83R23495 TJS-F
By: McClendon, Capriglione H.B. No. 3803
Substitute the following for H.B. No. 3803:
By: Workman C.S.H.B. No. 3803
A BILL TO BE ENTITLED
AN ACT
relating to a fidelity bond or insurance requirement for property
owners' association and unit owners' association board members.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 82, Property Code, is
amended by adding Section 82.1031 to read as follows:
Sec. 82.1031. FIDELITY BOND OR INSURANCE REQUIREMENT. The
board of a unit owners' association of 20 units or more shall obtain
and maintain a fidelity bond or fidelity insurance that covers
losses resulting from dishonest or fraudulent acts. The board must
maintain the bond or insurance in force for all officers,
directors, and employees of the association and all other persons
handling or responsible for funds administered by the board. The
coverage must be not less than a sum equal to three months'
aggregate assessments on all units plus reserve funds. The
governing documents of the association may provide for higher
limits of coverage.
SECTION 2. Chapter 209, Property Code, is amended by adding
Section 209.00595 to read as follows:
Sec. 209.00595. FIDELITY BOND OR INSURANCE REQUIREMENT.
The board of a property owners' association of 20 lots or more shall
obtain and maintain a fidelity bond or fidelity insurance that
covers losses resulting from dishonest or fraudulent acts. The
board must maintain the bond or insurance in force for all officers,
directors, and employees of the association and all other persons
handling or responsible for funds administered by the board. The
coverage must be not less than a sum equal to three months'
aggregate assessments on all lots plus reserve funds. The governing
documents of the association may provide for higher limits of
coverage.
SECTION 3. This Act takes effect September 1, 2013.