By Hilbert                                      H.B. No. 3154

      75R2809 PAM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the modification of restrictive covenants applicable to

 1-3     certain real property.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Title 11, Property Code, is amended by adding

 1-6     Chapter 206 to read as follows:

 1-7          CHAPTER 206.  RESTRICTIVE COVENANTS APPLICABLE TO CERTAIN

 1-8                           NONRESIDENTIAL PROPERTY

 1-9           Sec. 206.001.  APPLICATION.  This chapter applies only to

1-10     real property designated by a restrictive covenant for

1-11     nonresidential use that is located in whole or in part in a county

1-12     with a population of 2.8 million or more.

1-13           Sec. 206.002.  DEFINITIONS.  In this chapter:

1-14                 (1)  "Owner" means an individual, fiduciary,

1-15     partnership, joint venture, corporation, association, or other

1-16     entity that owns record title to real property or the personal

1-17     representative of an individual who owns record title to real

1-18     property.

1-19                 (2)  "Restrictive covenant" includes a deed

1-20     restriction.

1-21                 (3)  "Grantor" includes the grantor's successors or

1-22     assigns.

1-23           Sec. 206.003.  MODIFICATION OF RESTRICTIONS.  (a)  The owners

1-24     of real property subject to this chapter must comply with the

 2-1     petition procedures prescribed by Chapter 201 to modify restrictive

 2-2     covenants applicable to the property.  Those procedures apply to a

 2-3     petition and modification of restrictive covenants under this

 2-4     chapter to the extent they can be made applicable.

 2-5           (b)  The modification of a restrictive covenant under this

 2-6     chapter is invalid if:

 2-7                 (1)  the modification alters a right reserved to the

 2-8     grantor in a deed imposing restrictions on the property; or

 2-9                 (2)  the grantor does not consent to the modification

2-10     in writing.

2-11           SECTION 2.  This Act takes effect September 1, 1997.

2-12           SECTION 3.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.