Amend HB 1285 by adding the following appropriately numbered
sections to the bill and renumbering subsequent sections of the
bill appropriately:
SECTION ___. Section 204.008, Property Code, is amended to
read as follows:
Sec. 204.008. ]SMETHOD OF ADOPTION . An extension, addition to,
or modification of restrictions proposed by a property owners'
association may be adopted:
(1) by a written ballot that states the substance of
the amendment and specifies the date by which a ballot must be
received to be counted;
(2) at a meeting of the members represented by the
property owners' association if written notice of the meeting
stating the purpose of the meeting is delivered to each owner of
property in the subdivision not later than the 10th day before the
date the meeting is scheduled;
(3) by door-to-door circulation of a petition by the
property owners' association or a person authorized by the property
owners' association;
(4) by a method permitted by the existing
restrictions; or
(5) by a combination of the methods described by this
section.
SECTION ___. Section 204.010, Property Code, is amended to
read as follows:
Sec. 204.010. ]SPOWERS OF PROPERTY OWNERS' ASSOCIATION .
(a) Unless otherwise provided by the restrictions or the
association's articles of incorporation or bylaws, the property
owners' association, acting through its board of directors or
trustees, may:
(1) adopt and amend bylaws;
(2) adopt and amend budgets for revenues,
expenditures, and reserves and collect regular assessments or
special assessments for common expenses from property owners;
(3) hire and terminate managing agents and other
employees, agents, and independent contractors;
(4) institute, defend, intervene in, settle, or
compromise litigation or administrative proceedings on matters
affecting the subdivision;
(5) make contracts and incur liabilities relating to
the operation of the subdivision and the property owners'
association;
(6) regulate the use, maintenance, repair,
replacement, modification, and appearance of the common areas of
the subdivision;
(7) make additional improvements to be included as a
part of the common area;
(8) grant easements, leases, licenses, and concessions
through or over the common area;
(9) impose and receive reasonable payments, fees, or
charges for the use, rental, or operation of the common area and
for services provided to property owners;
(10) impose and receive reasonable interest, late
charges, and, if applicable, returned check charges for late
payments of regular assessments or special assessments;
(11) <if notice and an opportunity to be heard are
given,> collect reimbursement of reasonable <actual> attorney's
fees and other reasonable costs incurred by the property owners'
association in enforcing <relating to violations of the
subdivision's> restrictions or the property owners' association's
bylaws and rules that the owner has allegedly violated if, before
incurring attorney's fees:
(A) the association sends to the property owner,
by certified mail, return receipt requested, at the owner's last
known address as shown in the association's records, a notice of a
meeting of the board during which the owner will be given the
opportunity to be heard on the issue of the alleged violation; and
(B) the notice is mailed as provided by
Subsection (c) to the property owner and informs the owner of the
owner's right to appear and be heard regarding the alleged
violation;
(12) charge costs, fees, and other charges authorized
under this section to an owner's assessment account and collect
the costs, fees, and other charges in any manner provided in the
restrictions for the collection of assessments;
(13) adopt and amend rules regulating the collection
of delinquent assessments and the application of payments;
(14) impose reasonable charges for preparing,
recording, or copying amendments to the restrictions, resale
certificates, or statements of unpaid assessments;
(15) purchase insurance and fidelity bonds, including
directors' and officers' liability insurance, that the board
considers appropriate or necessary;
(16) if the restrictions allow for an annual increase
in the maximum regular assessment without a vote of the membership,
delay <assess> the increase in annual assessments allowed under the
restrictions, accumulate the increase, and assess all or part of
any accumulated increase in a subsequent year subject to the
approval of a majority of association members who are present in
person or represented by proxy at an annual or special meeting of
the association membership <annually or accumulate and assess the
increase after a number of years>;
(17) subject to the requirements of the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes) and by majority vote of its board of
directors, indemnify a director or officer of the property owners'
association who was, is, or may be made a named defendant or
respondent in a proceeding because the person is or was a director;
(18) if the restrictions vest the architectural
control authority in the property owners' association or if the
authority is vested in the property owners' association under
Section 204.011:
(A) implement written architectural control
guidelines for its own use or record the guidelines in the real
property records of the applicable county; and
(B) modify the guidelines as the needs of the
subdivision change;
(19) exercise other powers conferred by the
restrictions, its articles of incorporation, or its bylaws;
(20) exercise other powers that may be exercised in
this state by a corporation of the same type as the property
owners' association; and
(21) exercise other powers necessary and proper for
the governance and operation of the property owners' association.
(b) Unless otherwise provided by the restrictions or the
association's articles of incorporation or bylaws, the property
owners' association, acting through its board of directors or
trustees, may, under Subsection (a)(9):
(1) except as provided by Subdivision (2), impose and
receive reasonable fees or charges for a service only after
obtaining approval of a majority of those association members who
are present in person or represented by proxy at an annual or
special meeting of the association;
(2) continue to impose and receive reasonable fees or
charges through January 15, 1998, for a service for which the fees
or charges were first imposed between August 28, 1995, and
September 1, 1997; and
(3) continue to impose and receive fees or charges
that were first imposed during that time period after January 15,
1998, if the fees and charges are approved by a majority of those
association members who are present in person or represented by
proxy at an annual or special meeting of the association held
before January 15, 1998.
(c) Except as provided by this subsection, the notice
provided by Subsection (a)(11)(B) must be mailed to the property
owner not later than the 30th day before the date of a scheduled
board meeting. Notice may be mailed less than 30 days before the
date of a scheduled board meeting for an alleged violation that
necessitates immediate judicial action.
(d) Powers enumerated by this section are in addition to any
other powers granted to a property owners' association by this
chapter or other law. This section does not limit a property
owners' association's rights or powers as stated in the
restrictions or the association's articles of incorporation or
bylaws.
ELLIS
PATTERSON