1-1     By:  Van de Putte (Senate Sponsor - Wentworth)        H.B. No. 1285

 1-2           (In the Senate - Received from the House April 18, 1997;

 1-3     April 22, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported favorably, as amended, by the

 1-5     following vote:  Yeas 11, Nays 0; May 18, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Carona

 1-7           Amend H.B. No. 1285 as follows:

 1-8           (1)  In Section 2 of the bill, in the amended Section 82.108,

 1-9     Property Code, strike Subsection (f) (Engrossed Bill, page 2, line

1-10     34 through page 2, line 40), and substitute:

1-11           (f)  An association, on the written request of a unit owner,

1-12     shall inform the unit owner of the time and place of the next

1-13     regular or special meeting of the board.  If the association

1-14     representative to whom the request is made does not know the time

1-15     and place of the meeting, the association promptly shall obtain the

1-16     information and disclose it to the unit owner or inform the unit

1-17     owner where the information may be obtained.

1-18           (2)  In Section 2 of the bill, in the amended Section 82.108,

1-19     Property Code, strike Subsection (g) (Engrossed Bill, page 2, lines

1-20     41-51).

1-21           (3)  In Section 4 of the bill, strike "September 1, 1997" and

1-22     substitute "January 1, 1998" (Engrossed Bill, page 2, line 63).

1-23                            A BILL TO BE ENTITLED

1-24                                   AN ACT

1-25     relating to the meetings of a condominium board or association.

1-26           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-27           SECTION 1.  Section 82.002(c), Property Code, is amended to

1-28     read as follows:

1-29           (c)  This section and the following sections apply to a

1-30     condominium in this state for which the declaration was recorded

1-31     before January 1, 1994:  Sections 82.005, 82.006, 82.007, 82.053,

1-32     82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113,

1-33     82.114, 82.116, 82.157, and 82.161.  The definitions prescribed by

1-34     Section 82.003 apply to a condominium in this state for which the

1-35     declaration was recorded before January 1, 1994, to the extent the

1-36     definitions do not conflict with the declaration.  The sections

1-37     listed in this subsection apply only with respect to events and

1-38     circumstances occurring on or after January 1, 1994, and do not

1-39     invalidate existing provisions of the declaration, bylaws, or plats

1-40     or plans of a condominium for which the declaration was recorded

1-41     before January 1, 1994.

1-42           SECTION 2.  Section 82.108, Property Code, is amended to read

1-43     as follows:

1-44           Sec. 82.108.  MEETINGS.  (a)  Meetings of the association

1-45     must be held at least once each year.  Unless the declaration

1-46     provides otherwise, special meetings of the association may be

1-47     called by the president, a majority of the board, or unit owners

1-48     having at least 20 percent of the votes in the association.

1-49     [Notice of a meeting shall be given in accordance with the bylaws.]

1-50           (b)  Meetings of the association and board must be open to

1-51     unit owners, subject to the right of the board to adjourn a meeting

1-52     of the board and reconvene in closed executive session to consider

1-53     actions involving personnel, pending litigation, contract

1-54     negotiations, enforcement actions, matters involving the invasion

1-55     of privacy of individual unit owners, or matters that are to remain

1-56     confidential by request of the affected parties and agreement of

1-57     the board.  The general nature of any business to be considered in

1-58     executive session must first be announced at the open meeting.

1-59           (c)  Unless the declaration, bylaws, or articles of

1-60     incorporation of the association provide otherwise:

1-61                 (1)  a meeting of the board may be held by any method

1-62     of communication, including electronic and telephonic, if:

1-63                       (A)  notice of the meeting has been given in

1-64     accordance with Subsection (e);

 2-1                       (B)  [by which] each director may hear and be

 2-2     heard by every other director; and

 2-3                       (C)  the meeting does not involve voting on a

 2-4     fine, damage assessment, appeal from a denial of architectural

 2-5     control approval, or suspension of a right of a particular

 2-6     association member before the member has an opportunity to attend a

 2-7     board meeting to present the member's position, including any

 2-8     defense, on the issue; and

 2-9                 (2)  [in lieu of a meeting,] the board may act by

2-10     unanimous written consent [consents] of all the directors, without

2-11     a meeting, if:

2-12                       (A)  the board action does not involve voting on

2-13     a fine, damage assessment, appeal from a denial of architectural

2-14     control approval, or suspension of a right of a particular

2-15     association member before the member has an opportunity to attend a

2-16     board meeting to present the member's position, including any

2-17     defense, on the issue; and

2-18                       (B)  a record of the board action is [to be]

2-19     filed with the minutes of board meetings.

2-20           (d)  Notice of a meeting of the association must be given as

2-21     provided  by the bylaws, or, if the bylaws do not provide for

2-22     notice, notice must be given to each unit owner in the same manner

2-23     in which notice is given to members of a nonprofit corporation

2-24     under Section A, Article 2.11, Texas Non-Profit Corporation Act

2-25     (Article 1396-2.11, Vernon's Texas Civil Statutes).

2-26           (e)  Notice of a meeting of the board must be given as

2-27     provided by the bylaws, or, if the bylaws do not provide for

2-28     notice, notice must be given to each board member in the same

2-29     manner in which notice is given to members of the board of a

2-30     nonprofit corporation under Section B, Article 2.19, Texas

2-31     Non-Profit Corporation Act (Article 1396-2.19, Vernon's Texas Civil

2-32     Statutes).

2-33           (f)  A board member or managing agent of an association, on

2-34     the request of a unit owner, shall inform the unit owner of the

2-35     time and place of the next regular or special meeting of the board.

2-36     If the board member or managing agent to whom the request is made

2-37     does not know the time and place of the meeting, the board member

2-38     or managing agent promptly shall obtain the information and

2-39     disclose it to the unit owner.

2-40           (g)  A board member may be fined by a majority vote of the

2-41     association members at an association meeting and is liable to the

2-42     members of the association for reasonable attorney's fees incurred

2-43     by the members, individually or collectively, in enforcing this

2-44     section by injunction or other method, if the board member:

2-45                 (1)  participates in a board meeting or association

2-46     meeting for which notice is not given as provided by Subsection (d)

2-47     or (e);

2-48                 (2)  participates in a board action, board meeting, or

2-49     association meeting in violation of this section; or

2-50                 (3)  fails to comply with Subsection (f).

2-51           SECTION 3.  (a)  The changes in law made by this Act to

2-52     Chapter 82, Property Code, apply only to:

2-53                 (1)  a meeting held on or after September 1, 1997, in

2-54     relation to a condominium; and

2-55                 (2)  a request made on or after September 1, 1997, to a

2-56     board member or a managing agent of a condominium owners'

2-57     association for the time and place of the next meeting of the board

2-58     of directors of the association.

2-59           (b)  A meeting held before September 1, 1997, is governed by

2-60     the law in effect immediately preceding that date, and the former

2-61     law is continued in effect for that purpose.

2-62           SECTION 4.  This Act takes effect September 1, 1997.

2-63           SECTION 5.  The importance of this legislation and the

2-64     crowded condition of the calendars in both houses create an

2-65     emergency and an imperative public necessity that the

2-66     constitutional rule requiring bills to be read on three several

2-67     days in each house be suspended, and this rule is hereby suspended.