AZ HB2219

Prohibits cities, towns, and counties from banning vacation rentals or short-term rentals, but allows regulation for public health and safety, zoning, and nuisance issues if applied equally to other residential properties.

Requires vacation rental owners to provide emergency contact information to local authorities and notify adjacent property owners before operating; cities and towns may require a local permit or license with fees not exceeding $250.

Establishes civil penalties for violations ranging from $500 to $3,500 per occurrence (or equivalent nightly rent amounts), with permit suspension possible for three violations within 12 months or one serious violation involving felonies, injuries, or illegal activities.

Requires vacation rentals to maintain at least $500,000 in liability insurance or use an online lodging marketplace with equivalent coverage.

New provision: Requires vacation rentals to be located at least 400 linear feet from another vacation rental or short-term rental.