By: West S.B. No. 238
Substitute the following for S.B. No. 238:
By: Quintanilla C.S.S.B. No. 238
A BILL TO BE ENTITLED
AN ACT
relating to the availability of a property owners' association's
books and records.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 209.005, Property Code, is amended to
read as follows:
Sec. 209.005. ASSOCIATION RECORDS. (a) This section does
not apply to a property owners' association that is subject to
Chapter 552, Government Code, by application of Section 552.0036.
(b) A property owners' association shall make the books and
records of the association, including financial records, open to
and reasonably available for examination by [to] an owner [in
accordance with Section B, Article 2.23, Texas Non Profit
Corporation Act (Article 1396 2.23, Vernon's Texas Civil
Statutes)]. An owner is entitled to copies of information
contained in the books and records.
(c) [(a-1) A property owners' association described by
Section 552.0036(2), Government Code, shall make the books and
records of the association, including financial records,
reasonably available to any person requesting access to the books
or records in accordance with Chapter 552, Government Code.
Subsection (a) does not apply to a property owners' association to
which this subsection applies.
[(b)] An attorney's files and records relating to the
association, excluding invoices requested by an owner under Section
209.008(d), are not:
(1) records of the association;
(2) subject to inspection by the owner; or
(3) subject to production in a legal proceeding.
(d) In addition to the requirements of Subsection (b), a
property owners' association shall maintain a copy of the
association's books and records, including financial records and
invoices, in a building:
(1) in which the books and records are appropriately
stored; and
(2) that is:
(A) staffed during normal business hours;
(B) accessible to members of the association
during normal business hours; and
(C) located on property commonly owned by the
association within the boundaries of the subdivision governed by
the association.
(e) If a building described by Subsection (d) does not exist
on property described by Subsection (d), the property owners'
association shall make the books and records available in
accordance with Subsections (g) and (h).
(f) A party requesting association books or records shall
submit the request in writing to a current board member or to the
mailing address of the association or authorized representative as
provided on the most current management certificate filed under
Section 209.004.
(g) A property owners' association shall make books and
records requested under Subsection (b) available to the requesting
party within a reasonable time of the property owners'
association's receipt of the request.
(h) A reasonable time for providing information requested
under Subsection (b) is considered to be 10 business days after the
date the property owners' association receives a request, except as
otherwise provided by this section.
(i) If the property owners' association is unable to produce
a requested book or record on or before the 10th business day after
the date the information is requested, the property owners'
association must provide to the requestor notice that:
(1) informs the requestor that the property owners'
association is unable to produce the information on or before the
10th business day after the date of the request; and
(2) states a date by which the information will be
available for inspection that occurs not later than the 30th day
after the date notice under this subsection is given.
(j) A property owners' association shall make books and
records requested under this section available to the requestor in
one or more of the following formats, as agreed on by the requestor
and the property owners' association:
(1) an electronic format:
(A) delivered to an electronic mail address
provided by the requestor; or
(B) delivered in a disc or other standard
electronic format:
(i) to the mailing address of the
requestor; or
(ii) if the requesting party does not
provide a mailing address, to the address of the requestor's
property in the subdivision; or
(2) a hard-copy format:
(A) delivered to the mailing address of the
requestor; or
(B) if the requesting party does not provide a
mailing address:
(i) mailed to the address of the requestor's
property in the subdivision; or
(ii) made available at a location not more
than 50 miles from the boundary of the county in which the
requestor's property is located.
(k) This section does not require a property owners'
association to staff a building described by Subsection (d).
(l) A property owners' association may charge an owner for
copies of the requested information in an amount that reasonably
includes all costs related to reproducing the information,
including costs of materials, labor, and overhead.
(m) Any information maintained by the association that is
released under this section may not identify an individual member
of an association or an individual's personal financial
information. Information may be released in an aggregate manner
that would not identify an individual property owner.
(n) A property owners' association shall keep all records as
to changes to the dedicatory instruments in perpetuity and shall
maintain records related to financial matters of the association,
including assessments, fines, foreclosures, and enforcement
actions for at least seven years.
(o) A member of a property owners' association who is denied
access to or copies of association books or records to which the
member is entitled under this section may file a petition with the
justice of the peace of a justice precinct in which all or part of
the property that is governed by the association is located,
requesting relief in accordance with this subsection. If the
justice of the peace finds that the member is entitled to access to
or copies of the records, the justice of the peace shall order the
association to:
(1) provide the access or copies requested by the
member; and
(2) pay the court costs and the member's reasonable
attorney's fees and court costs.
(p) For the purposes of this section, "business day" means a
day other than Saturday, Sunday, or a state or federal holiday.
SECTION 2. Subsection (o), Section 209.005, Property Code,
as added by this Act, applies only to a property owners'
association's failure to comply with Section 209.005, Property
Code, on or after the effective date of this Act. A property
owners' association's failure to comply with that section before
the effective date of this Act is governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect January 1, 2010.