GEC S.B. 1864 75(R)BILL ANALYSIS


BUSINESS & INDUSTRY
S.B. 1864
By: Ellis (Bailey)
5-20-97
Committee Report (Amended)

BACKGROUND 

Currently, property owners' associations located wholly or in part in
Harris County have certain powers relating to restrictive covenants.
Certain provisions, however, were inadvertently included in the Property
Code, contrary to legislative intent.  This bill will provide new
regulations regarding the powers of certain property owners' associations. 

PURPOSE

As proposed, S.B. 1864 provides new regulations regarding the powers of
certain property owners' associations. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 204.008, Property Code, to authorize an
extension, addition to, or modification of restrictions proposed by a
property owners' association to be adopted 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
the property in the subdivision not later than the 10th day before the
date the meeting is scheduled. 

SECTION 2. Amends Section 204.010(a), Property Code, to expand the list of
actions that are authorized to be taken by a property owners' association,
acting through its board of directors or trustees.  Authorizes the
property owners' association, unless otherwise provided by the
restrictions or the association's articles of incorporation or bylaws, to
take certain actions under Subsection (a)(9) of this section.  Requires
the notice provided by Subsection (a)(11)(B), except as otherwise provided
by this subsection, to be mailed to the property owner within a certain
time period before the date of the scheduled meeting.  Authorizes notice
to be mailed fewer than 30 days before the date of a scheduled board
meeting for an alleged violation that necessitates immediate judicial
action. Provides that 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.  Makes conforming and
nonsubstantive changes. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.

EXPLANATION OF AMENDMENTS

Committee Amendment #1 amends S.B. No. 1864 as follows:  

 (1)  In SECTION 2 of the bill, in amended Section 204.010(a)(6), Property
Code  (page 2,  line 19, senate engrossed version), between "(6)" and
"regulate", insert "reasonably". 

 (2)  In SECTION 2 of the bill, in amended SECTION 204.010 (a)(6),
Property Code  (page  2, line 20, senate engrossed version), strike "the
common areas of".