SRC-LBB H.B. 2200 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2200
By: Solomons (Fraser)
Business & Commerce
5/11/2003
Engrossed


DIGEST AND PURPOSE 

In the majority of condominium communities condominium owners or renters
are required to belong to a property owners association. The association's
declaratory documents usually control the architectural improvements and
the provision of the maintenance of common areas. For condominiums'
located in areas such as golf clubs some declaratory documents require
membership in a private club. H.B. 2200 provides a maximum ten-year
validity of provisions requiring membership in private clubs, unless
specifically continued by an affirmative vote of sixty-seven percent of
property owners. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 81, Property Code, by adding
Section 81.112, as follows: 

Sec. 81.112.  RESTRICTION RELATING TO CLUB MEMBERSHIP.  (a)  Provides that
a provision of a declaration, master deed, master lease, or other recorded
contract that requires owners of apartments in a condominium regime to
maintain a membership in a specified private club is not valid after the
10th anniversary of the date the provision is recorded or renewed unless
renewed after the ninth anniversary of that date at a meeting of the
apartment owners at which the renewal is approved by the holders of at
least 67 percent of the ownership interests in the condominium and the
text of the renewed provision is recorded in the real property records of
each county in which the condominium is located. 

(b)  Prohibits a provision described by this section from being enacted or
renewed as a bylaw by a council of owners. 

SECTION 2.  Amends Subchapter B, Chapter 82, Property Code, by adding
Section 82.0675, as follows: 

Sec. 82.0675.  RESTRICTION RELATING TO CLUB MEMBERSHIP.  (a)  Provides
that a provision of a declaration or recorded contract that requires
owners of units in a condominium to maintain a membership in a specified
private club is not valid after the 10th anniversary of the date the
provision is recorded or renewed unless renewed after the ninth
anniversary of that date in the manner provided by the declaration or
recorded contract for amending the declaration or recorded contract and
the text of the renewed provision is filed in the real property records of
each county in which the condominium is located. 

(b)  Prohibits a provision described by this section from being enacted or
renewed as a bylaw by the unit owners' association. 

SECTION 3.  Provides that the change in law made by this Act applies only
to a declaration,  master deed, master lease, contract, or bylaw relating
to club membership that is recorded, enacted, or renewed on or after the
effective date of this Act.  Provides that a provision of a declaration,
master deed, master lease, contract, or bylaw relating to club membership
that was recorded, enacted, or renewed before the effective date of this
Act is continued in effect unless canceled after the ninth anniversary of
the date the provision was recorded, enacted, or renewed at a meeting of
the apartment owners at which the provision is disapproved by the holders
of at least 67 percent of the ownership interests in the condominium. 

SECTION 4.  Effective date:  September 1, 2003.