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