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