Texas SB 142 Withdrawn on House Floor in Furor of Amendments

2011-05-24

Issue Brief

After Texas SB 142 was amended and moved smartly out of the Senate and through a House Business & Industry hearing, the House sponsors withdrew the bill on the House Floor after Representatives attached some 20 more amendments to the 43+ pages affecting Texas homeowners' associations.   Many sections of the bill were unclear as to their effect on timeshare associations, particularly those that were also part of planned communities or subdivisions.

Impact

The impact of SB 142 , as introduced,on timeshare associations required careful analysis due to the many different provisions of the Property Code that were attempted to be amended in the bill.  The bill covered such things as right of first refusal by the association and developer, use of solar energy devices, resale certificates, assessment lien foreclosures, voting and other association procedures.

Position/Call to Action

Due to the bill passing the Senate with so many floor amendments, ARDA and ARDA-ROC worked to analyze the bill's impact, but eventually decided to ask that timeshare associations be exempted from portions of the bill as all the potential consequences to the operation of timeshares remained unclear.  Older timeshare associations, in particular, may have been created under different sections of the Texas Property Code, requiring careful study of all the implications. For a complete picture of the actions and amendments surrounding SB 142, go to the Texas Legislature Online.

Resolution

SB 142 contained controversial provisions as it drew many amendments in hearings and on the Floor on both sides of the Legislature.  Fortunately the House sponsors withdrew the bill after the numerous amendments were attached in the House.  At that late hour, it would have been extremely difficult to assess the impact on timeshare associations.  Various sections of this bill have appeared in prior Texas sessions and will likely appear again in 2013.   Other states, such as Arizona and Nevada, required that special timeshare association legislation be enacted to avoid situations like Texas' SB 142. This approach may be considered in Texas for the 2013 Legislature due to the complexity of provisions in the Texas Property Code that was originally designed for whole ownership, such as subdivision and condominium HOAs.  Legislators introduced some 50 bills affecting homeowners' associations in Texas in 2011, of which 14 were sent to the Governor.

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