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HomeMy WebLinkAboutORD-26-1502 (STVR) 2 Page 1 of 3 ORD NO. 26-1502 CITY OF HERMOSA BEACH ORDINANCE NO. 26-1502 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA: (1) REPEALING SECTIONS 17.08.025 AND 17.42.180 OF THE HERMOSA BEACH MUNICIPAL CODE; (2) AMENDING CHAPTER 3.32 RELATING TO TRANSIENT OCCUPANCY TAX; (3) ADDING CHAPTER 5.84 RELATING TO SHORT-TERM RENTAL REGISTRATION AND OPERATING REQUIREMENTS; AND (4) FINDING THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, the City of Hermosa Beach ("City") is authorized by the California Constitution (Section 7 of Article XI) to make and enforce within its limits local, police, sanitary, and other ordinances and regulations not in conflict with general law; and WHEREAS, the City established a short-term rental (“STR”) pilot program under Title 17 of the Hermosa Beach Municipal Code ("HBMC") on October 10, 2019, which authorized STRs in specified commercial and specific plan areas subject to an administrative permit; and WHEREAS, on April 23, 2026, the Los Angeles County Superior Court entered judgment in the Todd and Thomas Koerner v. City of Hermosa Beach (Case No. 25STCP0089) lawsuit concerning the City's regulation of STRs within the Coastal Zone (“Judgment”); and WHEREAS, the City Council (“Council”) desires to update the HBMC in response to the Judgment by: (1) repealing the existing STR provisions in HBMC Title 17; (2) recognizing that STRs may operate within the Coastal Zone consistent with the Judgment; and (3) continuing to prohibit STRs outside the Coastal Zone; and WHEREAS, the Council further desires to establish registration, business license, transient occupancy tax (“TOT”), safety, nuisance, and hosting-platform requirements for STRs; and WHEREAS, the Council conducted a duly noticed public hearing on August 25, 2026, at which time it received and considered all testimony and evidence concerning this Ordinance. Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75 Page 2 of 3 ORD NO. 26-1502 THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct, and are incorporated herein by this reference. SECTION 2. Repeal of Existing STR Provisions. HBMC sections 17.08.025 and 17.42.180 are hereby repealed in their entirety. SECTION 3. Amendment of HBMC Chapter 3.32 (Transient Occupancy Tax). Chapter 3.32 is hereby amended in its entirety as set forth in Exhibit A, attached hereto and incorporated herein by this reference. SECTION 4. Addition of HBMC Chapter 5.84 (Short-Term Rental Registration and Operating Requirements). Chapter 5.84 is hereby added as set forth in Exhibit B, attached hereto and incorporated herein by this reference. SECTION 5. Findings. The City Council finds that this Ordinance: (a) updates the City's STR regulations following the Judgment; (b) preserves the prohibition on STRs outside the Coastal Zone; (c) establishes generally applicable tax, registration, business license, safety, nuisance, and information-reporting requirements; and (d) separates STR operating regulations from the City's TOT provisions and thereby improves administration, clarity, and enforcement. SECTION 6. California Environmental Quality Act (“CEQA”). The Council finds that adoption of this Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that the Ordinance will not have a significant effect on the environment. The Ordinance primarily: (a) reorganizes and updates existing municipal regulations; (b) formalizes the post-Judgment status of STRs within the Coastal Zone; (c) establishes administrative registration and reporting requirements; and (d) does not authorize any specific development project. SECTION 7. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications; and, to this end, the provisions of this Ordinance are severable. SECTION 8. Certification. The City Clerk is directed to: (a) certify the passage and adoption of this Ordinance; (b) cause it to be entered into the City’s Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75 Page 3 of 3 ORD NO. 26-1502 book of original ordinances; (c) make a note of the passage and adoption in the records of this meeting; (d) and within fifteen (15) days after the Ordinance’s passage and adoption, cause it to be published or posted in accordance with California law. SECTION 9. Effective Date. This Ordinance shall become effective and be in full force and effect from and after thirty (30) days of its final passage and adoption. PASSED, APPROVED, and ADOPTED on this 8th day of September 2026. AYES: MAYOR PRO TEM KEEGAN, COUNCILMEMBERS FRANCOIS AND SAEMANN NOES: MAYOR DETOY AND COUNCILMEMBER JACKSON ABSENT: ABSTAINED: Mayor Mike Detoy PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM: ________________________________ ________________________________ Martha Alvarez Jason Baltimore City Clerk Interim City Attorney Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75 Exhibit A Page 1 of 9 Exhibit A Chapter 3.32, “Transient Occupancy Tax,” of the Hermosa Beach Municipal Code is hereby amended in its entirety as follows: Chapter 3.32 Transient Occupancy Tax 3.32.010 Title for citation. This chapter shall be known as the uniform transient occupancy tax law of the City. 3.32.020 Definitions. Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: Hotel means any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes; and includes any hotel, inn, tourist home or house, hostel, short-term rental, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. Occupancy means the use or possession or the right to the use or possession of any room or portion thereof in any hotel for dwelling, lodging, or sleeping purposes. Operator means the person who is the proprietor of the hotel or short-term rental; whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, and includes companies that arrange for reservations online. Though the operator performs their functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter; and shall have the same duties and liabilities as their principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. Person means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. Exhibit A Page 2 of 9 Rent means the consideration charged, whether or not received, for the occupancy of space in a hotel or short-term rental valued in money; whether to be received in money, goods, labor, or otherwise (including all receipts, cash, credits and property and services of any kind or nature without any deduction therefrom whatsoever). Short-Term Rental means any single-family dwelling unit or multi-family dwelling unit (or portion thereof) that is rented, leased, licensed, or made available and occupied for a period of thirty (30) consecutive calendar days or less. Tax Administrator means the administrative services department director or designee of the City. Transient means: 1. Any person as defined in this section who exercises for any period of time occupancy or is entitled to occupancy by reason of payment, concession, permit, right of access, license or other agreement; or 2. Any individual who personally exercises occupancy or is entitled to occupancy by reason of payment, concession, permit, right of access, license, or other agreement for a period of thirty (30) consecutive calendar days or less. Any such person or individual so occupying space in a hotel or Short-Term Rental shall be deemed to be a transient. Transient Occupancy Facility means a hotel or short-term rental. 3.32.030 Tax imposed. For occupancy of any hotel or short-term rental as defined, each transient is subject to and shall pay a tax in the amount of fourteen (14) percent of the rent or bill charged by the operator. Said tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator of the hotel or short-term rental at the time the rent or bill is paid. If the rent or bill is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel or short-term rental. If for any reason the tax due is not paid to the operator, the transient shall pay tax directly to the Tax Administrator. 3.32.40 Exemptions from tax. No tax shall be imposed upon: Exhibit A Page 3 of 9 A. Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the tax herein provided; B. Any federal or state of California officer or employee when on official business; C. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. No exemption shall be granted except upon a claim made at the time rent or payment is collected and under penalty of perjury upon a form prescribed by the Tax Administrator. 3.32.050 Operator’s duties. Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the payment or rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel or short-term rental shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator; or that it will not be added to the rent; or that, if added, any part will be refunded except in the manner hereinafter provided. 3.32.060 Registration of hotel. Within thirty (30) days after the effective date of this chapter, or within thirty (30) days after commencing business, whichever is later, each operator of any hotel or short-term rental renting occupancy to transients shall register said hotel or short-term rental with the Tax Administrator and obtain from them a transient occupancy registration certificate to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following: A. The name of the operator; B. The address of the hotel or short-term rental; C. The date upon which the certificate was issued; D. "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the Uniform Transient Occupancy Tax Law by registering with the Tax Administrator for the purpose of collecting from transients the Transient Occupancy Tax and remitting said tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business, conduct any lawful business in an unlawful manner, or operate a hotel or short-term rental without Exhibit A Page 4 of 9 strictly complying with all applicable local laws (including but not limited to those requiring a permit from any Board, Commission, Department, or Office of this City). This certificate evidences registration for transient occupancy tax purposes only and does not constitute a land-use permit or other regulatory authorization." 3.32.070 Reporting and remitting. Each operator shall (on or before the last day of the month following the close of each calendar quarter, or at the close of any shorter reporting period which may be established by the Tax Administrator) make a return to the Tax Administrator, on forms provided by them, of the total rents charged and received and the amount of tax collected for transient occupancies. At the time the return is filed, the full amount of the tax collected shall be remitted to the Tax Administrator. The Tax Administrator may establish shorter reporting periods for any certificate holder if they deem it necessary in order to ensure collection of the tax, and they may require further information in the return. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment thereof is made to the Tax Administrator. 3.32.80 Penalties and interest. A. Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax. B. Continued Delinquency. Any operator who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed and an additional penalty of ten percent (10%) will accrue for each thirty (30) days thereafter until payment of all remittance due plus penalties is paid. C. Fraud. If the Tax Administrator determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to the penalties stated in subsections A and B of this section. D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one-half of one percent (0.5%) Exhibit A Page 5 of 9 per month or fraction thereof on the amount of the tax (exclusive of penalties) from the date on which the remittance first became delinquent until paid. E. Penalties Merged with Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. 3.32.090 Failure to collect and report tax–determination by Tax Administrator. If any operator shall fail or refuse to collect said tax and to make within the time provided in this chapter any report and remittance of said tax or any portion thereof required by this chapter, the Tax Administrator shall proceed in such manner as they may deem best to obtain facts and information on which to base their estimate of the tax due. As soon as the Tax Administrator shall procure such facts and information as they are able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, they shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the Tax Administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the operator so assessed at their last known place of address. Such operator may, within ten (10) days after the serving or mailing of such notice, make application in writing to the Tax Administrator for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed, the tax, interest, and penalties if any determined by the Tax Administrator shall become final and conclusive and immediately due and payable. If such application is made, the Tax Administrator shall give not less than five (5) days’ written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest, and penalties should not be so fixed. After such hearing, the Tax Administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest, and penalties. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is taken as provided in Section 3.32.100. 3.32.100 Appeal. Exhibit A Page 6 of 9 Any operator aggrieved by any decision of the Tax Administrator with respect to the amount of such tax, interest, and penalties if any may appeal to the City Manager or their designee by filing a notice of appeal with the City Manager or their designee within fifteen (15) days of the serving or mailing of the determination of the tax due. The City Manager or their designee shall fix a time and place for hearing such appeal, and give notice in writing to such operator at their last known place of address. 3.32.110 Records. It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve for a period of four (4) years all records as may be necessary to determine the amount of such tax as the operator may have been liable for the collection and payment of to the City, which records the Tax Administrator shall have the right to inspect at all reasonable times. 3.32.120 Refunds. A. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City, it may be refunded as provided in this section; provided that a written claim is timely filed in accordance with the requirements of section 3.08.010. B. An operator may claim a refund or take as credit against taxes collected and remitted the amount overpaid, paid more than once, or erroneously or illegally collected or received when it is established in a manner prescribed by the Tax Administrator that the person from whom the tax has been collected was not a transient; provided however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the transient or credited to rent subsequently payable by the transient to the operator. C. A transient may obtain a refund of taxes overpaid or paid more than once or erroneously or illegally collected or received by the City by filing a claim in the manner provided in subsection A of this section; but only when the tax was paid by the transient directly to the Tax Administrator, or when the transient having paid the tax to the operator, establishes to the satisfaction of the Tax Administrator that the transient has been unable to obtain a refund from the operator who collected the tax. D. No refund shall be paid under the provisions of this section unless the claimant establishes their right thereto by written records showing entitlement thereto. Exhibit A Page 7 of 9 3.32.125 Change of ownership—tax clearance certificate. A. Pursuant to Revenue and Taxation Code Section 7283.5 (and as that section may from time to time be amended), a purchaser, transferee, or other person attempting to obtain ownership of a transient occupancy facility may request in writing from the Tax Administrator the issuance of a tax clearance certificate stating the amount of tax and any accrued penalties and interest due and owing, if any. B. The Tax Administrator shall, within ninety (90) days of the receipt of the written request for a tax clearance certificate issue the tax clearance certificate, or may conduct an audit of the subject transient occupancy facility. Any such audit must be completed within ninety (90) days after the date the records of the subject transient occupancy facility have been made available to the Tax Administrator, and a tax clearance certificate must be issued within thirty (30) days of the completion of the audit. C. If following an audit the Tax Administrator determines that the current operator’s records are insufficient to assess the amount of tax due and owing, the Tax Administrator shall (within thirty (30) days of making that determination) notify the prospective purchaser, transferee, or other person that a tax clearance certificate will not be issued. D. If the Tax Administrator does not comply with the request for a tax clearance certificate, the purchaser, transferee, or other person that obtains ownership of the transient occupancy facility shall not be