BILL ANALYSIS H.B. 1367 By: Vasut Business & Industry Committee Report (Unamended) BACKGROUND AND PURPOSE The Texas Residential Property Owners Protection Act sets out duties and responsibilities of a property owners' association. Several property owners have raised concerns regarding the lack of available remedies when an association board member violates the act or a dedicatory instrument. H.B. 1367 seeks to address this issue by authorizing an owner to bring an action against a property owners' association for a violation of the act or a provision of the association's dedicatory instruments by a board member acting in the board member's official capacity and providing for certain remedies. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1367 amends the Property Code to authorize property owners holding at least 20 percent of all voting interests in a property owners' association (POA) to petition the POA and require a special meeting to be called for the sole purpose of conducting a recall election to recall a board member. The bill prescribes the information required in the petition, including of each owner signing the petition, and the required method of its delivery and prohibits the petition from naming more than one board member subject to recall. The bill requires the POA to hold a meeting for that purpose not later than the 90th day after the date it receives the petition and establishes that if the majority of votes received in a recall election are for the recall of the board member, the member's position on the board becomes vacant immediately. The vacancy must be filled as provided by the Texas Residential Property Owners Protection Act. H.B. 1367 authorizes a property owner to bring an action against a POA for a violation of the Texas Residential Property Owners Protection Act or a provision of the POA's dedicatory instruments by a board member acting in the board member's official capacity. The bill authorizes the owner to file a petition requesting relief against the POA with the justice of the peace of a precinct in which all or part of the property that is governed by the POA is located. If the justice of the peace finds that the board member violated the act or a dedicatory instrument while acting individually or with other board members, the justice of the peace may grant one or more of the following remedies: a judgment ordering the POA to immediately remove the board member from the board; a judgment against the POA for damages incurred by the owner resulting from the violation; or a judgment authorizing the owner to deduct the amounts awarded to the owner for damages, court costs, and attorney's fees from any future regular or special assessments payable to the POA. H.B. 1367 entitles the prevailing party in the action to a judgment for court costs and reasonable attorney's fees incurred by the party in connection with the action. The bill requires an owner to send written notice to a POA of the owner's intent to bring an action against the POA under the bill's provisions on or before the 10th business day before the date the owner brings the action. The bill requires the notice to describe the alleged violation with sufficient detail and prescribes the required method of delivery for the notice. H.B. 1367 applies only to a violation that occurs on or after the bill's effective date. EFFECTIVE DATE September 1, 2023.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 1367
By: Vasut
Business & Industry
Committee Report (Unamended)
H.B. 1367
By: Vasut
Business & Industry
Committee Report (Unamended)
BACKGROUND AND PURPOSE The Texas Residential Property Owners Protection Act sets out duties and responsibilities of a property owners' association. Several property owners have raised concerns regarding the lack of available remedies when an association board member violates the act or a dedicatory instrument. H.B. 1367 seeks to address this issue by authorizing an owner to bring an action against a property owners' association for a violation of the act or a provision of the association's dedicatory instruments by a board member acting in the board member's official capacity and providing for certain remedies.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 1367 amends the Property Code to authorize property owners holding at least 20 percent of all voting interests in a property owners' association (POA) to petition the POA and require a special meeting to be called for the sole purpose of conducting a recall election to recall a board member. The bill prescribes the information required in the petition, including of each owner signing the petition, and the required method of its delivery and prohibits the petition from naming more than one board member subject to recall. The bill requires the POA to hold a meeting for that purpose not later than the 90th day after the date it receives the petition and establishes that if the majority of votes received in a recall election are for the recall of the board member, the member's position on the board becomes vacant immediately. The vacancy must be filled as provided by the Texas Residential Property Owners Protection Act. H.B. 1367 authorizes a property owner to bring an action against a POA for a violation of the Texas Residential Property Owners Protection Act or a provision of the POA's dedicatory instruments by a board member acting in the board member's official capacity. The bill authorizes the owner to file a petition requesting relief against the POA with the justice of the peace of a precinct in which all or part of the property that is governed by the POA is located. If the justice of the peace finds that the board member violated the act or a dedicatory instrument while acting individually or with other board members, the justice of the peace may grant one or more of the following remedies: a judgment ordering the POA to immediately remove the board member from the board; a judgment against the POA for damages incurred by the owner resulting from the violation; or a judgment authorizing the owner to deduct the amounts awarded to the owner for damages, court costs, and attorney's fees from any future regular or special assessments payable to the POA. H.B. 1367 entitles the prevailing party in the action to a judgment for court costs and reasonable attorney's fees incurred by the party in connection with the action. The bill requires an owner to send written notice to a POA of the owner's intent to bring an action against the POA under the bill's provisions on or before the 10th business day before the date the owner brings the action. The bill requires the notice to describe the alleged violation with sufficient detail and prescribes the required method of delivery for the notice. H.B. 1367 applies only to a violation that occurs on or after the bill's effective date.
EFFECTIVE DATE September 1, 2023.
BACKGROUND AND PURPOSE
The Texas Residential Property Owners Protection Act sets out duties and responsibilities of a property owners' association. Several property owners have raised concerns regarding the lack of available remedies when an association board member violates the act or a dedicatory instrument. H.B. 1367 seeks to address this issue by authorizing an owner to bring an action against a property owners' association for a violation of the act or a provision of the association's dedicatory instruments by a board member acting in the board member's official capacity and providing for certain remedies.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1367 amends the Property Code to authorize property owners holding at least 20 percent of all voting interests in a property owners' association (POA) to petition the POA and require a special meeting to be called for the sole purpose of conducting a recall election to recall a board member. The bill prescribes the information required in the petition, including of each owner signing the petition, and the required method of its delivery and prohibits the petition from naming more than one board member subject to recall. The bill requires the POA to hold a meeting for that purpose not later than the 90th day after the date it receives the petition and establishes that if the majority of votes received in a recall election are for the recall of the board member, the member's position on the board becomes vacant immediately. The vacancy must be filled as provided by the Texas Residential Property Owners Protection Act.
H.B. 1367 authorizes a property owner to bring an action against a POA for a violation of the Texas Residential Property Owners Protection Act or a provision of the POA's dedicatory instruments by a board member acting in the board member's official capacity. The bill authorizes the owner to file a petition requesting relief against the POA with the justice of the peace of a precinct in which all or part of the property that is governed by the POA is located. If the justice of the peace finds that the board member violated the act or a dedicatory instrument while acting individually or with other board members, the justice of the peace may grant one or more of the following remedies:
a judgment ordering the POA to immediately remove the board member from the board;
a judgment against the POA for damages incurred by the owner resulting from the violation; or
a judgment authorizing the owner to deduct the amounts awarded to the owner for damages, court costs, and attorney's fees from any future regular or special assessments payable to the POA.
H.B. 1367 entitles the prevailing party in the action to a judgment for court costs and reasonable attorney's fees incurred by the party in connection with the action. The bill requires an owner to send written notice to a POA of the owner's intent to bring an action against the POA under the bill's provisions on or before the 10th business day before the date the owner brings the action. The bill requires the notice to describe the alleged violation with sufficient detail and prescribes the required method of delivery for the notice.
H.B. 1367 applies only to a violation that occurs on or after the bill's effective date.
EFFECTIVE DATE
September 1, 2023.