88R3338 ATP-F     By: Bryant H.B. No. 3423       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, 2023.