Rehmet Bill Voids Lease Limits Blocking Grocery And Drug Stores

The text as introduced · 1,244 words

90R2788 DRS-D

By: Rehmet
S.B. No. 260

A BILL TO BE ENTITLED

AN ACT

relating to limitations on agreements restricting the use of real

property for a grocery store or drug store.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The Property Code is amended by adding Title 14

to read as follows:

TITLE 14. REGULATION OF LAND USE RESTRICTION AGREEMENTS

CHAPTER 251. AGREEMENTS RESTRICTING USE OF REAL PROPERTY FOR

GROCERY OR DRUG STORE

Sec. 251.001. DEFINITIONS. In this chapter:

(1) "Drug store" means a retail store or portion of a

retail store that offers on-site pharmacy services and sells

nonprescription medication and products for health, beauty,

personal care, and household use. The term:

(A) includes a pharmacy, as defined by Section

551.003, Occupations Code; and

(B) does not include a grocery store.

(2) "Grocery store" means a retail store or portion of

a retail store that primarily sells a variety of groceries intended

primarily for home preparation and consumption, including fresh,

packaged, canned, dry, prepared, and frozen food, beverage

products, and similar items.

Sec. 251.002. APPLICABILITY OF CHAPTER. (a) This chapter

applies only to an agreement to restrict the use of real property

located in a shopping center that:

(1) is in an area of a municipality or an

unincorporated area of a county in which a grocery store or drug

store is an allowed use of real property under applicable municipal

or county land use regulations;

(2) has more than one owner or tenant;

(3) has at least one shared common area; and

(4) is subject to common management or common control.

(b) For purposes of this section, an agreement to restrict

the use of real property includes an agreement incorporated into a

contract, deed restriction, restrictive covenant, lease,

memorandum of lease, or other instrument regardless of whether the

instrument is recorded in the county real property records.

Sec. 251.003. LIMITATIONS ON AGREEMENT RESTRICTING USE OF

REAL PROPERTY FOR GROCERY OR DRUG STORE. Except as provided by

Section 251.004 or 251.005, an agreement described by Section

251.002 is unenforceable to the extent the agreement restricts the

use of the real property for a grocery store or drug store or limits

the size of a grocery store or drug store.

Sec. 251.004. EXCEPTIONS: STORE RELOCATION; LIMITING

STORES WITHIN SINGLE SHOPPING CENTER. Subject to Section 251.005,

Section 251.003 does not apply to:

(1) an agreement that takes effect after an owner or

operator of a grocery store or drug store closes the grocery store

or drug store for purposes of relocation if:

(A) the agreement restricts the use of the real

property for a grocery store or drug store for a period of not more

than five years after the date the grocery store or drug store

closes for relocation; and

(B) the relocated grocery store or drug store:

(i) is the same size or larger than the

previous grocery store or drug store;

(ii) sells similar products;

(iii) is located within two miles of the

previous location; and

(iv) unless impossible because of a force

majeure event, begins operating at the new location not later than

the second anniversary of the date the grocery store or drug store

at the previous location closed for relocation; or

(2) an agreement entered into for the purpose of

limiting the number of grocery stores or drug stores operating

within a single shopping center, except that the owner or operator

of a grocery store or drug store that is closed for a period longer

than one year may not enforce such an agreement.

Sec. 251.005. MODIFICATION OF EXCEPTIONS FOR GOOD CAUSE.

(a) The governing body of a municipality or the commissioners court

of a county by official action may establish a procedure to allow a

party to an agreement to restrict the use of real property for a

grocery store or drug store to submit a written request presenting

evidence of good cause to modify the terms under which the agreement

may qualify for an exception under Section 251.004.

(b) A procedure established under this section may allow the

municipal or county authority responsible for implementing the

procedure to modify:

(1) the terms under which an agreement may qualify for

an exception relating to the relocation of a grocery store or drug

store under Section 251.004(1), by:

(A) increasing the period of the restriction

under the agreement as provided by Section 251.004(1)(A) to more

than five years after the date the grocery store or drug store

closes for relocation;

(B) increasing the distance from the previous

location that the relocated grocery store or drug store may be

located as provided by Section 251.004(1)(B)(iii) to no more than

five miles; or

(C) delaying the date by which the relocated

grocery store or drug store must begin operating at the new location

as provided by Section 251.004(1)(B)(iv); or

(2) the terms under which an agreement entered into

for the purpose of limiting the number of grocery stores or drug

stores operating within a single shopping center may qualify for an

exception under Section 251.004(2), by increasing the period during

which the owner or operator of a closed grocery store or drug store

may enforce an agreement subject to the exception.

(c) Factors that a municipal or county authority

responsible for making a determination of good cause for purposes

of this section may consider include:

(1) maintaining or increasing consumer access to

grocery and pharmacy products in the area affected by an agreement,

including the vicinity of the grocery store or drug store to be

closed for relocation;

(2) circumstances affecting or delaying the

construction or financing of a relocated grocery store or drug

store; and

(3) promotion of private investment in the area in the

vicinity of a closed or relocated grocery store or drug store.

Sec. 251.006. NOTICE REQUIRED. A party that enters into an

agreement described by Section 251.002 to restrict the use of real

property for a grocery store or drug store shall, not later than the

10th day after the date the agreement is executed, send written

notice of the agreement to the attorney general and:

(1) if the real property is located in the corporate

boundaries or extraterritorial jurisdiction of a municipality, to

the governing body of the municipality; or

(2) if the real property is located in the

unincorporated area of a county, to the commissioners court of the

county.

Sec. 251.007. ENFORCEMENT. The attorney general or a city

attorney or county attorney may bring an action for appropriate

relief to enforce this chapter in a district court in the county

where all or part of the real property that is the subject of the

action is located.

Sec. 251.008. CERTAIN MUNICIPAL AND COUNTY REGULATION NOT

PREEMPTED. This chapter may not be construed to prohibit a

municipality or county from adopting or enforcing an ordinance,

order, or other measure:

(1) regulating agreements restricting the use of real

property for a grocery store or drug store; or

(2) imposing a penalty or authorizing other relief for

a violation of an ordinance, order, or other measure adopted by a

municipality or county regulating agreements restricting the use of

real property for a grocery store or drug store.

SECTION 2. This Act applies only to an agreement

restricting the use of real property for a grocery store or drug

store that is executed on or after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2027.