Texas 2021 - 87th Regular

Texas House Bill HB1961 Compare Versions

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1	1	By: Beckley H.B. No. 1961
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; authorizing a
7	7	civil penalty; limiting the amount of a fee.
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) A
25	25	municipality may adopt an ordinance regulating short-term rental
26	26	units in accordance with this chapter, including an ordinance that
27	27	prohibits:
28	28	(1) the use of the unit to promote activities that are
29	29	illegal under municipal or other law;
30	30	(2) the provision or management of the unit by a
31	31	registered sex offender or any person having been convicted of a
32	32	felony;
33	33	(3) the serving of food to a tenant unless the serving
34	34	of food at the unit is otherwise authorized by municipal law;
35	35	(4) the rental of the unit to a person younger than 18
36	36	years of age; or
37	37	(5) the rental of the unit for less than 24 hours.
38	38	(b) In regard to a short-term rental unit, a municipality
39	39	may require:
40	40	(1) a unit provider to:
41	41	(A) register and be issued a permit before
42	42	renting the unit;
43	43	(B) designate an emergency contact responsible
44	44	for responding to complaints regarding the unit;
45	45	(C) have the unit inspected on an annual basis by
46	46	the local building code department or fire marshal, as applicable,
47	47	to verify that the unit meets state and municipal requirements; and
48	48	(D) post the number of a permit issued by the
49	49	municipality for the unit on every listing advertising the unit on a
50	50	short-term rental unit listing service; and
51	51	(2) a unit provider or property manager on the
52	52	provider's behalf to:
53	53	(A) maintain property and liability insurance
54	54	for the unit in an amount equal to or greater than the amount
55	55	required by the municipality; or
56	56	(B) provide proof that each short-term rental
57	57	unit listing service that lists the unit is maintaining property
58	58	and liability insurance for the unit in an amount equal to or
59	59	greater than the amount required by the municipality.
60	60	Sec. 219.0003. MAXIMUM OCCUPANCY LIMITS. (a) In this
61	61	section, "bedroom" means an area of a residential dwelling intended
62	62	and used as sleeping quarters. The term does not include a kitchen,
63	63	dining room, bathroom, living room, utility room, closet, or
64	64	storage area.
65	65	(b) A municipality may limit the maximum occupancy of
66	66	individuals 18 years of age or older in a unit to a number that is
67	67	not less than two individuals multiplied by the number of bedrooms
68	68	in the unit plus two additional individuals.
69	69	Sec. 219.0004. PROHIBITED MUNICIPAL LAWS. Except as
70	70	provided by this chapter, a municipality may not:
71	71	(1) adopt or enforce an ordinance, rule, or other
72	72	measure that:
73	73	(A) prohibits or limits the use of property as a
74	74	short-term rental unit; or
75	75	(B) is applicable solely to short-term rental
76	76	units, or short-term rental unit providers, short-term rental unit
77	77	tenants, or other persons associated with short-term rental units;
78	78	or
79	79	(2) apply a municipal law, including a noise
80	80	restriction, parking requirement, or building code requirement, or
81	81	other law to short-term rental units or short-term rental unit
82	82	providers, short-term rental unit tenants, or other persons
83	83	associated with short-term rental units in a manner that is more
84	84	restrictive or otherwise inconsistent with the application of the
85	85	law to other similarly situated property or persons.
86	86	Sec. 219.0005. LIMITATIONS ON REGISTRATION REQUIREMENTS.
87	87	(a) A municipality that adopts a registration requirement under
88	88	Section 219.0002(b)(1)(A):
89	89	(1) shall approve or deny a registration application
90	90	not later than the 45th calendar day after the date the municipality
91	91	receives the application;
92	92	(2) if the municipality approves a registration
93	93	application, shall issue a permit valid for at least one year
94	94	following the date of the issuance of the permit;
95	95	(3) may suspend a permit issued under this section
96	96	only in accordance with Section 219.0006;
97	97	(4) may not charge a registration fee in an amount
98	98	greater than the lesser of:
99	99	(A) the amount to cover the administrative costs
100	100	of enforcing the registration requirement; or
101	101	(B) $450;
102	102	(5) may require the short-term rental unit provider to
103	103	affirm that the unit does not violate any rules or bylaws of any
104	104	condominium, cooperative, property owners' association, or other
105	105	similar entity that has jurisdiction over the property in which the
106	106	unit is located;
107	107	(6) may maintain an Internet website or telephone
108	108	hotline that enables a member of the public to file a complaint
109	109	regarding a short-term rental unit;
110	110	(7) may deny renewal of a permit if the short-term
111	111	rental unit provider did not provide the municipality with a
112	112	renewal application before midnight on the date in which the permit
113	113	expires;
114	114	(8) may prohibit transfer of registration permits;
115	115	(9) may not restrict the number of permits issued for
116	116	short-term rental units, including units in multi-family
117	117	dwellings, located in a commercial area or another area outside of a
118	118	residential area of the municipality regardless of whether a unit
119	119	is the primary residence of the unit owner;
120	120	(10) may not restrict the number of permits issued for
121	121	short-term rental units that are:
122	122	(A) located within a residential area of the
123	123	municipality; and
124	124	(B) the primary residence of the unit owner; and
125	125	(11) may place a reasonable density restriction or
126	126	reasonable per capita percentage restriction on the number of
127	127	permits issued for short-term rental units that are located in a
128	128	residential area and not the primary residence of the owner if the
129	129	municipality:
130	130	(A) finds that active enforcement of the
131	131	municipality's noise restrictions, parking requirements, building
132	132	code requirements, or other laws is insufficient to protect the
133	133	health and safety of municipal residents in the residential area;
134	134	(B) does not prohibit more than 12.5 percent of
135	135	the total number of residential properties in the municipality from
136	136	being eligible for a permit; and
137	137	(C) applies the restriction uniformly across the
138	138	entire municipality.
