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".