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A BILL TO BE ENTITLED
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AN ACT
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relating to property owners' associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 11, Property Code, is amended by adding |
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Chapter 216 to read as follows: |
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CHAPTER 216. POWERS AND DUTIES OF PROPERTY OWNERS' ASSOCIATIONS AND |
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BOARDS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 216.0001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors, or the body, |
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regardless of the name, designated to act on behalf of a property |
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owners' association. |
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(2) "Dedicatory instrument," "property owners' |
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association," "petition," and "restrictive covenant" have the |
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meanings assigned by Section 202.001. |
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(3) "Development period" means a period stated in a |
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declaration during which a declarant reserves: |
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(A) a right to facilitate the planning, |
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construction, and marketing of the development; or |
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(B) a right to direct the size, shape, and |
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composition of the development. |
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Sec. 216.0002. APPLICABILITY OF CHAPTER. (a) This chapter |
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applies to all dedicatory instruments regardless of the date on |
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which the dedicatory instruments were created. |
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(b) This chapter does not apply during the development |
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period. |
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Sec. 216.0003. CONFLICT WITH DEDICATORY INSTRUMENT. This |
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chapter supersedes any contrary requirement in a dedicatory |
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instrument. |
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Sec. 216.0004. CONFLICTS WITH OTHER LAW. To the extent of |
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any conflict between this chapter and any other law, this chapter |
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prevails. |
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SUBCHAPTER B. POWERS AND DUTIES OF BOARD |
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Sec. 216.0021. POWER TO AMEND BYLAWS. A board may not amend |
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the bylaws unless the board is expressly granted the power to amend |
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the bylaws in the declaration. |
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Sec. 216.0022. REMOVAL OR RESTRICTION OF VOTING POWER OF |
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BOARD MEMBER. A board may not remove, or limit the voting power of, |
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a board member unless the board member is ineligible for office due |
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to a conviction or under the declaration. |
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SUBCHAPTER C. POWERS AND DUTIES OF PROPERTY OWNERS |
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Sec. 216.0041. VOTING RIGHTS OF PROPERTY OWNERS. (a) A |
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provision in a dedicatory instrument that disqualifies a property |
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owner from voting in a property owners' association election of |
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board members or on any matter concerning the rights or |
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responsibilities of the owner is void. |
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(b) A property owners' association may not bar a property |
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owner from voting on any matter because: |
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(1) an association enforcement action is pending |
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against the owner; or |
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(2) the owner owes a delinquent assessment, fee, or |
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other charge to the association. |
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(c) This section does not apply to a property owners' |
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association that is subject to Chapter 552, Government Code, by |
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application of Section 552.0036, Government Code. |
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(d) In a residential development with 10 or fewer lots for |
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which the declaration was recorded before January 1, 2015, a person |
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may not vote in a property owners' association election unless the |
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person is subject to a dedicatory instrument governing the |
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association through which the association exercises its authority. |
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Sec. 216.0042. AMENDMENT OF BYLAWS. Property owners may |
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amend the bylaws by a vote of owners having a majority of the voting |
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power in the property owners' association, or by a lesser amount |
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provided in the declaration. |
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Sec. 216.0043. REMOVAL OF BOARD MEMBERS. Property owners |
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may remove board members, with or without cause, by a vote of owners |
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having a majority of the voting power in the property owners' |
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association, or by a lesser amount provided in the declaration, at a |
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special meeting called under Subchapter D. |
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SUBCHAPTER D. SPECIAL MEETINGS |
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Sec. 216.0061. SPECIAL MEETINGS. Property owners of a |
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property owners' association may call a special meeting of the |
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association to vote on any matter by submitting a petition to the |
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association under this subchapter. |
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Sec. 216.0062. PETITION FOR SPECIAL MEETING. (a) Property |
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owners having at least 20 percent of the voting power in a property |
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owners' association may call a special meeting by submitting a |
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petition to an officer or registered agent of the association. |
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(b) If the petition includes a proposal to remove a board |
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member, the board member may not participate in any vote of the |
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association concerning the petition. |
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(c) In any 12-month period, a property owner may not sign |
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more than: |
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(1) one petition for a special meeting to remove one or |
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more board members; and |
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(2) one petition for a special meeting on any other |
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matter. |
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Sec. 216.0063. COURT ORDER TO COMPEL MEETING. (a) A |
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property owner who signed a petition under Section 216.0062, may |
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seek an order in any trial court to compel a property owners' |
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association to hold a special meeting if the property owners' |
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association does not hold the special meeting requested by the |
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petition on or before the 30th day after the date the petition is |
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submitted to the association. |
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(b) An application for relief from a court under this |
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section is presented in the same manner as an application for a |
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temporary restraining order. The application must include the |
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completed petition on which the right to a special meeting is based. |
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If the court determines that the petition contains signatures and |
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proxies representing 20 percent of the voting power in the property |
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owners' association, the court shall set the matter for hearing not |
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later than the 10th day after the date the court makes the |
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determination. The court may appoint a presiding officer for the |
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special meeting and order the meeting to be held. |
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SECTION 2. Sections 209.0055 and 209.0059, Property Code, |
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are repealed. |
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SECTION 3. This Act takes effect September 1, 2021. |