City, County & Local Affairs Committee- House

Well not really I made this morning I made a mistake of we suspended the rules thirsty along with some other rules on on a fiscal impact in is no longer required from this point forward last Thursday. and so we will move forward on that when it comes to public comment today. We have heard a lot during this session and when we open it up to public comment if you'd like to speak that will be fine but I just ask if someone hasn't spoken that will give them an opportunity which to speak of but I'm not going to prevent anybody from speaking in public comment. All right the if you would identify yourself for the record and you you all may proceed referred Senate bill one ninety seven yes Sir representative Brett McKenzie Rogers Arkansas. State senator Josh have is thirty two. I just wanted to thank everybody again I I know I am fully aware and conscious of the fact that this is the bill that will not and I do appreciate your time and attention I was it thankful the chairman for confirm with me after the Committee hearing about the rules that were suspending the need for fiscal impact I do think we just need the opportunity to to vote on this matter and to see if we have the opportunity Senator our broader legislative body of the whole. Thank you Committee thank you for considering this thank you for your time effort energy in the matter and reconvening for for a vote I know for several of you you reach out that this is what is important to your district maybe not just strictly related to short term rentals but for property rights as a whole and so you want to be on the record for for a good vote so I appreciate the clarity with the ruling this morning and allowing us to close this matter. Okay any questions from the committee. Seeing none. Zurich anybody in the public who would like to speak at the. Should be represented Dalby you're recognized. Mister chair I have a motion. Let's hear your motion I move that we limit up public comment to ten minutes per side. Okay there's a motion to limit does not debatable. Of women comment the ten minutes per side all in favor say aye. Those opposed say no. Okay the ayes have it. Let us get our clock. Right please do not. Yes represent college record would you mind explaining for our ten minutes per side means. Would you mind explaining what ten minutes per side means for everyone yes I will that will be used you start speaking when you get through the use have spoken nine minutes you got one minute left and so that would be for each side so I would encourage you to get straight to your point. All right. please identify yourself for the record and you may proceed to invite thank you my name is Bryan Albright in the city attorney in hot springs hot springs has you know we got involved in the S. T. R. regulation of part of things as you know the lawsuit that has been referenced many times came out of Garland County it had to do with the bill of assurance not an ordinance I want to make that clears ability sure it's not an ordinance the ordinance prohibited commercial use and so are Supreme Court said that commercial use is not residential and that any use of residential is still residential not commercial we agree with that that's fine but there are different types of residential uses many cities have various up ours owns if you will R. one R. two R. three R. four R. L. that's on the lake there are different rules that go to each each zoning district and so the the fact that we're talking about having a rule concerning Esty ours is not foreign to land use land use is zoning zoning is a local issue the inspections or what are very important to the city of hot springs when we initiated this back in in March of of twenty one we just ask people to get business license know what no inspections were necessary just please identify whether or not you are doing this type of business with your property we had a good results from that. Later we began doing the inspection process the inspection is just to make sure that the occupants are safe it is rudimentary issues of smoke detectors carbon monoxide detection whether there's a second means of egress and a bedroom for the occupant safety nothing more the results of those initial inspections were surprisingly fifty percent failure rate we worked with the owners of those properties and we got everyone up to a satisfactory of inspection so that they can then move on and receive their their permit of all the ones that we've had as close to eight hundred and the City Lights springs we've only had two that had been denied and we have due process in place for that if it's if it's denied at the planning level it goes to be easy a if it's tonight at the BCA level it goes to the board of directors if it's the not at the board of directors level it goes to court we only have two out of approximately a hundred that are going to end up being a litigated issue in our instance it's for their act their issue P. I believe that the board's decision to deny the issue P. will be overturned because they are entitled to the issue. this transient aspect of things is is is is a crucial issue and I'll I would point out that the international fire code which has been adopted by the state of Arkansas and subsequently adopted by the city of hot springs triggers a new certificate of occupancy when a property is taken from a permanent use to transit use in a residential feel there are two groups under section three fifty four residential. One is trans is is transient and that's what we're talking about here less than thirty days we need these inspections we need to be able to know how many people are occupying the structures and if they meet the fire code the only way to do that is to have a mechanism set up to where we can monitor that and regulate that accordingly thank you for your time and for your patience if you have any questions thank you. is there anyone who would like to speak for the bill. Yes. He's come forward