Texas 2023 - 88th Regular

Texas House Bill HB2665 Compare Versions

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1	1	By: Gates, Longoria, Clardy, Perez, Cook, H.B. No. 2665
2	2	et al.
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an interim study of the municipal regulation of
8	8	short-term rental properties and residential amenity rental
9	9	properties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 92, Property Code, is amended by adding
12	12	Subchapter J to read as follows:
13	13	SUBCHAPTER J. STUDY ON REGULATION OF SHORT-TERM RENTAL PROPERTIES
14	14	Sec. 92.361. DEFINITIONS. In this subchapter:
15	15	(1) "Department" means the Texas Department of
16	16	Licensing and Regulation.
17	17	(2) "Residential amenity rental property" means a
18	18	feature or facility that is:
19	19	(A) part of a residential property, including a
20	20	single-family dwelling or a unit in a condominium, cooperative,
21	21	mixed-use development, or timeshare; and
22	22	(B) rented for:
23	23	(i) a period of less than 15 hours; and
24	24	(ii) a purpose other than providing
25	25	sleeping accommodations to the lessee.
26	26	(3) "Short-term rental property" means a residential
27	27	property, including a single-family dwelling or a unit in a
28	28	condominium, cooperative, mixed-use development, or timeshare,
29	29	that is rented wholly or partly for a fee for a period not longer
30	30	than 30 consecutive days. The term does not include:
31	31	(A) a unit that is used for nonresidential
32	32	purposes, including an educational, health care, retail,
33	33	restaurant, banquet space, or event center purpose or another
34	34	similar use;
35	35	(B) a bed and breakfast; or
36	36	(C) a commercial lodging establishment,
37	37	including a hotel or motel, that is not taxed as residential
38	38	property under Title 1, Tax Code.
39	39	Sec. 92.362. ESTABLISHMENT OF TASK FORCE. (a) The
40	40	department shall establish a task force to study, review, and
41	41	report to the legislature on the impact of municipal ordinances,
42	42	rules, and other measures regulating short-term rental properties
43	43	and residential amenity rental properties.
44	44	(b) The task force is composed of:
45	45	(1) two members appointed by the governor;
46	46	(2) two members of the senate appointed by the
47	47	lieutenant governor;
48	48	(3) two members of the house of representatives
49	49	appointed by the speaker of the house of representatives;
50	50	(4) one representative of the department;
51	51	(5) one member representing the interests of a large
52	52	urban community;
53	53	(6) one member representing the interests of a small
54	54	urban community;
55	55	(7) one member representing the interests of a coastal
56	56	community;
57	57	(8) one member representing the interests of law
58	58	enforcement; and
59	59	(9) two members representing the interests of
60	60	neighborhoods.
61	61	Sec. 92.363. ADMINISTRATIVE ATTACHMENT. The task force is
62	62	administratively attached to the department.
63	63	Sec. 92.364. REPORT. Not later than December 31, 2024, the
64	64	task force shall submit to the legislature a written report that
65	65	includes:
66	66	(1) a summary of the task force's findings on:
67	67	(A) the impact of rental properties and
68	68	residential amenity rental properties on the quality of life in
69	69	communities where those properties are located, including impacts
70	70	on crime, noise, local school enrollments, and other unintended
71	71	consequences;
72	72	(B) the ordinances impacting short-term rental
73	73	properties and residential amenity rental properties;
74	74	(C) the economic impact of ordinances on
75	75	short-term rental properties and residential amenity rental
76	76	properties;
77	77	(D) the remittance of state and local taxes by
78	78	short-term rental property and residential amenity rental property
79	79	owners;
80	80	(E) local registration and reporting
81	81	requirements for short-term rental properties and residential
82	82	amenity rental properties;
83	83	(F) the economic impact and hidden costs of
84	84	short-term rental properties and residential amenity rental
85	85	properties on communities, including:
86	86	(i) responses to resident complaints;
87	87	(ii) increased crime;
88	88	(iii) inability to fully enforce sex
89	89	offender registry laws;
90	90	(iv) lack of affordable housing for local
91	91	workers and others;
92	92	(v) decreased school enrollments;
93	93	(vi) loss of population-based state and
94	94	federal funding; and
95	95	(vii) other unintended consequences;
96	96	(G) increased costs to municipalities,
97	97	homeowners' associations, and residents from short-term rental
98	98	properties and residential amenity rental properties in a community
99	99	in which those properties are located and methods to reimburse
100	100	those costs from the state; and
101	101	(H) lessons from other municipalities and states
102	102	on successes and failures with short-term rental property and
103	103	residential amenity rental property regulations; and
104	104	(2) legislative recommendations regarding:
105	105	(A) whether there is sufficient justification
106	106	for statewide regulation of short-term rental properties and
107	107	residential amenity rental properties, considering regulation of
108	108	land use has long been entrusted to local governments;
109	109	(B) potential benefits and costs of adopting
110	110	statewide regulations of short-term rental properties and
111	111	residential amenity rental properties;
112	112	(C) appropriate protection of local health,
113	113	safety, morals, and general welfare regulations;
114	114	(D) methods to create greater accountability of
115	115	entities engaged in the business of operating an Internet-based
116	116	platform to facilitate the rental of short-term rental properties
117	117	and residential amenity rental properties, including methods to:
118	118	(i) audit and increase the payment of state
119	119	and municipal hotel occupancy taxes; and
120	120	(ii) diminish or eliminate disturbances in
121	121	residential neighborhoods;
122	122	(E) methods for the state to reimburse
123	123	municipalities for hiring additional code enforcement officers and
124	124	to reimburse homeowners who suffer financial and emotional
125	125	hardships as a result of living near a short-term rental property or
126	126	residential amenity rental property;
127	127	(F) the ability of municipalities to adequately
128	128	address the effect of short-term rental properties and residential
129	129	amenity rental properties on neighborhoods, neighbors, and
130	130	families through the enforcement of nuisance regulations and
131	131	criminal citations, with consideration given to the transient
132	132	nature of short-term rental property and residential amenity rental
133	133	property activity;
134	134	(G) the ability of municipalities to impose
135	135	reasonable density restrictions on the location and proliferation
136	136	of short-term rental properties and residential amenity rental
137	137	properties to maintain the character of single-family residential
138	138	neighborhoods;
139	139	(H) the value of elected municipal officials
140	140	having the ability to adopt specific short-term rental property and
141	141	residential amenity rental property regulations that can
142	142	effectively address a community's particular needs and economic
143	143	conditions;
144	144	(I) whether to authorize a neighborhood to
145	145	prohibit short-term rental properties if the municipality in which
146	146	the neighborhood is located has adopted an ordinance that requires
147	147	a higher percentage of property owners to be residents of the
148	148	neighborhood than the deed restrictions for the neighborhood; and
149	149	(J) the effect of state preemption on short-term
150	150	rental property and residential amenity rental property
151	151	regulations in other states.
152	152	Sec. 92.365. EXPIRATION. This subchapter expires and the
153	153	task force is abolished January 1, 2025.
154	154	SECTION 2. This Act takes effect immediately if it receives
155	155	a vote of two-thirds of all the members elected to each house, as
156	156	provided by Section 39, Article III, Texas Constitution. If this
157	157	Act does not receive the vote necessary for immediate effect, this
158	158	Act takes effect September 1, 2023.