1 | 1 | | 87R2204 BEE-F |
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2 | 2 | | By: Miles S.B. No. 754 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the amendment of a dedicatory instrument to remove a |
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8 | 8 | | discriminatory provision. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Title 11, Property Code, is amended by adding |
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11 | 11 | | Chapter 216 to read as follows: |
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12 | 12 | | CHAPTER 216. AMENDMENT OF DEDICATORY INSTRUMENT TO REMOVE |
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13 | 13 | | DISCRIMINATORY PROVISION |
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14 | 14 | | SUBCHAPTER A. GENERAL PROVISIONS |
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15 | 15 | | Sec. 216.001. DEFINITIONS. In this chapter: |
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16 | 16 | | (1) "Dedicatory instrument," "petition," "property |
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17 | 17 | | owners' association," and "restrictive covenant" have the meanings |
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18 | 18 | | assigned by Section 202.001. |
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19 | 19 | | (2) "Discriminatory provision" means a restrictive |
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20 | 20 | | covenant, whether express or incorporated by reference, that: |
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21 | 21 | | (A) prohibits the use by or the sale, lease, or |
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22 | 22 | | transfer of real property or an interest in real property to a |
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23 | 23 | | person because of race, color, religion, or national origin; and |
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24 | 24 | | (B) is void under Section 5.026. |
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25 | 25 | | Sec. 216.002. APPLICABILITY OF CHAPTER. This chapter |
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26 | 26 | | applies to any dedicatory instrument, regardless of the date on |
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27 | 27 | | which the instrument was recorded. |
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28 | 28 | | Sec. 216.003. CONFLICTS WITH OTHER LAW. To the extent of |
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29 | 29 | | any conflict between this chapter and any other provision of this |
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30 | 30 | | code, this chapter prevails. |
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31 | 31 | | Sec. 216.004. CERTAIN AMENDMENTS VOID. An amendment to a |
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32 | 32 | | dedicatory instrument under this chapter that amends a provision |
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33 | 33 | | other than a discriminatory provision is void. |
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34 | 34 | | SUBCHAPTER B. PROPERTY SUBJECT TO PROPERTY OWNERS' ASSOCIATION |
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35 | 35 | | Sec. 216.011. REMOVAL OF DISCRIMINATORY PROVISION BY |
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36 | 36 | | PROPERTY OWNERS' ASSOCIATION. (a) The governing body of a property |
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37 | 37 | | owners' association may amend a dedicatory instrument to remove a |
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38 | 38 | | discriminatory provision by a majority vote of the governing body: |
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39 | 39 | | (1) on its own motion; or |
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40 | 40 | | (2) on the motion of a member of the property owners' |
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41 | 41 | | association. |
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42 | 42 | | (b) An amendment adopted under this section is effective if |
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43 | 43 | | the amendment: |
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44 | 44 | | (1) indicates that the amendment is adopted under |
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45 | 45 | | authority of this section by specifically referring to this |
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46 | 46 | | section; |
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47 | 47 | | (2) is signed by a majority of the governing body; and |
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48 | 48 | | (3) is filed in the real property records of each |
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49 | 49 | | county in which property subject to the discriminatory provision is |
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50 | 50 | | located. |
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51 | 51 | | Sec. 216.012. REMOVAL OF DISCRIMINATORY PROVISION BY |
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52 | 52 | | OWNERS. (a) This section applies only to a dedicatory instrument |
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53 | 53 | | that contains provisions for the circulation of a petition by the |
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54 | 54 | | owners of property in the subdivision or development to amend the |
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55 | 55 | | dedicatory instrument. |
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56 | 56 | | (b) The governing body of a property owners' association |
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57 | 57 | | shall amend a dedicatory instrument to remove a discriminatory |
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58 | 58 | | provision if a petition to remove the provision: |
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59 | 59 | | (1) is circulated in accordance with the provisions of |
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60 | 60 | | the dedicatory instrument; and |
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61 | 61 | | (2) without regard to any threshold for approval of a |
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62 | 62 | | petition established by the dedicatory instrument, is approved by |
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63 | 63 | | the owners of at least 10 percent of the total number of lots or |
