Texas 2019 - 86th Regular

Texas House Bill HB3773 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R14252 SCL-F
2	2	By: Button H.B. No. 3773
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to regulation of short-term rental units by
8	8	municipalities; authorizing a civil penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle A, Title 7, Local Government Code, is
11	11	amended by adding Chapter 219 to read as follows:
12	12	CHAPTER 219. REGULATION OF SHORT-TERM RENTAL UNITS
13	13	Sec. 219.0001. DEFINITIONS. In this chapter:
14	14	(1) "Short-term rental unit" means a dwelling that is:
15	15	(A) used or designed to be used as the home of a
16	16	person, family, or household, including a single-family dwelling or
17	17	a unit in a multi-unit building, including an apartment,
18	18	condominium, cooperative, or timeshare; and
19	19	(B) rented wholly or partly for a fee and for a
20	20	period of less than 30 consecutive days.
21	21	(2) "Short-term rental unit listing service" means a
22	22	person who facilitates, including by listing short-term rental
23	23	units on an Internet website, the rental of a short-term rental
24	24	unit.
25	25	Sec. 219.0002. AUTHORIZED MUNICIPAL LAWS. (a) In regard to
26	26	a short-term rental unit, a municipality may prohibit:
27	27	(1) the use of the unit to promote activities that are
28	28	illegal under municipal or other law;
29	29	(2) the provision or management of the unit by a
30	30	registered sex offender or any person having been convicted of a
31	31	felony;
32	32	(3) the serving of food to a tenant unless the serving
33	33	of food at the unit is otherwise authorized by municipal law;
34	34	(4) the rental of the unit to a person younger than 18
35	35	years of age; or
36	36	(5) the rental of the unit for less than 24 hours.
37	37	(b) In regard to a short-term rental unit, a municipality
38	38	may require:
39	39	(1) a unit provider to:
40	40	(A) register the unit;
41	41	(B) designate an emergency contact responsible
42	42	for responding to complaints regarding the unit;
43	43	(C) have the unit inspected on an annual basis by
44	44	the local building code department or fire marshal, as applicable,
45	45	to verify that the unit meets state and municipal requirements; and
46	46	(D) post the number of a permit issued by the
47	47	municipality for the unit on every listing advertising the unit on a
48	48	short-term rental unit listing service; and
49	49	(2) either:
50	50	(A) a unit provider or property manager on the
51	51	provider's behalf to maintain property and liability insurance for
52	52	the unit in an amount required by the municipality; or
53	53	(B) the unit provider to provide proof that the
54	54	short-term rental unit listing service that lists the unit is
55	55	maintaining property and liability insurance for the unit in an
56	56	amount required by the municipality.
57	57	Sec. 219.0003. MAXIMUM OCCUPANCY LIMITS. (a) In this
58	58	section, "bedroom" means an area of a residential dwelling intended
59	59	and used as sleeping quarters. The term does not include a kitchen,
60	60	dining room, bathroom, living room, utility room, closet, or
61	61	storage area.
62	62	(b) A municipality may limit the maximum occupancy of
63	63	individuals 18 years of age or older in a unit to a number that is
64	64	not less than two individuals multiplied by the number of bedrooms
65	65	in the unit plus two additional individuals.
66	66	Sec. 219.0004. PROHIBITED MUNICIPAL LAWS. Except as
67	67	provided by this chapter, a municipality may not:
68	68	(1) adopt or enforce an ordinance, rule, or other
69	69	measure that:
70	70	(A) prohibits or limits the use of property as a
71	71	short-term rental unit; or
72	72	(B) is applicable solely to short-term rental
73	73	units, or short-term rental unit providers, short-term rental unit
74	74	tenants, or other persons associated with short-term rental units;
75	75	or
76	76	(2) apply a municipal law, including a noise
77	77	restriction, parking requirement, or building code requirement, or
78	78	other law to short-term rental units or short-term rental unit
79	79	providers, short-term rental unit tenants, or other persons
80	80	associated with short-term rental units in a manner that is more
81	81	restrictive or otherwise inconsistent with the application of the
82	82	law to other similarly situated property or persons.
83	83	Sec. 219.0005. LIMITATIONS ON REGISTRATION REQUIREMENTS.
