An act TO PROHIBIT CERTAIN RESTRICTIONS ON THE 10 REGULATION OF SHORT-TERM RENTALS, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                 A Bill
2 95th General Assembly

3 Regular Session, 2025                                           HOUSE BILL 1445

4

5 By: Representative B. McKenzie

6 By: Senator J. Bryant

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8                                 For An Act To Be Entitled

9   AN ACT TO PROHIBIT CERTAIN RESTRICTIONS ON THE

10  REGULATION OF SHORT-TERM RENTALS; AND FOR OTHER

11  PURPOSES.

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13

14                                  Subtitle

15                       TO PROHIBIT CERTAIN RESTRICTIONS ON THE

16                       REGULATION OF SHORT-TERM RENTALS.

17

18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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20  SECTION 1. DO NOT CODIFY. Legislative findings.

21  The General Assembly finds that:

22  (1) Arkansas Constitution, Article 2, � 2, establishes that "All

23 men are created equally free and independent, and have certain inherent and

24 inalienable rights; amongst which are those of enjoying and defending life

25 and liberty; of acquiring, possessing and protecting property, and

26 reputation; and of pursuing their own happiness";

27  (2) Furthermore, Arkansas Constitution, Article 2, � 21,

28 establishes that "No person shall be taken, or imprisoned, or disseized of

29 his estate, freehold, liberties or privileges; or outlawed, or in any manner

30 destroyed, or deprived of his life, liberty or property; except by the

31 judgment of his peers, or the law of the land; nor shall any person, under

32 any circumstances, be exiled from the State";

33  (3) Arkansans have a constitutional right to use their property

34 without intrusion by the government;

35  (4) Short-term rentals are vital to the tourism and

36 marketability of the state; and

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1           (5) Local governments often hold back tourism and infringe on

2 property owners' private property rights in this state by passing ordinances

3 that inhibit property owners' right to use their property as they see fit.

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5         SECTION 2. Arkansas Code Title 18, Chapter 11, Subchapter 1, is

6 amended to add an additional section to read as follows:

7         18-11-111. Restrictions on regulation of short-term rentals and

8 vacation rentals -- Definitions.

9         (a) As used in this section:

10          (1) "Applicant" means:

11          (A) A short-term rental owner; or

12          (B) An assigned agent who plans to manage a short-term

13 rental;

14          (2) "Local government" means an incorporated town, a city, or a

15 county;

16          (3) "Effectively prohibit" means an act or failure to act by the

17 governing body of a local government that prevents a property owner, lodging

18 operator, or tenant from using property as a short-term rental after

19 reasonable compliance with generally applicable local laws;

20          (4)(A) "Short-term rental" means an individually or collectively

21 owned single-family house or dwelling unit or a unit or group of units in a

22 condominium, cooperative or timeshare, or owner-occupied residential home

23 that is offered for rental for a fee and for thirty (30) days or less.

24          (B) "Short-term rental" does not include a unit that is

25 used:

26          (i) For retail;

27          (ii) As a restaurant;

28          (iii) As banquet space;

29          (iv) As an event center; or

30          (v) For any other similar use; and

31          (5) "Short-term rental marketplace" means a person who provides

32 a platform through which a property owner, lodging operator, or tenant, or

33 the authorized agent of the property owner, lodging operator, or tenant,

34 offers a short-term rental to an occupant.

35        (b) A local government shall not enact or enforce an ordinance,

36 resolution, rule, or other requirement of any type that prohibits,

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1 effectively prohibits, or limits the use of a property as a short-term rental

2 unit.

3        (c) A local government may enact or enforce an ordinance, resolution,

4 rule, or other requirement that:

5        (1)(A) Requires an applicant to register with the local

6 government, at a cost not to exceed fifty dollars ($50.00) per short-term

7 rental, prior to the applicant's operation of a short-term rental, provided

8 that the ordinance, resolution, rule, or other requirement does not expressly

9 prohibit, effectively prohibit, or limit the use of a property as a short-

10 term rental.

11                (B) If a local government enacts or enforces an ordinance,

12 resolution, rule, or other requirement under subdivision (c)(1)(A) of this

13 section, the local government shall:

14                (i) Review an application for registration for

15 completeness within fifteen (15) business days after receiving the

16 application for registration; and

17                (ii) Accept the application for registration or

18 issue a written notice of denial of the application for registration that

19 identifies the deficiencies in the application for registration.

20                (C) An applicant that receives a written notice of denial

21 of the applicant's application for registration under subdivision

22 (c)(1)(B)(ii) of this section shall not be prohibited from submitting another

23 application for registration if the applicant cures the deficiencies

24 identified in the written notice of denial of the application for

25 registration;

26       (2) Is not more burdensome than an ordinance, resolution, rule,

27 or other requirement that currently applies to all residential properties

28 found within the jurisdiction of the local government;

29       (3) Suspends an applicant's ability to operate a short-term

30 rental for a period of time that does not exceed thirty (30) days if the

31 applicant has been adjudicated of violating the same local ordinance three

32 (3) or more times within a one hundred eighty (180) day period of time;

33       (4) Suspends an applicant's ability to operate a short-term

34 rental for a period of time that does not exceed twelve (12) months if the

35 applicant has been found guilty of violating one (1) local ordinance and the

36 violation of the local ordinance:

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1                 (A) Occurred at the short-term rental; and

2                 (B) Resulted in the serious physical injury or wrongful

3 death of a person from the purposely reckless conduct of the short-term

4 rental owner or the short-term rental owner's assigned agent; or

5   (5) Limits or prohibits the use of a short-term rental to:

6                 (A) House sex offenders;

7                 (B) Sell illegal drugs or alcohol; or

8                 (C) House an adult-oriented business, including without

9 limitation a business involving:

10                (i) Pornography or other obscene material; or

11                (ii) Nude or topless dancing.

12  (d) A short-term rental:

13  (1) Shall be classified as residential land use for zoning

14 purposes; and

15  (2) Is subject to all zoning requirements applicable to property

16 classified as residential land use for zoning purposes.

17  (e) A local government shall not regulate the operation of a short-

18 term rental marketplace.

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