HBA-NIK S.B. 154 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 154 By: Lindsay Land & Resource Management 5/13/1999 Engrossed BACKGROUND AND PURPOSE Under current law, an association of property owners of nonresidential property must have all property owners agree to amendments to deed restrictions, if there were no provisions for deed restriction amendments when the deed was originally drafted. S.B. 154 requires certain nonresidential property owners to comply with the petition procedures set out in Chapter 201, Property Code, in order to modify restrictive covenants. The bill also invalidates the modification of a restrictive covenant under certain conditions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 11, Property Code, by adding Chapter 207, as follows: CHAPTER 207. RESTRICTIVE COVENANTS APPLICABLE TO CERTAIN NONRESIDENTIAL PROPERTY Sec. 207.001. APPLICATION. Provides that this chapter applies only to real property (1) designated by a restrictive covenant for nonresidential use that is located in a county with a population of 2.8 million or more, and (2) within 2.5 miles of any boundary of a privately owned airport with a control tower operated by the Federal Aviation Administration. Sec. 207.002. DEFINITIONS. Defines "owner," "restrictive covenant," and "grantor." Sec. 207.003. MODIFICATION OF RESTRICTIONS. Provides that the owners of real property subject to this chapter must comply with the petition procedures prescribed by Chapter 201 (Restrictive Covenants Applicable to Certain Subdivisions) to modify restrictive covenants applicable to the property. Provides that those procedures apply to a petition and modification of restrictive covenants under this chapter to the extent they can be made applicable. Sets forth the provisions under which the modification of a restrictive covenant under this chapter is invalid. Sec. 207.004. EXPIRATION. Provides that this chapter expires May 1, 2001. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.