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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of short-term rental units by certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 7, Local Government Code, is |
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amended by adding Chapter 218 to read as follows: |
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CHAPTER 218. REGULATION OF SHORT-TERM RENTAL UNITS |
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Sec. 218.001. DEFINITIONS. In this chapter: |
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(1) "Short-term rental unit" means a dwelling that is: |
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(A) used or designed to be used as the home of a |
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person, family, or household, including a single-family dwelling or |
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a unit in a multi-unit building, including an apartment, |
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condominium, cooperative, or timeshare; and |
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(B) rented wholly or partly for a fee and for a |
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period of less than 30 consecutive days. |
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(2) "Short-term rental unit listing service" means a |
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person who facilitates, including by listing short-term rental |
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units on an Internet website, the rental of a short-term rental |
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unit. |
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Sec. 218.002. APPLICATION OF CHAPTER. This chapter applies |
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only to a municipality that: |
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(1) has a population of less than 1,000; and |
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(2) borders Lake Travis. |
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Sec. 218.003. AUTHORIZED MUNICIPAL LAWS. (a) In regard to |
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a short-term rental unit, a municipality may prohibit: |
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(1) the use of the unit to promote activities that are |
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illegal under municipal or other law; |
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(2) the provision or management of the unit by a |
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registered sex offender or any person having been convicted of a |
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felony; |
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(3) the serving of food to a tenant unless the serving |
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of food at the unit is otherwise authorized by municipal law; |
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(4) the rental of the unit to a person younger than 18 |
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years of age; or |
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(5) the rental of the unit for less than 24 hours. |
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(b) In regard to a short-term rental unit, a municipality |
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may require: |
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(1) a unit provider to: |
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(A) designate an emergency contact responsible |
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for responding to complaints regarding the unit; and |
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(B) have the unit inspected on an annual basis by |
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the local building code department or fire marshal, as applicable, |
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to verify that the unit meets state and municipal requirements; and |
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(2) either: |
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(A) a unit provider or property manager on the |
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provider's behalf to maintain property and liability insurance for |
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the unit in an amount required by the municipality; or |
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(B) the unit provider to provide proof that the |
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short-term rental unit listing service that lists the unit is |
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maintaining property and liability insurance for the unit in an |
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amount required by the municipality. |
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Sec. 218.004. PROHIBITED MUNICIPAL LAWS. Except as |
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provided by this chapter, a municipality may not: |
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(1) adopt or enforce an ordinance, rule, or other |
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measure that: |
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(A) prohibits or limits the use of property as a |
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short-term rental unit; or |
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(B) is applicable solely to short-term rental |
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units, or short-term rental unit providers, short-term rental unit |
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tenants, or other persons associated with short-term rental units; |
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or |
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(2) apply a municipal law, including a noise |
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restriction, parking requirement, or building code requirement, or |
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other law to short-term rental units or short-term rental unit |
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providers, short-term rental unit tenants, or other persons |
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associated with short-term rental units in a manner that is more |
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restrictive or otherwise inconsistent with the application of the |
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law to other similarly situated property or persons. |
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Sec. 218.005. CONSTRUCTION OF CHAPTER. (a) This chapter |
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does not prohibit: |
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(1) a lessor, through the terms of a lease agreement, |
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from restricting the use of the leased property as a short-term |
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rental unit; or |
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(2) a property owner from placing a restrictive |
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covenant or easement on the property that restricts the future use |
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of the property as a short-term rental unit. |
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(b) This chapter does not prohibit a municipality from |
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contracting with a third party to provide services that assist in |
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ensuring compliance with municipal requirements imposed in |
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accordance with this chapter. The third party may be a short-term |
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rental unit listing service. |
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SECTION 2. This Act takes effect September 1, 2023. |