liable for any transient occupancy tax obligation incurred prior to the date of the purchase or transfer of the property. E. The tax clearance certificate shall state the following: 1. The amount of tax, interest, and penalties then due and owing; 2. The period of time for which the tax clearance certificate is valid; and 3. That the purchaser, transferee, or other person may rely upon the tax clearance certificate as conclusive evidence of the tax liability associated with the property as of the date specified on the certificate. F. Any purchaser, transferee, or other person who does not obtain a tax clearance certificate under this section (or who obtains a tax clearance certificate that indicates that tax is due and owing and fails to withhold for the benefit of the City sufficient funds in the escrow account for the purchase of the property to satisfy the transient tax liability) shall be held liable for the amount of tax due and owing. G. The fee for issuance of a tax clearance certificate shall be established by resolution of the City Council. Exhibit A Page 8 of 9 3.32.130 Actions to collect. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the City. Any such tax collected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount. 3.32.140 Tax lien. A. Any delinquent transient occupancy tax, penalties for delinquency, and costs of collection shall become a lien on the service user’s property upon the recording of such with the Los Angeles County recorder’s office. B. The City shall serve upon the person or persons against whom the lien is recorded, a copy of the document evidencing the lien in one of the following ways: 1. By personal delivery with proof of service. a. Proof of service shall be shown by the affidavit of the person making the service showing the time, place, and manner of service; the name and address of the person served; and any other facts necessary to show that service was made. b. If there is no address for a person to be served known to the City, the City shall append to the lien an affidavit to that effect; 2. By leaving the document of the lien at the person’s residence or place of business in the care of the person in charge. Proof of service shall be shown by the affidavit of the person making the service showing the time, place, and manner of service; the name and address of the person served, together with the title or capacity of the person accepting service; and any other facts necessary to show that service was made; 3. By registered or certified mail, postage prepaid, addressed to the person’s residence or place of business. a. This service is complete at the time of mailing. Exhibit A Page 9 of 9 b. Proof of service shall be shown by an affidavit setting forth the fact of service; the name and residence or business address of the person making this service; showing that they are over the age of eighteen years; the date and place of deposit in the mail; the name and address of the person served as shown on the envelope; and the fact that the envelope was sealed and deposited in the mail, with the postage thereon fully prepaid, and sent by registered or certified mail. C. The City may add the actual cost of service to the lien to the extent that such costs do not exceed the costs of such notice provided by the county recorder’s office. D. The lien shall not be removed until the delinquent taxes, penalties for delinquency, and costs of collection are fully paid or the property is sold for payment of the delinquent taxes, penalties for delinquency, and costs of collection. E. The tax lien shall cease to exist for all purposes after thirty (30) years from the time the tax became a lien. F. Property sold for delinquent taxes, penalties for delinquency, and costs of collection is subject to redemption within a redemption period of five (5) years. 3.32.150 Violations–misdemeanor. Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than five hundred dollars ($500) or by imprisonment in the City jail for a period of not more than six (6) months or by both such fine and imprisonment. Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Tax Administrator, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor and is punishable as aforesaid. Any person required to make, render, sign, or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as aforesaid. Exhibit B Page 1 of 3 Exhibit B Chapter 5.84 “Short-Term Rental Registration and Operating Requirements” is hereby added to the Hermosa Beach Municipal Code to read as follows: Chapter 5.84 Short-Term Rental Registration and Operating Requirements 5.84.010 Definitions Hotel has the same definition as provided in Chapter 3.32. Operator has the same definition as provided in Chapter 3.32. Person has the same definition as provided in Chapter 3.32. Short-Term Rental Facilitator means any operator or person that facilitates for consideration the occupancy of a short-term rental, which is not owned by the operator or person, for a period of thirty (30) consecutive calendar days or less, and does both of the following: 1) Directly or indirectly, through one or more related persons, engages in any of the following: a. Transmits or otherwise communicates the offer or acceptance between the purchaser and the operator. b. Owns or operates the infrastructure, electronic or physical, or technology that brings purchasers and operators together. c. Provides a virtual currency that purchasers are allowed or required to use to facilitate the occupancy of a short-term rental from the operator. d. Software development or research and development activities related to any of the activities described in paragraph (2), if such activities are directly related to facilitating short-term rentals. 