6 | 8 | | AN ACT |
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7 | 9 | | relating to organization of, meetings of, and voting by condominium |
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8 | 10 | | unit owners' associations and property owners' associations. |
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9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 12 | | SECTION 1. Section 82.101, Property Code, is amended to |
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11 | 13 | | read as follows: |
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12 | 14 | | Sec. 82.101. ORGANIZATION OF UNIT OWNERS' ASSOCIATION. A |
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13 | 15 | | unit owners' association must be organized as a profit or nonprofit |
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14 | 16 | | corporation. The declarant may not convey a unit until the |
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15 | 17 | | secretary of state has issued a certificate of formation |
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16 | 18 | | [incorporation] under the Texas Corporation Law [Article 3.03, |
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17 | 19 | | Texas Business Corporation Act, or Article 3.03, Texas Non-Profit |
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18 | 20 | | Corporation Act (Article 1396-3.03, Vernon's Texas Civil |
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19 | 21 | | Statutes)]. The membership of the association at all times |
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20 | 22 | | consists exclusively of all the unit owners or, following |
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21 | 23 | | termination of the condominium, all former unit owners entitled to |
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22 | 24 | | distribution of proceeds, or the owners' heirs, successors, or |
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23 | 25 | | assigns. |
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24 | 26 | | SECTION 2. Section 82.108, Property Code, is amended by |
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25 | 27 | | amending Subsections (c), (d), and (e) and adding Subsections (b-1) |
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26 | 28 | | and (c-1) to read as follows: |
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27 | 29 | | (b-1) A meeting of the association may be held by any method |
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28 | 30 | | of communication, including electronic and telephonic means as |
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29 | 31 | | provided by Section 6.002, Business Organizations Code. |
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30 | 32 | | (c) A [Unless the declaration, bylaws, or articles of |
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31 | 33 | | incorporation of the association provide otherwise: |
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32 | 34 | | [(1) a] meeting of the board may be held by any method |
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33 | 35 | | of communication, including electronic and telephonic means as |
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34 | 36 | | provided by Section 6.002, Business Organizations Code, if: |
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35 | 37 | | (1) [(A)] notice of the meeting has been given in |
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36 | 38 | | accordance with Subsection (e); |
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37 | 39 | | (2) [(B)] each director may hear and be heard by every |
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38 | 40 | | other director; and |
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39 | 41 | | (3) [(C)] the meeting does not involve voting on a |
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40 | 42 | | fine, damage assessment, appeal from a denial of architectural |
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41 | 43 | | control approval, or suspension of a right of a particular |
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42 | 44 | | association member before the member has an opportunity to attend a |
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43 | 45 | | board meeting to present the member's position, including any |
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44 | 46 | | defense, on the issue. |
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45 | 47 | | (c-1) The [; and |
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46 | 48 | | [(2) the] board may act by unanimous written consent |
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47 | 49 | | of all the directors, without a meeting, if: |
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48 | 50 | | (1) [(A)] the board action does not involve voting on |
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49 | 51 | | a fine, damage assessment, appeal from a denial of architectural |
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50 | 52 | | control approval, or suspension of a right of a particular |
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51 | 53 | | association member before the member has an opportunity to attend a |
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52 | 54 | | board meeting to present the member's position, including any |
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53 | 55 | | defense, on the issue; and |
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54 | 56 | | (2) [(B)] a record of the board action is filed with |
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55 | 57 | | the minutes of board meetings. |
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56 | 58 | | (d) Notice of a meeting of the association must be given as |
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57 | 59 | | provided by the bylaws, or, if the bylaws do not provide for notice, |
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58 | 60 | | notice must be given to each unit owner in the same manner in which |
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59 | 61 | | notice is given to members of a nonprofit corporation under |
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60 | 62 | | Sections 6.051 and 22.156, Business Organizations Code [Section A, |
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61 | 63 | | Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11, |
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62 | 64 | | Vernon's Texas Civil Statutes)]. |
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63 | 65 | | (e) Notice of a meeting of the board must be given as |
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64 | 66 | | provided by the bylaws, or, if the bylaws do not provide for notice, |
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65 | 67 | | notice must be given to each board member in the same manner in |
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66 | 68 | | which notice is given to members of the board of a nonprofit |
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67 | 69 | | corporation under Sections 6.051, 6.052, and 22.217, Business |
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68 | 70 | | Organizations Code [Section B, Article 2.19, Texas Non-Profit |
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69 | 71 | | Corporation Act (Article 1396-2.19, Vernon's Texas Civil |
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70 | 72 | | Statutes)]. |
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71 | 73 | | SECTION 3. Section 82.110, Property Code, is amended by |
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72 | 74 | | adding Subsection (d) to read as follows: |
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73 | 75 | | (d) Voting may be conducted electronically as provided by |
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74 | 76 | | Section 6.002, Business Organizations Code. |
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75 | 77 | | SECTION 4. Section 209.0056, Property Code, is amended by |
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76 | 78 | | adding Subsection (d) to read as follows: |
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77 | 79 | | (d) A meeting of the owners held under this section may be |
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78 | 80 | | held by any method of communication, including electronic and |
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79 | 81 | | telephonic means as provided by Section 6.002, Business |
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80 | 82 | | Organizations Code. |
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81 | 83 | | SECTION 5. Section 209.00592(a-1), Property Code, is |
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82 | 84 | | amended to read as follows: |
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83 | 85 | | (a-1) Except as provided by this subsection, unless a |
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84 | 86 | | dedicatory instrument provides otherwise, a property owners' |
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85 | 87 | | association is not required to provide an owner with more than one |
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86 | 88 | | voting method. An owner must be allowed to vote by one of the |
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87 | 89 | | following voting methods: |
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88 | 90 | | (1) absentee ballot; [or] |
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89 | 91 | | (2) proxy; or |
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90 | 92 | | (3) electronic ballot. |
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91 | 93 | | SECTION 6. This Act takes effect September 1, 2025. |
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