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.