Bill Text: TX SB451 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2017-05-09 - Referred to Urban Affairs [SB451 Detail]

Download: Texas-2017-SB451-Comm_Sub.html

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By: Hancock, Buckingham S.B. No. 451
(In the Senate - Filed January 10, 2017; February 6, 2017,
read first time and referred to Committee on Business & Commerce;
April 3, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 1; April 3, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 451 By: Hancock

A BILL TO BE ENTITLED
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) A municipality or county may adopt or enforce a local
law that specifically regulates property used as a short-term
rental only if the local law's primary purpose is to protect the
public's health and safety. Local laws authorized by this
subsection include regulations:
(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) permitting of short-term rentals, including
assessment of a reasonable fee for processing and administration;
(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 or
county 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;
(6) nuisance; and
(7) reasonable limits on density if the limits do not
effectively prohibit short-term rentals.
(e) Except as provided by this section, a municipality or
county may not adopt or enforce a local law that:
(1) expressly or effectively prohibits the use of a
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 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.
SECTION 2. This Act takes effect September 1, 2017.
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