68th Legislature SB 268.1
1 SENATE BILL NO. 268
2 INTRODUCED BY G. HERTZ
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING SHORT-TERM RENTAL LAWS;
5 ESTABLISHING THAT A SHORT-TERM RENTAL IS A RESIDENTIAL USE OF PROPERTY; ESTABLISHING
6 THAT SHORT-TERM RENTALS ARE PERMISSIBLE UNLESS PROHIBITED THROUGHOUT A ZONING
7 DISTRICT; AMENDING SECTIONS 7-1-111, 70-24-104, 76-2-205, AND 76-2-303, MCA; AND PROVIDING AN
8 IMMEDIATE EFFECTIVE DATE, A RETROACTIVE APPLICABILITY DATE, AND AN APPLICABILITY DATE.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12 NEW SECTION. Section 1. Short-term rentals. (1) Unless the clear and express terms of a
13 covenant provide otherwise, a short-term rental is a residential use of property.
14 (2) As used in this section, "short-term rental" has the meaning provided in 15-68-101.
15
16 NEW SECTION. Section 2. Short-term rentals. (1) Unless the clear and express terms of a
17 homeowners' association's bylaws or other governing instrument provide otherwise, a short-term rental is a
18 residential use of property.
19 (2) As used in this section, "short-term rental" has the meaning provided in 15-68-101.
20
21 NEW SECTION. Section 3. Short-term rentals. (1) A short-term rental is a residential use of
22 property.
23 (2) (a) Unless expressly prohibited in the entirety of a jurisdictional area or a zoning district, if the
24 jurisdictional area is divided into zoning districts, short-term rentals are permissible in areas zoned f or
25 residential use.
26 (b) An express prohibition on short-term rentals may not preclude the short-term rental of all or part
27 of :
28 (i) a property owner's primary residence; or
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1 (ii) a property adjacent to the property owner's primary residence.
2 (3) As used in this section, "short-term rental" has the meaning provided in 15-68-101.
3
4 NEW SECTION. Section 4. Short-term rentals. (1) A short-term rental is a residential use of
5 property.
6 (2) (a) Unless expressly prohibited in the entirety of a municipality or a zoning district, if the
7 municipality is divided into zoning districts, short-term rentals are permissible in areas zoned f or residential use.
8 (b) An express prohibition on short-term rentals may not preclude the short-term rental of all or part
9 of :
10 (i) a property owner's primary residence; or
11 (ii) a property adjacent to the property owner's primary residence.
12 (3) As used in this section, "short-term rental" has the meaning provided in 15-68-101.
13
14 Section 5. Section 7-1-111, MCA, is amended to read:
15 "7-1-111. Powers denied. A local government unit with self -government powers is prohibited f rom
16 exercising the f ollowing:
17 (1) any power that applies to or af f ects any private or civil relationship, except as an incident to the
18 exercise of an independent self -government power;
19 (2) any power that applies to or af f ects the provisions of 7-33-4128 or Title 39, except that subject
20 to those provisions, it may exercise any power of a public employer with regard to its employees;
21 (3) any power that applies to or af f ects the public school system, except that a local unit may
22 impose an assessment reasonably related to the cost of any service or special benef it provided by the unit and
23 shall exercise any power that it is required by law to exercise regarding the public school system;
24 (4) any power that prohibits the grant or denial of a certif icate of compliance or a certif icate of
25 public convenience and necessity pursuant to Title 69, chapter 12;
26 (5) any power that establishes a rate or price otherwise determined by a state agency;
27 (6) any power that applies to or af f ects any determination of the department of environmental
28 quality with regard to any mining plan, permit, or contract;
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1 (7) any power that applies to or af f ects any determination by the department of environmental
2 quality with regard to a certif icate of compliance;
3 (8) any power that def ines as an of f ense conduct made criminal by state statute, that def ines an
4 of f ense as a f elony, or that f ixes the penalty or sentence f or a misdemeanor in excess of a f ine of $500, 6
5 months' imprisonment, or both, except as specif ically authorized by statute;
6 (9) any power that applies to or af f ects the right to keep or bear arms;
7 (10) any power that applies to or af f ects a public employee's pension or retirement rights as
8 established by state law, except that a local government may establish additional pension or retirement
9 systems;
10 (11) any power that applies to or af f ects the standards of professional or occupational competence
11 established pursuant to Title 37 as prerequisites to the carrying on of a prof ession or occupation;
12 (12) except as provided in 7-3-1105, 7-3-1222, 7-21-3214, or 7-31-4110, any power that applies to
13 or af f ects Title 75, chapter 7, part 1, or Title 87;
14 (13) any power that applies to or af f ects landlords, as def ined in 70-24-103, when that power is
15 intended to license landlords or to regulate their activities with regard to tenants beyond what is provided in Title
16 70, chapters 24 and 25. This subsection is not intended to restrict a local government's ability to require
17 landlords to comply with ordinances or provisions that are applicable to all other businesses or residences
18 within the local government's jurisdiction.
