1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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2 | 2 | | *JLL062* 02/10/2025 2:59:21 PM JLL062 |
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3 | 3 | | State of Arkansas 1 |
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4 | 4 | | 95th General Assembly A Bill 2 |
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5 | 5 | | Regular Session, 2025 HOUSE BILL 1445 3 |
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6 | 6 | | 4 |
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7 | 7 | | By: Representative B. McKenzie 5 |
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8 | 8 | | By: Senator J. Bryant 6 |
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9 | 9 | | 7 |
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10 | 10 | | For An Act To Be Entitled 8 |
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11 | 11 | | AN ACT TO PROHIBIT CERTAIN RESTRICTIONS ON THE 9 |
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12 | 12 | | REGULATION OF SHORT-TERM RENTALS; AND FOR OTHER 10 |
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13 | 13 | | PURPOSES. 11 |
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14 | 14 | | 12 |
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15 | 15 | | 13 |
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16 | 16 | | Subtitle 14 |
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17 | 17 | | TO PROHIBIT CERTAIN RESTRICTIONS ON THE 15 |
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18 | 18 | | REGULATION OF SHORT-TERM RENTALS. 16 |
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19 | 19 | | 17 |
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20 | 20 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 18 |
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21 | 21 | | 19 |
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22 | 22 | | SECTION 1. DO NOT CODIFY. Legislative findings. 20 |
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23 | 23 | | The General Assembly finds that: 21 |
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24 | 24 | | (1) Arkansas Constitution, Article 2, § 2, establishes that "All 22 |
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25 | 25 | | men are created equally free and independent, and have certain inherent and 23 |
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26 | 26 | | inalienable rights; amongst which are those of enjoying and defending life 24 |
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27 | 27 | | and liberty; of acquiring, possessing and protecting property, and 25 |
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28 | 28 | | reputation; and of pursuing their own happiness"; 26 |
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29 | 29 | | (2) Furthermore, Arkansas Constitution, Article 2, § 21, 27 |
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30 | 30 | | establishes that "No person shall be taken, or imprisoned, or disseized of 28 |
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31 | 31 | | his estate, freehold, liberties or privileges; or outlawed, or in any manner 29 |
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32 | 32 | | destroyed, or deprived of his life, liberty or property; except by the 30 |
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33 | 33 | | judgment of his peers, or the law of the land; nor shall any person, under 31 |
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34 | 34 | | any circumstances, be exiled from the State"; 32 |
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35 | 35 | | (3) Arkansans have a constitutional right to use their property 33 |
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36 | 36 | | without intrusion by the government; 34 |
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37 | 37 | | (4) Short-term rentals are vital to the tourism and 35 |
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38 | 38 | | marketability of the state; and 36 HB1445 |
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39 | 39 | | |
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40 | 40 | | 2 02/10/2025 2:59:21 PM JLL062 |
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41 | 41 | | (5) Local governments often hold back tourism and infringe on 1 |
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42 | 42 | | property owners' private property rights in this state by passing ordinances 2 |
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43 | 43 | | that inhibit property owners' right to use their property as they see fit. 3 |
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44 | 44 | | 4 |
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45 | 45 | | SECTION 2. Arkansas Code Title 18, Chapter 11, Subchapter 1, is 5 |
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46 | 46 | | amended to add an additional section to read as follows: 6 |
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47 | 47 | | 18-11-111. Restrictions on regulation of short -term rentals and 7 |
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48 | 48 | | vacation rentals — Definitions. 8 |
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49 | 49 | | (a) As used in this section: 9 |
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50 | 50 | | (1) "Applicant" means: 10 |
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51 | 51 | | (A) A short-term rental owner; or 11 |
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52 | 52 | | (B) An assigned agent who plans to manage a short -term 12 |
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53 | 53 | | rental; 13 |
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54 | 54 | | (2) "Local government" means an incorporated town, a city, or a 14 |
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55 | 55 | | county; 15 |
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56 | 56 | | (3) "Effectively prohibit" means an act or failure to act by the 16 |
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57 | 57 | | governing body of a local government that prevents a property owner, lodging 17 |
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58 | 58 | | operator, or tenant from using property as a short -term rental after 18 |
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59 | 59 | | reasonable compliance with generally applicable local laws; 19 |
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60 | 60 | | (4)(A) "Short-term rental" means an individually or collectively 20 |
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61 | 61 | | owned single-family house or dwelling unit or a unit or group of units in a 21 |
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62 | 62 | | condominium, cooperative or timeshare, or owner -occupied residential home 22 |
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63 | 63 | | that is offered for rental for a fee and for thirty (30) days or less. 23 |
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64 | 64 | | (B) "Short-term rental" does not include a unit that is 24 |
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65 | 65 | | used: 25 |
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66 | 66 | | (i) For retail; 26 |
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67 | 67 | | (ii) As a restaurant; 27 |
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68 | 68 | | (iii) As banquet space; 28 |
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69 | 69 | | (iv) As an event center; or 29 |
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70 | 70 | | (v) For any other similar use; and 30 |
