Bill Text - HB654 (2017)

(Third New Title) establishing a committee to study the regulation and taxation of vacation rentals and short-term rentals and relative to restrictions on the authority to regulate vacation and short-term rentals under the housing standards law.


Revision: June 7, 2017, 2:23 p.m.

HB 654-FN - AS AMENDED BY THE SENATE

 

15Feb2017... 0374h

05/18/2017   1709s

2017 SESSION

17-0309

10/03

 

HOUSE BILL 654-FN

 

AN ACT establishing a committee to study the regulation and taxation of vacation rentals and short-term rentals, and relative to examinations of vacation and short-term rentals.

 

SPONSORS: Rep. Ohm, Hills. 36; Rep. Butler, Carr. 7; Rep. Twombly, Hills. 34; Rep. Seidel, Hills. 28; Rep. Azarian, Rock. 8; Sen. Fuller Clark, Dist 21; Sen. Birdsell, Dist 19

 

COMMITTEE: Commerce and Consumer Affairs

 

-----------------------------------------------------------------

 

AMENDED ANALYSIS

 

This bill establishes a committee to study the regulation and taxation of vacation rentals and short-term rentals.  This bill also establishes limits on examinations of vacation and short-term rentals by a municipality or public agency.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Feb2017... 0374h

05/18/2017   1709s 17-0309

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT establishing a committee to study the regulation and taxation of vacation rentals and short-term rentals, and relative to examinations of vacation and short-term rentals.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Committee Established.  There is established a committee to study the regulation and taxation of vacation rentals and short-term rentals.

2  Membership and Compensation.

I.  The members of the committee shall be as follows:

(a)  Three members of the house of representatives, appointed by the speaker of the house of representatives.

(b)  Two members of the senate, appointed by the president of the senate.

II.  Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

3  Duties.  The committee shall study the regulation and taxation of vacation rentals and short-term rentals, including:

I.  Municipal regulation of vacation rentals or short-term rentals by ordinance, enforcement of housing standards, or adoption of land use regulations.

II.  The enforcement of ordinances and regulations by entry and examination.

III.  The taxation of vacation rentals or short-term rentals under the meals and rooms tax, including collection by room remarketers.

4  Chairperson; Quorum.  The members of the study committee shall elect a chairperson from among the members.  The first meeting of the committee shall be called by the first-named house member.  The first meeting of the committee shall be held within 45 days of the effective date of this section.  Three members of the committee shall constitute a quorum.

5  Report.  The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2017.

6  New Section; Housing Standards; Examination of Vacation Rentals and Short-Term Rentals.  Amend RSA 48-A by inserting after section 15 the following new section:

48-A:16  Examination of Vacation Rentals and Short-Term Rentals.  

I.(a)  Notwithstanding any provision of law to the contrary, a municipality or public agency shall be permitted to enter upon the premises of a vacation rental or short-term rental for the purpose of making examinations under this chapter, provided that such entries shall be made only upon an individualized showing of probable cause that a particular dwelling is unfit for human habitation sufficient to support issuance of a search warrant by a court of competent jurisdiction in the event entry is denied or resisted.  In no case shall entries into dwellings for the purpose of making such examinations be permitted in the absence of an individualized showing of probable cause.

(b)  Before conducting an examination under subparagraph (a), the municipality shall provide at least 48-hour notice to the dwelling owner in writing of the municipality's request for inspection and the basis for the municipality's claim of probable cause.  The mere fact that a dwelling is used as a vacation rental or short-term rental shall not constitute probable cause for entry into the dwelling.

(c)  The municipality shall not charge a fee for an inspection under this paragraph.

(d)  The municipality shall not require a certificate of occupancy or other license for a short-term or vacation rental.

II.  In this section, “vacation rental” or “short-term rental” means any individually or collectively owned single-family house or dwelling unit or any unit or group of units in a condominium, cooperative, or owner occupied residential home, that is offered for a fee and for less than 30 consecutive days.  Vacation rentals and short-term rentals are residential uses of property and do not include any unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center, or another similar use.

7  Effective Date.  

I.  Section 6 of this act shall take effect July 1, 2017.

II.  The remainder of this act shall take effect upon its passage.

 

LBAO

17-0309

Amended 6/1/17

 

HB 654-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2017-1709s)

 

AN ACT (Second New Title) establishing a committee to study the regulation and taxation of vacation rentals and short-term rentals, and relative to examinations of vacation and short-term rentals.

 

FISCAL IMPACT:      [    ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

LOCAL:

FY 2018

FY 2019

FY 2020

FY 2021

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

This bill as amended provides standards for the inspection of vacation and short-term rentals by municipal governments and public agencies.  Municipal governments and public agencies may conduct the inspection "upon an individualized showing of probable cause that a particular  dwelling is unfit for human habitation sufficient to support issuance of a search warrant by a court of competent jurisdiction" as long as the dwelling owner is provided 48-hour advance notice of the inspection.  Municipalities are prohibited from charging a fee for the inspections or requiring a certificate of occupancy or other license for short-term vacation rental.  The Department states this bill will have an indeterminable fiscal impact on local revenue and expenditures in FY 2018 and each year thereafter.

 

AGENCIES CONTACTED:

Department of Revenue Administration