Relating to organization of, meetings of, and voting by condominium unit owners' associations and property owners' associations.

89(R) HB 1926 - House Committee Report version - Bill Text

89R2584 CS-F

By: Darby

H.B. No. 1926

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, 2025.