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A BILL TO BE ENTITLED
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AN ACT
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relating to organization of, meetings of, and voting by condominium |
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unit owners' associations and 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 82.101, Property Code, is amended to |
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read as follows: |
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Sec. 82.101. ORGANIZATION OF UNIT OWNERS' ASSOCIATION. A |
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unit owners' association must be organized as a profit or nonprofit |
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corporation. The declarant may not convey a unit until the |
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secretary of state has issued a certificate of formation |
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[incorporation] under the Texas Corporation Law [Article 3.03, |
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Texas Business Corporation Act, or Article 3.03, Texas Non-Profit |
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Corporation Act (Article 1396-3.03, Vernon's Texas Civil |
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Statutes)]. The membership of the association at all times consists |
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exclusively of all the unit owners or, following termination of the |
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condominium, all former unit owners entitled to distribution of |
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proceeds, or the owners' heirs, successors, or assigns. |
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SECTION 2. Section 82.108, Property Code, is amended by |
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amending Subsections (c), (d), and (e) and adding Subsections (b-1) |
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and (c-1) to read as follows: |
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(b-1) A meeting of the association may be held by any method |
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of communication, including electronic and telephonic means as |
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provided by Section 6.002, Business Organizations Code. |
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(c) A [Unless the declaration, bylaws, or articles of |
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incorporation of the association provide otherwise: |
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[(1) a] meeting of the board may be held by any method |
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of communication, including electronic and telephonic means as |
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provided by Section 6.002, Business Organizations Code, if: |
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(1) [(A)] notice of the meeting has been given in |
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accordance with Subsection (e); |
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(2) [(B)] each director may hear and be heard by every |
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other director; and |
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(3) [(C)] the meeting does not involve voting on a |
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fine, damage assessment, appeal from a denial of architectural |
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control approval, or suspension of a right of a particular |
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association member before the member has an opportunity to attend a |
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board meeting to present the member's position, including any |
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defense, on the issue. |
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(c-1) The [; and |
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[(2) the] board may act by unanimous written consent |
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of all the directors, without a meeting, if: |
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(1) [(A)] the board action does not involve voting on |
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a fine, damage assessment, appeal from a denial of architectural |
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control approval, or suspension of a right of a particular |
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association member before the member has an opportunity to attend a |
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board meeting to present the member's position, including any |
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defense, on the issue; and |
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(2) [(B)] a record of the board action is filed with |
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the minutes of board meetings. |
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(d) Notice of a meeting of the association must be given as |
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provided by the bylaws, or, if the bylaws do not provide for notice, |
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notice must be given to each unit owner in the same manner in which |
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notice is given to members of a nonprofit corporation under |
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Sections 6.051 and 22.156, Business Organizations Code [Section A, |
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Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11, |
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Vernon's Texas Civil Statutes)]. |
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(e) Notice of a meeting of the board must be given as |
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provided by the bylaws, or, if the bylaws do not provide for notice, |
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notice must be given to each board member in the same manner in |
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which notice is given to members of the board of a nonprofit |
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corporation under Sections 6.051, 6.052, and 22.217, Business |
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Organizations Code [Section B, Article 2.19, Texas Non-Profit |
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Corporation Act (Article 1396-2.19, Vernon's Texas Civil |
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Statutes)]. |
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SECTION 3. Section 82.110, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Voting may be conducted electronically as provided by |
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Section 6.002, Business Organizations Code. |
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SECTION 4. Section 209.0056, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A meeting of the owners held under this section may be |
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held by any method of communication, including electronic and |
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telephonic means as provided by Section 6.002, Business |
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Organizations Code. |
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SECTION 5. Section 209.00592(a-1), Property Code, is |
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amended to read as follows: |
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(a-1) Except as provided by this subsection, unless a |
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dedicatory instrument provides otherwise, a property owners' |
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association is not required to provide an owner with more than one |
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voting method. An owner must be allowed to vote by one of the |
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following voting methods: |
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(1) absentee ballot; [or] |
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(2) proxy; or |
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(3) electronic ballot. |
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SECTION 6. This Act takes effect September 1, 2023. |