and done by yourself for the record. Okay also us us speak against the bill there's six minutes and forty seven. This state there's ten minutes you and all the very very brief again five self result shall cope I appreciate your time and will be brief and respected please pass as the one ninety seven to protect my property rights to rent a portion of my home that I live in without local government intrusion cities must be restricted because they're currently going overboard city should not be in the business of regulating homeownership to affect pricing outside of normal police powers thank you notes on my time. All right speaking against the bill. Please identify yourself for the record you represent and you may proceed. My name's don Senate I represent are homeowners in Bellavista. A real quickly we hear a lot about property rights. If you look at the findings in this bill you will find findings that are not found in the United States constitution or the Arkansas constitution it's imaginary right they've created it's a special rate for special group when they say without government intrusion. We don't live without government committed treason as residents for its businesses the other thing is a real quickly. To parking and fiscal impact even though you're not required to have a physical limp fiscal impact statement there's going to be a tremendous fiscal impact just ask the people in Eureka springs and hot springs what they've experienced. How are the police first be paid during the summer when residency is at its highest and we've got parking infractions and noise and everything else that's going to cost money so consider the fiscal impact thank you. Thank you okay anyone would like to speak for the bill. Please come forward. Please state your name and who you represent you may proceed we have. Nine minutes and thirty seven seconds left I'm shall make yours number presenting Bellavista as a realtor in Bellavista that's very important to our community to have a resource for transient people coming into the area so that they have a place to stay with their family when they stay there or when they're come they're searching for home what these folks are referencing at about it not being part of our constitution I don't know how it's property rights are not part of our constitution or his or her right to rent or property at two at two other people we don't have a right to pick our neighbors I want to see a show of hands if any of you in here have had the opportunity to hand pick your neighbors we is there anybody we don't do that okay well I'm just state I'm here to tell you I didn't pick my neighbor but the one thing that I do like about a short term rental is if you don't like that neighbor there's another one coming next time and you may get to know them and may get to love them and they may be part of your community long term and so keep that in mind the owners that own these properties are very well vested in the community I know everyone of my neighbors on the street I know if there's problems with their health I know if there's problems with her family I'm there to help them I've housed many of their family members to come to visit our area so I don't want my property rights infringed upon by over reach of government. Thank you thank you. Okay We have five minutes and forty one seconds those speaking opposing the bill. May come forward. State your name who you represent. C.. Doug Haller Bellavista a city council member or mayor pro tem and also chair of the all of us advertising promotion commission I would just like to say this bill is done one thing it has United the Republican and democratic parties I never seen a bill that is nonpartisan is this one opposition comes from both sides In all honesty this bill makes no sense and SB one ninety seven has been proposed to favors industry of Arkansas residents in Arkansas cities that support those residents and I believe that has been made a parent or the last almost three weeks now that this bill has been for the House Committee that there's a huge opposition I know you've seen quite a lot of it however I don't know that you're seeing all of you have to go back to our communities to see that and I know you guys come from our communities but is particularly strong in Bellavista I would reiterate that the Arkansas state legislature should be working with local governments to protect the integrity of our most protected zoning district the R. one single family residential residential designation this is an area not appropriate to let the free market rain is I heard one Arkansas state senator's comments this bill is setting Arkansas Arkansas keep communities up to no longer be communities and neighborhoods to no longer be neighborhoods you can have a lasting impact that cannot be undone also I just like to say it seems as though some people approach this conversation that the the orders conversation like cities are trying to shut down short term rentals we certainly are not there's been no intention of that Bellavista there never with that was never the goal currently there are four hundred ninety five short term rentals advertising Bella Vista the initial cap was set at six hundred and in the recently passed ordinance also just just one brief point off the top of my head is that the short term rentals have a propensity for congregating around the more popular areas of our community our lakes golf courses are trails etcetera and those properties are being bought rapidly they're being bought up at very high prices that you know long term residents can come in and compete with I just like to say five basic tenets of the Bellavista ordinance short term rental owners should be responsible for the behavior that takes place at their property we do know who. The owners managers aren't how to contact them ensure the safety of visitors booking Esty ours in our community protect our properties from failing septic systems from over occupancies an improper use which a