By: Gates, Longoria, Clardy, Perez, Cook, H.B. No. 2665
et al.
A BILL TO BE ENTITLED
AN ACT
relating to an interim study of the municipal regulation of
short-term rental properties and residential amenity rental
properties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 92, Property Code, is amended by adding
Subchapter J to read as follows:
SUBCHAPTER J. STUDY ON REGULATION OF SHORT-TERM RENTAL PROPERTIES
Sec. 92.361. DEFINITIONS. In this subchapter:
(1) "Department" means the Texas Department of
Licensing and Regulation.
(2) "Residential amenity rental property" means a
feature or facility that is:
(A) part of a residential property, including a
single-family dwelling or a unit in a condominium, cooperative,
mixed-use development, or timeshare; and
(B) rented for:
(i) a period of less than 15 hours; and
(ii) a purpose other than providing
sleeping accommodations to the lessee.
(3) "Short-term rental property" means a residential
property, including a single-family dwelling or a unit in a
condominium, cooperative, mixed-use development, or timeshare,
that is rented wholly or partly for a fee for a period not longer
than 30 consecutive days. The term does not include:
(A) a unit that is used for nonresidential
purposes, including an educational, health care, retail,
restaurant, banquet space, or event center purpose or another
similar use;
(B) a bed and breakfast; or
(C) a commercial lodging establishment,
including a hotel or motel, that is not taxed as residential
property under Title 1, Tax Code.
Sec. 92.362. ESTABLISHMENT OF TASK FORCE. (a) The
department shall establish a task force to study, review, and
report to the legislature on the impact of municipal ordinances,
rules, and other measures regulating short-term rental properties
and residential amenity rental properties.
(b) The task force is composed of:
(1) two members appointed by the governor;
(2) two members of the senate appointed by the
lieutenant governor;
(3) two members of the house of representatives
appointed by the speaker of the house of representatives;
(4) one representative of the department;
(5) one member representing the interests of a large
urban community;
(6) one member representing the interests of a small
urban community;
(7) one member representing the interests of a coastal
community;
(8) one member representing the interests of law
enforcement; and
(9) two members representing the interests of
neighborhoods.
Sec. 92.363. ADMINISTRATIVE ATTACHMENT. The task force is
administratively attached to the department.
Sec. 92.364. REPORT. Not later than December 31, 2024, the
task force shall submit to the legislature a written report that
includes:
(1) a summary of the task force's findings on:
(A) the impact of rental properties and
residential amenity rental properties on the quality of life in
communities where those properties are located, including impacts
on crime, noise, local school enrollments, and other unintended
consequences;
(B) the ordinances impacting short-term rental
properties and residential amenity rental properties;
(C) the economic impact of ordinances on
short-term rental properties and residential amenity rental
properties;
(D) the remittance of state and local taxes by
short-term rental property and residential amenity rental property
owners;
(E) local registration and reporting
requirements for short-term rental properties and residential
amenity rental properties;
(F) the economic impact and hidden costs of
short-term rental properties and residential amenity rental
properties on communities, including:
(i) responses to resident complaints;
(ii) increased crime;
(iii) inability to fully enforce sex
offender registry laws;
(iv) lack of affordable housing for local
workers and others;
(v) decreased school enrollments;
(vi) loss of population-based state and
federal funding; and
(vii) other unintended consequences;
(G) increased costs to municipalities,
homeowners' associations, and residents from short-term rental
properties and residential amenity rental properties in a community
in which those properties are located and methods to reimburse
those costs from the state; and
(H) lessons from other municipalities and states
on successes and failures with short-term rental property and
residential amenity rental property regulations; and
(2) legislative recommendations regarding:
(A) whether there is sufficient justification
for statewide regulation of short-term rental properties and
residential amenity rental properties, considering regulation of
land use has long been entrusted to local governments;
(B) potential benefits and costs of adopting
statewide regulations of short-term rental properties and
residential amenity rental properties;
(C) appropriate protection of local health,
safety, morals, and general welfare regulations;
(D) methods to create greater accountability of
entities engaged in the business of operating an Internet-based
platform to facilitate the rental of short-term rental properties
and residential amenity rental properties, including methods to:
(i) audit and increase the payment of state
and municipal hotel occupancy taxes; and
(ii) diminish or eliminate disturbances in
residential neighborhoods;
(E) methods for the state to reimburse
municipalities for hiring additional code enforcement officers and
to reimburse homeowners who suffer financial and emotional
hardships as a result of living near a short-term rental property or
residential amenity rental property;
(F) the ability of municipalities to adequately
address the effect of short-term rental properties and residential
amenity rental properties on neighborhoods, neighbors, and
families through the enforcement of nuisance regulations and
criminal citations, with consideration given to the transient
nature of short-term rental property and residential amenity rental
property activity;
(G) the ability of municipalities to impose
reasonable density restrictions on the location and proliferation
of short-term rental properties and residential amenity rental
properties to maintain the character of single-family residential
neighborhoods;
(H) the value of elected municipal officials
having the ability to adopt specific short-term rental property and
residential amenity rental property regulations that can
effectively address a community's particular needs and economic
conditions;
(I) whether to authorize a neighborhood to
prohibit short-term rental properties if the municipality in which
the neighborhood is located has adopted an ordinance that requires
a higher percentage of property owners to be residents of the
neighborhood than the deed restrictions for the neighborhood; and
(J) the effect of state preemption on short-term
rental property and residential amenity rental property
regulations in other states.
Sec. 92.365. EXPIRATION. This subchapter expires and the
task force is abolished January 1, 2025.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.