Texas 2009 - 81st Regular

Texas House Bill HB3254 Compare Versions

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1	1	By: Gattis H.B. No. 3254
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to property owners' association meetings and records.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 209, Property Code, is amended by
9	9	amending Section 209.005 and adding Sections 209.0051, 209.0052,
10	10	and 209.0053 to read as follows:
11	11	Sec. 209.005. ASSOCIATION RECORDS AND MEETINGS: CERTAIN
12	12	BYLAWS REQUIRED; JUDICIAL RELIEF. (a) The board of a property
13	13	owners' association that is subject to Sections 209.0051, 209.0052,
14	14	and 209.0053 shall adopt bylaws to implement those sections.
15	15	(b) A member of a property owners' association who is denied
16	16	access to or copies of association records to which the member is
17	17	entitled under this section may file a petition with the justice
18	18	court of a justice precinct in which all or part of the property
19	19	that is governed by the association is located, requesting relief
20	20	in accordance with this subsection. If the justice of the peace
21	21	finds that the member is entitled to access to or copies of the
22	22	records, the justice of the peace shall order the association to:
23	23	(1) provide the access or copies requested by the
24	24	member; and
25	25	(2) pay the court costs and the member's reasonable
26	26	attorney's fees.
27	27	(c) A member of a property owners' association denied access
28	28	to a meeting in violation of Section 209.0052 or 209.0053 may file a
29	29	petition with the justice court of a justice precinct in which all
30	30	or part of the property that is governed by the association is
31	31	located for injunctive or other equitable relief.
32	32	Sec. 209.0051. ASSOCIATION RECORDS. (a) This section does
33	33	not apply to a property owners' association that is subject to
34	34	Chapter 552, Government Code, by application of Section 552.0036.
35	35	(b) A property owners' association shall make the books and
36	36	records of the association, including financial records, open to
37	37	and reasonably available for examination by [to] an owner [in
38	38	accordance with Section B, Article 2.23, Texas Non-Profit
39	39	Corporation Act (Article 1396-2.23, Vernon's Texas Civil
40	40	Statutes)]. An owner is entitled to copies of information
41	41	contained in the books and records. A property owners' association
42	42	may charge an owner for copies of the information in an amount that
43	43	reasonably includes all costs related to reproducing the
44	44	information, including costs of materials, labor, and overhead.
45	45	(c) [(a-1) A property owners' association described by
46	46	Section 552.0036(2), Government Code, shall make the books and
47	47	records of the association, including financial records,
48	48	reasonably available to any person requesting access to the books
49	49	or records in accordance with Chapter 552, Government
50	50	Code. Subsection (a) does not apply to a property owners'
51	51	association to which this subsection applies.
52	52	[(b)] An attorney's files and records relating to the
53	53	association, excluding invoices requested by an owner under Section
54	54	209.008(d), are not:
55	55	(1) records of the association;
56	56	(2) subject to inspection by the owner; or
57	57	(3) subject to production in a legal proceeding.
58	58	Sec. 209.0052. BOARD MEETINGS. (a) In this section, "board
59	59	meeting" means a deliberation between a quorum of the voting board
60	60	of the property owners' association, or between a quorum of the
61	61	voting board and another person, during which property owners'
62	62	association business or policy over which the board has
63	63	responsibility is discussed or considered, or during which the
64	64	board takes formal action. The term does not include the gathering
65	65	of a quorum of the board at a social function unrelated to the
66	66	business of the association, or the attendance by a quorum of the
67	67	board at a regional, state, or national convention or workshop,
68	68	ceremonial event, or press conference, if formal action is not
69	69	taken and any discussion of association business is incidental to
70	70	the social function, convention, workshop, ceremonial event, or
71	71	press conference.
72	72	(b) This section does not apply to a property owners'
73	73	association that is subject to Chapter 551, Government Code, by
74	74	application of Section 551.0015.
75	75	(c) Except as provided by this subsection, a meeting of the
76	76	property owners' association board or a committee or subcommittee
77	77	of the board is open to members of the property owners' association.
78	78	An executive session of the board is not required to be open to
79	79	members of the association.
80	80	(d) The board shall keep a record of each regular or special
81	81	board meeting in the form of written minutes or an audio recording
82	82	of the meeting. A record of a meeting must state the subject of each
83	83	deliberation and indicate each vote, order, decision, or other
84	84	action taken by the board. The board shall make meeting records
85	85	available to a member for inspection and copying on the member's
86	86	written request to the board secretary or to a person the secretary
87	87	designates.
88	88	(e) The board shall give members written notice of the date,
89	89	hour, place, and subject of a regular or special board meeting at
90	90	least 72 hours before the scheduled time of the meeting.
