1. A city council or other governing body of an incorporated city shall adopt and enforce an ordinance regulating: (a) The rental of a residential unit or a room within a residential unit for the purposes of transient lodging in the incorporated city; and (b) Accommodations facilitators. 2. The ordinance adopted pursuant to subsection 1 must, without limitation: (a) Require the rental to meet the definition of transient lodging set forth in the ordinance adopted pursuant to NRS 268.0195 by the city council or other governing body of an incorporated city. (b) Set forth the requirements for an application for an authorization issued pursuant to NRS 268.09797 , including, without limitation, designating an agency, officer or department of the incorporated city to administer applications for authorizations. (c) Establish the amount of: (1) The annual fee for an authorization issued pursuant to NRS 268.09797 ; and (2) The minimum liability coverage the holder of an authorization must maintain for the residential unit. (d) Prohibit the rental of a residential unit or a room within a residential unit that is located in an apartment building. (e) Prohibit the rental of a residential unit or a room within a residential unit for less than the minimum period for the residential unit. If the residential unit: (1) Is owner-occupied, the minimum period for the rental is 1 night. (2) Is not owner-occupied, the minimum period for the rental is 2 nights. (f) Establish requirements to ensure a minimum distance: (1) Of 660 feet between any residential units offered for rent for the purposes of transient lodging, except for residential units in a multifamily dwelling, and any other minimum separation requirement the city council or other governing body of the incorporated city, as applicable, determines is necessary; and (2) Of 2,500 feet between any residential units offered for rent for the purposes of transient lodging and a resort hotel, as defined in NRS 463.01865 . (g) Establish the maximum occupancy requirements for a residential unit, which may not exceed more than 16 persons per residential unit. (h) Except as otherwise provided in subsection 5, prohibit the issuance of an authorization pursuant to NRS 268.09797 : (1) If the issuance would result in more than 10 percent of the residential units or rooms within the residential units in a multifamily dwelling being rented for the purposes of transient lodging or if the issuance would violate a prohibition against such rentals or a stricter limitation established by the owner of the multifamily dwelling; or (2) For a residential unit or a room within a residential unit that is located in a common-interest community, unless the governing documents of the community expressly authorize the rental of a residential unit or a room within a residential unit for the purposes of transient lodging. (i) Establish a maximum number of authorizations a person may hold, which may not exceed five authorizations per state business license. (j) Establish a maximum number of authorizations that may be issued for the rental of rooms within a single residential unit. (k) Define party as a gathering of people that exceeds the maximum occupancy of the residential unit established by the city council or governing body of the incorporated city pursuant to paragraph (g) and prohibit the use of the residential unit for parties, weddings, events or other large gatherings. (l) Establish specific requirements for noise, trash and security for the rental of the residential unit or a room within the residential unit for the purposes of transient lodging. (m) Establish a process for a person to report violations of the requirements established in the ordinance adopted pursuant to subsection 1 or any other issues resulting from the rental of the residential unit or a room within the residential unit for the purposes of transient lodging. (n) Establish a schedule of civil penalties for violations of the ordinance adopted pursuant to subsection 1 by a holder of an authorization or an accommodations facilitator. A civil penalty imposed pursuant to such an ordinance: (1) May not exceed $1,000 for a single violation or the nightly rental value of the residential unit or room within the residential unit, whichever is greater; (2) Is in addition to any other penalty provided by law; and (3) May only be imposed against the holder of the authorization or the accommodations facilitator, as applicable, who has committed the violation. 3. The ordinance adopted pursuant to subsection 1 may, in addition to any other penalty provided by law, establish a schedule of civil penalties or fines to impose on a person who makes available a residential unit or room within a residential unit without holding an authorization issued pursuant to NRS 268.09797 . Any such civil penalty or fine for a single violation must not be less than $1,000 or more than $10,000. If the ordinance includes a schedule of civil penalties of fines pursuant to this subsection, the city council or other governing body of an incorporated city must establish standards for determining the amount of the civil penalty or fine which take into account, without limitation: (a) The severity of the violation; (b) Whether the person who committed the violation acted in good faith; and (c) Any history of previous violations of the provisions of the ordinance or any other ordinance related to transient lodging. 4. The city council or other governing body of an incorporated city shall not enact or enforce a complete prohibition on the rental of a residential unit or a room within a residential unit for the purposes of transient lodging. Any ordinance or regulation which is inconsistent with this subsection is null and void and the city council or other governing body of an incorporated city shall repeal any such ordinance or regulation. 5. The ordinance adopted pursuant to subsection 1 must allow any person who has been lawfully issued a permit, license, registration or any other form of authorization from the city council or other governing body of the incorporated city or its designee before July 1, 2022, to make available for rent a residential unit or a room within a residential unit for the purposes of transient lodging to continue to operate under his or her original authorization despite any provisions of the ordinance which may conflict with the location or type of residential unit, including, without limitation, any requirements adopted by the ordinance for the minimum distance between residential units. The provisions of this subsection apply only to the original holder of a permit, license, registration or other form of authorization and do not transfer to subsequent owners or occupants of a residential unit or room within a residential unit. An authorization issued before July 1, 2022, shall be deemed an authorization issued pursuant to NRS 268.09797 and may be suspended, terminated or revoked on or after July 1, 2022, in accordance with the provisions of the ordinance adopted pursuant to subsection 1.
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