Texas POA Bills    84th Legislature (2015)

A Periodic Report by Sharon Reuler 

 

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Issued May 4, 2015   
  

 

 

 

Dear Clients, Colleagues, Competitors,

Chums, and CyberCitizens,

 

CALM BEFORE THE STORM

 

Still four whole weeks before the 84th Session ends at midnight on Monday June 1.  With every passing day, bills that haven't moved far enough fast enough will fall by the wayside. This is the last week of relative calm before the hurly burly of the last three beat-the-clock weeks.

 

OVERALL IMPRESSIONS . . . so far

 

We seem to be in a new age of HOA law-making. The ardent homeowner contingent from Houston which participated in legislative hearings for decades  has been conspicuously absent. I didn't see Beanie Adolph or Harvella Jones at the hearings I watched. Houston attorney David Kahne - an articulate veteran of the POA wars - seemed to be alone carrying the homeowner banner.

 

By comparison to past sessions, the hearings I watched have been tame - even pleasantly boring. Fewer people are testifying - probably because the 2011 HOA Reform Laws are beginning to have an effect, and because today's issues are more legalistic than headline material. (Is it my imagination, or are we seeing fewer HOA horror stories in our newspapers?)

 

The most entertaining testimony I watched was a dramatic Texas history teacher testifying in favor of the flag bill (HB 3460) at the April 14 hearing of the House Committee on Business & Industry - eloquently championing the right to fly the "Come and Take It Flag." She had me laughing and crying. 

 

For best performance by a committee member, I applaud Rep. Kenneth Sheets of Dallas for his probing questions and obvious interest in the testimony on the condo litigation bill (HB 1455) at the April 14 hearing of the House Committee on Jurisprudence. 

 

The stunning achievement award to date goes to Texas Community Association Advocates for shepherding its 17-page 24-part HOA Omnibus Bill through the House Committee on Business & Industry (as HB 2797) and the Senate Committee on Business & Commerce (as SB 1168) without a single change from the version that was initially filed in both chambers. AMAZING!

 

Technology points to the Senate. The webcams in the Senate hearings I watched showed the face of whomever was talking - either the person testifying at the podium or the committee members seated around the horseshoe. By contrast, the webcams in the House hearings were in one position at the back of the room, looking at the backside of the person testifying (also revealing how few committee members were in attendance). Much prefer the Senate coverage. Kudos, Senators!

POA BILLS REPORT #8

My eighth report on POA-Pertinent bills is available on this link.

 

REPORT #8 - 2015 Texas POA Bills

 

Report #8 identifies 32 POA-Pertinent bills, which is deceptive. Six of the 32 are copycats, leaving 26 unique bills, of which one has 24 independent parts, resulting in the equivalent of 50 bills filed. So, 50 POA-Pertinent law changes are described in the attached Report #8. And . . . MOST of them are making progress towards becoming law, as you'll read below in "Numbers."
NUMBERS

 

We do love our numbers, but the bill counts are misleading for a number of reasons. Five POA Bills have "companions." A couple bills have multiple parts - each of which is like a separate bill. And one bill - the Omnibus Bill - has 24 independent parts. I added one new bill (HB 2681) because it acquired a POA aspect since my last report.

 

In terms of progress as of May 4, from most likely to succeed, to least likely:

 

5 bills cleared one chamber and are "in committee" in the second chamber:

> HB 745 by Bohac - street signs - in Senate Transportation

> SB 862 by Birdwell - multiple voting methods - in House Business & Industry

> SB 864 by Birdwell - secret ballots - in House Business & Industry

> SB 1626 by Rodriguez - solar devices - in House Business & Industry 

> SB 1852 by Nichols - TPC Chapter 2011 - in House Business & Industry

 

13 bills & 5 companion bills are out-of-committee in the first chamber and are vying for a floor vote of the full chamber:

> HB 748 by Isaac - propane tanks

> HB 939 by Dale - electric standby generators

> HB 971 by Bohan - board qualifications (3-part bill)

> HB 1072 by Thompson - 20 year cap on moral turpitude

> HB 1178 by Isaac - exclusive fuel provider restrictions

> HB 1455 by King & SB 834 by Creighton - condo litigation

> HB 2147 by Keffer [companion to SB 864 by Birdwell]

