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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of property owners' associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 551.0015, Government Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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follows: |
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(a) A property owners' association is subject to this |
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chapter in the same manner as a governmental body: |
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(1) if: |
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(A) [(1)] membership in the property owners' |
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association is mandatory for owners or for a defined class of owners |
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of private real property in a residential subdivision [defined
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geographic area in a county with a population of 2.8 million or more
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or in a county adjacent to a county with a population of 2.8 million
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or more]; and |
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(B) [(2)] the property owners' association has |
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the power to make mandatory special assessments [for capital
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improvements] or mandatory regular assessments; or |
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(2) if the property owners' association: |
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(A) provides maintenance, preservation, and |
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architectural control of residential and commercial property |
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within a defined geographic area in a county with a population of |
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2.8 million or more or in a county adjacent to a county with a |
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population of 2.8 million or more; and |
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(B) is a corporation that: |
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(i) is governed by a board of trustees who |
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employ a general manager to execute the association's bylaws and |
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administer the business of the corporation; and |
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(ii) does not require membership in the |
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corporation by the owners of the property within the defined area[;
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and
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[(3) the amount of the mandatory special or regular
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assessments is or has ever been based in whole or in part on the
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value at which the state or a local governmental body assesses the
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property for purposes of ad valorem taxation under Section 20,
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Article VIII, Texas Constitution]. |
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(c) In Subsection (a)(1), "property owners' association," |
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"regular assessment," "residential subdivision," and "special |
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assessment" have the meanings assigned by Section 209.002, Property |
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Code. |
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SECTION 2. Section 552.0036, Government Code, is amended to |
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read as follows: |
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Sec. 552.0036. CERTAIN PROPERTY OWNERS' ASSOCIATIONS |
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SUBJECT TO LAW. (a) In Subsection (b)(1), "property owners' |
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association," "regular assessment," "residential subdivision," and |
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"special assessment" have the meanings assigned by Section 209.002, |
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Property Code. |
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(b) A property owners' association is subject to this |
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chapter in the same manner as a governmental body: |
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(1) if: |
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(A) [(1)] membership in the property owners' |
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association is mandatory for owners or for a defined class of owners |
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|
of private real property in a residential subdivision [defined
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|
geographic area in a county with a population of 2.8 million or more
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or in a county adjacent to a county with a population of 2.8 million
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or more]; and |
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(B) [(2)] the property owners' association has |
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the power to make mandatory special assessments [for capital
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|
improvements] or mandatory regular assessments; or |
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(2) if the property owners' association: |
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(A) provides maintenance, preservation, and |
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architectural control of residential and commercial property |
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within a defined geographic area in a county with a population of |
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2.8 million or more or in a county adjacent to a county with a |
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population of 2.8 million or more; and |
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(B) is a corporation that: |
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(i) is governed by a board of trustees who |
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employ a general manager to execute the association's bylaws and |
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administer the business of the corporation; and |
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(ii) does not require mandatory membership |
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in the corporation by the owners of the property within the defined |
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area[; and
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[(3) the amount of the mandatory special or regular
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assessments is or has ever been based in whole or in part on the
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value at which the state or a local governmental body assesses the
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property for purposes of ad valorem taxation under Section 20,
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Article VIII, Texas Constitution]. |
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SECTION 3. Section 209.005(a), Property Code, is amended to |
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read as follows: |
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(a) A property owners' association shall make the books and |
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records of the association, including financial records, |
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reasonably available to any person requesting access to the books |
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or records [an owner] in accordance with Chapter 552, Government |
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Code [Section B, Article 2.23, Texas Non-Profit Corporation Act
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(Article 1396-2.23, Vernon's Texas Civil Statutes)]. |
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SECTION 4. Section 209.003(b), Property Code, is amended to |
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read as follows: |
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(b) Except as otherwise provided by this chapter, this |
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[This] chapter applies only to a property owners' association that |
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requires mandatory membership in the association for all or a |
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majority of the owners of residential property within the |
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subdivision subject to the association's dedicatory instruments. |
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SECTION 5. Chapter 209, Property Code, is amended by adding |
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Section 209.0055 to read as follows: |
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Sec. 209.0055. VOTING. (a) In addition to a property |
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owners' association described by Section 209.003(b), this section |
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applies to a property owners' association that: |
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(1) provides maintenance, preservation, and |
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architectural control of residential and commercial property |
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within a defined geographic area in a county with a population of |
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2.8 million or more or in a county adjacent to a county with a |
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population of 2.8 million or more; and |
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(2) is a corporation that: |
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(A) is governed by a board of trustees who employ |
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a general manager to execute the association's bylaws and |
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administer the business of the corporation; and |
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(B) does not require membership in the |
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corporation by the owners of the property within the defined area. |
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(b) A property owners' association may not bar a property |
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owner who does not owe the association any delinquent assessments, |
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fees, or fines from voting in an association election solely based |
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on the fact that there is a pending enforcement action against the |
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property owner. |
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SECTION 6. (a) Section 551.0015, Government Code, as |
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amended by this Act, applies only to a property owners' association |
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meeting that is held on or after September 1, 2007. A property |
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owners' association meeting that is held before September 1, 2007, |
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is governed by the law in effect at the time the meeting was held, |
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and that law is continued in effect for that purpose. |
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(b) Section 552.0036, Government Code, as amended by this |
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Act, applies only to a request for records or information made to a |
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property owners' association on or after September 1, 2007. A |
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request for records or information that is made before September 1, |
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2007, is governed by the law in effect at the time the request was |
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made, and that law is continued in effect for that purpose. |
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(c) Section 209.005, Property Code, as amended by this Act, |
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applies only to a request for access to records or information made |
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to a property owners' association on or after September 1, 2007. A |
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request for access to records or information that is made before |
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September 1, 2007, is governed by the law in effect at the time the |
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request was made, and that law is continued in effect for that |
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purpose. |
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SECTION 7. This Act takes effect September 1, 2007. |