Texas 2013 83rd Regular

Texas House Bill HB1933 Introduced / Bill

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                    83R9157 AJA-D
 By: Allen H.B. No. 1933


 A BILL TO BE ENTITLED
 AN ACT
 relating to condominium association records and meetings.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 81.209(b), Property Code, is amended to
 read as follows:
 (b)  Notwithstanding a provision in a declaration, master
 deed, or master lease, the books and records of a condominium
 regime, including [The] accounts and supporting vouchers and any
 other financial records, [of a condominium regime] shall be made
 available to the apartment owners in accordance with Section
 81.2091 [for examination on working days at convenient,
 established, and publicly announced hours].
 SECTION 2.  Subchapter C, Chapter 81, Property Code, is
 amended by adding Sections 81.2091 and 81.2092 to read as follows:
 Sec. 81.2091.  AVAILABILITY AND RETENTION OF RECORDS. (a)
 This section applies to all condominium regimes and controls over
 other law not specifically applicable to a condominium regime.
 (b)  A condominium regime's council of owners shall make the
 books and records of the council, including financial records, open
 to and reasonably available for examination by an apartment owner,
 or a person designated in a writing signed by the owner as the
 owner's agent, attorney, or certified public accountant, in
 accordance with this section.  An owner is entitled to obtain from
 the council copies of information contained in the books and
 records.
 (c)  Except as provided by this subsection, an attorney's
 files and records relating to the council of owners are not records
 of the council and are not subject to inspection by an apartment
 owner or production in a legal proceeding.  If a document in an
 attorney's files and records relating to the council would be
 responsive to a legally authorized request to inspect or copy
 council documents, the document shall be produced by using the copy
 from the attorney's files and records if the council has not
 maintained a separate copy of the document.  This subsection does
 not require production of a document that constitutes attorney work
 product or that is privileged as an attorney-client communication.
 (d)  An apartment owner or the owner's authorized
 representative described by Subsection (b) must submit a written
 request for access or information under Subsection (b) by certified
 mail, with sufficient detail describing the council of owners'
 books and records requested, to the mailing address of the council
 or the council's authorized representative.  The request must
 contain an election either to inspect the books and records before
 obtaining copies or to have the council forward copies of the
 requested books and records and:
 (1)  if an inspection is requested, the council, on or
 before the 10th business day after the date the council receives the
 request, shall send written notice of dates during normal business
 hours that the owner may inspect the requested books and records to
 the extent those books and records are in the possession, custody,
 or control of the council; or
 (2)  if copies of identified books and records are
 requested, the council shall, to the extent those books and records
 are in the possession, custody, or control of the council, produce
 the requested books and records for the requesting party on or
 before the 10th business day after the date the council receives the
 request, except as otherwise provided by this section.
 (e)  If the council of owners is unable to produce the books
 or records requested under Subsection (d) on or before the 10th
 business day after the date the council receives the request, the
 council must provide to the requestor written notice that:
 (1)  informs the requestor that the council is unable
 to produce the information on or before the 10th business day after
 the date the council received the request; and
 (2)  states a date by which the information will be sent
 or made available for inspection to the requesting party that is not
 later than the 15th business day after the date notice under this
 subsection is given.
 (f)  If an inspection is requested or required, the
 inspection shall take place at a mutually agreed on time during
 normal business hours, and the requesting party shall identify the
 books and records for the council of owners to copy and forward to
 the requesting party.
 (g)  A council of owners may produce books and records
 requested under this section in hard copy, electronic, or other
 format reasonably available to the council.
 (h)  A council of owners must adopt a records production and
 copying policy that prescribes the costs the council will charge
 for the compilation, production, and reproduction of information
 requested under this section.  The prescribed charges may include
 all reasonable costs of materials, labor, and overhead but may not
 exceed costs that would be applicable for an item under 1 T.A.C.