> HB 2148 by Keffer [companion to SB 862 by Birdwell]

> HB 2489 by Leach - rental restrictions

> HB 2594 by Parker - golf course restrictions

> HB 2681 by Smith - foreclosure notice of sale

> HB 2797 by Villalba & SB 1168 by West - 24-part OMNIBUS BILL

> HB 2999 by Landgraf - guns

> HB 3089 by Galindo - high rise sprinklers

> HB 3460 by Murr - flags

> HB 3539 by Dukes - solar devices [companion to SB 1626 by Rodriguez]

  

2 bills are still "pending" in their committees of origin, having been heard, and can be voted out any time this week ~ or not. 

> HB 1442 by Workman - tree removal

> SB 284 by West - service of citation in a Rule 735/736 proceeding

 

7 bills haven't had first hearings and are fading fast in committees of origin:

> HJR 55 by Villalba & HJR 125 by Krause - freedom of religion

> HB 1335 by Gutierrez - $500 cap on attorneys fees in foreclosure

> SB 283 by West - contract lien foreclosures and Rule 735/736

> SB 1244 by Burton - increases election notice & lowers consents to amend

> SB 1535 by Burton - lowers consents to amend CC&Rs

> SB 1538 by Burton - exclusive contracts with telecommunications providers  
HOAs in CHANCERY COURT?  In Texas???
  
Much thanks to Houston attorney Charles Jordan for making me aware of the "Chancery Court Bill" - HB 1603 by Villalba. The bill would create a special type of court, and court of appeals, to deal with complex corporation and entity issues.   Charles made me aware that the bill applies to nonprofit corporations as well as for-profits, and thus bears watching. If it starts to move, I'll add it to my next report.

 

Per Charles, "The chancery court would have jurisdiction concurrent with district courts in many different types of actions including corporate governance, internal affairs, declaratory judgment actions, breaches of fiduciary duty and any other matter under the Business Organizations Code.  Judges would be appointed by the governor, based on nominations from a governor-appointed advisory council. The chancery appellate court would be made up of a panel of sitting appellate justices, also appointed by the governor."

 

Googling "Texas Chancery Court" I found lots of media coverage about Rep. Villalba's bill. Such a major change in our court system is likely to take more than one session - so people get familiar with the concept, and for the bill to be thoroughly vetted. Maybe an Interim Study Committee. I'm hoping the nonprofits of Texas will weigh in. 

 
COMMITTEE HEARINGS

 

HEARING NOTICE

 

For each hearing, the committee must post a notice 5 days in advance. The notice states the date, time, and place of the hearing. It also lists the bills that will be given their first public hearing.  The bills are listed in numerical order, but may be heard in a different order.  The notices are posted on the legislature's website, on each committee's page.

 

WEBCAM COVERAGE

  

You  may be able to watch the committee hearings on your computer (or some other device).  Most committee hearings are in rooms with webcams that you can watch "live" in real time, or later as an archived broadcast. It's all available on the legislature's website.  Also, use these links for House broadcasts and the Senate broadcasts.  If you want to watch after the hearing, look for the "video archives". On the House page it's near the bottom. On the Senate page, near the top.   

 

WHAT TO EXPECT AT THE END OF THE DAY

 

Typically, committees don't vote on a bill the day it is heard. Instead, bills are left "pending" in committee until brought up for a vote at a future committee hearing. A pending bill can be changed behind closed doors between the public hearing and the date of voting. (Doesn't seem fair.) At any time after the public hearing, the committee may vote on the original bill that was heard, or on a substituted version that was not heard. If a substituted version is approved by the committee, the bill number will be preceded by C.S. for "Committee Substitute" when it leaves the committee. The public doesn't have access to the CS version until after the committee approves it.
Want to be Involved?
  
Unless you're politically well connected - and even then - it can be frustrating for the average citizen to participate in the lawmaking process. Here are four tips:
 
Tip One. To communicate information about a bill, attend committee hearings and be prepared to testify. Live testimony is heard. Letters, emails, and phone calls are typically logged as "for" or "against" without regard to content.
 
Tip Two. Financially support organizations that have lobbyists in Austin. As a member of the organization, you can urge its government relations staff or lobbyist to see your point of view and to share your sense of urgency about supporting or stopping a particular bill.

