H.B. No. 3674

	AN ACT
	relating to the operation of property owners' associations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 551.0015(a), Government Code, is amended
	to read as follows:
	(a)  A property owners' association is subject to this
	chapter in the same manner as a governmental body:
	(1)  if:
	(A) [(1)]  membership in the property owners'
	association is mandatory for owners or for a defined class of owners
	of private real property in a defined geographic area in a county
	with a population of 2.8 million or more or in a county adjacent to a
	county with a population of 2.8 million or more;
	(B) [(2)]  the property owners' association has
	the power to make mandatory special assessments for capital
	improvements or mandatory regular assessments; and
	(C) [(3)]  the amount of the mandatory special or
	regular assessments is or has ever been based in whole or in part on
	the value at which the state or a local governmental body assesses
	the property for purposes of ad valorem taxation under Section 20,
	Article VIII, Texas Constitution; or
	(2)  if the property owners' association:
	(A)  provides maintenance, preservation, and
	architectural control of residential and commercial property
	within a defined geographic area in a county with a population of
	2.8 million or more or in a county adjacent to a county with a
	population of 2.8 million or more; and
	(B)  is a corporation that:
	(i)  is governed by a board of trustees who
	may employ a general manager to execute the association's bylaws
	and administer the business of the corporation;
	(ii)  does not require membership in the
	corporation by the owners of the property within the defined area;
	and
	(iii)  was incorporated before January 1,
	2006.
	SECTION 2.  Section 552.0036, Government Code, is amended to
	read as follows:
	Sec. 552.0036.  CERTAIN PROPERTY OWNERS' ASSOCIATIONS
	SUBJECT TO LAW. A property owners' association is subject to this
	chapter in the same manner as a governmental body:
	(1)  if:
	(A) [(1)]  membership in the property owners'
	association is mandatory for owners or for a defined class of owners
	of private real property in a defined geographic area in a county
	with a population of 2.8 million or more or in a county adjacent to a
	county with a population of 2.8 million or more;
	(B) [(2)]  the property owners' association has
	the power to make mandatory special assessments for capital
	improvements or mandatory regular assessments; and
	(C) [(3)]  the amount of the mandatory special or
	regular assessments is or has ever been based in whole or in part on
	the value at which the state or a local governmental body assesses
	the property for purposes of ad valorem taxation under Section 20,
	Article VIII, Texas Constitution; or
	(2)  if the property owners' association:
	(A)  provides maintenance, preservation, and
	architectural control of residential and commercial property
	within a defined geographic area in a county with a population of
	2.8 million or more or in a county adjacent to a county with a
	population of 2.8 million or more; and
	(B)  is a corporation that:
	(i)  is governed by a board of trustees who
	may employ a general manager to execute the association's bylaws
	and administer the business of the corporation;
	(ii)  does not require membership in the
	corporation by the owners of the property within the defined area;
	and
	(iii)  was incorporated before January 1,
	2006.
	SECTION 3.  Section 201.001(b), Property Code, is amended to
	read as follows:
	(b)  The provisions of this chapter relating to extension of
	the term of, renewal of, or creation of restrictions do not apply to
	a subdivision if, by the express terms of the instrument creating
	existing restrictions, some or all of the restrictions affecting
	the real property within the subdivision provide:
	(1)  for automatic extensions of the term of the
	restrictions for an indefinite number of successive specified
	periods of at least 10 years subject to a right of waiver or
	termination, in whole or in part, by a specified percentage of less
	than 50 percent plus one of the owners of real property interests in
	the subdivision, as set forth in the instrument creating the
	restrictions; or
	(2)  for an indefinite number of successive extensions
	of at least 10 years of the term of the restrictions by written and
	filed agreement of a specified percentage of less than 50 percent
	plus one of the owners of real property interests in the
	subdivision, as authorized by the instrument creating the
	restrictions.
