Bill Text: TX SB1951 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to property owners' associations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-04-01 - Referred to Business & Commerce [SB1951 Detail]
Download: Texas-2021-SB1951-Introduced.html
87R11244 NC-D | ||
By: Paxton | S.B. No. 1951 |
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relating to property owners' associations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 11, Property Code, is amended by adding | ||
Chapter 216 to read as follows: | ||
CHAPTER 216. POWERS AND DUTIES OF PROPERTY OWNERS' ASSOCIATIONS AND | ||
BOARDS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 216.0001. DEFINITIONS. In this chapter: | ||
(1) "Board" means the board of directors, or the body, | ||
regardless of the name, designated to act on behalf of a property | ||
owners' association. | ||
(2) "Dedicatory instrument," "property owners' | ||
association," "petition," and "restrictive covenant" have the | ||
meanings assigned by Section 202.001. | ||
(3) "Development period" means a period stated in a | ||
declaration during which a declarant reserves: | ||
(A) a right to facilitate the planning, | ||
construction, and marketing of the development; or | ||
(B) a right to direct the size, shape, and | ||
composition of the development. | ||
Sec. 216.0002. APPLICABILITY OF CHAPTER. (a) This chapter | ||
applies to all dedicatory instruments regardless of the date on | ||
which the dedicatory instruments were created. | ||
(b) This chapter does not apply during the development | ||
period. | ||
Sec. 216.0003. CONFLICT WITH DEDICATORY INSTRUMENT. This | ||
chapter supersedes any contrary requirement in a dedicatory | ||
instrument. | ||
Sec. 216.0004. CONFLICTS WITH OTHER LAW. To the extent of | ||
any conflict between this chapter and any other law, this chapter | ||
prevails. | ||
SUBCHAPTER B. POWERS AND DUTIES OF BOARD | ||
Sec. 216.0021. POWER TO AMEND BYLAWS. A board may not amend | ||
the bylaws unless the board is expressly granted the power to amend | ||
the bylaws in the declaration. | ||
Sec. 216.0022. REMOVAL OR RESTRICTION OF VOTING POWER OF | ||
BOARD MEMBER. A board may not remove, or limit the voting power of, | ||
a board member unless the board member is ineligible for office due | ||
to a conviction or under the declaration. | ||
SUBCHAPTER C. POWERS AND DUTIES OF PROPERTY OWNERS | ||
Sec. 216.0041. VOTING RIGHTS OF PROPERTY OWNERS. (a) A | ||
provision in a dedicatory instrument that disqualifies a property | ||
owner from voting in a property owners' association election of | ||
board members or on any matter concerning the rights or | ||
responsibilities of the owner is void. | ||
(b) A property owners' association may not bar a property | ||
owner from voting on any matter because: | ||
(1) an association enforcement action is pending | ||
against the owner; or | ||
(2) the owner owes a delinquent assessment, fee, or | ||
other charge to the association. | ||
(c) This section does not apply to a property owners' | ||
association that is subject to Chapter 552, Government Code, by | ||
application of Section 552.0036, Government Code. | ||
(d) In a residential development with 10 or fewer lots for | ||
which the declaration was recorded before January 1, 2015, a person | ||
may not vote in a property owners' association election unless the | ||
person is subject to a dedicatory instrument governing the | ||
association through which the association exercises its authority. | ||
Sec. 216.0042. AMENDMENT OF BYLAWS. Property owners may | ||
amend the bylaws by a vote of owners having a majority of the voting | ||
power in the property owners' association, or by a lesser amount | ||
provided in the declaration. | ||
Sec. 216.0043. REMOVAL OF BOARD MEMBERS. Property owners | ||
may remove board members, with or without cause, by a vote of owners | ||
having a majority of the voting power in the property owners' | ||
association, or by a lesser amount provided in the declaration, at a | ||
special meeting called under Subchapter D. | ||
SUBCHAPTER D. SPECIAL MEETINGS | ||
Sec. 216.0061. SPECIAL MEETINGS. Property owners of a | ||
property owners' association may call a special meeting of the | ||
association to vote on any matter by submitting a petition to the | ||
association under this subchapter. | ||
Sec. 216.0062. PETITION FOR SPECIAL MEETING. (a) Property | ||
owners having at least 20 percent of the voting power in a property | ||
owners' association may call a special meeting by submitting a | ||
petition to an officer or registered agent of the association. | ||
(b) If the petition includes a proposal to remove a board | ||
member, the board member may not participate in any vote of the | ||
association concerning the petition. | ||
(c) In any 12-month period, a property owner may not sign | ||
more than: | ||
(1) one petition for a special meeting to remove one or | ||
more board members; and | ||
(2) one petition for a special meeting on any other | ||
matter. | ||
Sec. 216.0063. COURT ORDER TO COMPEL MEETING. (a) A | ||
property owner who signed a petition under Section 216.0062, may | ||
seek an order in any trial court to compel a property owners' | ||
association to hold a special meeting if the property owners' | ||
association does not hold the special meeting requested by the | ||
petition on or before the 30th day after the date the petition is | ||
submitted to the association. | ||
(b) An application for relief from a court under this | ||
section is presented in the same manner as an application for a | ||
temporary restraining order. The application must include the | ||
completed petition on which the right to a special meeting is based. | ||
If the court determines that the petition contains signatures and | ||
proxies representing 20 percent of the voting power in the property | ||
owners' association, the court shall set the matter for hearing not | ||
later than the 10th day after the date the court makes the | ||
determination. The court may appoint a presiding officer for the | ||
special meeting and order the meeting to be held. | ||
SECTION 2. Sections 209.0055 and 209.0059, Property Code, | ||
are repealed. | ||
SECTION 3. This Act takes effect September 1, 2021. |