84R9210 AJA-F By: Villalba H.B. No. 1588 Substitute the following for H.B. No. 1588: By: Simmons C.S.H.B. No. 1588 A BILL TO BE ENTITLED AN ACT relating to the validity of certain timeshare interests. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Title 4, Property Code, is amended by adding Chapter 30 to read as follows: CHAPTER 30. ACTION TO DETERMINE VALIDITY OF CERTAIN TIMESHARE INTERESTS Sec. 30.001. APPLICABILITY OF CHAPTER. This chapter applies only to a condominium unit that is: (1) located on a barrier island that borders the Gulf of Mexico; (2) subject to a declaration creating: (A) a condominium regime to which Chapter 81 applies; and (B) a timeshare plan applicable to all or part of the condominium property; and (3) located in a development in which the timeshare association has not paid any fees, dues, assessments, or other charges due to the condominium council of owners for a period of at least three years immediately preceding the filing of an action under this chapter. Sec. 30.002. ACTION AUTHORIZED. If a deed or other instrument has been recorded in the real property records asserting or purporting to convey a timeshare interest in a condominium unit to which this chapter applies, the condominium unit owner may bring an action under this chapter in a district court in the county in which the condominium unit is located seeking a determination that the timeshare interest is: (1) invalid; or (2) void under Section 30.004 or any other law. Sec. 30.003. SERVICE BY PUBLICATION AUTHORIZED. (a) If the whereabouts or identity of the person asserting the timeshare interest or to whom the timeshare interest is purported to have been conveyed is unknown to the person bringing an action under this chapter, citation in the action may be served by publication in a newspaper in the county in which the condominium unit is located. Service by publication in the action is governed by the Texas Rules of Civil Procedure except to the extent of any conflict with this section. (b) The published citation must contain: (1) the physical address of the condominium unit; (2) the county in which the condominium unit is located; (3) the name of the person asserting the timeshare interest in the condominium unit or to whom the timeshare interest is purported to have been conveyed, as shown in the recorded instrument; (4) a description of the timeshare interest asserted in or purported to be conveyed by the recorded instrument; (5) the name and address of the person bringing the action; and (6) a statement that the person bringing the action is seeking a determination that the timeshare interest is invalid or void. Sec. 30.004. INTEREST VOID. (a) A timeshare interest in a condominium unit described by Section 30.001 is void if the person bringing an action establishes that: (1) the person bringing the action holds record title to the condominium unit; (2) on the date the instrument asserting the timeshare interest or purporting to convey the timeshare interest was filed for recording: (A) the person bringing the action held record title to the condominium unit; or (B) record title to the condominium unit was held by a person other than the declarant who precedes the person bringing the action in the chain of title to the unit; (3) the timeshare interest was not conveyed by the person bringing the action or any other person who follows the declarant in the chain of title to the unit; (4) the person asserting the timeshare interest or to whom the timeshare interest is purported to have been conveyed has not paid any required assessments in connection with the timeshare interest for a period of at least three years immediately preceding the filing of the action; and (5) at no time on or after the date the instrument was filed for recording has a person made an attempt to exercise the right to occupy the unit under the timeshare interest. (b) This section does not preclude a determination that a timeshare interest is invalid or void under any other law. Sec. 30.005. DEFAULT JUDGMENT. In an action brought under this chapter, the court may enter a default judgment declaring that a timeshare interest is invalid or void if the person asserting the timeshare interest or to whom the timeshare interest was purported to have been conveyed: (1) was personally served with citation or was cited by publication in accordance with Section 30.003; and (2) fails to timely appear and answer. Sec. 30.006. FINALITY OF JUDGMENT. Notwithstanding Rule 329, Texas Rules of Civil Procedure, or any other law, and regardless of the manner of citation or whether the judgment is a default judgment or a judgment on the merits: (1) a motion for a new trial in an action under this chapter must be filed on or before the 30th day after the date the judgment is signed; and (2) the judgment is final and unappealable on the 31st day after the date the judgment is signed. 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, 2015.