H.B. 2200 78(R)    BILL ANALYSIS


H.B. 2200
By: Solomons
Business & Industry
Committee Report (Unamended)



BACKGROUND 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 condominium's
located in areas like golf clubs some declaratory documents require
membership in a private club. HB 2200 provides a maximum ten year validity
of provisions requiring membership in private clubs, unless specifically
continued by a sixty-seven percent of property owners. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

HB 2200 amends Title 7 of the Property Code to invalidate provisions in
declaratory documents of condominiums created before and after the
adoption of the Uniform Condominium Act that require membership of a
private club 10 years after the anniversary the provision is recorded or
renewed. The provision may be continued if at least sixty-seven percent of
the holders of ownership in the condominium community approve the
extension of the provision. The provision may not be enacted or continued
through bylaws adopted by a council of owners. 


EFFECTIVE DATE

This Act is effective for declaratory documents controlled by Title 7 of
the Property Code that is recorded, enacted, or renewed on or after
September 1, 2003. For declaratory documents recorded, enacted, or renewed
before the effective date, current law applies and is continued for this
purpose.