88R20382 MZM-F
 
  By: Landgraf H.B. No. 3169
 
  Substitute the following for H.B. No. 3169:
 
  By:  Lozano C.S.H.B. No. 3169
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to regulation of short-term rental units by certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 7, Local Government Code, is
  amended by adding Chapter 218 to read as follows:
  CHAPTER 218. REGULATION OF SHORT-TERM RENTAL UNITS
         Sec. 218.001.  DEFINITIONS. In this chapter:
               (1)  "Short-term rental unit" means a dwelling that is:
                     (A)  used or designed to be used as the home of a
  person, family, or household, including a single-family dwelling or
  a unit in a multi-unit building, including an apartment,
  condominium, cooperative, or timeshare; and
                     (B)  rented wholly or partly for a fee and for a
  period of less than 30 consecutive days.
               (2)  "Short-term rental unit listing service" means a
  person who facilitates, including by listing short-term rental
  units on an Internet website, the rental of a short-term rental
  unit.
         Sec. 218.002.  APPLICATION OF CHAPTER.  This chapter applies
  only to a municipality that:
               (1)  has a population of less than 1,000; and
               (2)  borders Lake Travis.
         Sec. 218.003.  AUTHORIZED MUNICIPAL LAWS. (a) In regard to
  a short-term rental unit, a municipality may prohibit:
               (1)  the use of the unit to promote activities that are
  illegal under municipal or other law;
               (2)  the provision or management of the unit by a
  registered sex offender or any person having been convicted of a
  felony;
               (3)  the serving of food to a tenant unless the serving
  of food at the unit is otherwise authorized by municipal law;
               (4)  the rental of the unit to a person younger than 18
  years of age; or
               (5)  the rental of the unit for less than 24 hours.
         (b)  In regard to a short-term rental unit, a municipality
  may require:
               (1)  a unit provider to:
                     (A)  designate an emergency contact responsible
  for responding to complaints regarding the unit; and
                     (B)  have the unit inspected on an annual basis by
  the local building code department or fire marshal, as applicable,
  to verify that the unit meets state and municipal requirements; and
               (2)  either:
                     (A)  a unit provider or property manager on the
  provider's behalf to maintain property and liability insurance for
  the unit in an amount required by the municipality; or
                     (B)  the unit provider to provide proof that the
  short-term rental unit listing service that lists the unit is
  maintaining property and liability insurance for the unit in an
  amount required by the municipality.
         Sec. 218.004.  PROHIBITED MUNICIPAL LAWS. Except as
  provided by this chapter, a municipality may not:
               (1)  adopt or enforce an ordinance, rule, or other
  measure that:
                     (A)  prohibits or limits the use of property as a
  short-term rental unit; or
                     (B)  is applicable solely to short-term rental
  units, or short-term rental unit providers, short-term rental unit
  tenants, or other persons associated with short-term rental units;
  or
               (2)  apply a municipal law, including a noise
  restriction, parking requirement, or building code requirement, or
  other law to short-term rental units or short-term rental unit
  providers, short-term rental unit tenants, or other persons
  associated with short-term rental units in a manner that is more
  restrictive or otherwise inconsistent with the application of the
  law to other similarly situated property or persons.
         Sec. 218.005.  CONSTRUCTION OF CHAPTER. (a) This chapter
  does not prohibit:
               (1)  a lessor, through the terms of a lease agreement,
  from restricting the use of the leased property as a short-term
  rental unit; or
               (2)  a property owner from placing a restrictive
  covenant or easement on the property that restricts the future use
  of the property as a short-term rental unit.
         (b)  This chapter does not prohibit a municipality from
  contracting with a third party to provide services that assist in
  ensuring compliance with municipal requirements imposed in
  accordance with this chapter. The third party may be a short-term
  rental unit listing service.
         SECTION 2.  This Act takes effect September 1, 2023.