HBA-MPM H.B. 2727 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2727 By: Hilderbran Business & Industry 4/4/2001 Introduced BACKGROUND AND PURPOSE Current law voids a restriction or provision in a deed regarding real property that prohibits the use by or the sale, lease, or transfer of property to a person because of race, color, religion, or national origin and requires a court to dismiss a suit to enforce such a restriction or provision. However, some property owners' associations may still have dedicatory instruments that contain such discriminatory provisions. House Bill 2727 requires a property owners' association to remove any restrictive covenant from a dedicatory instrument by September 1, 2002. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2727 amends the Property Code to prohibit a dedicatory instrument from containing a restrictive covenant affecting real property or a provision in a deed that conveys real property or an interest in real property, whether express or incorporated by reference, that prohibits the use by or the sale, lease, or transfer to a person because of race, color, religion, or national origin. The bill requires a property owners' association to review a dedicatory instrument governing property whose owners are represented by the association and to remove no later than September 1, 2002, any restrictive covenant from the dedicatory instrument. EFFECTIVE DATE September 1, 2001.