specific I think issue in Bellavista seventy seven percent of our properties are on septic systems and then in you have penalties it can be enforced for violating the STR city ordinance So respectfully I ask that you please vote no on SB one ninety seven Arkansas residents will thank you for it and I'm sure you know that from the vote last week I know we had a lock on it thanks come out from our community to this committee to this committee so thank you very much appreciate your time. Thank you. Which you choose meets Sir would you mind asking answering a question sure. Represented by funding you're recognized thank you chairman thanks for being here a quick question for you so you mention these five tenets of the Bellavista orders and this is what's already passed in Bellavista is that correct that is correct okay and so I think if you could help me understand the bill sponsors have made some changes amendments three or four that that meet most of these requirements so can you help except for septic of course so can you help me understand how these tenants are not supported by the amendments that they made. The well one of this bill specifically would be the safety inspections of homes you know we had our fire chief write a letter unsolicited to the city council stating his support a lot of the homes are older they had a lot of damage or contractors that could be homeowners over the years and made adjustments to these homes and a lot of regards in those homes need to be inspected in need to be looked at dawn because we are inviting visitors to come into our cities and you know and they're and they're staying at the short term rentals so one of the things a safety I did not see that another thing is occupancy of the homes we have that's not on your list of tenants for your tenants that well this anyway that's kind of maybe it's in caps later than one of the comments that I made in in in making owners responsible for their homes they're actively advertising for ten twelve fourteen sixteen eighteen people are in homes that the Arkansas department of health is permitted for two or three bedroom septic system and that is two people per bedroom so you're having homes advertiser fourteen sixteen people the septic system was built out for four six okay can cast a ballot question. Yes go ahead thank you so and then can't Bellavista with this bill and this may be for the bill's sponsors but but this bill Bellavista can make an ordinance that says you you can't go above what is listed is that correct so it's a four bedroom. Home a person septic or I guess whatever that would be then. Can you make an ordinance that says you cannot. Have I have asked city attorney be basically that question and I think the way the bill is written so I guess I've asked him so if this is if this current bill passes and if we come back and say no residential property in Bellavista regardless could advertise knoll home could read and could advertisers home for more than what it did that number higher than what is permitted on the Arkansas department of health septic permit and the way the bill is written right now he said of course only we would not be able to do that. That was his interpretation. The bill sponsor have a. Thank you. Okay thank you shipping. Representative parks you're recognized thank you Mr chairman so. And I'm not familiar with the process and Bellavista but you're currently doing inspections on short term rentals there or residences that are offered for short term rental that is correct and do you do a someone kind of thing for other rentals long term rentals or anything like that now we do not right now not not for a long term and we don't other inspections of people's homes or residences for any other reason no not for single family residential homes occupied by families well and typically long term rentals are going to be occupied by families as well. No we don't if you've seen our inspection list it's very brief and spat requiring inspections for short term short term rentals is not something that is out of the room of any short term rental ordinance that you will read for any city across the country. It's pretty typical thank you. Fischinger testimony. All right speaking for the bill. Please come forward there's eight minutes and fourteen seconds. Please identify yourself for the record the representative agency. Hi I'm Stacey Lee I'm a property owner in Arkansas. S. the our owners are not here to ask you to strip away any power from cities we believe in our cities just like you do and we love our communities just like all of you do here this bill will not cause cities to lose any power that they currently have to enforce or normal planning and nuisance laws this is a fact we're asking you to do one thing which a stop the hugely to property rights across the state as your owners are less than one percent of all homeowners across the state but we're being targeted in and unprecedented unprecedented ways if this bill doesn't pass it's only going to get worse in fact in just in the last few weeks of more S. your organ says have already started being rolled out in other cities this bill simply prevent the abuse of power that's harming or mom and pop endeavors in homeownership across the state and I do want to say this there are some cities across the state that have gotten these ordinances in these regulations right none of us here that have opposed it regulations in cities oppose all regulations what we oppose is the over reach and the harm that's coming to our to our homes and her rights I want that I want to a. Tell you just this one little story before before I've done it Bellavista did pass an ordinance recently and they pass it and prior to passing that they're their own police chief how to put an end to writing to state to them that he would not be enforcing the laws on the books any differently for our homes verses regular homeowners or guests in the city because he was being asked to do so in this is just one of a