84	84	(a) A municipality that adopts a registration requirement under
85	85	Section 219.0002(b)(1)(A):
86	86	(1) shall approve or deny a registration application
87	87	not later than the 45th calendar day after the date the municipality
88	88	receives the application;
89	89	(2) if the municipality approves a registration
90	90	application, shall issue a permit valid for at least one year
91	91	following the date of the issuance of the permit;
92	92	(3) may suspend a permit issued under this section
93	93	only in accordance with Section 219.0006;
94	94	(4) may not charge a registration fee in an amount
95	95	greater than the lesser of:
96	96	(A) the amount to cover the administrative costs
97	97	of enforcing the registration requirement; or
98	98	(B) $450;
99	99	(5) may require the short-term rental unit provider to
100	100	affirm that the unit does not violate any rules or bylaws of any
101	101	condominium, cooperative, property owners' association, or other
102	102	similar entity that has jurisdiction over the property in which the
103	103	unit is located;
104	104	(6) may maintain an Internet website or telephone
105	105	hotline that enables a member of the public to file a complaint
106	106	regarding a short-term rental unit;
107	107	(7) may deny renewal of a permit if the short-term
108	108	rental unit provider did not provide the municipality with a
109	109	renewal application before midnight on the date in which the permit
110	110	expires;
111	111	(8) may prohibit transfer of registration permits;
112	112	(9) may not restrict the number of permits issued for
113	113	short-term rental units, including units in multi-family
114	114	dwellings, located in a commercial area or another area outside of a
115	115	residential area of the municipality regardless of whether a unit
116	116	is the primary residence of the unit owner;
117	117	(10) may not restrict the number of permits issued for
118	118	short-term rental units that are:
119	119	(A) located within a residential area of the
120	120	municipality; and
121	121	(B) the primary residence of the unit owner; and
122	122	(11) may restrict the number of permits issued for
123	123	short-term rental units that are located in a residential area and
124	124	not the primary residence of the owner if the municipality:
125	125	(A) finds that active enforcement of the
126	126	municipality's noise restrictions, parking requirements, building
127	127	code requirements, or other laws is insufficient to protect the
128	128	health and safety of municipal residents in the residential area;
129	129	and
130	130	(B) does not prohibit more than 12.5 percent of
131	131	the total number of residential properties in the municipality from
132	132	being eligible for a permit.
133	133	(b) If a municipality fails to approve or deny a
134	134	registration application in accordance with Subsection (a)(1), the
135	135	registration is considered approved.
136	136	(c) A registration requirement adopted by a municipality
137	137	that is more stringent than requirements in effect immediately
138	138	before the new requirement takes effect applies only to a permit
139	139	issued or renewed on or after the effective date of the new
140	140	requirement.
141	141	Sec. 219.0006. ENFORCEMENT OF REGISTRATION LAWS; CIVIL
142	142	PENALTY. (a) A municipality may suspend the registration of a
143	143	short-term rental unit for a period not to exceed one year if:
144	144	(1) as a direct result of the operation of the unit,
145	145	the unit has been in violation of a municipal law related to noise,
146	146	parking, or habitability standards at least three times during one
147	147	calendar year;
148	148	(2) the unit provider is delinquent in the remittance
149	149	of a local hotel occupancy tax by more than 90 days and the
150	150	municipality has provided sufficient notice and opportunity for the
151	151	provider to remit the tax; or
152	152	(3) the unit provider is in violation of a municipal
153	153	requirement enacted in accordance with this chapter.
154	154	(b) To suspend a permit under Subsection (a)(1), the
155	155	municipality has the burden of proof of demonstrating that:
156	156	(1) the violation was a direct result of the
157	157	short-term rental unit's operation; and
158	158	(2) the unit provider failed to make reasonable
159	159	attempts to abate the violation.
160	160	(c) Except as provided by Subsection (d), in addition to any
161	161	penalty provided for an underlying offense or violation, a
162	162	municipality may assess a civil penalty against a unit provider not
163	163	to exceed $200 per day for a violation of this chapter.
164	164	(d) If a short-term rental unit provider knowingly
165	165	tolerates a violation of this chapter, fails to make reasonable
166	166	attempts to abate a violation, and has violated a municipal law
167	167	related to unsanitary conditions, noise, over-occupancy, parking,
168	168	or solid waste five times or more in a calendar year, the
169	169	municipality may assess a civil penalty against the unit provider
170	170	in an amount not to exceed $2,000 per day for the violation.
171	171	Sec. 219.0007. CONSTRUCTION OF CHAPTER. (a) This chapter
172	172	does not prohibit:
173	173	(1) a condominium, cooperative, property owners'
174	174	association, or other similar entity from prohibiting or otherwise
175	175	restricting an owner of property within the entity's jurisdiction
176	176	from using the property as a short-term rental unit;
177	177	(2) a lessor, through the terms of a lease agreement,
178	178	from restricting the use of the leased property as a short-term
179	179	rental unit; or
180	180	(3) a property owner from placing a restrictive
181	181	covenant or easement on the property that restricts the future use
182	182	of the property as a short-term rental unit.
183	183	(b) This chapter does not require a municipality to regulate
184	184	a short-term rental unit but does require a municipality that
185	185	elects to regulate a unit to comply with this chapter.
186	186	(c) This chapter does not prohibit a municipality from
187	187	contracting with a third party to provide services that assist in
188	188	ensuring compliance with municipal requirements imposed in
189	189	accordance with this chapter. The third party may be a short-term
190	190	rental unit listing service.
191	191	SECTION 2. This Act takes effect September 1, 2019.