By: Olivo H.B. No. 4693
A BILL TO BE ENTITLED
AN ACT
relating to the operation of a property owner's association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Sections 209.014 and 209.015 to read as follows:
Sec. 209.014. CONTRACT WITH MANAGEMENT COMPANY. (a)
Except as provided by Subsection (b), a property owners'
association or a person in privity with a property owners'
association may not contract with or compensate any person to
manage, enforce, or represent the association in connection with
enforcing restrictions, bylaws, rules, or guidelines.
(b) If expressly described in a budget approved by the
board, a property owners' association or a person in privity with a
property owners' association may pay a management company a flat
fee plus actual postage costs for enforcing all restrictions,
bylaws, rules, or guidelines, not involving the payment of
assessments, for the budget period.
Sec. 209.015. CONFLICTS OF INTEREST. A person who is a
member of the board of a property owners' association or related
within the third degree by consanguinity or within the second
degree by affinity to a member of the board may not be compensated
for providing legal representation or management services to the
association.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.