really long list of things that cities are asking they're planning departments their police chiefs they're they're asking city officials to create rules that do not apply to anybody else it's it's obviously a clear violation of property rights there's many regulations across the state that have no due process you know maybe Hot Springs has it right but they're definitely cities that are harming your citizens. Please vote yesterday thank you. Thank you for your testimony. All right Okay for the bill I mean against the bill we have two minutes and forty four seconds. Please identify yourself for the record who you represent again. Thank you sure my name's bill Berlin city manager for the city of hot springs. there was a question on whether other homes have inspections in those homes are inspected when they receive their certificate of occupancy the international fire code section three ten when that when that use changes to transient there's another inspection and that's what we do is we we currently do we don't go and inspect every home every year we do require that they do let us know that there's been no changes. when they when they come in to re permit. We worked on this for two years and it takes a lot of effort in we had ten to twelve public meetings one of those was specifically with our realtors association to make sure that we were hearing all of these different issues that come as we tried to to refine our ordinance in that ordinance went through multiple changes until we feel like we found one that really works I don't know how you gauge that other than we hear very little discontent from either side anymore. So we think we're we're very close if not there. In our city in our county seventy nine percent are commercially operated that's up seventy two percent since twenty twenty that's through data from air DNA. you know these may not be commercial establishments but there's certainly a business. In hot springs we really have three primary locations that have really become the most desirable. Those have certainly changed the character of the neighborhoods they're really not neighborhoods anymore they're they're more of a transient use and if you happen to be that one or two of persons that have an owner occupied home in the middle of one of these you don't feel like you have a sense of belonging in a neighborhood anymore we've heard that over and over and over. I'm not going to get into all the other factions based on time but our chief of police association for the state of Arkansas has weighed in with their opposition to this bill. I myself have signed off on a letter as well as our mayor fire chief under chief building official we don't feel that as B. one ninety seven allows us to address the. Critical life safety issues that we have in these in these structures we saw one the other day that killed five people one of our they call that any legal as to your. These under this bill they were all really be legal but they'd be unregulated and that that scares us as people that are responsible for safety within their cities thank you. Thank you. All right. Hello I'm sandy IV Bellavista Arkansas and I do have a small short term rental I never thought I would be coming before a committee to ask for intervention from local council I always believe that city should have their own rights their own say but this is a total over reach my home burned down and I had to jump through hoops just to get my house back that I had before it burned and I kept do you no no you can't have white stone no you can't do this no you can't do that I'd like to have an S. T. R. will it has to be a sizeable one car garage you have to have an apartment I met all the requirements even though my Arkansas stone wasn't going to be allowed I spent seventy thousand dollars and now and they knew it was gonna be for short term rental there there were no regulations I don't mind regulations but now they're telling me that I have to have an insurance policy it's going to cost me over a hundred dollars a month more that's going to totally two went to my my earnings this is paying for my house payment I have Lyme disease I cannot work full time so this is robbing me of what I have built and robbing me of my personal property and by the way I did stay in too long term rentals and Bellavista that were never inspected in fact I called the fire chief out one time because there was regulation that I thought that was being that that that was dangerous and he agreed with me and nothing was done. Please come forward station name and we will not start the clock well afterwards Elizabeth L. ride from hot springs Arkansas just a a lady but no. Thank you. Okay we have four minutes and ten seconds someone like to speak for the bill. Please come forward station name and who you represent. You may proceed good afternoon my name is Laurie Frank I am from the Bellavista area and I'm a homeowner there and an STR owner. No doubt this is a complex issue I'm sure all of you are tired of our emails and texts and all of that but I wore the cloth of this nation for twenty seven years so that Americans and our Kansans can keep our rights and for me when all the anecdotal noise that you hear coming from the opposing side is done. For me it just comes back to personal property rights. The city in my area and other areas are restricting those rights. Please level the playing field for all of us. If it's an S. T. R. and make you make a regulation thank you for an LTR thank you for residents. Please level the playing field and vote yes thank you. Okay is or someone else would like to speak for the bill. Seeing none. Are you using. Page. Please state your name and who you represent and you may proceed hi am Marion Barry and he signed from Bella Vista Arkansas I live in my home and When you live in your home just like gas that you have come visit you it seems so odd that somebody like the whole city five six people make a decision for might might might might by property. The