 Section 70.3.  The policy required by this subsection must be
 recorded as a dedicatory instrument in accordance with Section
 202.006.  A council of owners may not charge an apartment owner for
 the compilation, production, or reproduction of information
 requested under this section unless the policy prescribing those
 costs has been recorded as required by this subsection.  An owner is
 responsible for costs related to the compilation, production, and
 reproduction of the requested information in the amounts prescribed
 by the policy adopted under this subsection.  The council may
 require advance payment of the estimated costs of compilation,
 production, and reproduction of the requested information.  If the
 estimated costs are lesser or greater than the actual costs, the
 council shall submit a final invoice to the owner on or before the
 30th business day after the date the information is delivered.  If
 the final invoice includes additional amounts due from the owner,
 the additional amounts, if not reimbursed to the council before the
 30th business day after the date the invoice is sent to the owner,
 may be added to the owner's account as an assessment.  If the
 estimated costs exceeded the final invoice amount, the owner is
 entitled to a refund, and the refund shall be issued to the owner
 not later than the 30th business day after the date the invoice is
 sent to the owner.
 (i)  A council of owners must estimate costs under this
 section using amounts prescribed by the policy adopted under
 Subsection (h).
 (j)  Except as provided by Subsection (k) and to the extent
 the information is provided in the meeting minutes, the council of
 owners is not required to release or allow inspection of any books
 or records that identify violation history of an individual
 apartment owner, an owner's personal financial information,
 including records of payment or nonpayment of amounts due the
 council, an owner's contact information, other than the owner's
 address, or information related to an employee of the council,
 including personnel files.  Information may be released in an
 aggregate or summary manner that would not identify an individual
 property owner.
 (k)  The books and records described by Subsection (j) shall
 be released or made available for inspection if:
 (1)  the express written approval of the apartment
 owner whose records are the subject of the request for inspection is
 provided to the council of owners; or
 (2)  a court orders the release of the books and records
 or orders that the books and records be made available for
 inspection.
 (l)  A council of owners of a condominium regime composed of
 more than 14 apartments shall adopt and comply with a document
 retention policy that includes, at a minimum, the following
 requirements:
 (1)  certificates of formation, bylaws, restrictive
 covenants, including a declaration, master deed, or master lease,
 and all amendments to those instruments shall be retained
 permanently;
 (2)  financial books and records shall be retained for
 seven years;
 (3)  account records of current apartment owners shall
 be retained for five years;
 (4)  contracts with a term of one year or more shall be
 retained for four years after the expiration of the contract term;
 (5)  minutes of meetings of the council of owners or the
 council's board of administration shall be retained for seven
 years; and
 (6)  tax returns and audit records shall be retained
 for seven years.
 (m)  A member of a council of owners who is denied access to
 or copies of council 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 included in the condominium regime 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 may grant one or more of the
 following remedies:
 (1)  a judgment ordering the council to release or
 allow access to the books or records;
 (2)  a judgment against the council for court costs and
 attorney's fees incurred in connection with seeking a remedy under
 this section; or
 (3)  a judgment authorizing the apartment owner or the
 owner's assignee to deduct the amounts awarded under Subdivision
 (2) from any future regular or special assessments payable to the
 council.
 (n)  If the council of owners prevails in an action under
 Subsection (m), the council is entitled to a judgment for court
 costs and attorney's fees incurred by the council in connection
 with the action.
 (o)  On or before the 10th business day before the date a
 person brings an action against a council of owners under this
 section, the person must send written notice to the council of the
 person's intent to bring the action.  The notice must:
 (1)  be sent certified mail, return receipt requested,
 or delivered by the United States Postal Service with signature
 confirmation service to the mailing address of the council or the
 council's authorized representative; and
 (2)  describe with sufficient detail the books and
 records being requested.
 (p)  A council of owners may not foreclose an assessment lien
 if the debt securing the lien consists solely of amounts added to
 the apartment owner's account as an assessment under Subsection
 (h).
 (q)  For the purposes of this section, "business day" means a
 day other than Saturday, Sunday, or a state or federal holiday.
 Sec. 81.2092.  MEETINGS. (a) In this section:
 (1)  "Board" means the board of directors or the body,
 regardless of name, designated to act on behalf of the council of
 owners.
