84R24209 PMO-F
By: Bohac H.B. No. 971
Substitute the following for H.B. No. 971:
By: Oliveira C.S.H.B. No. 971
A BILL TO BE ENTITLED
AN ACT
relating to requirements governing officers and directors of
condominium unit owners' associations and property owners'
associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 81, Property Code, is
amended by adding Section 81.2011 to read as follows:
Sec. 81.2011. BOARD MEMBERS AND OFFICERS. (a) Each officer
or member of a board of directors or other governing body, if any,
of a condominium regime is:
(1) liable as a fiduciary of the unit owners for the
officer's or member's acts or omissions; and
(2) subject to Sections 82.103(f) and (g), 82.1031,
and 82.1032.
(b) For purposes of this section, a reference to "this
chapter" in Section 82.1031 means Chapter 81 and Chapter 82.
(c) To the extent a fiduciary duty imposed by Subsection
(a)(1) conflicts with a duty imposed by Chapter 22, Business
Organizations Code, Subsection (a)(1) prevails.
SECTION 2. Section 82.103, Property Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) To the extent a duty imposed by Subsection (a)
conflicts with a duty imposed by Chapter 22, Business Organizations
Code, Subsection (a) prevails.
SECTION 3. Subchapter C, Chapter 82, Property Code, is
amended by adding Sections 82.1031 and 82.1032 to read as follows:
Sec. 82.1031. BOARD MEMBER AND OFFICER DUTIES. (a) Before
taking office, an officer or board member of a unit owners'
association shall read:
(1) this chapter;
(2) the dedicatory instruments and written policies of
the condominium regime and the unit owners' association; and
(3) if applicable, Chapter 22, Business Organizations
Code.
(b) Not later than the 90th day after the date an officer or
board member is elected or appointed, the officer or board member
shall file a sworn statement with the secretary of the association
affirming that the officer or board member has complied with
Subsection (a).
(c) An officer or board member is required to comply with
Subsection (b) only after the officer or board member is first
elected or appointed, unless the officer or board member does not
serve continuously.
(d) An officer or board member who fails to comply with
Subsection (b) is temporarily suspended from office until the date
the officer or board member complies with that subsection. The
board may appoint another person to perform the duties of the office
until the earlier of the date the officer's or board member's term
of office expires or the date the officer or board member complies
with Subsection (b). The temporary appointee must comply with
Subsection (b).
(e) The association shall keep with the association records
under Section 82.114 each sworn statement filed under Subsection
(b) until at least the fifth anniversary of the date the officer or
board member who filed the statement was elected or appointed.
Sec. 82.1032. REMOVAL FROM OFFICE. If the board of a unit
owners' association is presented with written, documented evidence
from a database or other record maintained by a governmental law
enforcement authority that a board member of the association was
convicted of a felony or crime involving moral turpitude not more
than 20 years before the date the board is presented with the
evidence, the board member is immediately ineligible to serve in
that capacity, automatically considered removed from office, and
prohibited from future service as a board member of the
association.
SECTION 4. Chapter 209, Property Code, is amended by adding
Section 209.00595 to read as follows:
Sec. 209.00595. OFFICER OR BOARD MEMBER DUTIES. (a) Before
taking office, an officer or board member of a property owners'
association shall read:
(1) this chapter;
(2) the dedicatory instruments and written policies of
the property owners' association; and
(3) if applicable, Chapter 22, Business Organizations
Code.
(b) Not later than the 90th day after the date an officer or
board member is elected or appointed, the officer or board member
shall file a sworn statement with the secretary of the association
affirming that the officer or board member has complied with
Subsection (a).
(c) An officer or board member is required to comply with
Subsection (b) only after the officer or board member is first
elected or appointed, unless the officer or board member does not
serve continuously.
(d) An officer or board member who fails to comply with
Subsection (b) is temporarily suspended from office until the date
the officer or board member complies with that subsection. The
board may appoint another person to perform the duties of the office
until the earlier of the date the officer's or board member's term
of office expires or the date the officer or board member complies
with Subsection (b). The temporary appointee must comply with
Subsection (b).
(e) The association shall keep with the association records
under Section 209.005 each sworn statement filed under Subsection
(b) until at least the fifth anniversary of the date the officer or
board member who filed the statement was elected or appointed.
SECTION 5. (a) The changes in law made by this Act apply to
an officer or board member of a unit owners' association or a
property owners' association who is:
(1) elected or appointed to office on or after the
effective date of this Act; or
(2) serving in office on the effective date of this
Act.
(b) Not later than December 1, 2015, an officer or board
member of a unit owners' association or a property owners'
association serving in office on the effective date of this Act must
comply with the requirements imposed by Section 82.1031 or
209.00595, Property Code, as added by this Act, as applicable.
SECTION 6. This Act takes effect September 1, 2015.