According to the Legislative Budget Board (LBB), HB 1926 is anticipated to have no fiscal impact on the State of Texas. The proposed changes — allowing electronic meetings and voting for condominium and property owners' associations, updating notice requirements, and clarifying organizational standards — do not require new state expenditures, administrative structures, or regulatory enforcement that would impose costs on state agencies.
Similarly, no fiscal implication for local governments is expected. The bill governs the internal processes of private associations and does not impose duties on counties, cities, or other political subdivisions. Since these organizations are privately governed and the reforms merely provide additional flexibility and modernized processes, there is no associated public sector financial burden.
In summary, HB 1926 modernizes private association governance without increasing costs to taxpayers or public entities at any level of government.
HB 1926 modernizes and clarifies the governance rules for condominium owners' associations (COAs) and property owners' associations (POAs) by aligning the Texas Property Code with the already-applicable Business Organizations Code. Specifically, the bill authorizes COAs and POAs to hold membership meetings electronically and to conduct electronic voting, in the same manner permitted for nonprofit corporations. It also updates outdated statutory references to make the Property Code clearer and easier to apply.
The bill does not grow the size or scope of government. It does not create any new state programs, agencies, or regulatory bodies, nor does it expand state authority over private associations. It does not increase the burden on taxpayers; the Legislative Budget Board officially determined that the bill has no fiscal impact on the state or local governments. Additionally, the regulatory burden on individuals and businesses is reduced, not expanded. By clarifying existing rights to electronic participation and voting, the bill eliminates confusion that currently causes unnecessary costs and compliance risks for associations and property owners.
HB 1926 strongly supports core liberty principles. It enhances individual liberty by improving access to association participation, strengthens personal responsibility by making it easier for owners to engage, protects private property rights by ensuring fair governance processes, and respects limited government by removing outdated legal obstacles without imposing new regulations. It also promotes free enterprise by helping community associations operate more efficiently and transparently.
By modernizing procedures without expanding government power or imposing new costs, HB 1926 represents a responsible and liberty-enhancing update to Texas law. As such, Texas Policy Research recommends that lawmakers vote YES on HB 1926.