Texas House Bill HB3381

Texas 2025 - 89th Regular

• Filed: 2/26/25

Caption

Relating to prohibiting a person from simultaneously serving as the presiding officer of the board of a property owners' association and as the president of the board of a municipal utility district.

Impact

If enacted, HB3381 will amend existing laws by introducing disqualifications in leadership roles for individuals serving in these capacities. This will apply specifically to those elected or appointed after the effective date of the legislation, September 1, 2025. By enforcing this separation between the roles, the bill intends to minimize potential ethical dilemmas and ensure that decisions made by municipal utility districts are not unduly influenced by boards of property owners' associations.

Summary

House Bill 3381 seeks to establish a prohibition on a person simultaneously serving as both the presiding officer of a property owners' association and as the president of a municipal utility district. This legislation stems from concerns regarding conflicts of interest that may arise when individuals hold leadership positions in both types of organizations, potentially leading to decisions that favor one entity over the other. The bill aims to promote accountability and transparency in governance related to property management and municipal utility operations within Texas.

Contention

Considerations surrounding HB3381 may include debates over the extent of centralization of power in governance structures at the local level. While proponents argue that disallowing dual leadership protects the interests of communities by mitigating conflicts of interest, critics may raise concerns about limiting the flexibility and autonomy of individuals who have strong qualifications for both roles. There may also be implications for governance efficiency, particularly for small districts where finding qualified leadership may become more challenging, potentially leading to vacancies.

Texas Constitutional Statutes Affected

Property Code

• Chapter 209. Texas Residential Property Owners Protection Act
  • Section: 00591

Water Code

• Chapter 54. Municipal Utility Districts
  • Section: New Section