| 1 | 1 | | 81R3181 PMO-D |
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| 2 | 2 | | By: Jackson H.B. No. 371 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to dissolution of certain property owners' associations. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 209, Property Code, is amended by adding |
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| 10 | 10 | | Section 209.014 to read as follows: |
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| 11 | 11 | | Sec. 209.014. DISSOLUTION OF PROPERTY OWNERS' ASSOCIATION. |
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| 12 | 12 | | (a) An owner seeking to dissolve a property owners' association to |
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| 13 | 13 | | which the owner belongs must initiate the dissolution by |
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| 14 | 14 | | circulating a petition calling for the dissolution of the |
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| 15 | 15 | | association among other owners belonging to the association. |
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| 16 | 16 | | (b) A petition circulated under Subsection (a) must |
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| 17 | 17 | | contain: |
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| 18 | 18 | | (1) the name of the subdivision in which the owner |
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| 19 | 19 | | initiating the petition lives; |
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| 20 | 20 | | (2) the name of the owner initiating the petition; |
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| 21 | 21 | | (3) the reason the owner initiating the petition seeks |
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| 22 | 22 | | to dissolve the property owners' association; and |
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| 23 | 23 | | (4) the date the owner began circulating the petition. |
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| 24 | 24 | | (c) If at least 25 percent of the total number of owners |
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| 25 | 25 | | belonging to the property owners' association sign, acknowledge, or |
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| 26 | 26 | | otherwise approve in writing a petition circulated under Subsection |
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| 27 | 27 | | (a) on or before the first anniversary of the date the petition |
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| 28 | 28 | | began circulating, the owner initiating the petition shall file the |
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| 29 | 29 | | petition in the real property records of each county in which the |
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| 30 | 30 | | subdivision is located. |
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| 31 | 31 | | (d) Not later than the 180th day after the date a petition is |
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| 32 | 32 | | filed under Subsection (c), the property owners' association that |
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| 33 | 33 | | is the subject of the petition shall hold an election among the |
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| 34 | 34 | | association's members in accordance with the association's bylaws |
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| 35 | 35 | | to determine whether the association will be dissolved. |
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| 36 | 36 | | (e) If at least two-thirds of the total number of the votes |
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| 37 | 37 | | cast at the election held under Subsection (d) favor dissolving the |
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| 38 | 38 | | property owners' association, the association shall, not later than |
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| 39 | 39 | | the 180th day after the date of the election, take all steps |
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| 40 | 40 | | necessary under the association's constitution or bylaws formally |
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| 41 | 41 | | and fully to dissolve the association. |
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| 42 | 42 | | (f) The property owners' association shall record the |
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| 43 | 43 | | results of an election held under Subsection (d) in the real |
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| 44 | 44 | | property records of each county in which the subdivision is |
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| 45 | 45 | | located. |
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| 46 | 46 | | SECTION 2. This Act applies only to a property owners' |
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| 47 | 47 | | association created on or after the effective date of this Act. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2009. |
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