91	91	(f) If the board recesses a regular or special board meeting
92	92	to continue the following regular business day, the board is not
93	93	required to post notice of the continued meeting if the recess is
94	94	taken in good faith and not to circumvent this section. If a
95	95	regular or special board meeting is continued to the following
96	96	regular business day, and on that following day the board continues
97	97	the meeting to another day, the board shall give written notice as
98	98	required by this section of the meeting continued to that other day.
99	99	(g) In the event of an emergency or urgent necessity that
100	100	requires immediate board action to meet a reasonably unforeseeable
101	101	situation, notice may be given in the manner prescribed by
102	102	Subsection (e) at least two hours before a regular or special board
103	103	meeting is convened, in order to:
104	104	(1) call an emergency board meeting; or
105	105	(2) add a subject to the agenda of a previously
106	106	scheduled board meeting.
107	107	(h) Notice under Subsection (g) shall clearly identify the
108	108	emergency or urgent necessity for which the notice is given. If the
109	109	board adds a subject to the agenda of a previously scheduled regular
110	110	or special board meeting, the board secretary or person the
111	111	secretary designates shall post a copy of the revised agenda on the
112	112	association's Internet website, if the association maintains a
113	113	website, and physically post a copy in accordance with bylaws
114	114	adopted under Section 209.005, not less than two hours before the
115	115	meeting convenes.
116	116	(i) If, at a regular or special board meeting, a member
117	117	makes an inquiry regarding a subject for which notice has not been
118	118	given as required by this section, the notice provisions of this
119	119	section do not apply to:
120	120	(1) a statement by the board of specific factual
121	121	information given in response to the inquiry; or
122	122	(2) a recitation of existing policy in response to the
123	123	inquiry.
124	124	(j) Any deliberation of or decision relating to the subject
125	125	of an inquiry made under Subsection (i) shall be limited to a
126	126	proposal to place the subject on the agenda for a subsequent board
127	127	meeting.
128	128	(k) Before the board calls an executive session, the board
129	129	shall convene in a regular or special board meeting for which notice
130	130	has been given as provided by this section. During that board
131	131	meeting, the presiding director may call an executive session by
132	132	announcing that an executive session will be held to deliberate a
133	133	matter described by Subsection (n) and identifying the specific
134	134	subdivision of Subsection (n) under which the executive session
135	135	will be held.
136	136	(l) A final action, decision, or vote on a matter
137	137	deliberated in an executive session may only be made in a regular or
138	138	special board meeting for which notice has been given as provided by
139	139	this section.
140	140	(m) The board may hold an executive session to which the
141	141	members do not have access to deliberate:
142	142	(1) anticipated or pending litigation, settlement
143	143	offers, or interpretations of the law with the association's legal
144	144	counsel and with any other person the board considers necessary;
145	145	(2) the purchase, exchange, lease, or value of real
146	146	property, if the board determines in good faith that deliberation
147	147	in an open board meeting may have a detrimental effect on the
148	148	association;
149	149	(3) business and financial issues relating to the
150	150	negotiation of a contract, if the board determines in good faith
151	151	that deliberation in an open board meeting may have a detrimental
152	152	effect on the position of the association;
153	153	(4) personnel issues, and complaints or charges
154	154	against a board member or association employee or consultant,
155	155	unless the board member or employee who is the subject of the
156	156	deliberation requests a public hearing; or
157	157	(5) issues related to security, including security
158	158	personnel, security devices, and security audits.
159	159	(n) The board secretary or a person the secretary designates
160	160	shall make and keep a written or audio record of each executive
161	161	session. The secretary shall preserve the record for at least two
162	162	years following the session. The record must include:
163	163	(1) a statement of the subject matter of each
164	164	deliberation;
165	165	(2) a record of any further action taken; and
166	166	(3) an announcement by the presiding director at the
167	167	beginning and end of the session indicating the date and time.
168	168	Sec. 209.0053. MEMBERSHIP MEETINGS. (a) This section does
169	169	not apply to a property owners' association that is subject to
170	170	Chapter 551, Government Code, by application of Section 551.0015.
171	171	(b) For an annual meeting of the association membership or
172	172	any other meeting at which association members will be able to vote
173	173	on association business, the board shall give members notice of the
174	174	date, hour, place, and agenda, and a summary of each proposal to be
175	175	voted on at the meeting, at least seven days before the date of the
176	176	meeting unless earlier notice is required by the bylaws.
177	177	(c) Notice under this section must be provided in the manner
178	178	prescribed by the bylaws.
179	179	(d) If proxy voting of members is permitted at the meeting,
180	180	a copy of the proxy voting form must be provided to each member with
181	181	a copy of the notice of the meeting unless the form is available to
182	182	be downloaded from an Internet website of the association.
183	183	SECTION 2. Not later than December 31, 2009, a property
184	184	owners' association shall adopt all bylaws necessary to comply with
185	185	Section 209.005, Property Code, as amended by this Act.
186	186	SECTION 3. This Act takes effect January 1, 2010.