The bill, identified as Substitute Senate Bill No. 335 with File No. 426, is an act concerning the regulation of short-term rental properties. It authorizes municipalities to adopt ordinances that require the licensure of short-term rental properties and regulate their operation and use. The bill also permits municipalities to hire consultants to assist in developing these ordinances. The definition of short-term rental properties in this context refers to dwelling units or portions thereof that are subject to short-term rentals (occupancy for 30 days or less) and are not classified as hotels, bed and breakfast establishments, motels, motor courts, motor inns, or tourist courts.

The bill is set to be effective from October 1, 2024. It does not have a state fiscal impact but may result in potential costs to municipalities beginning in fiscal year 2025 if they choose to hire consultants to help develop the ordinances. The ongoing fiscal impact is expected to continue into the future, subject to inflation. The bill clarifies the terms "dwelling units," "hotels," and "bed and breakfasts" as per existing statutes. The Planning and Development Committee reported favorably on the bill, with a vote of 18 in favor and 2 against on March 22, 2024.