HB 2131 Summary

• Prohibits cities and counties from banning vacation rentals or short-term rentals, but allows regulation for public health, safety, zoning, and nuisance issues.

• Requires online lodging marketplaces to verify that vacation rental owners comply with local licensing requirements and maintain at least $500,000 liability insurance before listing advertisements, with penalties up to $500 or one night's rent per violation after 30 days of non-compliance.

• Allows cities and counties to require owners to obtain permits or licenses (fee not to exceed $250), provide emergency contact information, notify adjacent neighbors, display permit numbers on advertisements, and maintain liability insurance.

• Establishes civil penalties ranging from $500 to $3,500 (or equivalent nightly rent amounts) for verified violations, with suspension of permits for three violations in 12 months or single serious violations including felonies or wrongful death.

• Provides a transition period allowing existing marketplace advertisements from December 31, 2025 through June 30, 2026 to remain without compliance verification, with full compliance required thereafter.