OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 563 Bill Analysis
134th General Assembly
Click here for H.B. 563’s Fiscal Note
Version: As Reported by House State and Local Government
Primary Sponsors: Reps. Fowler Arthur and Ferguson
Effective Date:
Carla Napolitano, Attorney
SUMMARY
 Prohibits a county, township, or municipal corporation from adopting or enforcing any
regulation or restriction that (1) prohibits short-term rental properties or (2) regulates
the number, duration, or frequency of rental periods for short-term rental properties.
 Provides an exception to the prohibition described above if the regulation or restriction
affecting short-term rental properties is enforced in the same manner as for similar
properties that are not short-term rental properties and is enacted for a limited purpose
as specified in the bill.
DETAILED ANALYSIS
Existing Ohio law does not provide for the regulation of short-term rental properties.
The bill defines a short-term rental property to mean a house, apartment, condominium,
cooperative unit, cabin, cottage, or bungalow, or one or more rooms that is, or are, offered to
transients or travelers for a fee for a period of 30 days or less, regardless of whether amenities,
including meals, daily housekeeping, concierge services, or linen services, are provided. Under
existing law short-term rental properties are likely not covered under the Landlord and Tenant
Law, because of an existing exemption under that law for facilities where circumstances
indicate a transient occupancy. The bill explicitly exempts short-term rental properties from the
Landlord and Tenant Law.1
The bill prohibits a county, township, or municipal corporation (local government) from
adopting or enforcing any regulation, restriction, or other resolution or ordinance that
(1) prohibits short-term rental properties or (2) regulates the number, duration, or frequency of
rental periods for short-term rental properties (see COMMENT).
1 R.C. 5321.01 and 5325.01(A).
May 13, 2022
Office of Research and Drafting LSC Legislative Budget Office
The bill specifies that it does not prohibit the local government from enacting or
enforcing a regulation, ordinance, or resolution that regulates, prohibits, or otherwise limits
short-term rental properties, provided the regulation, prohibition, or limitation is enforced by
the local government in the same manner as for similar properties that are not short-term
rental properties and is enacted for any of the following reasons:
 To protect public health, safety, and welfare related to fire and building safety, property
maintenance, sanitation, traffic control, hazardous waste, or noise;
 To limit or prohibit use of property for any of the following purposes:
 To house sex offenders;
 To manufacture, distribute, or sell beer or intoxicating liquor, or drugs of abuse;
 To operate an adult entertainment establishment;
 To produce pornography or obscenity;
 To maintain a public nuisance.2
COMMENT
The bill may raise an issue under the Ohio Constitution Home Rule Amendment. The
Ohio Constitution, Article XVIII, Section 3 grants municipal corporations municipal home rule
authority:
Municipalities shall have authority to exercise all powers
of local self-government and to adopt and enforce within their
limits such local police, sanitary and other similar regulations, as
are not in conflict with the general laws.3
HISTORY
Action Date
Introduced 02-08-22
Reported, H. State and Local Government 05-11-22
ANHB0563RH-134
2 R.C. 5325.01(B) and (C).
3See Canton v. State, 95 Ohio St.3d 149 (2002) and the LSC Municipal Home Rule (PDF) Members Brief,
which is available on LSC’s website: https://www.lsc.ohio.gov/pages/reference/current
/membersbriefs.aspx.
P a g e |2 H.B. 563
As Reported by House State and Local Government


Statutes affected:
As Introduced: 5321.01
As Reported By House Committee: 5321.01