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.