88R3338 ATP-F
By: Bryant H.B. No. 3423
A BILL TO BE ENTITLED
AN ACT
relating to organization of, meetings of, and voting by condominium
unit owners' associations and property owners' associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 82.101, Property Code, is amended to
read as follows:
Sec. 82.101. ORGANIZATION OF UNIT OWNERS' ASSOCIATION. A
unit owners' association must be organized as a profit or nonprofit
corporation. The declarant may not convey a unit until the
secretary of state has issued a certificate of formation
[incorporation] under the Texas Corporation Law [Article 3.03,
Texas Business Corporation Act, or Article 3.03, Texas Non-Profit
Corporation Act (Article 1396-3.03, Vernon's Texas Civil
Statutes)]. The membership of the association at all times consists
exclusively of all the unit owners or, following termination of the
condominium, all former unit owners entitled to distribution of
proceeds, or the owners' heirs, successors, or assigns.
SECTION 2. Section 82.108, Property Code, is amended by
amending Subsections (c), (d), and (e) and adding Subsections (b-1)
and (c-1) to read as follows:
(b-1) A meeting of the association may be held by any method
of communication, including electronic and telephonic means as
provided by Section 6.002, Business Organizations Code.
(c) A [Unless the declaration, bylaws, or articles of
incorporation of the association provide otherwise:
[(1) a] meeting of the board may be held by any method
of communication, including electronic and telephonic means as
provided by Section 6.002, Business Organizations Code, if:
(1) [(A)] notice of the meeting has been given in
accordance with Subsection (e);
(2) [(B)] each director may hear and be heard by every
other director; and
(3) [(C)] the meeting does not involve voting on a
fine, damage assessment, appeal from a denial of architectural
control approval, or suspension of a right of a particular
association member before the member has an opportunity to attend a
board meeting to present the member's position, including any
defense, on the issue.
(c-1) The [; and
[(2) the] board may act by unanimous written consent
of all the directors, without a meeting, if:
(1) [(A)] the board action does not involve voting on
a fine, damage assessment, appeal from a denial of architectural
control approval, or suspension of a right of a particular
association member before the member has an opportunity to attend a
board meeting to present the member's position, including any
defense, on the issue; and
(2) [(B)] a record of the board action is filed with
the minutes of board meetings.
(d) Notice of a meeting of the association must be given as
provided by the bylaws, or, if the bylaws do not provide for notice,
notice must be given to each unit owner in the same manner in which
notice is given to members of a nonprofit corporation under
Sections 6.051 and 22.156, Business Organizations Code [Section A,
Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11,
Vernon's Texas Civil Statutes)].
(e) Notice of a meeting of the board must be given as
provided by the bylaws, or, if the bylaws do not provide for notice,
notice must be given to each board member in the same manner in
which notice is given to members of the board of a nonprofit
corporation under Sections 6.051, 6.052, and 22.217, Business
Organizations Code [Section B, Article 2.19, Texas Non-Profit
Corporation Act (Article 1396-2.19, Vernon's Texas Civil
Statutes)].
SECTION 3. Section 82.110, Property Code, is amended by
adding Subsection (d) to read as follows:
(d) Voting may be conducted electronically as provided by
Section 6.002, Business Organizations Code.
SECTION 4. Section 209.0056, Property Code, is amended by
adding Subsection (d) to read as follows:
(d) A meeting of the owners held under this section may be
held by any method of communication, including electronic and
telephonic means as provided by Section 6.002, Business
Organizations Code.
SECTION 5. Section 209.00592(a-1), Property Code, is
amended to read as follows:
(a-1) Except as provided by this subsection, unless a
dedicatory instrument provides otherwise, a property owners'
association is not required to provide an owner with more than one
voting method. An owner must be allowed to vote by one of the
following voting methods:
(1) absentee ballot; [or]
(2) proxy; or
(3) electronic ballot.
SECTION 6. This Act takes effect September 1, 2023.