Texas 2021 - 87th Regular

Texas House Bill HB1960 Compare Versions

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1	1	By: Beckley H.B. No. 1960
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to regulation of short-term rental units by
7	7	municipalities; authorizing a civil penalty.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle A, Title 7, Local Government Code, is
10	10	amended by adding Chapter 219 to read as follows:
11	11	CHAPTER 219. REGULATION OF SHORT-TERM RENTAL UNITS
12	12	Sec. 219.0001. DEFINITIONS. In this chapter:
13	13	(1) "Short-term rental unit" means a dwelling that is:
14	14	(A) used or designed to be used as the home of a
15	15	person, family, or household, including a single-family dwelling or
16	16	a unit in a multi-unit building, including an apartment,
17	17	condominium, cooperative, or timeshare; and
18	18	(B) rented wholly or partly for a fee and for a
19	19	period of less than 30 consecutive days.
20	20	(2) "Short-term rental unit listing service" means a
21	21	person who facilitates, including by listing short-term rental
22	22	units on an Internet website, the rental of a short-term rental
23	23	unit.
24	24	Sec. 219.0002. AUTHORIZED MUNICIPAL LAWS. (a) In regard to
25	25	a short-term rental unit, a municipality may prohibit:
26	26	(1) the use of the unit to promote activities that are
27	27	illegal under municipal or other law;
28	28	(2) the provision or management of the unit by a
29	29	registered sex offender or any person having been convicted of a
30	30	felony;
31	31	(3) the serving of food to a tenant unless the serving
32	32	of food at the unit is otherwise authorized by municipal law;
33	33	(4) the rental of the unit to a person younger than 18
34	34	years of age; or
35	35	(5) the rental of the unit for less than 24 hours.
36	36	(b) In regard to a short-term rental unit, a municipality
37	37	may require:
38	38	(1) a unit provider to:
39	39	(A) register the unit;
40	40	(B) designate an emergency contact responsible
41	41	for responding to complaints regarding the unit;
42	42	(C) have the unit inspected on an annual basis by
43	43	the local building code department or fire marshal, as applicable,
44	44	to verify that the unit meets state and municipal requirements; and
45	45	(D) post the number of a permit issued by the
46	46	municipality for the unit on every listing advertising the unit on a
47	47	short-term rental unit listing service; and
48	48	(2) either:
49	49	(A) a unit provider or property manager on the
50	50	provider's behalf to maintain property and liability insurance for
51	51	the unit in an amount required by the municipality; or
52	52	(B) the unit provider to provide proof that the
53	53	short-term rental unit listing service that lists the unit is
54	54	maintaining property and liability insurance for the unit in an
55	55	amount required by the municipality.
56	56	Sec. 219.0003. MAXIMUM OCCUPANCY LIMITS. (a) In this
57	57	section, "bedroom" means an area of a residential dwelling intended
58	58	and used as sleeping quarters. The term does not include a kitchen,
59	59	dining room, bathroom, living room, utility room, closet, or
60	60	storage area.
61	61	(b) A municipality may limit the maximum occupancy of
62	62	individuals 18 years of age or older in a unit to a number that is
63	63	not less than two individuals multiplied by the number of bedrooms
64	64	in the unit plus two additional individuals.
65	65	Sec. 219.0004. PROHIBITED MUNICIPAL LAWS. Except as
66	66	provided by this chapter, a municipality may not:
67	67	(1) adopt or enforce an ordinance, rule, or other
68	68	measure that:
69	69	(A) prohibits or limits the use of property as a
70	70	short-term rental unit; or
71	71	(B) is applicable solely to short-term rental
72	72	units, or short-term rental unit providers, short-term rental unit
73	73	tenants, or other persons associated with short-term rental units;
74	74	or
75	75	(2) apply a municipal law, including a noise
76	76	restriction, parking requirement, or building code requirement, or
77	77	other law to short-term rental units or short-term rental unit
78	78	providers, short-term rental unit tenants, or other persons
79	79	associated with short-term rental units in a manner that is more
80	80	restrictive or otherwise inconsistent with the application of the
81	81	law to other similarly situated property or persons.
82	82	Sec. 219.0005. LIMITATIONS ON REGISTRATION REQUIREMENTS.