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64 | 64 | | units subject to the dedicatory instrument. |
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65 | 65 | | (c) An amendment adopted under this section is effective if |
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66 | 66 | | the amendment: |
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67 | 67 | | (1) indicates that the amendment is adopted under |
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68 | 68 | | authority of this section by specifically referring to this |
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69 | 69 | | section; and |
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70 | 70 | | (2) is filed in the real property records of each |
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71 | 71 | | county in which property subject to the dedicatory instrument is |
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72 | 72 | | located. |
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73 | 73 | | SUBCHAPTER C. PROPERTY NOT SUBJECT TO PROPERTY OWNERS' ASSOCIATION |
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74 | 74 | | Sec. 216.021. APPLICABILITY OF SUBCHAPTER. This subchapter |
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75 | 75 | | applies only to a dedicatory instrument that does not establish a |
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76 | 76 | | property owners' association. |
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77 | 77 | | Sec. 216.022. AMENDMENT TO REMOVE DISCRIMINATORY |
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78 | 78 | | PROVISION. An amendment may be filed in accordance with this |
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79 | 79 | | subchapter to amend a dedicatory instrument to remove a |
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80 | 80 | | discriminatory provision. |
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81 | 81 | | Sec. 216.023. AMENDMENT COMMITTEE. (a) Three or more |
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82 | 82 | | owners of property subject to a dedicatory instrument that contains |
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83 | 83 | | a discriminatory provision may form an amendment committee for the |
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84 | 84 | | sole purpose of amending the dedicatory instrument to remove the |
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85 | 85 | | discriminatory provision. |
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86 | 86 | | (b) Only one amendment committee may operate under this |
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87 | 87 | | subchapter at one time. If more than one committee files notice of |
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88 | 88 | | the committee's formation for the same property subject to a |
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89 | 89 | | dedicatory instrument, the first committee that files a notice in |
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90 | 90 | | compliance with Section 216.024 has the authority to act under this |
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91 | 91 | | subchapter. |
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92 | 92 | | Sec. 216.024. NOTICE OF AMENDMENT COMMITTEE FORMATION. (a) |
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93 | 93 | | An amendment committee formed under Section 216.023 shall file |
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94 | 94 | | written notice of the committee's formation with the county clerk |
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95 | 95 | | of each county in which property subject to the dedicatory |
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96 | 96 | | instrument is located. |
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97 | 97 | | (b) The notice of the amendment committee's formation must |
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98 | 98 | | contain: |
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99 | 99 | | (1) a statement that an amendment committee has been |
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100 | 100 | | formed to amend a dedicatory instrument to remove a discriminatory |
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101 | 101 | | provision; |
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102 | 102 | | (2) the name and residential address of each amendment |
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103 | 103 | | committee member; |
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104 | 104 | | (3) a reference to the real property records or map or |
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105 | 105 | | plat records where the dedicatory instrument that contains the |
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106 | 106 | | discriminatory provision sought to be removed is recorded and the |
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107 | 107 | | name of the subdivision or development, as applicable; and |
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108 | 108 | | (4) a copy of the proposed amendment to the dedicatory |
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109 | 109 | | instrument that indicates the deletion of the discriminatory |
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110 | 110 | | provision from the original restrictive covenant or that restates |
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111 | 111 | | the original restrictive covenant without the discriminatory |
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112 | 112 | | provision. |
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113 | 113 | | (c) Before filing the notice of the amendment committee's |
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114 | 114 | | formation under Subsection (a), each amendment committee member |
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115 | 115 | | must sign and acknowledge the notice before a notary or other |
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116 | 116 | | official authorized to take acknowledgments. |
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117 | 117 | | (d) A county clerk who receives a notice of an amendment |
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118 | 118 | | committee's formation under Subsection (a) shall enter the filing |
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119 | 119 | | date and record the notice in the county's real property records. |
