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.