19 (14) subject to 7-32-4304, any power to enact ordinances prohibiting or penalizing vagrancy;
20 (15) subject to 80-10-110, any power to regulate the registration, packaging, labeling, sale, storage,
21 distribution, use, or application of commercial f ertilizers or so il amendments, except that a local government
22 may enter into a cooperative agreement with the department of agriculture concerning the use and application
23 of commercial f ertilizers or soil amendments. This subsection is not intended to prevent or restrict a local
24 government f rom adopting or implementing zoning regulations or f ire codes governing the physical location or
25 siting of f ertilizer manuf acturing, storage, and sales f acilities.
26 (16) subject to 80-5-136(10), any power to regulate the cultivation, harvesting, production,
27 processing, sale, storage, transportation, distribution, possession, use, and planting of agricultural seeds or
28 vegetable seeds as def ined in 80-5-120. This subsection is not intended to prevent or restrict a local
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1 government f rom adopting or implementing zoning regulations or building codes governing the physical location
2 or siting of agricultural or vegetable seed production, processing, storage, sales, marketing, transportation, or
3 distribution f acilities.
4 (17) any power that prohibits the operation of a mobile amateur radio station f rom a motor vehicle,
5 including while the vehicle is in motion, that is operated by a person who holds an unrevoked and unexpired
6 of f icial amateur radio station license and operator's license, "technician" or higher class, issued by the f ederal
7 communications commission of the United States;
8 (18) subject to 76-2-240 and 76-2-340, any power that prevents the erection of an amateur radio
9 antenna at heights and dimensions suf f icient to accommodate amateur radio service communications by a
10 person who holds an unrevoked and unexpired of f icial amateur radio station license and operator's license,
11 "technician" or higher class, issued by the f ederal communications commission of the United States;
12 (19) any power to require a f ee and a permit f or the movement of a vehicle, combination of vehicles,
13 load, object, or other thing of a size exceeding the maximum specif ied in 61-10-101 through 61-10-104 on a
14 highway that is under the jurisdiction of an entity other than the local government unit;
15 (20) any power to enact an ordinance governing the private use of an unmanned aerial vehicle in
16 relation to a wildf ire;
17 (21) any power as prohibited in 7-1-121(2) af f ecting, applying to, or regulating the use, disposition,
18 sale, prohibitions, f ees, charges, or taxes on auxiliary containers, as def ined in 7-1-121(5);
19 (22) any power that provides f or f ees, taxation, or penalties based on carbon or carbon use in
20 accordance with 7-1-116;
21 (23) any power to require an employer, other than the local government unit itself , to provide an
22 employee or class of employees with a wage or employment benef it that is not required by state or f ederal law;
23 (24) any power to enact an ordinance prohibited in 7-5-103 or a resolution prohibited in 7-5-121 and
24 any power to bring a retributive action against a private business owner as prohibited in 7-5-103(2)(d)(iv) and 7-
25 5-121(2)(c)(iv); or
26 (25) any power to prohibit the sale of alternative nicotine products or vapor products as provided in
27 16-11-313(1).; or
28 (26) any power to prohibit short-term rentals of residential property, except as provided in [section 3]
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1 or [section 4]."
