BILL ANALYSIS H.B. 1178 By: Isaac Business & Industry Committee Report (Unamended) BACKGROUND AND PURPOSE Interested parties explain that developers oftentimes create deed restrictions with propane companies to the point where homeowners are forced to use a particular propane provider for decades at a time. H.B. 1178 aims to invalidate such restrictions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1178 amends the Property Code to prohibit a property owners' association or a declarant from enforcing or imposing a restrictive covenant that requires a property owner to exclusively use a particular fuel, or exclusively use fuel provided by a particular supplier, on the owner's property or that imposes a fee payable to any person for an owner to opt out of such a requirement. The bill makes such a restrictive covenant void and unenforceable by any person. The bill's provisions apply to a restrictive covenant imposed before, on, or after the bill's effective date. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2015. BILL ANALYSIS # BILL ANALYSIS H.B. 1178 By: Isaac Business & Industry Committee Report (Unamended) H.B. 1178 By: Isaac Business & Industry Committee Report (Unamended) BACKGROUND AND PURPOSE Interested parties explain that developers oftentimes create deed restrictions with propane companies to the point where homeowners are forced to use a particular propane provider for decades at a time. H.B. 1178 aims to invalidate such restrictions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1178 amends the Property Code to prohibit a property owners' association or a declarant from enforcing or imposing a restrictive covenant that requires a property owner to exclusively use a particular fuel, or exclusively use fuel provided by a particular supplier, on the owner's property or that imposes a fee payable to any person for an owner to opt out of such a requirement. The bill makes such a restrictive covenant void and unenforceable by any person. The bill's provisions apply to a restrictive covenant imposed before, on, or after the bill's effective date. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2015. BACKGROUND AND PURPOSE Interested parties explain that developers oftentimes create deed restrictions with propane companies to the point where homeowners are forced to use a particular propane provider for decades at a time. H.B. 1178 aims to invalidate such restrictions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1178 amends the Property Code to prohibit a property owners' association or a declarant from enforcing or imposing a restrictive covenant that requires a property owner to exclusively use a particular fuel, or exclusively use fuel provided by a particular supplier, on the owner's property or that imposes a fee payable to any person for an owner to opt out of such a requirement. The bill makes such a restrictive covenant void and unenforceable by any person. The bill's provisions apply to a restrictive covenant imposed before, on, or after the bill's effective date. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2015.