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71 | 71 | | (5) "Short-term rental marketplace" means a person who provides 31 |
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72 | 72 | | a platform through which a property owner, lodging operator, or tenant, or 32 |
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73 | 73 | | the authorized agent of the property owner, lodging operator, or tenant, 33 |
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74 | 74 | | offers a short-term rental to an occupant. 34 |
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75 | 75 | | (b) A local government shall not enact or enforce an ordinance, 35 |
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76 | 76 | | resolution, rule, or other requirement of any type that prohibits, 36 HB1445 |
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79 | 79 | | effectively prohibits, or limits the use of a property as a short -term rental 1 |
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80 | 80 | | unit. 2 |
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81 | 81 | | (c) A local government may enact or enforce an ordinance, resolution, 3 |
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82 | 82 | | rule, or other requirement that: 4 |
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83 | 83 | | (1)(A) Requires an applicant to register with the local 5 |
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84 | 84 | | government, at a cost not to exceed fifty dollars ($50.00) per short -term 6 |
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85 | 85 | | rental, prior to the applicant's operation of a short -term rental, provided 7 |
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86 | 86 | | that the ordinance, resolution, rule, or other requirement does not expressly 8 |
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87 | 87 | | prohibit, effectively prohibit, or limit the use of a property as a short -9 |
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88 | 88 | | term rental. 10 |
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89 | 89 | | (B) If a local government enacts or enforces an ordinance, 11 |
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90 | 90 | | resolution, rule, or other requirement under subdivision (c)(1)(A) of this 12 |
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91 | 91 | | section, the local government shall: 13 |
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92 | 92 | | (i) Review an application for registration for 14 |
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93 | 93 | | completeness within fifteen (15) business days after receiving the 15 |
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94 | 94 | | application for registration; and 16 |
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95 | 95 | | (ii) Accept the application for registration or 17 |
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96 | 96 | | issue a written notice of denial of the application for registration that 18 |
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97 | 97 | | identifies the deficiencies in the application for registration. 19 |
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98 | 98 | | (C) An applicant that receives a written notice of denial 20 |
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99 | 99 | | of the applicant’s application for registration under subdivision 21 |
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100 | 100 | | (c)(1)(B)(ii) of this section shall not be prohibited from submitting another 22 |
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101 | 101 | | application for registration if the applicant cures the deficiencies 23 |
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102 | 102 | | identified in the written notice of denial of the application for 24 |
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103 | 103 | | registration; 25 |
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104 | 104 | | (2) Is not more burdensome than an ordinance, resolution, rule, 26 |
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105 | 105 | | or other requirement that currently applies to all residential properties 27 |
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106 | 106 | | found within the jurisdiction of the local government; 28 |
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107 | 107 | | (3) Suspends an applicant's ability to operate a short -term 29 |
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108 | 108 | | rental for a period of time that does not exceed thirty (30) days if the 30 |
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109 | 109 | | applicant has been adjudicated of violating the same local ordinance three 31 |
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110 | 110 | | (3) or more times within a one hundred eighty (180) day period of time; 32 |
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111 | 111 | | (4) Suspends an applicant's ability to operate a short -term 33 |
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112 | 112 | | rental for a period of time that does not exceed twelve (12) months if the 34 |
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113 | 113 | | applicant has been found guilty of violating one (1) local ordinance and the 35 |
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114 | 114 | | violation of the local ordinance: 36 HB1445 |
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115 | 115 | | |
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117 | 117 | | (A) Occurred at the short -term rental; and 1 |
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118 | 118 | | (B) Resulted in the serious physical injury or wrongful 2 |
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119 | 119 | | death of a person from the purposely reckless conduct of the short -term 3 |
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120 | 120 | | rental owner or the short -term rental owner's assigned agent; or 4 |
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121 | 121 | | (5) Limits or prohibits the use of a short -term rental to: 5 |
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122 | 122 | | (A) House sex offenders; 6 |
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123 | 123 | | (B) Sell illegal drugs or alcohol; or 7 |
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124 | 124 | | (C) House an adult-oriented business, including without 8 |
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125 | 125 | | limitation a business involving: 9 |
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126 | 126 | | (i) Pornography or other obscene material; or 10 |
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127 | 127 | | (ii) Nude or topless dancing. 11 |
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128 | 128 | | (d) A short-term rental: 12 |
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129 | 129 | | (1) Shall be classified as residential land use for zoning 13 |
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130 | 130 | | purposes; and 14 |
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131 | 131 | | (2) Is subject to all zoning requirements applicable to property 15 |
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132 | 132 | | classified as residential land use for zoning purposes. 16 |
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133 | 133 | | (e) A local government shall not regulate the operation of a short -17 |
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134 | 134 | | term rental marketplace. 18 |
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