amount equal to one (1) night’s rent for the short-term rental as advertised, whichever is greater, for a first verified violation.
         b.   Up to one thousand dollars ($1,000) or up to an amount equal to two (2) nights’ rent for the short-term rental as advertised, whichever is greater, for the second verified violation.
         c.   Up to three thousand five hundred dollars, ($3,500.00) or up to an amount equal to three nights’ rent for the short-term rental as advertised, whichever is greater, for a third verified violation and any subsequent violation.
      2.   If multiple violations arise out of the same response to an incident at a short-term rental or vacation rental, those violations are considered one (1) violation for the purpose of assessing the civil penalties provided in this section.
      3.   Unless an appeal is filed in a timely manner pursuant to Section 6-8-3, subsection K, a civil penalty assessed pursuant to this section shall be due within thirty (30) days of the initial notice sent to the owner by the town. For purposes of this section, written notice includes but is not limited to a notice sent by electronic means, US mail or hand delivered.
   I.   Reserved.