 (2)  "Board meeting":
 (A)  means a deliberation between a quorum of the
 voting board of the council of owners, or between a quorum of the
 voting board and another person, during which council business is
 considered and the board takes formal action; and
 (B)  does not include the gathering of a quorum of
 the board at a social function unrelated to the business of the
 council or the attendance by a quorum of the board at a regional,
 state, or national convention, ceremonial event, or press
 conference, if formal action is not taken and any discussion of
 council business is incidental to the social function, convention,
 ceremonial event, or press conference.
 (b)  Meetings of the council of owners must be held at least
 once each year. Unless the declaration provides otherwise, special
 meetings of the council may be called by the president, a majority
 of the board, or apartment owners having at least 20 percent of the
 votes in the council.
 (c)  Meetings of the council and regular and special board
 meetings must be open to apartment owners, subject to the right of
 the board to adjourn a meeting of the board and reconvene in closed
 executive session to consider actions involving personnel, pending
 or threatened litigation, contract negotiations, enforcement
 actions, confidential communications with the council's attorney,
 matters involving the invasion of privacy of individual apartment
 owners, or matters that are to remain confidential by request of the
 affected parties and agreement of the board. Following an
 executive session, any decision made in the executive session must
 be summarized orally and placed in the minutes, in general terms,
 without breaching the privacy of individual owners, violating any
 privilege, or disclosing information that was to remain
 confidential at the request of the affected parties.  The oral
 summary must include a general explanation of expenditures approved
 in executive session.
 (d)  Except for a meeting held by electronic or telephonic
 means under Subsection (i), a board meeting must be held in a county
 in which all or part of the condominium is located or in a county
 adjacent to that county.
 (e)  The board shall keep a record of each regular or special
 board meeting in the form of written minutes of the meeting.  The
 board shall make meeting records, including approved minutes,
 available to a member of the council of owners for inspection and
 copying on the member's written request to the council's managing
 agent at the address appearing on the most recently filed
 management certificate or, if there is not a managing agent, to the
 board.
 (f)  Members of the council of owners shall be given notice
 of the date, hour, place, and general subject of a regular or
 special board meeting, including a general description of any
 matter to be brought up for deliberation in executive session.  The
 notice shall be:
 (1)  mailed to each apartment owner not later than the
 10th day or earlier than the 60th day before the date of the
 meeting; or
 (2)  provided at least 72 hours before the start of the
 meeting by:
 (A)  posting the notice in a conspicuous manner
 reasonably designed to provide notice to council members:
 (i)  in a place located on the condominium
 regime's common property or, with the property owner's consent, on
 other conspicuously located privately owned property within the
 condominium regime; or
 (ii)  on any Internet website maintained by
 the council or other Internet media; and
 (B)  sending the notice by e-mail to each owner
 who has registered an e-mail address with the council.
 (g)  It is an owner's duty to keep an updated e-mail address
 registered with the council under Subsection (f)(2)(B).
 (h)  If the board recesses a regular or special board meeting
 to continue the following regular business day, the board is not
 required to post notice of the continued meeting if the recess is
 taken in good faith and not to circumvent this section.  If a
 regular or special board meeting is continued to the following
 regular business day, and on that following day the board continues
 the meeting to another day, the board shall give notice of the
 continuation in at least one manner prescribed by Subsection
 (f)(2)(A) within two hours after adjourning the meeting being
 continued.
 (i)  A board may meet by any method of communication,
 including electronic and telephonic, without prior notice to
 apartment owners under Subsection (f), if each board member may
 hear and be heard by every other board member, or the board may take
 action by unanimous written consent to consider routine and
 administrative matters or a reasonably unforeseen emergency or
 urgent necessity that requires immediate board action. Any action
 taken without notice to owners under Subsection (f) must be
 summarized orally, including an explanation of any known actual or
 estimated expenditures approved at the meeting, and documented in
 the minutes of the next regular or special board meeting. The board
 may not, without prior notice to owners under Subsection (f),
 consider or vote on:
 (1)  fines;
 (2)  damage assessments;
 (3)  initiation of foreclosure actions;
 (4)  initiation of enforcement actions, excluding
 temporary restraining orders or violations involving a threat to
 health or safety;
 (5)  increases in assessments;
 (6)  levying of special assessments;
 (7)  appeals from a denial of architectural control
 approval; or
 (8)  a suspension of a right of a particular council
 member before the member has an opportunity to attend a board
 meeting to present the member's position, including any defense, on
 the issue.
 (j)  Notice of a meeting of the council of owners must be
 given as provided by the bylaws, or, if the bylaws do not provide
 for notice, notice must be given to each apartment owner in the same
 manner in which notice of a board meeting is given to members under
 this section.
 SECTION 3.  Section 82.108, Property Code, is amended to
 read as follows:
 Sec. 82.108.  MEETINGS. (a) In this section:
 (1)  "Board meeting":
 (A)  means a deliberation between a quorum of the
 voting board of the association, or between a quorum of the voting
 board and another person, during which association business is
 considered and the board takes formal action; and
 (B)  does not include the gathering of a quorum of
 the board at a social function unrelated to the business of the
 association or the attendance by a quorum of the board at a
 regional, state, or national convention, ceremonial event, or press
 conference, if formal action is not taken and any discussion of
 association business is incidental to the social function,
 convention, ceremonial event, or press conference.
 (2)  "Development period" means a period of declarant
 control described by Section 82.103(c).
 (b)  Meetings of the association must be held at least once
 each year. Unless the declaration provides otherwise, special
 meetings of the association may be called by the president, a
 majority of the board, or unit owners having at least 20 percent of
 the votes in the association.
 (c) [(b)]  Meetings of the association and regular and
 special board meetings must be open to unit owners, subject to the
 right of the board to adjourn a meeting of the board and reconvene
 in closed executive session to consider actions involving
 personnel, pending or threatened litigation, contract
 negotiations, enforcement actions, confidential communications
 with the association's attorney, matters involving the invasion of
 privacy of individual unit owners, or matters that are to remain
 confidential by request of the affected parties and agreement of
 the board. Following an executive session, any decision made in the
 executive session must be summarized orally and placed in the
 minutes, in general terms, without breaching the privacy of
 individual owners, violating any privilege, or disclosing
 information that was to remain confidential at the request of the
 affected parties.  The oral summary must include a general
 explanation of expenditures approved in executive session.
 (d)  Except for a meeting held by electronic or telephonic
 means under Subsection (i), a board meeting must be held in a county
 in which all or part of the condominium is located or in a county
 adjacent to that county.
 (e)  The board shall keep a record of each regular or special
 board meeting in the form of written minutes of the meeting.  The
 board shall make meeting records, including approved minutes,
 available to a member for inspection and copying on the member's
 written request to the association's managing agent at the address
 appearing on the most recently filed management certificate or, if
 there is not a managing agent, to the board.
 (f)  Members shall be given notice of the date, hour, place,
 and general subject of a regular or special board meeting,
 including a general description of any matter to be brought up for
 deliberation in executive session.  The notice shall be:
 (1)  mailed to each unit owner not later than the 10th
 day or earlier than the 60th day before the date of the meeting; or
 (2)  provided at least 72 hours before the start of the
 meeting by:
 (A)  posting the notice in a conspicuous manner
 reasonably designed to provide notice to association members:
 (i)  in a place located on the association's
 common property or, with the property owner's consent, on other
 conspicuously located privately owned property within the
 condominium regime; or
 (ii)  on any Internet website maintained by
 the association or other Internet media; and
 (B)  sending the notice by e-mail to each owner
 who has registered an e-mail address with the association.
 (g)  It is an owner's duty to keep an updated e-mail address
 registered with the association under Subsection (f)(2)(B).
