1-1 AN ACT
1-2 relating to the meetings of a condominium board or association.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 82.002(c), Property Code, is amended to
1-5 read as follows:
1-6 (c) This section and the following sections apply to a
1-7 condominium in this state for which the declaration was recorded
1-8 before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053,
1-9 82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113,
1-10 82.114, 82.116, 82.157, and 82.161. The definitions prescribed by
1-11 Section 82.003 apply to a condominium in this state for which the
1-12 declaration was recorded before January 1, 1994, to the extent the
1-13 definitions do not conflict with the declaration. The sections
1-14 listed in this subsection apply only with respect to events and
1-15 circumstances occurring on or after January 1, 1994, and do not
1-16 invalidate existing provisions of the declaration, bylaws, or plats
1-17 or plans of a condominium for which the declaration was recorded
1-18 before January 1, 1994.
1-19 SECTION 2. Subchapter B, Chapter 82, Property Code, is
1-20 amended by adding Section 82.070 to read as follows:
1-21 Sec. 82.070. MEETING AT WHICH AMENDMENTS MAY BE ADOPTED.
1-22 (a) An association or a board may not meet to adopt an amendment
1-23 or other change to the declaration, articles of incorporation,
1-24 bylaws, or rules of the association unless the association or board
2-1 has given to each unit owner a document showing the specific
2-2 amendment or other change that would be made to the declaration,
2-3 articles of incorporation, bylaws, or rules.
2-4 (b) The information described by Subsection (a) must be
2-5 given to each unit owner after the 20th day but before the 10th day
2-6 preceding the date of the meeting. The information is considered
2-7 to have been given to a unit owner on the date the information is
2-8 personally delivered to the unit owner, as shown by a receipt
2-9 signed by the unit owner, or on the date shown by the postmark on
2-10 the information after it is deposited in the United States mail
2-11 with a proper address and postage paid.
2-12 SECTION 3. Section 82.108, Property Code, is amended to read
2-13 as follows:
2-14 Sec. 82.108. MEETINGS. (a) Meetings of the association
2-15 must be held at least once each year. Unless the declaration
2-16 provides otherwise, special meetings of the association may be
2-17 called by the president, a majority of the board, or unit owners
2-18 having at least 20 percent of the votes in the association.
2-19 [Notice of a meeting shall be given in accordance with the bylaws.]
2-20 (b) Meetings of the association and board must be open to
2-21 unit owners, subject to the right of the board to adjourn a meeting
2-22 of the board and reconvene in closed executive session to consider
2-23 actions involving personnel, pending litigation, contract
2-24 negotiations, enforcement actions, matters involving the invasion
2-25 of privacy of individual unit owners, or matters that are to remain
2-26 confidential by request of the affected parties and agreement of
2-27 the board. The general nature of any business to be considered in
3-1 executive session must first be announced at the open meeting.
3-2 (c) Unless the declaration, bylaws, or articles of
3-3 incorporation of the association provide otherwise:
3-4 (1) a meeting of the board may be held by any method
3-5 of communication, including electronic and telephonic, if:
3-6 (A) notice of the meeting has been given in
3-7 accordance with Subsection (e);
3-8 (B) [by which] each director may hear and be
3-9 heard by every other director; and
3-10 (C) the meeting does not involve voting on a
3-11 fine, damage assessment, appeal from a denial of architectural
3-12 control approval, or suspension of a right of a particular
3-13 association member before the member has an opportunity to attend a
3-14 board meeting to present the member's position, including any
3-15 defense, on the issue; and
3-16 (2) [in lieu of a meeting,] the board may act by
3-17 unanimous written consent [consents] of all the directors, without
3-18 a meeting, if:
3-19 (A) the board action does not involve voting on
3-20 a fine, damage assessment, appeal from a denial of architectural
3-21 control approval, or suspension of a right of a particular
3-22 association member before the member has an opportunity to attend a
3-23 board meeting to present the member's position, including any
3-24 defense, on the issue; and
3-25 (B) a record of the board action is [to be]
3-26 filed with the minutes of board meetings.
3-27 (d) Notice of a meeting of the association must be given as
4-1 provided by the bylaws, or, if the bylaws do not provide for
4-2 notice, notice must be given to each unit owner in the same manner
4-3 in which notice is given to members of a nonprofit corporation
4-4 under Section A, Article 2.11, Texas Non-Profit Corporation Act
4-5 (Article 1396-2.11, Vernon's Texas Civil Statutes).
4-6 (e) Notice of a meeting of the board must be given as
4-7 provided by the bylaws, or, if the bylaws do not provide for
4-8 notice, notice must be given to each board member in the same
4-9 manner in which notice is given to members of the board of a
4-10 nonprofit corporation under Section B, Article 2.19, Texas
4-11 Non-Profit Corporation Act (Article 1396-2.19, Vernon's Texas Civil
4-12 Statutes).
4-13 (f) An association, on the written request of a unit owner,
4-14 shall inform the unit owner of the time and place of the next
4-15 regular or special meeting of the board. If the association
4-16 representative to whom the request is made does not know the time
4-17 and place of the meeting, the association promptly shall obtain the
4-18 information and disclose it to the unit owner or inform the unit
4-19 owner where the information may be obtained.
4-20 SECTION 4. (a) The changes in law made by this Act to
4-21 Chapter 82, Property Code, apply only to:
4-22 (1) a meeting held on or after January 1, 1998, in
4-23 relation to a condominium; and
4-24 (2) a request made on or after January 1, 1998, to a
4-25 condominium owners' association for the time and place of the next
4-26 meeting of the board of directors of the association.
4-27 (b) A meeting held before January 1, 1998, is governed by
5-1 the law in effect immediately preceding that date, and the former
5-2 law is continued in effect for that purpose.
5-3 SECTION 5. This Act takes effect January 1, 1998.
5-4 SECTION 6. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1285 was passed by the House on April
17, 1997, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 1285 on May 28, 1997, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 1285 on June 1, 1997, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1285 was passed by the Senate, with
amendments, on May 24, 1997, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 1285 on June 1, 1997,
by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor