By:  Giddings                                                     H.B. No. 1021



A BILL TO BE ENTITLED

AN ACT

relating to the right of first refusal in certain real estate 
transactions. 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Property Code, is 
amended by adding Section 5.014 to read as follows:
	Sec. 5.014.  PROHIBITED FEES.  A person who has a right of 
first refusal in real property may not charge a fee for declining to 
exercise that right, such as a fee for providing written evidence of 
the declination.
	SECTION 2.  Except as provided by a contract entered into 
before the effective date of this Act, Section 5.014, Property 
Code, as added by this Act, applies only to a fee that is solicited 
on or after the effective date of this Act for declining the 
exercise of a right of first refusal.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.