 (h)  If the board recesses a regular or special board meeting
 to continue the following regular business day, the board is not
 required to post notice of the continued meeting if the recess is
 taken in good faith and not to circumvent this section.  If a
 regular or special board meeting is continued to the following
 regular business day, and on that following day the board continues
 the meeting to another day, the board shall give notice of the
 continuation in at least one manner prescribed by Subsection
 (f)(2)(A) within two hours after adjourning the meeting being
 continued.
 (i)  A [The general nature of any business to be considered
 in executive session must first be announced at the open meeting.
 [(c)     Unless the declaration, bylaws, or articles of
 incorporation of the association provide otherwise:
 [(1)  a meeting of the] board may meet [be held] by any
 method of communication, including electronic and telephonic,
 without prior notice to owners under Subsection (f), if[:
 [(A)     notice of the meeting has been given in
 accordance with Subsection (e);
 [(B)]  each director may hear and be heard by
 every other director, or [; and
 [(C)     the meeting does not involve voting on a
 fine, damage assessment, appeal from a denial of architectural
 control approval, or suspension of a right of a particular
 association member before the member has an opportunity to attend a
 board meeting to present the member's position, including any
 defense, on the issue; and
 [(2)]  the board may take action [act] by unanimous
 written consent to consider routine and administrative matters or a
 reasonably unforeseen emergency or urgent necessity that requires
 immediate board action. Any action taken without notice to owners
 under Subsection (f) must be summarized orally, including an
 explanation of any known actual or estimated expenditures approved
 at the meeting, and documented in the minutes of the next regular or
 special board meeting. The board may not [of all the directors],
 without prior notice to owners under Subsection (f), consider or
 vote on [a meeting, if]:
 (1)  fines;
 (2)  [(A)     the board action does not involve voting on
 a fine,] damage assessments;
 (3)  initiation of foreclosure actions;
 (4)  initiation of enforcement actions, excluding
 temporary restraining orders or violations involving a threat to
 health or safety;
 (5)  increases in assessments;
 (6)  levying of special assessments;
 (7)  appeals [assessment, appeal] from a denial of
 architectural control approval; [,] or
 (8)  a suspension of a right of a particular
 association member before the member has an opportunity to attend a
 board meeting to present the member's position, including any
 defense, on the issue[; and
 [(B)     a record of the board action is filed with
 the minutes of board meetings].
 (j) [(d)]  Notice of a meeting of the association must be
 given as provided by the bylaws, or, if the bylaws do not provide
 for notice, notice must be given to each unit owner in the same
 manner in which notice of a board meeting is given under this
 section [to members of a nonprofit corporation under Section A,
 Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11,
 Vernon's Texas Civil Statutes)].
 (k)  This section applies to a meeting of an association
 board during the development period only if the meeting is
 conducted for the purpose of:
 (1)  adopting or amending the governing documents,
 including declarations, bylaws, rules, and regulations of the
 association;
 (2)  increasing the amount of regular assessments of
 the association or adopting or increasing a special assessment;
 (3)  electing non-developer board members of the
 association or establishing a process by which those members are
 elected; or
 (4)  changing the voting rights of members of the
 association.
 [(e)     Notice of a meeting of the board must be given as
 provided by the bylaws, or, if the bylaws do not provide for notice,
 notice must be given to each board member in the same manner in
 which notice is given to members of the board of a nonprofit
 corporation under Section B, Article 2.19, Texas Non-Profit
 Corporation Act (Article 1396-2.19, Vernon's Texas Civil
 Statutes).
 [(f)     An association, on the written request of a unit owner,
 shall inform the unit owner of the time and place of the next
 regular or special meeting of the board. If the association
 representative to whom the request is made does not know the time
 and place of the meeting, the association promptly shall obtain the
 information and disclose it to the unit owner or inform the unit
 owner where the information may be obtained.]
 SECTION 4.  Section 82.114(b), Property Code, is amended to
 read as follows:
 (b)  Notwithstanding a provision in a declaration, the books
 and records of the association, including [All] financial [and
 other] records, [of the association] shall be made [reasonably]
 available to the unit owners in accordance with Section 82.1141 [at
 its registered office or its principal office in this state for
 examination by a unit owner and the owner's agents. An attorney's
 files and records relating to the association are not records of the
 association and are not subject to inspection by unit owners or
 production in a legal proceeding].
