HB2398 - Relating to the governance of property owners' associations.

  89R4969 JBD-D     By: Bucy H.B. No. 2398       A BILL TO BE ENTITLED   AN ACT   relating to the governance of property owners' associations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 209.0041, Property Code, is amended by   adding Subsections (j), (k), and (l) to read as follows:           (j)     Except as provided by Subsection (k), a dedicatory   instrument other than a declaration may be amended by a vote of   owners owning a majority of the lots subject to the dedicatory   instrument, in addition to any governmental approval required by   law.           (k)     If the dedicatory instrument contains a higher   percentage than prescribed by Subsection (j), the percentage in the   dedicatory instrument controls.           (l)     If a dedicatory instrument contains quorum   requirements, those requirements apply to a vote under Subsection   (j).          SECTION 2.  Section 209.00592, Property Code, is amended by   adding Subsection (h) to read as follows:           (h)     A county attorney may bring an action for injunctive   relief to restrain or remedy a violation of this section.          SECTION 3.  Section 209.00593, Property Code, is amended by   adding Subsection (c-1) to read as follows:           (c-1)     A county attorney may bring an action for injunctive   relief to restrain or remedy a violation of this section.          SECTION 4.  Chapter 209, Property Code, is amended by adding   Section 209.018 to read as follows:           Sec.   209.018.     BOARD ACTION; BOARD MEMBERS AND OFFICERS AS   FIDUCIARIES. Except as provided by a declaration, bylaws, or this   chapter, the board shall act in all instances on behalf of the   property owners' association if in the good-faith judgment of the   board the action is reasonable. Each officer or member of the board   is liable as a fiduciary of the owners for the officer's or member's   acts or omissions. All acts of the property owners' association   must be by and through the board unless otherwise provided by the   declaration or bylaws or by law.          SECTION 5.  (a) Section 209.0041, Property Code, as amended   by this Act, applies only to a vote held on or after the effective   date of this Act. A vote held before the effective date of this Act   is governed by the law as it existed immediately before that date,   and that law is continued in effect for that purpose.          (b)  Section 209.018, Property Code, as added by this Act,   applies only to an act or omission that occurs on or after the   effective date of this Act. An act or omission that occurs before   the effective date of this Act is governed by the law in effect on   the date the act or omission occurred, and the former law is   continued in effect for that purpose.          SECTION 6.  This Act takes effect September 1, 2025.