BILL ANALYSIS H.B. 387 By: Hochberg C.S.H.B. 387 By: Hartnett 4-11-95 Committee Report (Substituted) BACKGROUND Currently, many homeowner associations are prevented from enforcing deed restrictions by the high costs of filing district court actions. These high costs are an impediment to homeowner association ability to enforce deed restrictions. By enabling associations to have access to justice of the peace courts, the associations gain the ability to enforce both large and small infractions. PURPOSE The intent of this bill is to allow homeowner associations to file court actions in local Justice of the Peace courts, reducing the costs involved to enforce deed restrictions in Harris County. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, department or agency. SECTION BY SECTION ANALYSIS SECTION 1 amends Subchapter B, Chapter 27, Government Code, by adding Section 27.034, DEED RESTRICTION JURISDICTION. Subsection (a) gives a Harris County justice court jurisdiction over suits relating to enforcement of a deed restriction. Subsection (b) lists required evidence to be presented by a petitioner in a deed restriction dispute. Subsection (c) allows the justice of the peace to order any alternative dispute resolution provided by Title 7 of the Civil Practices and Remedies Code. Subsection (d) states that the jurisdiction provided by this section is concurrent with the jurisdiction of the district court. Subsection (e) states that a justice court has jurisdiction of suits under this section regardless of the amount in controversy. Subsection (f) allows a justice court to consolidate deed restriction suits. Subsection (g) provides for appeals by trial de novo. Subsection (h) defines "deed restriction." Subsection (i) defines exceptions to the definition of "dwelling." SECTION 2. Emergency clause. Effective date. COMPARISON OF ORIGINAL TO SUBSTITUTE Section 1 in both versions creates a new Government Code Section 27.034, but is substantially different in the substitute. Subsec. (a) in the substitute restricts deed restriction jurisdiction in justice courts to counties with a population of 2.8 million of more; the original granted justice courts jurisdiction in all counties. Subsec. (b) in the substitute lists evidentiary requirements; this was not in the original. Subsec. (c) in the substitute allows the justice court to order alternative dispute resolution processes already approved by law; this provision was contained in Subsec. (b) of the original and was much broader in scope. Subsec. (d) in the substitute was Subsec. (c) in the original. Subsec. (e) in the substitute was Subsec. (d) in the original. Subsec. (f), allowing consolidation of cases, was not in the original. Subsec. (g) in the substitute, specifying that appeals are by trial de novo, was not in the original. Subsec. (h) in the substitute was Subsec. (e) in the original. Subsec. (i) in the substitute, defining exceptions to "dwelling," was not in the original. Section 2 is the same in both versions. SUMMARY OF COMMITTEE ACTION Pursuant to a public notice posted on February 22, 1995, the Committee on Judicial Affairs met in a public hearing on February 28, 1995, to consider H.B. 387. The Chair laid out H.B. 387 and recognized the author, Rep. Hochberg, to explain the bill. The Chair offered up and laid out a complete committee substitute for H.B. 387 and recognized Rep. Hochberg to explain the substitute. Randy Lee, representing Stewart Title Guarantee Corporation and the Texas Land Title Association, testified against H.B. 387 and C.S.H.B. 387. Without objection, the Chair left C.S.H.B. 387 pending. Following subsequent business, the Chair again laid out C.S.H.B. 387. Without objection, the Chair withdrew the substitute to H.B. 387 and referred H.B. 387 to the Subcommittee on Property. The subcommittee members were Reps. Zbranek (Chair), Hartnett and Nixon. Pursuant to a public notice posted on April 6, 1995, the Committee on Judicial Affairs met in a public hearing on April 11, 1995, to consider H.B. 387. The Chair, Rep. Hartnett, recalled H.B. 387 from subcommittee. The Chair laid out H.B. 387 and recognized the author, Rep. Hochberg, to explain. The Chair offered and laid out a complete committee substitute to H.B. 387 and recognized Rep. Hochberg to explain. There were no witnesses to testify. The Chair moved to adopt the substitute. There were no objections. Rep. Goodman moved that H.B. 387, as substituted, be reported favorably back to the full House with the recommendation that it do pass, be printed and sent to the Calendars Committee. The motion prevailed by the following record vote: 7 ayes, 0 nays, 0 PNV and 2 absent.