139	139	(b) If a municipality fails to approve or deny a
140	140	registration application in accordance with Subsection (a)(1), the
141	141	registration is considered approved.
142	142	(c) A registration requirement adopted by a municipality
143	143	that is more stringent than requirements in effect immediately
144	144	before the new requirement takes effect applies only to a permit
145	145	issued or renewed on or after the effective date of the new
146	146	requirement.
147	147	Sec. 219.0006. ENFORCEMENT OF REGISTRATION LAWS; CIVIL
148	148	PENALTY. (a) A municipality may suspend the registration of a
149	149	short-term rental unit for a period not to exceed one year if:
150	150	(1) as a direct result of the operation of the unit,
151	151	the unit has been in violation of a municipal law related to noise,
152	152	parking, or habitability standards at least three times during one
153	153	calendar year;
154	154	(2) the unit provider is delinquent in the remittance
155	155	of a local hotel occupancy tax by more than 90 days and the
156	156	municipality has provided sufficient notice and opportunity for the
157	157	provider to remit the tax; or
158	158	(3) the unit provider is in violation of a municipal
159	159	requirement enacted in accordance with this chapter.
160	160	(b) A municipality may revoke a permit issued for a
161	161	short-term rental unit that has been the subject of repeated
162	162	violations of municipal requirements enacted in accordance with
163	163	this chapter.
164	164	(c) To suspend or revoke a permit under Subsection (a)(1) or
165	165	(b), the municipality has the burden of proof of demonstrating
166	166	that:
167	167	(1) the violation was a direct result of the
168	168	short-term rental unit's operation; and
169	169	(2) the unit provider failed to make reasonable
170	170	attempts to abate the violation or violations, as applicable.
171	171	(d) Except as provided by Subsection (e), in addition to any
172	172	penalty provided for an underlying offense or violation, a
173	173	municipality may assess a civil penalty against a unit provider not
174	174	to exceed $200 per day for a violation of this chapter.
175	175	(e) If a short-term rental unit provider knowingly
176	176	tolerates a violation of this chapter, fails to make reasonable
177	177	attempts to abate a violation, and has violated a municipal law
178	178	related to unsanitary conditions, noise, over-occupancy, parking,
179	179	or solid waste five times or more in a calendar year, the
180	180	municipality may assess a civil penalty against the unit provider
181	181	in an amount not to exceed $2,000 per day for the violation.
182	182	Sec. 219.0007. SHORT-TERM RENTAL UNIT LISTING SERVICE
183	183	REQUIREMENTS. (a) A short-term rental unit listing service may not
184	184	list a short-term rental unit that does not hold a permit in
185	185	violation of a municipal ordinance.
186	186	(b) A municipality that revokes a short-term rental unit
187	187	permit may notify a short-term rental unit listing service of the
188	188	revocation for the service to comply with Subsection (a).
189	189	Sec. 219.0008. STATEWIDE DATABASE. (a) The comptroller
190	190	shall establish and maintain a statewide database of all
191	191	municipalities that have adopted short-term rental unit
192	192	ordinances. The comptroller shall publish the database on the
193	193	comptroller's Internet website.
194	194	(b) A municipality that adopts a short-term rental unit
195	195	ordinance shall notify the comptroller of the ordinance.
196	196	Sec. 219.0009. CONSTRUCTION OF CHAPTER. (a) This chapter
197	197	does not prohibit:
198	198	(1) a condominium, cooperative, property owners'
199	199	association, or other similar entity from prohibiting or otherwise
200	200	restricting an owner of property within the entity's jurisdiction
201	201	from using the property as a short-term rental unit;
202	202	(2) a lessor, through the terms of a lease agreement,
203	203	from restricting the use of the leased property as a short-term
204	204	rental unit; or
205	205	(3) a property owner from placing a restrictive
206	206	covenant or easement on the property that restricts the future use
207	207	of the property as a short-term rental unit.
208	208	(b) This chapter does not require a municipality to regulate
209	209	a short-term rental unit but does require a municipality that
210	210	elects to regulate a unit to comply with this chapter.
211	211	(c) This chapter does not prohibit a municipality from
212	212	contracting with a third party to provide services that assist in
213	213	ensuring compliance with municipal requirements imposed in
214	214	accordance with this chapter. The third party may be a short-term
215	215	rental unit listing service.
216	216	SECTION 2. Section 156.151, Tax Code, is amended by adding
217	217	Subsections (d) and (e) to read as follows:
218	218	(d) A person who facilitates a short-term rental as defined
219	219	by Section 156.001(b) but does not collect the tax imposed by this
220	220	chapter on the short-term rental shall file with the comptroller a
221	221	report stating:
222	222	(1) the physical address of the property rented;
223	223	(2) the name and address of the owner of the property
224	224	rented;
225	225	(3) the dates of the rental;
226	226	(4) the amount paid for the rental if the person
227	227	facilitated payment for the rental;
228	228	(5) the listing price for the rental if the person
229	229	listed a price for the rental; and
230	230	(6) any other information required by the comptroller.
231	231	(e) A report under Subsection (d) is due on or before the
232	232	20th day of the month following the month in which the last day of
233	233	the short-term rental occurred. The comptroller may prescribe the
234	234	form for a report under Subsection (d), including a method for
235	235	making a combined report of all rentals facilitated by a person. The
236	236	comptroller shall make information obtained from a report under
237	237	Subsection (d) available to a municipality or county that imposes a
238	238	hotel occupancy tax on the short-term rental described by the
239	239	report.
240	240	SECTION 3. This Act takes effect September 1, 2021.