Committee advances bill to align restricted-covenant language with UCC

The House Rules Committee advanced House Bill 2171 at a committee meeting after Representative Pfeiffer said the bill aligns restricted-covenant language in county and municipal record books with a uniform standard from the Uniform Commercial Code.

Representative Pfeiffer, the bill sponsor, told the committee, “House bill 2,171, members, if you'll remember, for the last several years, we've been working on passing, passing cleanup bills dealing with restricted covenants. In in the county record books and municipalities. Now that enough states have done this, the, the UCC uniform commercial code has come out with with kind of a standard, standard language across all states. And and that's what House Bill 21 71 is. It brings, brings the restricted language, restricted covenants language we've done, in line with the UCC and other states.”

Committee members moved adoption of the committee substitute (PCS) as the working draft without objection before the vote. The chair declared the final tally 10 aye, 0 nay; staff recorded the bill as reported out as due passed.

The bill is a technical update, according to the sponsor, intended to standardize restricted-covenant language so county and municipal recording practices match a UCC-oriented model used in multiple states. No change to substantive enforcement rules or new penalties was discussed during the committee hearing.

Votes at the committee included several members recorded saying “aye” during the roll call, and the committee’s official tally was 10-0 in favor. The committee will report the bill to the next stage of consideration.