Texas Senate Bill SB1939

Texas 2021 - 87th Regular

Caption

Relating to organization of, meetings of, and voting by condominium unit owners' associations and property owners' associations.

Impact

This legislation would significantly enhance the ability of condominium and property owners' associations to conduct their affairs in a manner that is more accessible and responsive to the needs of their members. By enabling electronic and remote participation, the bill addresses challenges faced by associations, particularly in situations like the COVID-19 pandemic, where in-person gatherings may not be feasible. The introduction of electronic voting methods also aligns with contemporary practices, potentially increasing member engagement and participation in the decision-making process.

Summary

SB1939 aims to modernize the governance of condominium unit owners' associations and property owners' associations in Texas by allowing for greater flexibility in their organization, meetings, and voting procedures. The bill amends the Property Code to confirm that these associations can be organized as either profit or nonprofit corporations. One of the key aspects of the bill is the provision for meetings to be held using electronic and telephonic communication methods, ensuring that members can participate even when they are unable to attend in person.

Contention

While the bill promotes flexibility and accessibility, some stakeholders may view these changes with caution. Concerns could arise regarding the security and integrity of electronic voting systems and the potential for disenfranchisement of members who may lack technological resources. Furthermore, the adjustments to communication methods for meetings may lead to disputes over procedural fairness and transparency, necessitating careful implementation to ensure that all members have the opportunity to participate meaningfully in their associations.