Tip Three. Turnabout is fair play. When your organization asks you to contact lawmakers on a particular bill, do it!  Sometimes piling-on pays off.
 
Tip Four. Get to know the State Representative and State Senator who represent the district in which you live. (Use "Who represents me?" on Texas Online's homepage.) They are genuinely attentive to constituents (we're each someone's constituent). Communicate - in person, if possible. Otherwise, by phone or letter. Always identify yourself as a constituent. Help them represent you. Best results are attained when the Legislature is NOT in Session - the 18-month window from mid-June 2015 to The Holidays 2016.
Thanks,  Jamie. :)
As I've done since 2005, I will periodically report on bills that seem likely to affect the creation and operation of common interest developments in Texas - subdivisions and condominiums - anything with mandatory membership and assessments.  I am indebted to readers who take the time to educate me about particular bills, who tell me when I get it wrong, or that they disagree with me. You make me a better reporter. Thank you.  
TLO Website
  

The Texas Legislature Online website is the second best thing about our Legislature. (The first being the hiatus between sessions.) TLO is chock full of information and fueled by a powerful search engine that's easy to learn and use. Open 24/7 for free. If you have any interest in legislation, you'll love exploring this amazing website. Look for the "My TLO" tab next to "Home" in the top left corner. Here you can sign up for automatic email alerts of bills that interest you, or topics, or committee meetings.   
HOA/POA Slang
  
If you're Type A about terminology for common interest communities, this report may drive you bonkers. I use HOA and POA interchangeably - and inconsistently - to refer to mandatory membership associations for all types of common interest development - condos, townhomes, subdivisions, masters, mixed-use, and subs.
 
Texas laws, however, do distinguish between condos and non-condos. Condos are subject to Chapter 82 (TUCA) of the Property Code (and maybe also Chapter 81, depending on age).  The non-condos are subject to Chapter 209 of the Property Code, which refers to the developments as "subdivisions."  So, a property is either a condo or a subdivision, and its owners association may be called either HOA or POA or "condo association" or "townhome association" or "neighborhood association" or . . . the options are endless.
 
Speaking of townhomes . . . . contrary to popular belief, Texas law does not recognize townhomes as something other than a condo or subdivision. Townhomes are a style of building that can be condominium in ownership (Chapter 82) or non-condo (Chapter 209).
 
Of course, there's more to it than this windshield tour. But, you get the idea.  Don't bet on what a word means. :-)  

January 13, 2015 - Opening day of 84th Regular Session
March 13, 2015 - Deadline for filing bills (with some exceptions)
May 11, 2015 - Last day to get a House bill out of the House committee
June 1, 2015 - Last day of Session (no exceptions)
June 21, 2015 - Last day Governor can veto a bill that passed
August 31, 2015 - Effective date for bills without specific effective dates

Sharon's Perspective 

 

All views expressed are entirely my own, and my views have been known to change. I receive no income for my legislative reporting. I'm not a lobbyist ~ don't head any group or promote any cause ~ don't expect to go to Austin for hearings.

 

I'm a Texas real estate lawyer who works with developers of common interest developments. I write the "HOA docs" for new communities and advise developers on HOA issues that arise during build-out. My developer practice is enriched by an earlier decade of representing established homeowner-controlled POAs.

 

Before becoming a lawyer in 1987, I was a real estate broker specializing in the resales of condominiums and townhomes. Also, I have the sensitivities of a homeowner from 38 years of living in common interest communities, and three bumpy HOA experiences as a home buyer.  

 

My interest in POAs began in 1977. Four years later I was drawn to POA legislation by the then proposed Texas Uniform Condominium Act. I was privileged to play a pivotal role in TUCA's passage in 1993.

 

My nearly 40 years (omg!) of involvement with POA legislation has always been as a volunteer. In recent years I have done little more than report on what's going on under the dome.  I try to call it like I see it.        


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contact info
Although I aspire to be active on social media, I'm still old school. I can be reached at the street address below, by email sreuler@txlandlaw.com, and by phone (972) 720-9727. If I'm not responsive, it's because my day job keeps me plenty busy.
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Sharon Reuler
5400 LBJ Freeway, Suite 1200
Dallas, Texas 75240