83	83	(a) A municipality that adopts a registration requirement under
84	84	Section 219.0002(b)(1)(A):
85	85	(1) shall approve or deny a registration application
86	86	not later than the 45th calendar day after the date the municipality
87	87	receives the application;
88	88	(2) if the municipality approves a registration
89	89	application, shall issue a permit valid for at least one year
90	90	following the date of the issuance of the permit;
91	91	(3) may suspend a permit issued under this section
92	92	only in accordance with Section 219.0006;
93	93	(4) may not charge a registration fee in an amount
94	94	greater than the lesser of:
95	95	(A) the amount to cover the administrative costs
96	96	of enforcing the registration requirement; or
97	97	(B) $450;
98	98	(5) may require the short-term rental unit provider to
99	99	affirm that the unit does not violate any rules or bylaws of any
100	100	condominium, cooperative, property owners' association, or other
101	101	similar entity that has jurisdiction over the property in which the
102	102	unit is located;
103	103	(6) may maintain an Internet website or telephone
104	104	hotline that enables a member of the public to file a complaint
105	105	regarding a short-term rental unit;
106	106	(7) may deny renewal of a permit if the short-term
107	107	rental unit provider did not provide the municipality with a
108	108	renewal application before midnight on the date in which the permit
109	109	expires;
110	110	(8) may prohibit transfer of registration permits;
111	111	(9) may not restrict the number of permits issued for
112	112	short-term rental units, including units in multi-family
113	113	dwellings, located in a commercial area or another area outside of a
114	114	residential area of the municipality regardless of whether a unit
115	115	is the primary residence of the unit owner;
116	116	(10) may not restrict the number of permits issued for
117	117	short-term rental units that are:
118	118	(A) located within a residential area of the
119	119	municipality; and
120	120	(B) the primary residence of the unit owner; and
121	121	(11) may restrict the number of permits issued for
122	122	short-term rental units that are located in a residential area and
123	123	not the primary residence of the owner if the municipality:
124	124	(A) finds that active enforcement of the
125	125	municipality's noise restrictions, parking requirements, building
126	126	code requirements, or other laws is insufficient to protect the
127	127	health and safety of municipal residents in the residential area;
128	128	and
129	129	(B) does not prohibit more than 12.5 percent of
130	130	the total number of residential properties in the municipality from
131	131	being eligible for a permit.
132	132	(b) If a municipality fails to approve or deny a
133	133	registration application in accordance with Subsection (a)(1), the
134	134	registration is considered approved.
135	135	(c) A registration requirement adopted by a municipality
136	136	that is more stringent than requirements in effect immediately
137	137	before the new requirement takes effect applies only to a permit
138	138	issued or renewed on or after the effective date of the new
139	139	requirement.
140	140	Sec. 219.0006. ENFORCEMENT OF REGISTRATION LAWS; CIVIL
141	141	PENALTY. (a) A municipality may suspend the registration of a
142	142	short-term rental unit for a period not to exceed one year if:
143	143	(1) as a direct result of the operation of the unit,
144	144	the unit has been in violation of a municipal law related to noise,
145	145	parking, or habitability standards at least three times during one
146	146	calendar year;
147	147	(2) the unit provider is delinquent in the remittance
148	148	of a local hotel occupancy tax by more than 90 days and the
149	149	municipality has provided sufficient notice and opportunity for the
150	150	provider to remit the tax; or
151	151	(3) the unit provider is in violation of a municipal
152	152	requirement enacted in accordance with this chapter.
153	153	(b) To suspend a permit under Subsection (a)(1), the
154	154	municipality has the burden of proof of demonstrating that:
155	155	(1) the violation was a direct result of the
156	156	short-term rental unit's operation; and
157	157	(2) the unit provider failed to make reasonable
158	158	attempts to abate the violation.
159	159	(c) Except as provided by Subsection (d), in addition to any
160	160	penalty provided for an underlying offense or violation, a
161	161	municipality may assess a civil penalty against a unit provider not
162	162	to exceed $200 per day for a violation of this chapter.
163	163	(d) If a short-term rental unit provider knowingly
164	164	tolerates a violation of this chapter, fails to make reasonable
165	165	attempts to abate a violation, and has violated a municipal law
166	166	related to unsanitary conditions, noise, over-occupancy, parking,
167	167	or solid waste five times or more in a calendar year, the
168	168	municipality may assess a civil penalty against the unit provider
169	169	in an amount not to exceed $2,000 per day for the violation.
170	170	Sec. 219.0007. CONSTRUCTION OF CHAPTER. (a) This chapter
171	171	does not prohibit:
172	172	(1) a condominium, cooperative, property owners'
173	173	association, or other similar entity from prohibiting or otherwise
174	174	restricting an owner of property within the entity's jurisdiction
175	175	from using the property as a short-term rental unit;
176	176	(2) a lessor, through the terms of a lease agreement,
177	177	from restricting the use of the leased property as a short-term
178	178	rental unit; or
179	179	(3) a property owner from placing a restrictive
180	180	covenant or easement on the property that restricts the future use
181	181	of the property as a short-term rental unit.
182	182	(b) This chapter does not require a municipality to regulate
183	183	a short-term rental unit but does require a municipality that
184	184	elects to regulate a unit to comply with this chapter.
185	185	(c) This chapter does not prohibit a municipality from
186	186	contracting with a third party to provide services that assist in
187	187	ensuring compliance with municipal requirements imposed in
188	188	accordance with this chapter. The third party may be a short-term
189	189	rental unit listing service.
190	190	SECTION 2. This Act takes effect September 1, 2021.