2) Directly or indirectly, through one or more related persons, engages in any of the following activities with respect to facilitating short-term rentals: a. Payment processing services. b. Listing homes, houses, or rooms in homes or houses, or other lodgings that are not a hotel or motel, and that are not owned by that person or a related person, for rental on a short-term basis. c. Setting prices. d. Branding short-term rentals as those of the short-term rental facilitator. e. Taking orders or reservations. Short-Term Rental has the same definition as provided in Chapter 3.32. Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75 Exhibit B Page 2 of 3 5.84.020 Short-Term Rentals Generally. It shall be unlawful for any person to offer, advertise, or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation or consideration a short-term rental for a period of thirty (30) consecutive days or less. This prohibition shall not apply to short-term rentals located within the Coastal Zone. 5.84.030 Short-Term Rentals in Coastal Zone. Each person or operator of a short-term rental located within the Coastal Zone shall: A. Register the short-term rental with the City through the City’s online registration platform and provide the information required by the City, including but not limited to: 1. Property owner contact information; 2. Local emergency contact who is available twenty-four (24) hours per day, seven (7) days per week; and can respond to complaints, nuisances, and Police Department requests; 3. Affirm that all safety equipment identified by the City on the short-term rental registration portal is present in the unit or dwelling and is readily available as identified by the City on the short-term rental registration portal. B. Obtain and maintain a Business License through the Administrative Services Department in accordance with HBMC Section 5.04. C. Comply with and pay all applicable transient occupancy taxes in accordance with Chapter 3.32. 5.84.040 Nuisances. Any nuisances arising from the operation of a short-term rental shall be subject to enforcement in accordance with HBMC Chapter 8.28 and any other applicable provision of this Code. 5.84.050 Short-Term Rental Facilitator Responsibilities. Pursuant to Government Code section 50990(b), the City hereby makes the provisions of the Short-Term Rental Facilitator Act of 2025 (Government Code sections 50990 through 50996) applicable within the City. Short-term rental facilitators shall comply with the following requirements: A. Physical Address: Upon request by the City, short-term rental facilitators shall report in the form and manner prescribed by the City, the physical address, including the nine-digit zone improvement plan (“ZIP”) code, of each short-term rental during the reporting period. Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75 Exhibit B Page 3 of 3 B. Additional Identifying Information: If the information provided under subsection A is insufficient for the City to identify a specific short -term rental at the provided address, the City may request: (1) the assessor parcel number (“APN”) of the short-term rental; (2) the uniform resource locator (“URL”) associated with the specific short-term rental listing; and (3) information exclusively related to identifying an accessory dwelling unit, guest house, or single unit of a timeshare or multifamily housing project located at the requested address or assessor parcel number. C. Frequency of Data: Except as otherwise provided in this subsection, the City may require reporting under subsection A no more frequently than in intervals of every three (3) months within a twelve (12)-month period. The City may require monthly reporting if the City requires monthly remittance of transient occupancy tax. D. Audits: The City may conduct an audit or otherwise examine records of a short-term rental facilitator documenting the receipt of transient occupancy tax due and payable to the City if the facilitator is responsible for collecting and remitting the transient occupancy tax to the City pursuant to a local ordinance or collection agreement. Any costs associated with the audit or examination shall be paid by the City. E. Listing Requirements: A short-term rental facilitator shall include in the listing of a short-term rental any applicable local license number associated with the short-term rental and any transient occupancy tax certification issued by the City. 5.84.060 Violations. Except as specifically provided otherwise, violations of this chapter are punishable in accordance with Chapter 1.10, Administrative Citations. Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75 Introduced 08/25/2026 Adopted: 09/08/2026 State of California ) County of Los Angeles )ss City of Hermosa Beach ) September 10, 2026 Certification of Council Action ORDINANCE NO. 26-1502 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, (1) REPEALING SECTIONS 17.08.025 AND 17.42.180 OF THE HERMOSA BEACH MUNICIPAL CODE; (2) AMENDING CHAPTER 3.32 RELATING TO TRANSIENT OCCUPANCY TAX; (3) ADDING CHAPTER 5.84 RELATING TO SHORT-TERM RENTAL REGISTRATION AND OPERATING REQUIREMENTS; AND (4) FINDING THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT I, Martha Alvarez, City Clerk of the City of Hermosa Beach, California, do hereby certify that the above and foregoing Ordinance No. 26-1502 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 8th day of September 2026, and passed by the following vote: AYES: MAYOR PRO TEM KEEGAN, COUNCILMEMBERS FRANCOIS AND SAEMANN NOES: MAYOR DETOY, AND COUNCILMEMBER JACKSON ABSTAIN: NONE ABSENT: NONE _____________________________ Martha Alvarez City Clerk Docusign Envelope ID: 10AA03EA-0025-8DDC-807D-79E7E34BCD75