 SECTION 5.  Subchapter C, Chapter 82, Property Code, is
 amended by adding Section 82.1141 to read as follows:
 Sec. 82.1141.  AVAILABILITY AND RETENTION OF RECORDS. (a)
 This section applies to all condominium unit owners' associations
 and controls over other law not specifically applicable to a
 condominium unit owners' association.
 (b)  Notwithstanding a provision in a declaration, an
 association shall make the books and records of the association,
 including financial records, open to and reasonably available for
 examination by a unit owner, or a person designated in a writing
 signed by the owner as the owner's agent, attorney, or certified
 public accountant, in accordance with this section.  An owner is
 entitled to obtain from the association copies of information
 contained in the books and records.
 (c)  Except as provided by this subsection, an attorney's
 files and records relating to the association are not records of the
 association and are not subject to inspection by a unit owner or
 production in a legal proceeding.  If a document in an attorney's
 files and records relating to the association would be responsive
 to a legally authorized request to inspect or copy association
 documents, the document shall be produced by using the copy from the
 attorney's files and records if the association has not maintained
 a separate copy of the document.  This subsection does not require
 production of a document that constitutes attorney work product or
 that is privileged as an attorney-client communication.
 (d)  A unit owner or the owner's authorized representative
 described by Subsection (b) must submit a written request for
 access or information under Subsection (b) by certified mail, with
 sufficient detail describing the association's books and records
 requested, to the mailing address of the association or authorized
 representative as reflected on the most current management
 certificate filed under Section 82.116.  The request must contain
 an election either to inspect the books and records before
 obtaining copies or to have the association forward copies of the
 requested books and records and:
 (1)  if an inspection is requested, the association, on
 or before the 10th business day after the date the association
 receives the request, shall send written notice of dates during
 normal business hours that the owner may inspect the requested
 books and records to the extent those books and records are in the
 possession, custody, or control of the association; or
 (2)  if copies of identified books and records are
 requested, the association shall, to the extent those books and
 records are in the possession, custody, or control of the
 association, produce the requested books and records for the
 requesting party on or before the 10th business day after the date
 the association receives the request, except as otherwise provided
 by this section.
 (e)  If the association is unable to produce the books or
 records requested under Subsection (d) on or before the 10th
 business day after the date the association receives the request,
 the association must provide to the requestor written notice that:
 (1)  informs the requestor that the association is
 unable to produce the information on or before the 10th business day
 after the date the association received the request; and
 (2)  states a date by which the information will be sent
 or made available for inspection to the requesting party that is not
 later than the 15th business day after the date notice under this
 subsection is given.
 (f)  If an inspection is requested or required, the
 inspection shall take place at a mutually agreed on time during
 normal business hours, and the requesting party shall identify the
 books and records for the association to copy and forward to the
 requesting party.
 (g)  An association may produce books and records requested
 under this section in hard copy, electronic, or other format
 reasonably available to the association.
 (h)  An association board must adopt a records production and
 copying policy that prescribes the costs the association will
 charge for the compilation, production, and reproduction of
 information requested under this section.  The prescribed charges
 may include all reasonable costs of materials, labor, and overhead
 but may not exceed costs that would be applicable for an item under
 1 T.A.C. Section 70.3.  The policy required by this subsection must
 be recorded as a dedicatory instrument in accordance with Section
 202.006.  An association may not charge a unit owner for the
 compilation, production, or reproduction of information requested
 under this section unless the policy prescribing those costs has
 been recorded as required by this subsection.  An owner is
 responsible for costs related to the compilation, production, and
 reproduction of the requested information in the amounts prescribed
 by the policy adopted under this subsection.  The association may
 require advance payment of the estimated costs of compilation,
 production, and reproduction of the requested information.  If the
 estimated costs are lesser or greater than the actual costs, the
 association shall submit a final invoice to the owner on or before
 the 30th business day after the date the information is delivered.
