HBA-MPM H.B. 2727 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2727
By: Hilderbran
Business & Industry
4/4/2001
Introduced



BACKGROUND AND PURPOSE 

Current law voids a restriction or provision in a deed regarding real
property that prohibits the use by or the sale, lease, or transfer of
property to a person because of race, color, religion, or national origin
and requires a court to dismiss a suit to enforce such a restriction or
provision.  However, some property owners' associations may still have
dedicatory instruments that contain such discriminatory provisions. House
Bill 2727 requires a property owners' association to remove any restrictive
covenant from a dedicatory instrument by September 1, 2002. 

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. 

ANALYSIS

House Bill 2727 amends the Property Code to prohibit a dedicatory
instrument from containing a restrictive covenant affecting real property
or a provision in a deed that conveys real property or an interest in real
property, whether express or incorporated by reference, that prohibits the
use by or the sale, lease, or transfer to a person because of race, color,
religion, or national origin. The bill requires a property owners'
association to review a dedicatory instrument governing property whose
owners are represented by the association and to remove no later than
September 1, 2002, any restrictive covenant from the dedicatory instrument. 

EFFECTIVE DATE

September 1, 2001.