Texas Senate Bill SB238

Texas 2009 - 81st Regular

• Filed: 11/10/08
• Out of Senate Committee: 3/30/09
• Voted on by Senate: 4/8/09
• Out of House Committee: 5/7/09

Caption

Relating to the availability of a property owners' association's books and records.

Impact

The legislation provides specific legal remedies if a property owners' association fails to comply with the new access requirements. Owners will have the right to seek a court order to compel compliance, as well as potentially obtaining a monetary penalty of up to $1,500. Additionally, the bill allows owners to recover court costs and attorney's fees associated with enforcing the provisions of this act. This not only reinforces the rights of property owners but also creates a more structured approach to disputes involving access to association records.

Summary

SB238 relates to enhancing the accessibility of records maintained by property owners' associations to their members. The bill amends Section 209.005 of the Texas Property Code, mandating that these associations must provide reasonable access to their books and records, including financial documents, for association members. This adjustment seeks to increase transparency within property owners' associations and empower owners with the ability to verify the management and financial decisions of their associations, thereby promoting accountability.

Contention

Potential points of contention surrounding SB238 may revolve around the reactions from property owners' associations, which might view these new requirements as an intrusive regulation that could complicate their administrative processes. Opponents of the bill may argue that imposing additional reporting and transparency requirements could lead to unnecessary burdens, particularly on smaller associations that may lack the resources to manage increased scrutiny. Moreover, there may be discussions regarding the enforcement mechanism's feasibility and how it balances the need for transparency without overstepping the operational autonomy of associations.