TITLE: Relating to regulation of short-term rentals and short-term rental marketplaces by municipalities and counties.

SUMMARY: Relating to regulation of short-term rentals and short-term rental marketplaces by municipalities and counties.

FULL TEXT:
AN ACT relating to regulation of short-term rentals and short-term rental marketplaces by municipalities and counties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 250, Local Government Code, is amended by adding Section 250.008 to read as follows: Sec. 250.008. REGULATION OF SHORT-TERM RENTALS AND SHORT-TERM RENTAL MARKETPLACES. (a) In this section: (1) "Local law" means an ordinance, order, regulation, or similar measure. (2) "Short-term rental" means a residential property, including a single-family dwelling or a unit in a condominium, cooperative, mixed-use development, or time-share, 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 a nonresidential purpose, 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. (3) "Short-term rental marketplace" means a platform through which the owner of or authorized agent of the owner of a residential property, including a single-family dwelling or a residential dwelling unit, offers a short-term rental for rent. (b) Subsection (a)(2) does not affect the definition of a short-term rental under: (1) Section 156.001, Tax Code; (2) an ordinance under Section 351.002, Tax Code; or (3) an order or resolution under Section 352.002, Tax Code. (c) Except as provided by this section, a municipality may not adopt or enforce a local law that restricts the use of or otherwise regulates a short-term rental based on the property's classification, use, or homestead status. If otherwise authorized by law, a municipality may adopt or enforce a local law applicable to short-term rentals: (1) addressing: (A) fire and building codes; (B) health and sanitation; (C) traffic control; (D) solid or hazardous waste and pollution control; (E) requirements under Subchapter B, Chapter 232; and (F) annual registration of short-term rentals, including the assessment of a reasonable and necessary administrative fee related to processing and administration of the registration, not to exceed $100 annually; (2) requiring the designation of an emergency contact for the property; and (3) prohibiting the use of a rental for the purpose of: (A) housing sex offenders; (B) operating a structured sober living home or similar enterprise; (C) selling illegal drugs; (D) selling alcohol or another activity that requires a permit or license under the Alcoholic Beverage Code; or (E) operating as a sexually oriented business. (d) Except as provided by this section, a municipality shall apply a local law regulating land use to a short-term rental in the same manner as another similar property. A local law described by this subsection includes regulations on: (1) zoning in accordance with the laws of this state; (2) residential use; (3) occupancy limitations; (4) noise; (5) property maintenance; and (6) nuisance. (e) Except as provided by this section, a municipality may not adopt or enforce a local law that: (1) expressly or effectively prohibits the use of a private property as a short-term rental; (2) regulates the operation of a short-term rental marketplace; (3) imposes a tax or fee on a person operating a short-term rental marketplace that is not otherwise authorized by the laws of this state; (4) requires a person operating a short-term rental marketplace to apply, calculate, collect, or remit a tax imposed under Chapter 156, 351, or 352, Tax Code, except as otherwise required by the laws of this state, regardless of whether the person has previously provided those services; or (5) imposes a tax on a person described by Subdivision (4) for the provision of services described by that subdivision. (f) This section does not affect the authority of a municipality or county to adopt and enforce a local law that imposes a hotel occupancy tax on a person using a short-term rental in the same manner as the tax is imposed on a person using other property the use of which is subject to the tax. (g) If a hotel occupancy tax is authorized by the municipality or county in which a short-term rental is located, a person operating a short-term rental marketplace may apply, calculate, collect, or remit a tax imposed by the state, municipality, or county under Chapter 156, 351, or 352, Tax Code, as applicable. (h) This section may not be construed to: (1) affect regulations of a private entity, including a property owners' association as defined by Section 202.001, Property Code; (2) affect residential tenancies under Chapter 92, Property Code; or (3) otherwise limit a property owner's rights under the laws of this state. (i) A short-term rental is subject to applicable federal, state, and local laws regarding rental discrimination. This subsection is not intended to: (1) impose any additional obligation other than an obligation that exists under applicable federal, state, and local laws; or (2) create an additional cause of action. SECTION 2. This Act takes effect September 1, 2017.