87R2204 BEE-F
By: Kolkhorst S.B. No. 602
A BILL TO BE ENTITLED
AN ACT
relating to the amendment of a dedicatory instrument to remove a
discriminatory provision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 11, Property Code, is amended by adding
Chapter 216 to read as follows:
CHAPTER 216. AMENDMENT OF DEDICATORY INSTRUMENT TO REMOVE
DISCRIMINATORY PROVISION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 216.001. DEFINITIONS. In this chapter:
(1) "Dedicatory instrument," "petition," "property
owners' association," and "restrictive covenant" have the meanings
assigned by Section 202.001.
(2) "Discriminatory provision" means a restrictive
covenant, whether express or incorporated by reference, that:
(A) prohibits the use by or the sale, lease, or
transfer of real property or an interest in real property to a
person because of race, color, religion, or national origin; and
(B) is void under Section 5.026.
Sec. 216.002. APPLICABILITY OF CHAPTER. This chapter
applies to any dedicatory instrument, regardless of the date on
which the instrument was recorded.
Sec. 216.003. CONFLICTS WITH OTHER LAW. To the extent of
any conflict between this chapter and any other provision of this
code, this chapter prevails.
Sec. 216.004. CERTAIN AMENDMENTS VOID. An amendment to a
dedicatory instrument under this chapter that amends a provision
other than a discriminatory provision is void.
SUBCHAPTER B. PROPERTY SUBJECT TO PROPERTY OWNERS' ASSOCIATION
Sec. 216.011. REMOVAL OF DISCRIMINATORY PROVISION BY
PROPERTY OWNERS' ASSOCIATION. (a) The governing body of a property
owners' association may amend a dedicatory instrument to remove a
discriminatory provision by a majority vote of the governing body:
(1) on its own motion; or
(2) on the motion of a member of the property owners'
association.
(b) An amendment adopted under this section is effective if
the amendment:
(1) indicates that the amendment is adopted under
authority of this section by specifically referring to this
section;
(2) is signed by a majority of the governing body; and
(3) is filed in the real property records of each
county in which property subject to the discriminatory provision is
located.
Sec. 216.012. REMOVAL OF DISCRIMINATORY PROVISION BY
OWNERS. (a) This section applies only to a dedicatory instrument
that contains provisions for the circulation of a petition by the
owners of property in the subdivision or development to amend the
dedicatory instrument.
(b) The governing body of a property owners' association
shall amend a dedicatory instrument to remove a discriminatory
provision if a petition to remove the provision:
(1) is circulated in accordance with the provisions of
the dedicatory instrument; and
(2) without regard to any threshold for approval of a
petition established by the dedicatory instrument, is approved by
the owners of at least 10 percent of the total number of lots or
units subject to the dedicatory instrument.
(c) An amendment adopted under this section is effective if
the amendment:
(1) indicates that the amendment is adopted under
authority of this section by specifically referring to this
section; and
(2) is filed in the real property records of each
county in which property subject to the dedicatory instrument is
located.
SUBCHAPTER C. PROPERTY NOT SUBJECT TO PROPERTY OWNERS' ASSOCIATION
Sec. 216.021. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a dedicatory instrument that does not establish a
property owners' association.
Sec. 216.022. AMENDMENT TO REMOVE DISCRIMINATORY
PROVISION. An amendment may be filed in accordance with this
subchapter to amend a dedicatory instrument to remove a
discriminatory provision.
Sec. 216.023. AMENDMENT COMMITTEE. (a) Three or more
owners of property subject to a dedicatory instrument that contains
a discriminatory provision may form an amendment committee for the
sole purpose of amending the dedicatory instrument to remove the
discriminatory provision.
(b) Only one amendment committee may operate under this
subchapter at one time. If more than one committee files notice of
the committee's formation for the same property subject to a
dedicatory instrument, the first committee that files a notice in
compliance with Section 216.024 has the authority to act under this
subchapter.
Sec. 216.024. NOTICE OF AMENDMENT COMMITTEE FORMATION. (a)
An amendment committee formed under Section 216.023 shall file
written notice of the committee's formation with the county clerk
of each county in which property subject to the dedicatory
instrument is located.
(b) The notice of the amendment committee's formation must
contain:
(1) a statement that an amendment committee has been
formed to amend a dedicatory instrument to remove a discriminatory
provision;
(2) the name and residential address of each amendment
committee member;
(3) a reference to the real property records or map or
plat records where the dedicatory instrument that contains the
discriminatory provision sought to be removed is recorded and the
name of the subdivision or development, as applicable; and
(4) a copy of the proposed amendment to the dedicatory
instrument that indicates the deletion of the discriminatory
provision from the original restrictive covenant or that restates
the original restrictive covenant without the discriminatory
provision.
(c) Before filing the notice of the amendment committee's
formation under Subsection (a), each amendment committee member
must sign and acknowledge the notice before a notary or other
official authorized to take acknowledgments.
(d) A county clerk who receives a notice of an amendment
committee's formation under Subsection (a) shall enter the filing
date and record the notice in the county's real property records.
Sec. 216.025. NOTICE TO PROPERTY OWNERS. (a) Not later
than the 30th day after the date notice of the amendment committee's
formation is filed with the county clerk, the amendment committee
shall provide a copy of the notice of the amendment committee's
formation to the owners of property subject to the dedicatory
instrument.
(b) Notice may be provided under Subsection (a) by:
(1) publishing a copy of the notice of the amendment
committee's formation at least once a week for two consecutive
weeks in a newspaper of general circulation in each county in which
property subject to the dedicatory instrument is located;
(2) mailing a copy of the notice of the amendment
committee's formation by first class mail to the owner of each lot
or unit subject to the dedicatory instrument as of the date the
notice is given; or
(3) posting a copy of the notice of the amendment
committee's formation in a conspicuous manner reasonably designed
to provide notice to owners of property subject to the dedicatory
instrument, including:
(A) in a common area or at an entrance to the
subdivision or development;
(B) with the consent of the owner, on
conspicuously located private property; or
(C) on any Internet website maintained by the
subdivision or development or other Internet media.
Sec. 216.026. OBJECTION TO AMENDMENT BY PROPERTY OWNERS.
(a) The owner of property subject to a dedicatory instrument
proposed to be amended under a notice of an amendment committee's
formation may file an objection to the proposed amendment.
(b) An objection under Subsection (a) is effective only if
the objection is:
(1) signed by the owners of at least 25 percent of the
units or lots subject to the dedicatory instrument proposed to be
amended; and
(2) filed with the county clerk of each county in which
the notice of the amendment committee's formation was filed not
later than the 90th day after the date the notice of the amendment
committee's formation was filed with the county clerk.
Sec. 216.027. EFFECTIVE DATE OF AMENDMENT. If an objection
is not filed in accordance with Section 216.026, the proposed
amendment contained in the notice of the amendment committee's
formation filed under Section 216.024(a) becomes effective on the
date the notice is filed.
Sec. 216.028. DISSOLUTION OF COMMITTEE. (a) A committee
that does not file an amendment to a dedicatory instrument before
the 120th day after the date the notice of the amendment committee's
formation is filed with the county clerk is dissolved.
(b) An amendment filed by a dissolved committee is void.
SECTION 2. 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, 2021.