| 1 | 1 | | 85R8129 BEE-D |
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| 2 | 2 | | By: Fallon H.B. No. 2320 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to declarant control of a property owners' association |
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| 8 | 8 | | board. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 209.0051(c-1), Property Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (c-1) Except for a meeting held by electronic or telephonic |
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| 13 | 13 | | means under Subsection (c-2), a board meeting must be held: |
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| 14 | 14 | | (1) in a county in which all or part of the property in |
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| 15 | 15 | | the subdivision is located or in a county adjacent to that county; |
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| 16 | 16 | | and |
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| 17 | 17 | | (2) within 10 miles of the subdivision, if a majority |
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| 18 | 18 | | of the board members are not elected by owners other than the |
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| 19 | 19 | | declarant. |
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| 20 | 20 | | SECTION 2. Section 209.00591, Property Code, is amended by |
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| 21 | 21 | | amending Subsection (c) and adding Subsections (d) and (e) to read |
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| 22 | 22 | | as follows: |
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| 23 | 23 | | (c) The declaration may provide for a period of declarant |
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| 24 | 24 | | control of the association during which a declarant, or persons |
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| 25 | 25 | | designated by the declarant, may appoint and remove board members |
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| 26 | 26 | | and the officers of the association, other than board members or |
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| 27 | 27 | | officers elected by members of the property owners' association. |
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| 28 | 28 | | (d) Regardless of the period of declarant control provided |
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| 29 | 29 | | by the declaration: |
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| 30 | 30 | | (1) on or before the 120th day after the date a |
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| 31 | 31 | | majority of the lots that may be created and made subject to the |
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| 32 | 32 | | declaration are conveyed to owners other than a declarant or a |
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| 33 | 33 | | builder in the business of constructing homes who purchased the |
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| 34 | 34 | | lots from the declarant for the purpose of selling completed homes |
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| 35 | 35 | | built on the lots, at least one-third of the board members must be |
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| 36 | 36 | | elected by owners other than the declarant; and |
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| 37 | 37 | | (2) [,] on or before the 120th day after the date 75 |
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| 38 | 38 | | percent of the lots that may be created and made subject to the |
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| 39 | 39 | | declaration are conveyed to owners other than a declarant or a |
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| 40 | 40 | | builder in the business of constructing homes who purchased the |
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| 41 | 41 | | lots from the declarant for the purpose of selling completed homes |
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| 42 | 42 | | built on the lots, at least a majority [one-third] of the board |
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| 43 | 43 | | members must be elected by owners other than the declarant. |
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| 44 | 44 | | (e) If the declaration does not include the number of lots |
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| 45 | 45 | | that may be created and made subject to the declaration, at least a |
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| 46 | 46 | | majority [one-third] of the board members must be elected by owners |
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| 47 | 47 | | other than the declarant not later than the 10th anniversary of the |
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| 48 | 48 | | date the declaration was recorded. |
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| 49 | 49 | | SECTION 3. (a) Section 209.00591, Property Code, as |
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| 50 | 50 | | amended by this Act, applies to a property owners' association |
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| 51 | 51 | | board regardless of whether the association's declaration was |
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| 52 | 52 | | adopted before, on, or after the effective date of this Act. |
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| 53 | 53 | | (b) Notwithstanding Section 209.00591, Property Code, as |
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| 54 | 54 | | amended by this Act, at least one-third of the board members of a |
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| 55 | 55 | | property owners' association to which Chapter 209, Property Code, |
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| 56 | 56 | | applies must be elected by owners other than the declarant on or |
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| 57 | 57 | | before March 1, 2018, if the association reached the majority |
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| 58 | 58 | | conveyance threshold described by Section 209.00591(d)(1), |
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| 59 | 59 | | Property Code, as added by this Act, before the effective date of |
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| 60 | 60 | | this Act. |
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| 61 | 61 | | (c) Notwithstanding Section 209.00591, Property Code, as |
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| 62 | 62 | | amended by this Act, at least a majority of the board members of a |
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| 63 | 63 | | property owners' association to which Chapter 209, Property Code, |
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| 64 | 64 | | applies must be elected by owners other than the declarant on or |
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| 65 | 65 | | before March 1, 2018, if: |
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| 66 | 66 | | (1) the association reached the 75 percent conveyance |
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| 67 | 67 | | threshold described by Section 209.00591(d)(2), Property Code, as |
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| 68 | 68 | | added by this Act, before the effective date of this Act; or |
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| 69 | 69 | | (2) the 10th anniversary of the date the association's |
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| 70 | 70 | | declaration was recorded occurred before the effective date of this |
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| 71 | 71 | | Act or occurs on or after the effective date of this Act and before |
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| 72 | 72 | | March 1, 2018. |
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| 73 | 73 | | SECTION 4. This Act takes effect September 1, 2017. |
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