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