1-1 By: Talton (Senate Sponsor - Brown) H.B. No. 2339 1-2 (In the Senate - Received from the House May 5, 1997; 1-3 May 6, 1997, read first time and referred to Committee on 1-4 Jurisprudence; May 17, 1997, reported favorably, as amended, by the 1-5 following vote: Yeas 7, Nays 0; May 17, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Harris 1-7 Amend H.B. No. 2339 on page 2, after line 15 and before line 1-8 16 by inserting the following: 1-9 "(e) The community association shall record a copy of the 1-10 ballot or petition in the real property records in the county in 1-11 which the subdivision is located prior to submission of the 1-12 extension to a vote of the owners." 1-13 A BILL TO BE ENTITLED 1-14 AN ACT 1-15 relating to the extension of restrictions imposing regular 1-16 assessments in certain residential real estate subdivisions. 1-17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-18 SECTION 1. Title 11, Property Code, is amended by adding 1-19 Chapter 206 to read as follows: 1-20 CHAPTER 206. EXTENSION OF RESTRICTIONS IMPOSING REGULAR 1-21 ASSESSMENTS IN CERTAIN SUBDIVISIONS 1-22 Sec. 206.001. DEFINITIONS. In this chapter: 1-23 (1) "Community association" means an incorporated 1-24 association created to enforce restrictions. 1-25 (2) "Dedicatory instrument" and "restrictive covenant" 1-26 have the meanings assigned by Section 202.001. 1-27 (3) "Lienholder," "owner," "real property records," 1-28 "residential real estate subdivision," and "restrictions" have the 1-29 meanings assigned by Section 201.003. 1-30 (4) "Regular assessment" means an assessment, charge, 1-31 fee, or dues that each owner is required to pay to the community 1-32 association on a regular basis and that is to be used by the 1-33 association for the benefit of the subdivision in accordance with 1-34 the original, extended, added, or modified restrictions. 1-35 Sec. 206.002. APPLICABILITY OF CHAPTER. This chapter 1-36 applies only to a residential real estate subdivision that: 1-37 (1) consists of at least 4,600 homes; 1-38 (2) is located in whole or in part in a municipality 1-39 with a population of more than 1.6 million located in a county with 1-40 a population of 2.8 million or more; and 1-41 (3) has restrictions the terms of which are 1-42 automatically extended but has a regular assessment that is 1-43 established by a separate document that permits the assessment to 1-44 expire and does not provide for extension of the term of the 1-45 assessment. 1-46 Sec. 206.003. EXTENSION OF RESTRICTION IMPOSING REGULAR 1-47 ASSESSMENT. (a) A community association may approve and submit to 1-48 a vote of the owners an extension of a restriction imposing a 1-49 regular assessment. 1-50 (b) The extension of a restriction imposing a regular 1-51 assessment is approved if a majority of the owners in the 1-52 subdivision who vote on the issue in accordance with Section 1-53 206.004 vote in favor of the extension. 1-54 (c) An extension approved in accordance with this section 1-55 and Section 206.004 applies to all real property in the 1-56 subdivision, including residential and commercial property. 1-57 (d) A document certifying that a majority of the owners 1-58 voting on the issue approved the extension of the restriction must 1-59 be recorded in the real property records of the county in which the 1-60 subdivision is located. 1-61 Sec. 206.004. METHOD OF VOTING. (a) An extension of a 1-62 restriction that imposes a regular assessment must be voted on: 1-63 (1) by a written ballot that states the substance of 1-64 the amendment extending the restriction and specifies the date by 2-1 which the community association must receive a ballot for the 2-2 ballot to be counted; or 2-3 (2) at a meeting of the property owners in the 2-4 subdivision. 2-5 (b) The community association shall provide for mailing to 2-6 each owner, as applicable: 2-7 (1) the ballot under Subsection (a)(1); or 2-8 (2) notice of the meeting under Subsection (a)(2) that 2-9 states the purpose of the meeting. 2-10 (c) In conjunction with a vote by ballot or at a meeting 2-11 under Subsection (a), the community association may provide for 2-12 circulation of a petition in the subdivision. 2-13 (d) The vote of multiple owners of a property may be 2-14 reflected by the signature or vote of one of the owners. 2-15 SECTION 2. The importance of this legislation and the 2-16 crowded condition of the calendars in both houses create an 2-17 emergency and an imperative public necessity that the 2-18 constitutional rule requiring bills to be read on three several 2-19 days in each house be suspended, and this rule is hereby suspended, 2-20 and that this Act take effect and be in force from and after its 2-21 passage, and it is so enacted. 2-22 * * * * *