2
3 Section 6. Section 70-24-104, MCA, is amended to read:
4 "70-24-104. Exclusions from application of chapter. Unless created to avoid the application of this
5 chapter, the f ollowing arrangements are not governed by this chapter:
6 (1) residence at a public or private institution if incidental to detention or the provision of medical,
7 geriatric, educational, counseling, religious, or similar service, including all housing provided by the Montana
8 university system and other postsecondary institutions;
9 (2) occupancy under a contract of sale of a dwelling unit or the property of which it is a part if the
10 occupant is the purchaser or a person who succeeds to the purchaser's interest;
11 (3) occupancy by a member of a f raternal or social organization in the portion of a structure
12 operated f or the benef it of the organization;
13 (4) transient occupancy in a hotel or motel;
14 (5) occupancy by an owner of a condominium unit or a holder of a proprietary lease in a
15 cooperative;
16 (6) occupancy under a rental agreement covering premises used by the occupant primarily f or
17 commercial or agricultural purposes;
18 (7) occupancy by an employee of a landlord whose right to occupancy is conditional upon
19 employment in and about the premises; and
20 (8) occupancy outside a municipality under a rental agreement that includes hunting, f ishing, or
21 agricultural privileges, along with the use of the dwelling unit .; and
22 (9) occupancy of a short-term rental as def ined in 15-68-101."
23
24 Section 7. Section 76-2-205, MCA, is amended to read:
25 "76-2-205. Procedure for adoption of regulations and boundaries. The board of county
26 commissioners shall observe the f ollowing procedures in the establishment or revision of boundaries f or zoning
27 districts and in the adoption or amendment of zoning regulations:
28 (1) Notice of a public hearing on the proposed zoning district boundaries and of regulations f or the
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1 zoning district must:
2 (a) state:
3 (i) the boundaries of the proposed district;
4 (ii) (A) the general character of the proposed zoning regulations; and
5 (B) if the proposed zoning district boundaries or regulations would prohibit short -term rentals, how
6 the prohibition f urthers the criteria and guidelines provided in 76-2-203;
7 (iii) the time and place of the public hearing;
8 (iv) that the proposed zoning regulations are on f ile f or public inspection at the of fice of the county
9 clerk and recorder;
10 (b) be posted not less than 45 days bef ore the public hearing in at least f ive public places,
11 including but not limited to public buildings and adjacent to public rights -of -way, within the proposed district; and
12 (c) be published once a week f or 2 weeks in a newspaper of general circulation within the county.
13 (2) At the public hearing, the board of county commissioners shall give the public an opportunity to
14 be heard regarding the proposed zoning district and regulations.
15 (3) Af ter the public hearing, the board of county commissioners shall review the proposals of the
16 planning board and shall make any revisions or amendments that it determines to be proper.
17 (4) The board of county commissioners may pass a resolution of intention to create a zoning
18 district and to adopt zoning regulations f or the district.
19 (5) The board of county commissioners shall publish notice of passage of the resolution of
20 intention once a week f or 2 weeks in a newspaper of general circulation within the county. The notice must
21 state:
22 (a) the boundaries of the proposed district;
23 (b) the general character of the proposed zoning regulations;
24 (c) that the proposed zoning regulations are on f ile f or public inspection at the of fice of the county
25 clerk and recorder;
26 (d) that f or 30 days af ter f irst publication of this notice, the board of county commissi oners will
27 receive written comments on the creation of the zoning district or to the zoning regulations f rom persons owning
28 real property within the district whose names appear on the last -completed assessment roll of the county.
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1 (6) Within 30 days af ter the expiration of the comment period, the board of county commissioners
2 may in its discretion adopt the resolution creating the zoning district or establishing the zoning regulations f or
3 the district."
4
5 Section 8. Section 76-2-303, MCA, is amended to read:
6 "76-2-303. Procedure to administer certain annexations and zoning laws -- hearing and notice.
7 (1) The city or town council or other legislative body of a municipality shall provide f or the manner in which
8 regulations and restrictions and the boundaries of districts are determined, established, enf orced, and changed,
9 subject to the requirements of subsection (2).
10 (2) (a) A regulation, restriction, or boundary may not become ef f ective until af ter a public hearing in
11 relation to the regulation, restriction, or boundary at which parties in interest and citizens have an opportunity to
12 be heard has been held. At least 15 days' notice of the time and place of the hearing must be published in an
13 of f icial paper or a paper of general circulation in the municipality.
14 (b) Notice of a regulation, restriction, or boundary that would prohibit short -term rentals must
15 demonstrate how the prohibition f urthers the criteria and guidelines provided in 76-2-304.
16 (3) (a) For municipal annexations, a municipality may conduct a hearing on the annexation in
17 conjunction with a hearing on the zoning of the proposed annexation if the proposed municipal zoning
18 regulations f or the annexed property:
19 (i) authorize land uses comparable to the land uses authorized by county zoning;
20 (ii) authorize land uses that are consistent with land uses approved by the board of county
21 commissioners or the board of adjustment pursuant to Title 76, chapter 2,