city started this campaign to quiet the complaints from a collection of neighbors. If the city council had use their laws and power that was already in place. It would never have come to this. Please protect us by passing SB one ninety seven. It is a respectful bill. That protects all of us. We have two minutes and twenty three seconds anyone else would like to speak for the bill. Please state your name for the record you represent you may proceed. Thanks David lamb S. R. and your honor I want to see you know I guess you know we talked a little bill this in our regions and over reaching their rules are and if anyone is ever dealt with a list of everyone understands how poorly run that is but I guess it is not the only bad actors mostly north of Arkansas that we know about. We have people reaching out to us all the time things like you know benefit bill bill or brand new build and go to the city council and they say that you can't have an S. U. R. permit because we don't feel like your house should be one because new bill. There's a logic in that. Every step of the process those laid out they followed. And then they get to the in line and it's a no. We don't feel like you should be there. How do you do that when you invest half a million dollars in the home. I mean what are you supposed to do at that point so we hope that yes the one ninety seven levels the playing field and all this all be good citizens of Arkansas thank you. For testimony we have one minute nineteen seconds anyone else like to speak for the bill. Yes please come forward station name. Who you represent then you may proceed. Hi Brenda Wyckoff I live in Bellavista. And I have a different passion for that Senate bill one ninety seven to be passed I am not a property owner but I do. Worked for many property owners I have a small cleaning business the people that I employee are. Single mothers just trying to make a living and I have maintenance crew a lawn crew we take pride in our work we do everything to keep the property is up and running and if this bill changes everything for them it changes things for all the people that work for me that would employee and like I said please pass the bill. Thank you we have thirty seconds would anyone else like. Seeing none you're ready to close yes Mr. I want to thank everybody for time again I know we've this this bill has been talked about a lot and I wanted to just mention one point I really appreciate represent Macklin and bringing up the five tenants of what this one instance of a. Good S. T. R. ordinance possesses I believe this bill possesses those things we've allowed for fifty dollar permit process we allowed for a registration process so no municipality will online STR that knowing who owns that property how to get a hold of them we have taken measures to allow for a three strike policy every six months again compromise language to ensure that municipalities are empowered to enforce ordinances and to remove STR's that have been a repeat problem addition to that we've allowed for the removal of STR's for wrongful death for over the span of twelve months again if there's an issue with an S. C. R. misspelled should be empowered to make those decisions and in addition to that I'm disallowing the use of S. yours for folks that we don't want any of our communities so I appreciate you bringing that up because I believe of those five tenants this it takes up six of them with the exception of septic beyond that I appreciate your time and attention how to add over center right for any customers thank you again committee for listening to this delicate matter I I think regardless the result of this the courts will probably end up having to weigh in I know a lot of the people that came to spoke obviously for everyone one small community still struggling with how to deal with this it it it surprises me since the announcmenet community was in the sixties was developed for exactly what they're starting to a oppose at the at the municipal level But I think the cities that are doing it right to mention what they're doing hot springs going through a long process they can continue to do what they do is this bill allows them to do that as long as they have equal playing field it's when they say only six hundred of you of our citizens are going to be allowed to play in the sandbox or only one percent of our tenants OR one percent of our homes can enjoy this or to to say to say at the will of of my command is as a mentality we just don't like you to do what you're doing there you know thank you for building up of nice community or nice home but I'm not giving you that permit without just cause so again this is a delicate issue I don't think it's it's an issue that's gonna go away regardless of the vote and I appreciate a motion good vote. It's wishes of the committee. motion do pass any discussion on the motion. Seeing none all in favor say aye. Those opposed say no. The No seven. Representative Holcomb. Representative Holcomb votes No representative would occur. Representative Whitaker votes No representative Cavenaugh. Representative Cavenaugh votes No representative rye. Representative private snow representative Dalby. Representative Dalby votes No representative Barry. Representative berry votes No representative Collins. Apresentam Collins votes No representative McCollum. Representative McCollum votes No representative McGrew. Represented in the group votes yes representative ray. Representative ray votes yes representative Hudson. Representative Hudson votes No representative long. Representative long votes yes representative shall. Representative Schultz. Representative Berks. Representative Burke's votes yes representative Midland macalin. Representative Michael Landon votes yes representative Richardson. Representative Richardson votes yes representative Hodges. Representative Hodges votes yes representative vendors. Representative answers votes yes. The motion fails. Okay saying no other business we are Jr.