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120 | 120 | | Sec. 216.025. NOTICE TO PROPERTY OWNERS. (a) Not later |
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121 | 121 | | than the 30th day after the date notice of the amendment committee's |
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122 | 122 | | formation is filed with the county clerk, the amendment committee |
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123 | 123 | | shall provide a copy of the notice of the amendment committee's |
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124 | 124 | | formation to the owners of property subject to the dedicatory |
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125 | 125 | | instrument. |
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126 | 126 | | (b) Notice may be provided under Subsection (a) by: |
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127 | 127 | | (1) publishing a copy of the notice of the amendment |
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128 | 128 | | committee's formation at least once a week for two consecutive |
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129 | 129 | | weeks in a newspaper of general circulation in each county in which |
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130 | 130 | | property subject to the dedicatory instrument is located; |
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131 | 131 | | (2) mailing a copy of the notice of the amendment |
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132 | 132 | | committee's formation by first class mail to the owner of each lot |
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133 | 133 | | or unit subject to the dedicatory instrument as of the date the |
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134 | 134 | | notice is given; or |
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135 | 135 | | (3) posting a copy of the notice of the amendment |
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136 | 136 | | committee's formation in a conspicuous manner reasonably designed |
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137 | 137 | | to provide notice to owners of property subject to the dedicatory |
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138 | 138 | | instrument, including: |
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139 | 139 | | (A) in a common area or at an entrance to the |
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140 | 140 | | subdivision or development; |
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141 | 141 | | (B) with the consent of the owner, on |
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142 | 142 | | conspicuously located private property; or |
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143 | 143 | | (C) on any Internet website maintained by the |
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144 | 144 | | subdivision or development or other Internet media. |
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145 | 145 | | Sec. 216.026. OBJECTION TO AMENDMENT BY PROPERTY OWNERS. |
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146 | 146 | | (a) The owner of property subject to a dedicatory instrument |
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147 | 147 | | proposed to be amended under a notice of an amendment committee's |
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148 | 148 | | formation may file an objection to the proposed amendment. |
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149 | 149 | | (b) An objection under Subsection (a) is effective only if |
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150 | 150 | | the objection is: |
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151 | 151 | | (1) signed by the owners of at least 25 percent of the |
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152 | 152 | | units or lots subject to the dedicatory instrument proposed to be |
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153 | 153 | | amended; and |
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154 | 154 | | (2) filed with the county clerk of each county in which |
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155 | 155 | | the notice of the amendment committee's formation was filed not |
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156 | 156 | | later than the 90th day after the date the notice of the amendment |
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157 | 157 | | committee's formation was filed with the county clerk. |
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158 | 158 | | Sec. 216.027. EFFECTIVE DATE OF AMENDMENT. If an objection |
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159 | 159 | | is not filed in accordance with Section 216.026, the proposed |
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160 | 160 | | amendment contained in the notice of the amendment committee's |
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161 | 161 | | formation filed under Section 216.024(a) becomes effective on the |
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162 | 162 | | date the notice is filed. |
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163 | 163 | | Sec. 216.028. DISSOLUTION OF COMMITTEE. (a) A committee |
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164 | 164 | | that does not file an amendment to a dedicatory instrument before |
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165 | 165 | | the 120th day after the date the notice of the amendment committee's |
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166 | 166 | | formation is filed with the county clerk is dissolved. |
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167 | 167 | | (b) An amendment filed by a dissolved committee is void. |
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168 | 168 | | SECTION 2. This Act takes effect immediately if it receives |
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169 | 169 | | a vote of two-thirds of all the members elected to each house, as |
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170 | 170 | | provided by Section 39, Article III, Texas Constitution. If this |
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171 | 171 | | Act does not receive the vote necessary for immediate effect, this |
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172 | 172 | | Act takes effect September 1, 2021. |
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