By: Lozano H.B. No. 2367

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of residential amenity rentals by a political subdivision; authorizing a fee; authorizing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 7, Local Government Code, is amended by adding Chapter 247 to read as follows:

CHAPTER 247. REGULATION OF RESIDENTIAL AMENITY RENTALS

Sec. 247.001. DEFINITIONS. In this chapter:

(1) "Listing service" means a person who facilitates the renting of a residential amenity rental, including by listing residential amenity rentals on an Internet website.

(2) "Provider" means a person who rents a residential amenity rental to another person.

(3) "Residential amenity rental" or "rental" means a feature or facility:

(A) that is part of a property used or designed to be used as the home of a person, family, or household, including a single-family dwelling; and

(B) that is rented for a period of less than 15 hours and not for the purpose of providing sleeping accommodations to a tenant.

Sec. 247.002. APPLICABILITY. This chapter applies to a political subdivision that has the authority to enact an ordinance, order, rule, or other requirement regarding zoning or other land use in its jurisdiction.

Sec. 247.003. AUTHORIZED LOCAL REGULATIONS. (a) A political subdivision may require a provider to, before renting a residential amenity rental to another person:

(1) register the rental as provided by Section 247.004;

(2) designate an emergency contact responsible for responding to complaints regarding the rental; and

(3) provide proof that written notice was given to each owner of property that shares a common boundary with the property where the rental is located of the provider's intent to use the property as a residential amenity rental.

(b) A political subdivision may:

(1) prohibit a provider from serving food to a tenant of a residential amenity rental unless serving food commercially at the rental is otherwise authorized by law.

Sec. 247.004. RESIDENTIAL AMENITY RENTAL REGISTRATION. (a) A political subdivision that adopts a registration requirement under Section 247.003(a)(1):

(1) shall approve a registration application unless the provider is in violation of a regulation authorized under Section 247.003;

(2) may charge a nominal registration fee not to exceed the amount sufficient to cover the costs of administering the registration requirement; and

(3) may maintain an Internet website or telephone hotline that enables a member of the public to file a complaint regarding a residential amenity rental.

(b) A political subdivision shall approve or deny a registration application in accordance with Subsection (a)(1) not later than the 30th day after the date the political subdivision receives the application. If the political subdivision fails to respond in accordance with this subsection, the registration is considered approved.

(c) If a political subdivision requires a provider to register under this chapter, the registration must be valid for at least one year.

(d) A political subdivision may suspend a registration issued under this chapter only in accordance with Section 247.007.

Sec. 247.005. PROHIBITED LOCAL REGULATIONS; BURDEN OF PROOF. (a) Except as provided by this chapter, a political subdivision may not adopt or enforce an ordinance, order, or rule that:

(1) prohibits or limits the use of a property as a residential amenity rental; or

(2) applies to residential amenity rental providers, residential amenity rental tenants, or other persons associated with residential amenity rentals in a manner that is more restrictive or otherwise inconsistent with the application of the law to other similarly situated persons.

(b) In a legal action challenging the adoption or enforcement of an ordinance, order, or rule under this chapter, the political subdivision has the burden of proving by clear and convincing evidence that the ordinance, order, or rule meets the requirements of this chapter.

Sec. 247.006. CONFLICT OF LAW. (a) To the extent of a conflict between any regulation adopted under this chapter by a county and any regulation adopted under this chapter by a political subdivision other than a county, the county regulation controls.

(b) To the extent of a conflict between any regulations adopted under this chapter by two or more political subdivisions other than a county, the less stringent limitation or requirement controls.

Sec. 247.007. ENFORCEMENT; CIVIL PENALTY. (a) A political subdivision may assess a civil penalty against a provider for a violation of an ordinance, order, or rule adopted by the political subdivision that is the direct result of the operation of the residential amenity rental. A civil penalty assessed under this section is in addition to any penalty imposed for the violation of an ordinance, order, or rule adopted under authority other than this chapter.

(b) Except as provided by Subsection (c), a civil penalty issued under this section must be in a reasonable amount, not to exceed $200 per violation.

(c) For a second violation that is the direct result of the operation of the residential amenity rental, a political subdivision may assess an increased civil penalty, not to exceed $400.

(d) For a third violation that is the direct result of the operation of the residential amenity rental, a political subdivision may:

(1) suspend the registration of a provider for a period not to exceed one year; or

(2) prohibit the continued use of the property as a residential amenity rental by the same provider.

(e) To assess a civil penalty, suspend a registration, or prohibit the continued use of a property as a residential amenity rental under this section, the political subdivision has the burden of proof of demonstrating that the violation was a direct result of the residential amenity rental's operation.

(f) A political subdivision may not assess a penalty on a provider, suspend a registration, or prohibit the continued use of a property as a residential amenity rental under this section until the provider has exhausted all appeal rights for the underlying violation.

SECTION 2. This Act takes effect September 1, 2023.