Texas 2021 - 87th Regular

Texas Senate Bill SB1951 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R11244 NC-D
2	2	By: Paxton S.B. No. 1951
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to property owners' associations.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Title 11, Property Code, is amended by adding
10	10	Chapter 216 to read as follows:
11	11	CHAPTER 216. POWERS AND DUTIES OF PROPERTY OWNERS' ASSOCIATIONS AND
12	12	BOARDS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 216.0001. DEFINITIONS. In this chapter:
15	15	(1) "Board" means the board of directors, or the body,
16	16	regardless of the name, designated to act on behalf of a property
17	17	owners' association.
18	18	(2) "Dedicatory instrument," "property owners'
19	19	association," "petition," and "restrictive covenant" have the
20	20	meanings assigned by Section 202.001.
21	21	(3) "Development period" means a period stated in a
22	22	declaration during which a declarant reserves:
23	23	(A) a right to facilitate the planning,
24	24	construction, and marketing of the development; or
25	25	(B) a right to direct the size, shape, and
26	26	composition of the development.
27	27	Sec. 216.0002. APPLICABILITY OF CHAPTER. (a) This chapter
28	28	applies to all dedicatory instruments regardless of the date on
29	29	which the dedicatory instruments were created.
30	30	(b) This chapter does not apply during the development
31	31	period.
32	32	Sec. 216.0003. CONFLICT WITH DEDICATORY INSTRUMENT. This
33	33	chapter supersedes any contrary requirement in a dedicatory
34	34	instrument.
35	35	Sec. 216.0004. CONFLICTS WITH OTHER LAW. To the extent of
36	36	any conflict between this chapter and any other law, this chapter
37	37	prevails.
38	38	SUBCHAPTER B. POWERS AND DUTIES OF BOARD
39	39	Sec. 216.0021. POWER TO AMEND BYLAWS. A board may not amend
40	40	the bylaws unless the board is expressly granted the power to amend
41	41	the bylaws in the declaration.
42	42	Sec. 216.0022. REMOVAL OR RESTRICTION OF VOTING POWER OF
43	43	BOARD MEMBER. A board may not remove, or limit the voting power of,
44	44	a board member unless the board member is ineligible for office due
45	45	to a conviction or under the declaration.
46	46	SUBCHAPTER C. POWERS AND DUTIES OF PROPERTY OWNERS
47	47	Sec. 216.0041. VOTING RIGHTS OF PROPERTY OWNERS. (a) A
48	48	provision in a dedicatory instrument that disqualifies a property
49	49	owner from voting in a property owners' association election of
50	50	board members or on any matter concerning the rights or
51	51	responsibilities of the owner is void.
52	52	(b) A property owners' association may not bar a property
53	53	owner from voting on any matter because:
54	54	(1) an association enforcement action is pending
55	55	against the owner; or
56	56	(2) the owner owes a delinquent assessment, fee, or
57	57	other charge to the association.
58	58	(c) This section does not apply to a property owners'
59	59	association that is subject to Chapter 552, Government Code, by
60	60	application of Section 552.0036, Government Code.
61	61	(d) In a residential development with 10 or fewer lots for
62	62	which the declaration was recorded before January 1, 2015, a person
63	63	may not vote in a property owners' association election unless the
64	64	person is subject to a dedicatory instrument governing the
65	65	association through which the association exercises its authority.
66	66	Sec. 216.0042. AMENDMENT OF BYLAWS. Property owners may
67	67	amend the bylaws by a vote of owners having a majority of the voting
68	68	power in the property owners' association, or by a lesser amount
69	69	provided in the declaration.
70	70	Sec. 216.0043. REMOVAL OF BOARD MEMBERS. Property owners
71	71	may remove board members, with or without cause, by a vote of owners
72	72	having a majority of the voting power in the property owners'
73	73	association, or by a lesser amount provided in the declaration, at a
74	74	special meeting called under Subchapter D.
75	75	SUBCHAPTER D. SPECIAL MEETINGS
76	76	Sec. 216.0061. SPECIAL MEETINGS. Property owners of a
77	77	property owners' association may call a special meeting of the
78	78	association to vote on any matter by submitting a petition to the
79	79	association under this subchapter.
80	80	Sec. 216.0062. PETITION FOR SPECIAL MEETING. (a) Property
81	81	owners having at least 20 percent of the voting power in a property
82	82	owners' association may call a special meeting by submitting a
83	83	petition to an officer or registered agent of the association.
84	84	(b) If the petition includes a proposal to remove a board
85	85	member, the board member may not participate in any vote of the
86	86	association concerning the petition.
87	87	(c) In any 12-month period, a property owner may not sign
88	88	more than:
89	89	(1) one petition for a special meeting to remove one or
90	90	more board members; and
91	91	(2) one petition for a special meeting on any other
92	92	matter.
93	93	Sec. 216.0063. COURT ORDER TO COMPEL MEETING. (a) A
94	94	property owner who signed a petition under Section 216.0062, may
95	95	seek an order in any trial court to compel a property owners'
96	96	association to hold a special meeting if the property owners'
97	97	association does not hold the special meeting requested by the
98	98	petition on or before the 30th day after the date the petition is
99	99	submitted to the association.
100	100	(b) An application for relief from a court under this
101	101	section is presented in the same manner as an application for a
102	102	temporary restraining order. The application must include the
103	103	completed petition on which the right to a special meeting is based.
104	104	If the court determines that the petition contains signatures and
105	105	proxies representing 20 percent of the voting power in the property
106	106	owners' association, the court shall set the matter for hearing not
107	107	later than the 10th day after the date the court makes the
108	108	determination. The court may appoint a presiding officer for the
109	109	special meeting and order the meeting to be held.
110	110	SECTION 2. Sections 209.0055 and 209.0059, Property Code,
111	111	are repealed.
112	112	SECTION 3. This Act takes effect September 1, 2021.