75R8116 MRB-D
By Van de Putte H.B. No. 1285
Substitute the following for H.B. No. 1285:
By Rhodes C.S.H.B. No. 1285
A BILL TO BE ENTITLED
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. Section 82.108, Property Code, is amended to read
1-20 as follows:
1-21 Sec. 82.108. MEETINGS. (a) Meetings of the association
1-22 must be held at least once each year. Unless the declaration
1-23 provides otherwise, special meetings of the association may be
1-24 called by the president, a majority of the board, or unit owners
2-1 having at least 20 percent of the votes in the association.
2-2 [Notice of a meeting shall be given in accordance with the bylaws.]
2-3 (b) Meetings of the association and board must be open to
2-4 unit owners, subject to the right of the board to adjourn a meeting
2-5 of the board and reconvene in closed executive session to consider
2-6 actions involving personnel, pending litigation, contract
2-7 negotiations, enforcement actions, matters involving the invasion
2-8 of privacy of individual unit owners, or matters that are to remain
2-9 confidential by request of the affected parties and agreement of
2-10 the board. The general nature of any business to be considered in
2-11 executive session must first be announced at the open meeting.
2-12 (c) Unless the declaration, bylaws, or articles of
2-13 incorporation of the association provide otherwise:
2-14 (1) a meeting of the board may be held by any method
2-15 of communication, including electronic and telephonic, if:
2-16 (A) notice of the meeting has been given in
2-17 accordance with Subsection (e);
2-18 (B) [by which] each director may hear and be
2-19 heard by every other director; and
2-20 (C) the meeting does not involve voting on a
2-21 fine, damage assessment, appeal from a denial of architectural
2-22 control approval, or suspension of a right of a particular
2-23 association member before the member has an opportunity to attend a
2-24 board meeting to present the member's position, including any
2-25 defense, on the issue; and
2-26 (2) [in lieu of a meeting,] the board may act by
2-27 unanimous written consent [consents] of all the directors, without
3-1 a meeting, if:
3-2 (A) the board action does not involve voting on
3-3 a fine, damage assessment, appeal from a denial of architectural
3-4 control approval, or suspension of a right of a particular
3-5 association member before the member has an opportunity to attend a
3-6 board meeting to present the member's position, including any
3-7 defense, on the issue; and
3-8 (B) a record of the board action is [to be]
3-9 filed with the minutes of board meetings.
3-10 (d) Notice of a meeting of the association must be given as
3-11 provided by the bylaws, or, if the bylaws do not provide for
3-12 notice, notice must be given to each unit owner in the same manner
3-13 in which notice is given to members of a nonprofit corporation
3-14 under Section A, Article 2.11, Texas Non-Profit Corporation Act
3-15 (Article 1396-2.11, Vernon's Texas Civil Statutes).
3-16 (e) Notice of a meeting of the board must be given as
3-17 provided by the bylaws, or, if the bylaws do not provide for
3-18 notice, notice must be given to each board member in the same
3-19 manner in which notice is given to members of the board of a
3-20 nonprofit corporation under Section B, Article 2.19, Texas
3-21 Non-Profit Corporation Act (Article 1396-2.19, Vernon's Texas Civil
3-22 Statutes).
3-23 (f) A board member or managing agent of an association, on
3-24 the request of a unit owner, shall inform the unit owner of the
3-25 time and place of the next regular or special meeting of the board.
3-26 If the board member or managing agent to whom the request is made
3-27 does not know the time and place of the meeting, the board member
4-1 or managing agent promptly shall obtain the information and
4-2 disclose it to the unit owner.
4-3 (g) A board member may be fined by a majority vote of the
4-4 association members at an association meeting and is liable to the
4-5 members of the association for reasonable attorney's fees incurred
4-6 by the members, individually or collectively, in enforcing this
4-7 section by injunction or other method, if the board member:
4-8 (1) participates in a board meeting or association
4-9 meeting for which notice is not given as provided by Subsection (d)
4-10 or (e);
4-11 (2) participates in a board action, board meeting, or
4-12 association meeting in violation of this section; or
4-13 (3) fails to comply with Subsection (f).
4-14 SECTION 3. (a) The changes in law made by this Act to
4-15 Chapter 82, Property Code, apply only to:
4-16 (1) a meeting held on or after September 1, 1997, in
4-17 relation to a condominium; and
4-18 (2) a request made on or after September 1, 1997, to a
4-19 board member or a managing agent of a condominium owners'
4-20 association for the time and place of the next meeting of the board
4-21 of directors of the association.
4-22 (b) A meeting held before September 1, 1997, is governed by
4-23 the law in effect immediately preceding that date, and the former
4-24 law is continued in effect for that purpose.
4-25 SECTION 4. This Act takes effect September 1, 1997.
4-26 SECTION 5. The importance of this legislation and the
4-27 crowded condition of the calendars in both houses create an
5-1 emergency and an imperative public necessity that the
5-2 constitutional rule requiring bills to be read on three several
5-3 days in each house be suspended, and this rule is hereby suspended.