By Van de Putte H.B. No. 1285
75R4267 MRB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the open meetings law to certain
1-3 condominium organizations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 81, Property Code, is
1-6 amended by adding Section 81.2035 to read as follows:
1-7 Sec. 81.2035. MEETINGS. The council of owners or any board
1-8 to which the council of owners delegates its authority is subject
1-9 to the open meetings law, Chapter 551, Government Code, as if the
1-10 council or board were a governmental body under that chapter. The
1-11 notice required by Chapter 551, Government Code, must be posted at
1-12 a place convenient to the public at the apartments in the
1-13 condominium regime.
1-14 SECTION 2. Section 82.067(a), Property Code, is amended to
1-15 read as follows:
1-16 (a) Except as provided by Subsection (b), a declaration,
1-17 including the plats and plans, may be amended only by vote or
1-18 agreement of unit owners to which at least 67 percent of the votes
1-19 in the association are allocated, or any larger majority the
1-20 declaration specifies. A declaration may specify a smaller number
1-21 only if all of the units are restricted exclusively to
1-22 nonresidential use. An amendment to a declaration may be adopted:
1-23 (1) by written ballot that states the exact wording or
1-24 substance of the amendment and that specifies the date by which a
2-1 ballot must be received to be counted;
2-2 (2) at a meeting of the members of the association
2-3 after written notice of the meeting is given as required for
2-4 association meetings and has been delivered to an owner of each
2-5 unit stating that a purpose of the meeting is to consider an
2-6 amendment to the declaration; or
2-7 (3) by any method permitted by the declaration.
2-8 SECTION 3. Section 82.106(a), Property Code, is amended to
2-9 read as follows:
2-10 (a) The administration and operation of the condominium are
2-11 governed by the bylaws, which must provide for:
2-12 (1) the number of members on the board and the titles
2-13 of the officers of the association;
2-14 (2) election by the board of a president, treasurer,
2-15 secretary, and any other officers the bylaws specify;
2-16 (3) the qualifications, powers and duties, terms of
2-17 office, and the manner of electing and removing a board member or
2-18 officer and filling vacancies;
2-19 (4) the powers, if any, that the board or an officer
2-20 may delegate to other persons or to a managing agent;
2-21 (5) the designation of officers who are authorized to
2-22 prepare, execute, certify, and record amendments to the declaration
2-23 on behalf of the association;
2-24 (6) the method of amending the bylaws; and
2-25 (7) consistent with Section 82.108(b), the manner of
2-26 notice of meetings of the association.
2-27 SECTION 4. Section 82.108, Property Code, is amended to read
3-1 as follows:
3-2 Sec. 82.108. MEETINGS. (a) Meetings of the association
3-3 must be held at least once each year. Unless the declaration
3-4 provides otherwise, special meetings of the association may be
3-5 called by the president, a majority of the board, or unit owners
3-6 having at least 20 percent of the votes in the association. Notice
3-7 of a meeting shall be given in accordance with the bylaws and
3-8 Subsection (b).
3-9 (b) The [Meetings of the] association and board are subject
3-10 to the open meetings law, Chapter 551, Government Code, as if the
3-11 association and board were governmental bodies under that chapter.
3-12 The notice required by Chapter 551, Government Code, must be posted
3-13 at a place convenient to the public at the condominium [must be
3-14 open to unit owners, subject to the right of the board to adjourn a
3-15 meeting of the board and reconvene in closed executive session to
3-16 consider actions involving personnel, pending litigation, contract
3-17 negotiations, enforcement actions, matters involving the invasion
3-18 of privacy of individual unit owners, or matters that are to remain
3-19 confidential by request of the affected parties and agreement of
3-20 the board. The general nature of any business to be considered in
3-21 executive session must first be announced at the open meeting].
3-22 [(c) Unless the declaration, bylaws, or articles of
3-23 incorporation of the association provide otherwise:]
3-24 [(1) a meeting of the board may be held by any method
3-25 of communication, including electronic and telephonic, by which
3-26 each director may hear and be heard by every other director; and]
3-27 [(2) in lieu of a meeting, the board may act by
4-1 unanimous written consents of directors, to be filed with the
4-2 minutes of board meetings.]
4-3 SECTION 5. Section 82.114(a), Property Code, is amended to
4-4 read as follows:
4-5 (a) The association shall keep:
4-6 (1) detailed financial records that comply with
4-7 generally accepted accounting principles and that are sufficiently
4-8 detailed to enable the association to prepare a resale certificate
4-9 under Section 82.157;
4-10 (2) the plans and specifications used to construct the
4-11 condominium except for buildings originally constructed before
4-12 January 1, 1994;
4-13 (3) the condominium information statement prepared
4-14 under Section 82.152 and any amendments;
4-15 (4) the name and mailing address of each unit owner;
4-16 and
4-17 (5) voting records, proxies, and correspondence
4-18 relating to amendments to the declaration[; and]
4-19 [(6) minutes of meetings of the association and
4-20 board].
4-21 SECTION 6. The changes in law made by this Act to Chapters
4-22 81 and 82, Property Code, apply only to a meeting held on or after
4-23 September 4, 1997, in relation to a condominium. A meeting
4-24 held before that date is governed by the law in effect immediately
4-25 preceding the effective date of this Act, and the former law is
4-26 continued in effect for that purpose.
4-27 SECTION 7. This Act takes effect September 1, 1997.
5-1 SECTION 8. The importance of this legislation and the
5-2 crowded condition of the calendars in both houses create an
5-3 emergency and an imperative public necessity that the
5-4 constitutional rule requiring bills to be read on three several
5-5 days in each house be suspended, and this rule is hereby suspended.