The bill revises short-term rental laws in Montana by classifying short-term rentals as a residential use of property, allowing them unless explicitly prohibited by zoning regulations. It introduces a grandfather clause that permits existing short-term rentals to continue operating under the new regulations. The bill amends the Montana Code Annotated (MCA) by removing section 76-2-205 and replacing it with new provisions that clarify local government authority over short-term rentals. Local governments are restricted from prohibiting these rentals unless they can justify such actions through a detailed analysis aligned with zoning criteria.

Additionally, the bill defines "primary residence" and outlines conditions for short-term rentals, including those adjacent to the owner's primary residence. It emphasizes transparency in the zoning process, requiring any proposed restrictions to demonstrate alignment with public safety and welfare. The bill also retroactively applies to existing covenants and homeowners' association bylaws that do not address short-term rentals, ensuring that they comply with the new regulations. The act will take effect immediately upon passage and approval.

Statutes affected:
SB0268_1.pdf: 7-1-111, 70-24-104, 76-2-205, 76-2-303
SB0268_2.pdf: 7-1-111, 70-24-104, 76-2-205, 76-2-303
SB0268_3.pdf: 7-1-111, 70-24-104, 76-2-205, 76-2-303
Amended: 7-1-111, 70-24-104, 76-2-205, 76-2-303