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Bill to redefine 'tourist home' divides public health, short‑term rental hosts
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Summary
Senate Bill 363 would narrow 'tourist home' to mean an entire private home or condo never occupied by an owner or manager and rented in its entirety, reducing licensing for owner‑occupied short‑term rentals. Proponents say it cuts red tape; public health officials warn it would create sanitation loopholes.
Senate Bill 363 would amend the definition of "tourist home" in statute 50‑51‑102 to specify that a tourist home is a private home or condominium that is never occupied by an owner or manager and is rented in its entirety to transient guests. Backers said the change would clarify confusion between short‑term rentals and tenant/landlord arrangements.
Sponsor Senator Daniel Zolnikoff said the amendment would reduce the number of properties that currently need a tourist home license and would help owners who occasionally rent rooms in their primary residences avoid needless licensing. Property attorneys, short‑term rental hosts and homeowners from across Montana testified in support, saying local governments and health departments have applied inconsistent interpretations.
Opponents and DPHHS staff raised public‑health concerns. Shannon Theriault, environmental health director at Missoula Public Health, representing the Montana Environmental Health Association, told the committee the proposed wording could create a loophole allowing owners who stay one night a year to avoid licensing and basic sanitation requirements (safe water, wastewater, pest control, linens and laundry). Daryl Barton, a public health sanitarian with the Department of Public Health and Human Services, provided informational testimony and said there are currently 3,945 licensed tourist homes in the state and that the number could drop if the definition changes.
Committee members asked about license mechanics. Theriault said tourist home licenses cost $40 per year and are renewed annually. Barton described the plan‑review and initial inspection process and said follow‑up inspections are complaint‑driven. Proponents said short‑term rental incomes remain taxable and that online reviews and platforms also generate accountability, but public‑health witnesses cautioned that those market mechanisms do not substitute for sanitation rules.
Senator Zolnikoff closed by reiterating that the bill is intended to provide clarity, not remove safety measures. The hearing was closed; no executive action was taken that day.
