SRC-PNG C.S.S.B. 154 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 154
76R12415 PAM-FBy: Lindsay
State Affairs
4/18/1999
Committee Report (Substituted)


DIGEST 

Currently, under Texas 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.  This bill requires
nonresidential property owners to comply with certain petition procedures
in order to modify restrictive covenants. The bill also invalidates the
modification of a restrictive covenant under certain conditions. 

PURPOSE

As proposed, C.S.S.B. 154 requires nonresidential property owners to comply
with certain petition procedures in order to modify restrictive covenants,
and invalidates the modification of a restrictive covenant under certain
conditions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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.  Establishes that this chapter applies only
to real property  designated by a restrictive covenant for nonresidential
use that is located in a county with a  population of 2.8 million or more. 

 Sec.  207.002.  DEFINITIONS.  Defines "owner," "restrictive covenant," and
"grantor." 

 Sec.  207.003.  MODIFICATION OF RESTRICTIONS.  Requires owners of real
property  subject to this chapter to comply with the applicable petition
procedures of Chapter 201 to  modify restrictive covenants.  Invalidates
the modification of a restrictive covenant under  certain conditions. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 207.002(3), Property Code, to redefine "grantor."

Amends Section 207.003(b), Property Code, to revise the conditions under
which the modification of a restrictive covenant is invalidated.