 If the final invoice includes additional amounts due from the
 owner, the additional amounts, if not reimbursed to the association
 before the 30th business day after the date the invoice is sent to
 the owner, may be added to the owner's account as an assessment.  If
 the estimated costs exceeded the final invoice amount, the owner is
 entitled to a refund, and the refund shall be issued to the owner
 not later than the 30th business day after the date the invoice is
 sent to the owner.
 (i)  An association must estimate costs under this section
 using amounts prescribed by the policy adopted under Subsection
 (h).
 (j)  Except as provided by Subsection (k) and to the extent
 the information is provided in the meeting minutes, the association
 is not required to release or allow inspection of any books or
 records that identify the violation history of an individual unit
 owner, an owner's personal financial information, including
 records of payment or nonpayment of amounts due the association, an
 owner's contact information, other than the owner's address, or
 information related to an employee of the association, including
 personnel files.  Information may be released in an aggregate or
 summary manner that would not identify an individual unit owner.
 (k)  The books and records described by Subsection (j) shall
 be released or made available for inspection if:
 (1)  the express written approval of the unit owner
 whose records are the subject of the request for inspection is
 provided to the association; or
 (2)  a court orders the release of the books and records
 or orders that the books and records be made available for
 inspection.
 (l)  An association composed of more than 14 units shall
 adopt and comply with a document retention policy that includes, at
 a minimum, the following requirements:
 (1)  certificates of formation, bylaws, restrictive
 covenants, and all amendments to the certificates of formation,
 bylaws, and covenants shall be retained permanently;
 (2)  financial books and records shall be retained for
 seven years;
 (3)  account records of current unit owners shall be
 retained for five years;
 (4)  contracts with a term of one year or more shall be
 retained for four years after the expiration of the contract term;
 (5)  minutes of meetings of the unit owners and the
 board shall be retained for seven years; and
 (6)  tax returns and audit records shall be retained
 for seven years.
 (m)  A member of an 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 may grant one or more of the following
 remedies:
 (1)  a judgment ordering the association to release or
 allow access to the books or records;
 (2)  a judgment against the association for court costs
 and attorney's fees incurred in connection with seeking a remedy
 under this section; or
 (3)  a judgment authorizing the unit owner or the
 owner's assignee to deduct the amounts awarded under Subdivision
 (2) from any future regular or special assessments payable to the
 association.
 (n)  If the association prevails in an action under
 Subsection (m), the association is entitled to a judgment for court
 costs and attorney's fees incurred by the association in connection
 with the action.
 (o)  On or before the 10th business day before the date a
 person brings an action against an association under this section,
 the person must send written notice to the association of the
 person's intent to bring the action.  The notice must:
 (1)  be sent certified mail, return receipt requested,
 or delivered by the United States Postal Service with signature
 confirmation service to the mailing address of the association or
 authorized representative as reflected on the most current
 management certificate filed under Section 82.116; and
 (2)  describe with sufficient detail the books and
 records being requested.
 (p)  An association may not foreclose an assessment lien if
 the debt securing the lien consists solely of amounts added to the
 unit owner's account as an assessment under Subsection (h).
 (q)  For the purposes of this section, "business day" means a
 day other than Saturday, Sunday, or a state or federal holiday.
 SECTION 6.  (a)  Sections 81.209(b) and 82.114(b), Property
 Code, as amended by this Act, and Sections 81.2091 and 82.1141,
 Property Code, as added by this Act, apply only with respect to
 information requested or sought on or after the effective date of
 this Act. Access to information requested or sought before the
 effective date of this Act is governed by the law in effect
 immediately before that date, and that law is continued in effect
 for that purpose.
 (b)  The requirements of Sections 81.2091(l) and 82.1141(l),
 Property Code, as added by this Act, apply only with respect to
 books and records generated on or after the effective date of this
 Act. Books and records generated before the effective date of this
 Act are governed by the law applicable to the books and records
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.
 SECTION 7.  This Act takes effect January 1, 2014.