Texas 2023 - 88th Regular

Texas House Bill HB3423 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R3338 ATP-F
2	2	By: Bryant H.B. No. 3423
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to organization of, meetings of, and voting by condominium
8	8	unit owners' associations and property owners' associations.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 82.101, Property Code, is amended to
11	11	read as follows:
12	12	Sec. 82.101. ORGANIZATION OF UNIT OWNERS' ASSOCIATION. A
13	13	unit owners' association must be organized as a profit or nonprofit
14	14	corporation. The declarant may not convey a unit until the
15	15	secretary of state has issued a certificate of formation
16	16	[incorporation] under the Texas Corporation Law [Article 3.03,
17	17	Texas Business Corporation Act, or Article 3.03, Texas Non-Profit
18	18	Corporation Act (Article 1396-3.03, Vernon's Texas Civil
19	19	Statutes)]. The membership of the association at all times consists
20	20	exclusively of all the unit owners or, following termination of the
21	21	condominium, all former unit owners entitled to distribution of
22	22	proceeds, or the owners' heirs, successors, or assigns.
23	23	SECTION 2. Section 82.108, Property Code, is amended by
24	24	amending Subsections (c), (d), and (e) and adding Subsections (b-1)
25	25	and (c-1) to read as follows:
26	26	(b-1) A meeting of the association may be held by any method
27	27	of communication, including electronic and telephonic means as
28	28	provided by Section 6.002, Business Organizations Code.
29	29	(c) A [Unless the declaration, bylaws, or articles of
30	30	incorporation of the association provide otherwise:
31	31	[(1) a] meeting of the board may be held by any method
32	32	of communication, including electronic and telephonic means as
33	33	provided by Section 6.002, Business Organizations Code, if:
34	34	(1) [(A)] notice of the meeting has been given in
35	35	accordance with Subsection (e);
36	36	(2) [(B)] each director may hear and be heard by every
37	37	other director; and
38	38	(3) [(C)] the meeting does not involve voting on a
39	39	fine, damage assessment, appeal from a denial of architectural
40	40	control approval, or suspension of a right of a particular
41	41	association member before the member has an opportunity to attend a
42	42	board meeting to present the member's position, including any
43	43	defense, on the issue.
44	44	(c-1) The [; and
45	45	[(2) the] board may act by unanimous written consent
46	46	of all the directors, without a meeting, if:
47	47	(1) [(A)] the board action does not involve voting on
48	48	a fine, damage assessment, appeal from a denial of architectural
49	49	control approval, or suspension of a right of a particular
50	50	association member before the member has an opportunity to attend a
51	51	board meeting to present the member's position, including any
52	52	defense, on the issue; and
53	53	(2) [(B)] a record of the board action is filed with
54	54	the minutes of board meetings.
55	55	(d) Notice of a meeting of the association must be given as
56	56	provided by the bylaws, or, if the bylaws do not provide for notice,
57	57	notice must be given to each unit owner in the same manner in which
58	58	notice is given to members of a nonprofit corporation under
59	59	Sections 6.051 and 22.156, Business Organizations Code [Section A,
60	60	Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11,
61	61	Vernon's Texas Civil Statutes)].
62	62	(e) Notice of a meeting of the board must be given as
63	63	provided by the bylaws, or, if the bylaws do not provide for notice,
64	64	notice must be given to each board member in the same manner in
65	65	which notice is given to members of the board of a nonprofit
66	66	corporation under Sections 6.051, 6.052, and 22.217, Business
67	67	Organizations Code [Section B, Article 2.19, Texas Non-Profit
68	68	Corporation Act (Article 1396-2.19, Vernon's Texas Civil
69	69	Statutes)].
70	70	SECTION 3. Section 82.110, Property Code, is amended by
71	71	adding Subsection (d) to read as follows:
72	72	(d) Voting may be conducted electronically as provided by
73	73	Section 6.002, Business Organizations Code.
74	74	SECTION 4. Section 209.0056, Property Code, is amended by
75	75	adding Subsection (d) to read as follows:
76	76	(d) A meeting of the owners held under this section may be
77	77	held by any method of communication, including electronic and
78	78	telephonic means as provided by Section 6.002, Business
79	79	Organizations Code.
80	80	SECTION 5. Section 209.00592(a-1), Property Code, is
81	81	amended to read as follows:
82	82	(a-1) Except as provided by this subsection, unless a
83	83	dedicatory instrument provides otherwise, a property owners'
84	84	association is not required to provide an owner with more than one
85	85	voting method. An owner must be allowed to vote by one of the
86	86	following voting methods:
87	87	(1) absentee ballot; [or]
88	88	(2) proxy; or
89	89	(3) electronic ballot.
90	90	SECTION 6. This Act takes effect September 1, 2023.