The proposed bill aims to prohibit local governments in Arkansas from enacting or enforcing any ordinances, resolutions, rules, or requirements that would effectively prohibit or limit the use of properties as short-term rental units. It emphasizes the constitutional rights of property owners to use their property without government interference and recognizes the importance of short-term rentals to the state's tourism and economy. The bill includes definitions for key terms such as "short-term rental," "local government," and "effectively prohibit," and establishes that short-term rentals should be classified as residential land use for zoning purposes.

Additionally, while local governments are restricted from imposing prohibitive regulations, they are allowed to require registration of short-term rentals at a nominal fee, provided that such requirements do not limit the use of the property as a rental. The bill outlines specific conditions under which local governments can suspend an applicant's ability to operate a short-term rental, such as repeated violations of local ordinances or serious infractions resulting in injury or death. Furthermore, it explicitly states that local governments cannot regulate short-term rental marketplaces, thereby ensuring a more favorable environment for property owners looking to engage in short-term rental activities.