	SECTION 4.  Section 201.004(a), Property Code, is amended to
	read as follows:
	(a)  A petition may be filed under this chapter to:
	(1)  extend or renew an unexpired restriction;
	(2)  [, to] create a restriction;
	(3)  [, or to] add to or modify an existing restriction;
	or
	(4)  modify an existing provision in an instrument
	creating a restriction that provides for extension of those
	restrictions.
	SECTION 5.  Section 204.003, Property Code, is amended to
	read as follows:
	Sec. 204.003.  APPLICATION OF PROVISIONS OF RESTRICTIVE
	COVENANTS [PREVAIL] IN CERTAIN CIRCUMSTANCES. (a) An express
	designation in a document creating restrictions applicable to a
	residential real estate subdivision that provides for the extension
	of, addition to, or modification of existing restrictions by a
	designated number of owners of real property in the subdivision
	prevails over the provisions of this chapter.
	(b)  A document creating restrictions that provides for the
	extension or renewal of restrictions and does not provide for
	modification or amendment of restrictions may be modified under
	this chapter, including modifying the provision that provides for
	extension or renewal of the restrictions.
	SECTION 6.  Section 209.005, Property Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1)  A property owners' association described by Section
	552.0036(2), Government Code, shall make the books and records of
	the association, including financial records, reasonably available
	to any person requesting access to the books or records in
	accordance with Chapter 552, Government Code. Subsection (a) does
	not apply to a property owners' association to which this
	subsection applies.
	SECTION 7.  Section 209.003(b), Property Code, is amended to
	read as follows:
	(b)  Except as otherwise provided by this chapter, this
	[This] chapter applies only to a property owners' association that
	requires mandatory membership in the association for all or a
	majority of the owners of residential property within the
	subdivision subject to the association's dedicatory instruments.
	SECTION 8.  Chapter 209, Property Code, is amended by adding
	Section 209.0055 to read as follows:
	Sec. 209.0055.  VOTING. (a)  This section applies only to a
	property owners' association that:
	(1)  provides maintenance, preservation, and
	architectural control of residential and commercial property
	within a defined geographic area in a county with a population of
	2.8 million or more or in a county adjacent to a county with a
	population of 2.8 million or more; and
	(2)  is a corporation that:
	(A)  is governed by a board of trustees who may
	employ a general manager to execute the association's bylaws and
	administer the business of the corporation;
	(B)  does not require membership in the
	corporation by the owners of the property within the defined area;
	and
	(C)  was incorporated before January 1, 2006.
	(b)  A property owners' association described by Subsection
	(a) may not bar a property owner from voting in an association
	election solely based on the fact that:
	(1)  there is a pending enforcement action against the
	property owner; or
	(2)  the property owner owes the association any
	delinquent assessments, fees, or fines.
	SECTION 9.  (a) Section 551.0015, Government Code, as
	amended by this Act, applies only to a property owners' association
	meeting that is held on or after September 1, 2007. A property
	owners' association meeting that is held before September 1, 2007,
	is governed by the law in effect at the time the meeting was held,
	and that law is continued in effect for that purpose.
	(b)  Section 552.0036, Government Code, as amended by this
	Act, applies only to a request for records or information made to a
	property owners' association on or after September 1, 2007. A
	request for records or information that is made before September 1,
	2007, is governed by the law in effect at the time the request was
	made, and that law is continued in effect for that purpose.
	(c)  Section 209.005, Property Code, as amended by this Act,
	applies only to a request for access to records or information made
	to a property owners' association on or after September 1, 2007. A
	request for access to records or information that is made before
	September 1, 2007, is governed by the law in effect at the time the
	request was made, and that law is continued in effect for that
	purpose.
	SECTION 10.  This Act takes effect September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3674 was passed by the House on May 4,
	2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 3674 on May 25, 2007, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 3674 on May 27, 2007, by the following vote:  Yeas 142,
	Nays 1, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3674 was passed by the Senate, with
	amendments, on May 23, 2007, by the following vote:  Yeas 31, Nays
	0; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	3674 on May 27, 2007, by the following vote:  Yeas 30, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor