SB 335 — AN ACT CONCERNING SHORT-TERM RENTAL PROPERTIES.

Senate General Assembly RaisedFile Bill No.

335426 February Session, 2024 LCOSubstitute Senate Bill No.

1828335 ReferredSenate, toApril 11, 2024 The Committee on PLANNINGPlanning ANDand DEVELOPMENTDevelopment Introducedreported by:through SEN.

(PD)RAHMAN ANof ACTthe CONCERNING4th SHORT-TERMDist., RENTALChairperson PROPERTIES.of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING SHORT-TERM RENTAL PROPERTIES.

(NEW) (Effective October 1, 2024) Any municipality may,may (1) by vote of its legislative body, adopt an ordinance requiring the licensure of short-term rental properties in such municipality and regulating the operation and use of such properties.properties, and (2) engage one or more consultants to assist such municipality in developing such ordinance.

AnyFor suchthe municipalitypurposes mayof engagethis onesection, "short-term rental properties" means a dwelling unit, as defined in section 47a-1 of the general statutes, or moreany consultantsportion tothereof, assistthat suchis municipality(A) the subject of a short- term rental, as defined in developingsection such12-408h ordinance.of the general statutes, and (B) not a hotelorbedandbreakfast establishment,assuchtermsare defined in section 12-407 of the general statutes, or a motel, motor court, motor inn or tourist court.

ForsSB335 the/ purposesFile ofNo. this section, "short-term rental properties" means a dwelling unit, as defined in section 47a-1 of the general statutes, or any portion thereof, that is (1) the subject of a short-term rental, as defined in section 12-408h of the general statutes, and (2) not a hotel, lodging house or bed and breakfast establishment, as such terms are defined in section 12-407 of the general statutes.

This426 act1 shallsSB335 takeFile effectNo. as follows and shall amend the following sections:

Section426 1This Octoberact 1,shall 2024take Neweffect sectionas LCOfollows No.and shall amend the following sections:

1828Section 1 ofOctober 21, Raised2024 BillNew No.section Statement of Legislative Commissioners:

335The Statementfirst ofand Purpose:second sentences were combined into Subdivs.

To(1) authorizeand municipalities(2) tofor adoptclarity ordinances concerning short-term rental properties and hireconsistency consultantswith tostandard assistdrafting inconventions, theand developmentexisting ofSubdivs. such ordinances.

[Proposed(1) deletionsand are(2) enclosedwere inchanged brackets.to Subparas.

Proposed(A) additionsand are(B) indicatedto byconform underline,with except that whenchange. the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

1828PD 2Joint ofFavorable 2Subst.

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426 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

Municipalities Effect FY 25 $ FY 26 $ All Municipalities Potential See Below See Below Cost Explanation The bill allows municipalities to (1) establish an ordinance regulating the operation and use of short-term rental properties and (2) hire consultants to help develop the ordinances.

This results in a potential cost to municipalities beginning in FY 25 to the extent that they choose to hire consultants.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

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426 OLR Bill Analysis sSB 335 AN ACT CONCERNING SHORT-TERM RENTAL PROPERTIES.

SUMMARY This bill explicitly authorizes municipalities, by vote of their legislative bodies, to adopt an ordinance regulating the operation and use of short-term rental properties and requiring their licensure.

It also allows municipalities to hire consultants to help them develop these ordinances.

Under the bill, short-term rental properties are dwelling units or portions of them that are (1) the subject of a short-term rental (i.e., the transfer, for consideration, of occupancy in a furnished residence or similar accommodation for 30 days or less) and (2) not a hotel, bed and breakfast (B&B), motel, motor court, motor inn, or tourist court.

EFFECTIVE DATE:

October 1, 2024 BACKGROUND Dwelling Units “Dwelling units” are houses or buildings, or portions of them, which are occupied;

designed to be occupied;

or rented, leased, or hired out to be occupied, as a home or residence (CGS § 47a-1).

Hotels and B&Bs By law, a “hotel” is any building regularly used and kept open as such to feed and lodge guests that (1) receives anyone who conducts themselves properly and is able and ready to pay for accommodations when available and (2) derives a major portion of its operating revenue from renting rooms and selling food.

It includes apartment hotels but excludes B&Bs (CGS § 12-407(a)(16)).

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