GEC C.S.H.B. 1285 75(R) BILL ANALYSIS BUSINESS & INDUSTRY C.S.H.B. 1285 By: Van de Putte 3-28-97 Committee Report (Substituted) BACKGROUND The Uniform Condominium Act, Sections 81 & 82 of the Texas Property Act, governing meetings held by condominiums created before and after January 1, 1994 respectfully. The Texas Property Code does not specifically guarantee open meetings of the board for participation by owners of condominiums constructed prior to 1994. These Boards exercise considerable control over their constituents(homeowners), and derive all assets, monies, and authority from the homeowners. Since a condominium exercises authority similar to a governmental body, it is appropriate that to safeguard these homeowners rights by requiring certain meetings, especially Board meetings, open to the condominium members. PURPOSE C.S.H.B. 1285 updates Section 82.002(c) of the Texas Property Code by including that section in the requirements for open meetings previously defined in the Property Code. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends section 82.002(c) of the Texas Property Code. (c) Includes Section 82.108 in this section which defines the process for open meetings for condominiums and their boards. SECTION 2. Amends section 82.108 of the Texas Property Code by amending (c) and by adding (d) and (e). (c) Clarifies that the meetings of the board be given in accordance with by-laws adopted by the board. Board meetings can be posted by any method as long as the initial posting is in accordance with (e) of this section for meetings that do not consider fines, damage assessment, appeal of architectural control approval, or suspension of an association member prior to the members addressing the board. Additionally, it provides for unanimous action to be taken by the board without a meeting if the action does not address fines, damage assessment, appeal of an architectural control approval, or suspension of an association member prior to the members addressing the board. (d) Requires notice of association meetings to be provided for in the bylaws, if none are available then Section A, Article 2.11 of the Texas Non-Profit Corporation Act applies. (e) Requires notice of Board meetings to be provided for in the bylaws, if none are available then Section B, Article 2.19 of the Texas Non-Profit Corporation Act applies. (f) An agency of the board shall notify the unit owner of the time a place of the next board meeting when requested. (g) A board member may be fined by a majority vote of the association at an association meeting for reasonable attorney's fees incurred by a member or members for any action that derives from a meeting that was not posted in accordance with this section. SECTION 3. EFFECTIVE DATE. This law applies to meetings held on or after September 1, 1997. SECTION 4. EMERGENCY CLAUSE. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1285 applies rules relating to opening meetings in a different manner than H.B. 1285. The Committee Substitute includes, under open meeting requirements previously developed in the Property Code, Chapter 82 condominium boards. C.S.H.B. 1285 additionally provides for specific notice of meetings to be given to members and for reimbursement of any attorney fees for any legal actions arising for a member from an improperly posted meeting.