HBA-ATS H.B. 3407 76(R)BILL ANALYSIS
Office of House Bill AnalysisH.B. 3407
By: Williams
Business & Industry
9/15/1999
Enrolled
BACKGROUND AND PURPOSE
Under the Texas Open Meetings Act (Act), every regular, special, or called
meeting of a governmental body is required to be open to the public, with a
few exceptions. Courts have construed the intent of the Act to be to
safeguard the public's interest in knowing the workings of its governmental
bodies. To achieve this purpose, some courts have held that the provisions
of the Act should be liberally construed to effect its purpose. Because
some property owners' associations are similar to municipalities in that
these associations assess ad valorem taxes and provide basic community
services, it can be argued that these associations should be subject to the
requirements of the Act. Prior to the 76th Legislature, residents of
property owners' associations had neither the right to attend the meetings
of the governing boards of these associations nor the right to request and
secure records or documents belonging to these associations.
H.B. 3407 provides that a property owners' association is subject to the
Texas Open Meetings Act and the Texas Open Records Act in the same manner
as a governmental body if the association possesses three qualities.
First, membership in the association must be 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. Second, the
association must have the power to make mandatory special assessments for
capital improvements or mandatory regular assessments. Third, the amount
of the mandatory special or regular assessments must be or have 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 (Fair Cash Market Value Not to Be Exceeded; Discounts for
Advance Payment), Article VIII (Taxation and Revenue), Texas Constitution.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter A, Chapter 551, Government Code, by adding
Section 551.0015, as follows:
Sec. 551.0015. CERTAIN PROPERTY OWNERS' ASSOCIATIONS SUBJECT TO LAW. (a)
Provides that a property owners' association (association) is subject to
this chapter (Open Meetings) in the same manner as a governmental body if
all of the following apply:
_membership in the 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;
_the association has the power to make mandatory special assessments for
capital improvements or mandatory regular assessments; and
_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 (Fair Cash Market Value Not to Be Exceeded; Discounts for
Advance Payment), Article VIII (Taxation and Revenue), Texas Constitution.
(b) Provides that an association's governing body and committee and members
of both of those entities are subject to this chapter in the same manner as
a governmental body's governing body and committee and members of both
those entities.
SECTION 2. Amends Subchapter A, Chapter 552, Government Code, by adding
Section 552.0035, as follows:
Sec. 552.0035. CERTAIN PROPERTY OWNERS' ASSOCIATIONS SUBJECT TO LAW.
Provides that an association is subject to this chapter (Public
Information) in the same manner as a governmental body if all of the
following apply:
_membership in the 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;
_the association has the power to make mandatory special assessments for
capital improvements or mandatory regular assessments; and
_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 (Fair Cash Market Value Not to Be Exceeded; Discounts for
Advance Payment), Article VIII (Taxation and Revenue), Texas Constitution.
SECTION 3. Effective date: September 1, 1999.
Makes application of Section 551.0015 prospective.
SECTION 4. Emergency clause.