SENATE FLOOR VERSION - SB1617 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 8, 2024 SENATE BILL NO. 1617 By: Thompson (Kristen) and Young of the Senate and Pfeiffer of the House An Act relating to municipal land; amending 11 O.S. 2021, Section 42-106.1, which relates to restrictive covenants on property; providing process for amendment of discriminatory restrictive covenant s; declaring certain discriminatory restrictive covenants null and void; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 11 O.S. 2021, Section 42 -106.1, is amended to read as follows: Section 42-106.1. A. Any restrictive covenant on property contained in a residential addition may be amended if: 1. The restrictive covenant has b een in existence for at least ten (10) years and the amendment is approved by the owners of at least seventy percent (70%) of the parcels contained in the addition or the amount specified in the restrictive covenant, whichever is less; or SENATE FLOOR VERSION - SB1617 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The restrictive covenant has been in existence for at least fifteen (15) years and the amendment is approved by the owne rs of at least sixty percent (60%) of the parcels contained in the addition or the amount specified in the restric tive covenant, whichever is less. B. Where a preliminary plat has been filed for a residential addition, the requirements of paragraphs 1 and 2 of subsection A of this section shall inc lude all the parcels contain ed in the preliminary plat. C. In the absence of a provision providing for t he amendment of the restrictive covenants of a residential addition the requirements of paragraphs 1 and 2 of subsection A of this section shall apply. A thirty-day notice of any meeting called to amend the restrictive covenants shall be provided to the o wners of every parcel contained in the addition. Each parcel shall be entitled to one vote. D. The recorded restrictive covenants on property contain ed in a residential addition may be amended by the addition of a new covenant creating a neighborhood ass ociation for the addition that would require the mandatory participation of the successors -in- interest of all record owners of parcels within the addition at the time the amendment is recorded. The amendment must be appr oved by the record owners of at lea st sixty percent (60%) of the parcels contained in the addition and shall be subject to the following: SENATE FLOOR VERSION - SB1617 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. The amendment shall provide that participati on in the neighborhood association created by the amendment shall not be mandatory for persons who are re cord owners of parcels within the residential addition at the time the amendment is filed of record, but such participation shall be mandatory for all successors -in- interest of the record owners; 2. The amendment must pr ovide that the concurring vote of n ot less than sixty percent (60%) of the record owners of parcels contained in the addition shall be necessary for the establishment or change of dues for the neighborhood associat ion; and 3. Following approval, the amendment shall be filed of record in the office of the county clerk of the county wherein the residential addition is located against all parcels within the addition. The term amendment may apply to an existing covenant or to a new subject not addressed in ex isting covenants. A thirty-day written notice of any meeting called to approve any such amendment shall be provided to the owners of every parcel contained in the residential addition. The notice of such meeting shall be published in a newspaper in the county at least fourteen (14) days before the meeting. The notice shall also be given by publication in the neighborhood newsletter. Each parc el within the addition shall be entitled to one vote. Any amendment approved and recorded pursuant to this subsec tion may thereafter be revoked by SENATE FLOOR VERSION - SB1617 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 approval of sixty percent (60%) of the record owners of parcels within the addition. E. A municipality may amend an existing plat which was previously filed with the office of the county clerk of the county where the addition is located to remove an illegal discriminatory restrictive covenant pursuant to the F air Housing Act, 42 U.S.C., Section 3601 et seq. The amendment shall be filed on record in the office of the county clerk of the county where the addition is located against all parcels within the addition after: 1. The municipality provides thirty (30) days’ written notice to all property owners of all parcels within the addition of the proposed amendment to remove an illegal discriminat ory restrictive covenant, the notice in cluding the time, date, and place of the planning commission meeting where the amendment will be considered; and 2. The governing body of the municipality approves the amended plat. Nothing in this subsection shall be construed as requiring the approval of the amended plat by the property owners of all parcels within the addition. F. An illegal discriminatory restrictive covenant contained on a plat is not enforceable in this state, and all illegal discriminatory restrictive covenants contain ed in plats recorded in this state are unlawful, unenforceable, and declared null and void. SENATE FLOOR VERSION - SB1617 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Any illegal discriminatory restrictive covenant contai ned in an existing plat is extinguished and severed from the plat, with the remainder of such plat remaining enfor ceable and effective. SECTION 2. This act shall become effective November 1, 2024. COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT February 8, 2024 - DO PASS