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78R4647 KCR-D

By:  Davis of Harris                                              H.B. No. 766



A BILL TO BE ENTITLED

AN ACT

relating to permitting a community association to increase regular 
assessments on a majority vote of property owners.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Chapter 206, Property Code, is 
amended to read as follows:

CHAPTER 206.  EXTENSION OF OR AMENDMENT TO RESTRICTIONS IMPOSING 
REGULAR ASSESSMENTS IN CERTAIN SUBDIVISIONS
	SECTION 2.  Sections 206.003 and 206.004, Property Code, are 
amended to read as follows:
	Sec. 206.003.  EXTENSION OF OR AMENDMENT TO RESTRICTION 
IMPOSING REGULAR ASSESSMENT.  (a)  A community association may 
approve and submit to a vote of the owners:
		(1)  an extension of a restriction imposing a regular 
assessment; or
		(2)  an amendment to an existing restriction that 
increases the amount of a regular assessment imposed under the 
restriction.
	(b)  The extension of or amendment to a restriction submitted 
to a vote of the owners under Subsection (a) [imposing a regular 
assessment] is approved if a majority of the owners in the 
subdivision who vote on the issue in accordance with Section 
206.004 vote in favor of the extension or amendment.
	(c)  An extension or amendment approved in accordance with 
this section and Section 206.004 applies to all real property in the 
subdivision, including residential and commercial property.
	(d)  A document certifying that a majority of the owners 
voting on the issue approved the extension of or amendment to the 
restriction must be recorded in the real property records of the 
county in which the subdivision is located.
	Sec. 206.004.  METHOD OF VOTING.  (a)  An extension of or 
amendment to a restriction submitted to a vote of the owners under 
Section 206.003(a) [that imposes a regular assessment] must be 
voted on:
		(1)  by a written ballot that states the substance of 
the amendment extending the restriction or increasing the regular 
assessment and specifies the date by which the community 
association must receive a ballot for the ballot to be counted;  or
		(2)  at a meeting of the property owners in the 
subdivision.                
	(b)  The community association shall provide for mailing to 
each owner, as applicable:
		(1)  the ballot under Subsection (a)(1); or                                   
		(2)  notice of the meeting under Subsection (a)(2) that 
states the purpose of the meeting.
	(c)  In conjunction with a vote by ballot or at a meeting 
under Subsection (a), the community association may provide for 
circulation of a petition in the subdivision.
	(d)  The vote of multiple owners of a property may be 
reflected by the signature or vote of one of the owners.
	(e)  The community association shall record a copy of the 
ballot or petition in the real property records in the county in 
which the subdivision is located prior to submission of the 
extension or amendment to a vote of the owners.
	SECTION 3.  This Act takes effect September 1, 2003, and 
applies only to an amendment to an existing restriction described 
by Section 206.003, Property Code, as amended by this Act, 
submitted to a vote of the property owners by a community 
association on or after the effective date of this Act.  An 
amendment to a restriction submitted to a vote of the property 
owners by a community association before the effective date of this 
Act is governed by the law in effect at the time the amendment was 
submitted, and the former law is continued in effect for that 
purpose.