Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: S2/20/23 H3/6/23 H3/16/23
2 94th General Assembly A Bill
3 Regular Session, 2023 SENATE BILL 197
4
5 By: Senator J. Bryant
6 By: Representative B. McKenzie
7
8 For An Act To Be Entitled
9 REGULATION OF SHORT-TERM RENTALS; TO DECLARE AN
10 EMERGENCY; AND FOR OTHER PURPOSES.
11
12
13 Subtitle
14 TO PROHIBIT CERTAIN RESTRICTIONS ON THE
15 REGULATION OF SHORT-TERM RENTALS; AND TO
16 DECLARE AN EMERGENCY.
17
18
19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
20
21 SECTION 1. DO NOT CODIFY. Legislative findings.
22 The General Assembly finds that:
23 (1) Arkansas Constitution, Article 2, § 2, establishes that "All
24 men are created equally free and independent, and have certain inherent and
25 inalienable rights; amongst which are those of enjoying and defending life
26 and liberty; of acquiring, possessing and protecting property, and
27 reputation; and of pursuing their own happiness";
28 (2) Furthermore, Arkansas Constitution, Article 2, § 21,
29 establishes that "No person shall be taken, or imprisoned, or disseized of
30 his estate, freehold, liberties or privileges; or outlawed, or in any manner
31 destroyed, or deprived of his life, liberty or property; except by the
32 judgment of his peers, or the law of the land; nor shall any person, under
33 any circumstances, be exiled from the State";
34 (3) Arkansans have a constitutional right to use their property
35 without intrusion by the government;
36 (4) Short-term rentals are vital to the tourism and
*DTP028* 03-16-2023 09:41:53 DTP028
 As Engrossed: S2/20/23 H3/6/23 H3/16/23 SB197
1 marketability of the State; and
2 (5) Local governments often hold back tourism and infringe on
3 property owners' private property rights in this state by passing ordinances
4 that inhibit property owners' right to use their property as they see fit.
5
6 SECTION 2. Arkansas Code Title 18, Chapter 11, Subchapter 1, is
7 amended to add an additional section to read as follows:
8 18-11-110. Restrictions on regulation of short-term rentals and
9 vacation rentals — Definitions.
10 (a) As used in this section:
11 (1) "Applicant" means:
12 (A) A short-term rental owner; or
13 (B) An assigned agent who plans to manage a short-term
14 rental;
15 (2) "Local government" means a city or county;
16 (3) "Effectively prohibits" means an act or failure to act by a
17 governing body of a local government that prevents a property owner, lodging
18 operator, or tenant from using the owner's property as a short-term rental
19 after 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 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 (4) "Short-term rental marketplace" means a person who provides
32 a platform through which a lodging operator, or the authorized agent of the
33 lodging operator, 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 or limits
36 the use of a property as a short-term rental unit.
2 03-16-2023 09:41:53 DTP028
 As Engrossed: S2/20/23 H3/6/23 H3/16/23 SB197
1 (c) A local government may enact or enforce an ordinance, resolution,
2 rule, or other requirement that:
3 (1) Requires an applicant to obtain a permit from the local
4 government, at a cost not to exceed fifty dollars ($50.00) per short-term
5 rental, prior to the applicant's operation of a short-term rental provided
6 that the ordinance, resolution, rule, or other requirement does not expressly
7 or effectively prohibit or limit the use of a property as a short-term
8 rental;
9 (2) Is not more burdensome than an ordinance, resolution, rule,
10 or other requirement that currently applies to all residential properties
11 found within the jurisdiction of the local government;
12 (3) Suspends an applicant's ability to operate a short-term
13 rental for a period of time that does not exceed thirty (30) days if the
14 applicant has been adjudicated of violating the same local ordinance three
15 (3) or more times within a one hundred eighty (180) day period of time;
16 (4) Suspends an applicant's ability to operate a short-term
17 rental for a period of time that does not exceed twelve (12) months if the
18 applicant has been found guilty of violating one (1) local ordinance and the
19 violation of the local ordinance:
20 (A) Occurred at or in relation to the short-term rental;
21 and
22 (B) Resulted in the serious physical injury or wrongful
23 death of a person from the purposely reckless conduct of the short-term
24 rental owner or the short-term rental owner's assigned agent; or
25 (5) Limits or prohibits the use of a short-term rental to:
26 (A) House sex offenders;
27 (B) Sell illegal drugs or alcohol; or
28 (C) House an adult-oriented business, including without
29 limitation a business involving;
30 (i) Pornography or other obscene material; or
31 (ii) Nude or topless dancing.
32 (d) A short-term rental:
33 (1) Shall be classified as residential land use for zoning
34 purposes; and
35 (2) Is subject to all zoning requirements applicable to property
36 classified as residential land use for zoning purposes.
3 03-16-2023 09:41:53 DTP028
 As Engrossed: S2/20/23 H3/6/23 H3/16/23 SB197
1 (e) A local government shall not regulate the operation of a short-
2 term rental marketplace.
3
4 SECTION 3. EMERGENCY CLAUSE. It is found and determined by the General
5 Assembly of the State of Arkansas that the regulatory framework for the
6 operation of short-term rentals by local government unfairly discriminates
7 against owners of short-term rentals; that local restrictions on short-term
8 rental properties have negative effects including suppressing home values and
9 discouraging tourism owners; and that local regulations on short-term rentals
10 deny property owners their right to dominion over his or her property under
11 Article 2 § 21 of the Arkansas Constitution. Therefore, an emergency is
12 declared to exist, and this act being immediately necessary for the
13 preservation of the public peace, health, and safety shall become effective
14 on:
15 (1) The date of its approval by the Governor;
16 (2) If the bill is neither approved nor vetoed by the Governor,
17 the expiration of the period of time during which the Governor may veto the
18 bill; or
19 (3) If the bill is vetoed by the Governor and the veto is
20 overridden, the date the last house overrides the veto.
21
22 /s/J. Bryant
23
24
25
26
27
28
29
30
31
32
33
34
35
36
4 03-16-2023 09:41:53 DTP028