BILL ANALYSIS

C.S.H.B. 2779

By: Bohac

Business & Industry

Committee Report (Substituted)

BACKGROUND AND PURPOSE

According to interested parties, disputes between property owners' associations and their members regarding whether a property owner is allowed to display a United States flag or certain other flags at the owner's residence indicate the need for state laws to provide clear guidance on this matter. C.S.H.B. 2779 addresses the issue by prohibiting a property owners' association from adopting or enforcing a dedicatory instrument provision that prohibits or otherwise restricts a property owner from displaying specified types of flags, with certain exceptions. 

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

C.S.H.B. 2779 amends the Property Code to prohibit a property owners' association from adopting or enforcing a dedicatory instrument provision that prohibits, restricts, or has the effect of prohibiting or restricting an owner from the display of the flag of the United States of America, the flag of the State of Texas, or an official or replica flag of any branch of the United States armed forces, with certain exceptions.

C.S.H.B. 2779 authorizes a property owners' association to adopt or enforce reasonable dedicatory instrument provisions requiring that the flag of the United States be displayed in accordance with certain provisions of federal law; the flag of the State of Texas be displayed in accordance with certain provisions of state law; a flagpole attached to a dwelling or a freestanding flagpole be constructed of certain materials with a specified type of finish; the display of a flag, or the location and construction of the supporting flagpole, comply with applicable zoning ordinances, easements, and setbacks of record; and a displayed flag and the flagpole on which it is flown be maintained in good condition and any deteriorated flag or deteriorated or structurally unsafe flagpole be repaired, replaced, or removed.

C.S.H.B. 2779 authorizes a property owners' association to adopt or enforce reasonable dedicatory instrument provisions that:

· regulate the size, number, and location of flagpoles on which flags are displayed, except that the regulation is prohibited from preventing the installation or erection of at least one flagpole per property that is not more than 20 feet in height;  

· govern the size of a displayed flag;

· regulate the size, location, and intensity of any lights used to illuminate a displayed flag;

· impose reasonable restrictions to abate noise caused by an external halyard of a flagpole; or

· prohibit a property owner from locating a displayed flag or flagpole on property that is owned or maintained by the property owners' association or owned in common by the members of the association.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2779 omits a provision included in the original defining "owner" by reference to the Property Code and specifying that the term includes a relative or tenant of an owner.

C.S.H.B. 2779 differs from the original by authorizing a property owners' association to adopt or enforce reasonable dedicatory instrument provisions that regulate the size, number, and location of flagpoles on which flags are displayed, whereas the original limits that authorization to adopt or enforce reasonable dedicatory instrument provisions to the regulation of the location of the flagpole on which a flag is displayed. The substitute differs from the original by prohibiting an association from adopting or enforcing a reasonable dedicatory instrument provision that prevents the installation or erection of at least one flagpole per property that is not more than 20 feet in height, whereas the original prohibits such a provision from preventing a flagpole from being installed or erected, without specifying the height or number of flagpoles. The substitute omits a provision included in the original prohibiting an association from adopting or enforcing a reasonable dedicatory instrument provision that prevents the flag from being seen.

C.S.H.B. 2779 contains a provision not included in the original authorizing a property owners' association to adopt or enforce reasonable dedicatory instrument provisions that impose reasonable restrictions to abate noise caused by an external halyard of a flagpole or that prohibit a property owner from locating a displayed flag or flagpole on property that is owned or maintained by the property owners' association or owned in common by the members of the association.