LEGISLATURE OF THE STATE OF IDAHO Sixty-sixth Legislature Second Regular Session - 2022 IN THE SENATE SENATE BILL NO. 1240 BY JUDICIARY AND RULES COMMITTEE AN ACT RELATING TO RESTRICTIVE COVENANTS; AMENDING CHAPTER 6, TITLE 55, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 55-616, IDAHO CODE, TO PROVIDE FOR THE PROHIBITION AND REMOVAL OF RESTRICTIVE COVENANTS FOR REAL PROPERTY; AMENDING CHAPTER 8, TITLE 55, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 55-820, IDAHO CODE, TO PROVIDE FOR THE PROHIBITION AND REMOVAL OF RESTRICTIVE COVENANTS FOR REAL PROPERTY; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE. Be It Enacted by the Legislature of the State of Idaho:
SECTION 1. That Chapter 6, Title 55, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 55-616, Idaho Code, and to read as follows:
55-616. PROHIBITION AND REMOVAL OF RESTRICTIVE COVENANTS. (1) Every provision in a written instrument relating to real property that purports to forbid or restrict the conveyance, encumbrance, occupancy, or lease thereof to individuals because of race, color, ethnicity, or national origin and every condition, restriction, or prohibition, including a right of entry or possibility of reverter, that directly or indirectly limits the use or occupancy of real property on the basis of race, color, ethnicity, or national origin is void. (2) It shall be unlawful to insert in a written instrument relating to real property a provision that is void under this section or to honor or attempt to honor such a provision in the chain of title. (3) The owner or tenant of property subject to a written instrument that contains a provision that is void pursuant to subsection (1) of this section may record a restrictive covenant modification document with the county clerk in the county in which the property is located. Such modification document shall be a standard form developed and designed by the county clerk. Each county clerk shall make available in the county clerk's office instructions on how to record a restrictive covenant modification document and shall provide such instructions on the county website, if applicable. (4) The modification document shall contain a recording reference to the original written instrument and a legal description of the property, and the owner or tenant who causes to be recorded a modification document shall clearly state the person's name on the modification document and shall execute the modification document prior to recordation. Except for a modification regarding a provision that is void pursuant to subsection (1) of this section, no other modifications shall be allowed on a restrictive covenant modification form. (5) The modification document must state, in part: "The referenced \original written instrument contains discriminatory provisions that are void and unenforceable under Section 55-616, Idaho Code, and federal law. This document strikes from the referenced original instrument all provisions based on race, color, ethnicity, or national origin that are void and unenforceable under law." (6) The effective date of the modification document shall be effective as of the date of the original document and shall supersede the discriminatory language in the original written instrument. (7) If the owner or tenant causes to be recorded a modification document that contains modifications not authorized by this section, the county clerk shall not incur liability for recording the document. Any liability that may result is the sole responsibility of an owner or tenant who willfully causes the recordation with modifications not authorized by this section. (8) No filing or recording fees or otherwise authorized surcharges shall be required for the filing of a modification document pursuant to this section. (9) Nothing in this section shall affect the provisions of section 16 67-5909(10), Idaho Code.
SECTION 2. That Chapter 8, Title 55, Idaho Code, be, and the same is hereby amended by the addition thereto of a NEW SECTION, to be known and designated as Section 55-820, Idaho Code, and to read as follows: 55-820. PROHIBITION AND REMOVAL OF RESTRICTIVE COVENANTS. No deed recorded on or after July 1, 2022, shall contain a reference to a restrictive covenant prohibited by section 55-616(1), Idaho Code. A county clerk may refuse to accept any deed submitted for recordation that references any such restrictive covenant. The person who prepares or submits a deed for recordation has the responsibility for ensuring that such a restrictive covenant is not referenced in the deed prior to such deed being submitted for recordation. Any deed that is recorded in the land records on or after July 1, 2022, 28 that mistakenly contains such a restrictive covenant shall nevertheless constitute a valid transfer of real property but without any effect given to the prohibited language.
SECTION 3. An emergency existing therefor, which emergency is hereby declared to exist, this act shall be in full force and effect on and after 33 July 1, 2022.