| 1 | 1 | | 83R23495 TJS-F |
|---|
| 2 | 2 | | By: McClendon, Capriglione H.B. No. 3803 |
|---|
| 3 | 3 | | Substitute the following for H.B. No. 3803: |
|---|
| 4 | 4 | | By: Workman C.S.H.B. No. 3803 |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to a fidelity bond or insurance requirement for property |
|---|
| 10 | 10 | | owners' association and unit owners' association board members. |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. Subchapter C, Chapter 82, Property Code, is |
|---|
| 13 | 13 | | amended by adding Section 82.1031 to read as follows: |
|---|
| 14 | 14 | | Sec. 82.1031. FIDELITY BOND OR INSURANCE REQUIREMENT. The |
|---|
| 15 | 15 | | board of a unit owners' association of 20 units or more shall obtain |
|---|
| 16 | 16 | | and maintain a fidelity bond or fidelity insurance that covers |
|---|
| 17 | 17 | | losses resulting from dishonest or fraudulent acts. The board must |
|---|
| 18 | 18 | | maintain the bond or insurance in force for all officers, |
|---|
| 19 | 19 | | directors, and employees of the association and all other persons |
|---|
| 20 | 20 | | handling or responsible for funds administered by the board. The |
|---|
| 21 | 21 | | coverage must be not less than a sum equal to three months' |
|---|
| 22 | 22 | | aggregate assessments on all units plus reserve funds. The |
|---|
| 23 | 23 | | governing documents of the association may provide for higher |
|---|
| 24 | 24 | | limits of coverage. |
|---|
| 25 | 25 | | SECTION 2. Chapter 209, Property Code, is amended by adding |
|---|
| 26 | 26 | | Section 209.00595 to read as follows: |
|---|
| 27 | 27 | | Sec. 209.00595. FIDELITY BOND OR INSURANCE REQUIREMENT. |
|---|
| 28 | 28 | | The board of a property owners' association of 20 lots or more shall |
|---|
| 29 | 29 | | obtain and maintain a fidelity bond or fidelity insurance that |
|---|
| 30 | 30 | | covers losses resulting from dishonest or fraudulent acts. The |
|---|
| 31 | 31 | | board must maintain the bond or insurance in force for all officers, |
|---|
| 32 | 32 | | directors, and employees of the association and all other persons |
|---|
| 33 | 33 | | handling or responsible for funds administered by the board. The |
|---|
| 34 | 34 | | coverage must be not less than a sum equal to three months' |
|---|
| 35 | 35 | | aggregate assessments on all lots plus reserve funds. The governing |
|---|
| 36 | 36 | | documents of the association may provide for higher limits of |
|---|
| 37 | 37 | | coverage. |
|---|
| 38 | 38 | | SECTION 3. This Act takes effect September 1, 2013. |
|---|