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.

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