Texas 2015 - 84th Regular

Texas House Bill HB971 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R24209 PMO-F
2	2	By: Bohac H.B. No. 971
3	3	Substitute the following for H.B. No. 971:
4	4	By: Oliveira C.S.H.B. No. 971
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to requirements governing officers and directors of
10	10	condominium unit owners' associations and property owners'
11	11	associations.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter C, Chapter 81, Property Code, is
14	14	amended by adding Section 81.2011 to read as follows:
15	15	Sec. 81.2011. BOARD MEMBERS AND OFFICERS. (a) Each officer
16	16	or member of a board of directors or other governing body, if any,
17	17	of a condominium regime is:
18	18	(1) liable as a fiduciary of the unit owners for the
19	19	officer's or member's acts or omissions; and
20	20	(2) subject to Sections 82.103(f) and (g), 82.1031,
21	21	and 82.1032.
22	22	(b) For purposes of this section, a reference to "this
23	23	chapter" in Section 82.1031 means Chapter 81 and Chapter 82.
24	24	(c) To the extent a fiduciary duty imposed by Subsection
25	25	(a)(1) conflicts with a duty imposed by Chapter 22, Business
26	26	Organizations Code, Subsection (a)(1) prevails.
27	27	SECTION 2. Section 82.103, Property Code, is amended by
28	28	adding Subsection (a-1) to read as follows:
29	29	(a-1) To the extent a duty imposed by Subsection (a)
30	30	conflicts with a duty imposed by Chapter 22, Business Organizations
31	31	Code, Subsection (a) prevails.
32	32	SECTION 3. Subchapter C, Chapter 82, Property Code, is
33	33	amended by adding Sections 82.1031 and 82.1032 to read as follows:
34	34	Sec. 82.1031. BOARD MEMBER AND OFFICER DUTIES. (a) Before
35	35	taking office, an officer or board member of a unit owners'
36	36	association shall read:
37	37	(1) this chapter;
38	38	(2) the dedicatory instruments and written policies of
39	39	the condominium regime and the unit owners' association; and
40	40	(3) if applicable, Chapter 22, Business Organizations
41	41	Code.
42	42	(b) Not later than the 90th day after the date an officer or
43	43	board member is elected or appointed, the officer or board member
44	44	shall file a sworn statement with the secretary of the association
45	45	affirming that the officer or board member has complied with
46	46	Subsection (a).
47	47	(c) An officer or board member is required to comply with
48	48	Subsection (b) only after the officer or board member is first
49	49	elected or appointed, unless the officer or board member does not
50	50	serve continuously.
51	51	(d) An officer or board member who fails to comply with
52	52	Subsection (b) is temporarily suspended from office until the date
53	53	the officer or board member complies with that subsection. The
54	54	board may appoint another person to perform the duties of the office
55	55	until the earlier of the date the officer's or board member's term
56	56	of office expires or the date the officer or board member complies
57	57	with Subsection (b). The temporary appointee must comply with
58	58	Subsection (b).
59	59	(e) The association shall keep with the association records
60	60	under Section 82.114 each sworn statement filed under Subsection
61	61	(b) until at least the fifth anniversary of the date the officer or
62	62	board member who filed the statement was elected or appointed.
63	63	Sec. 82.1032. REMOVAL FROM OFFICE. If the board of a unit
64	64	owners' association is presented with written, documented evidence
65	65	from a database or other record maintained by a governmental law
66	66	enforcement authority that a board member of the association was
67	67	convicted of a felony or crime involving moral turpitude not more
68	68	than 20 years before the date the board is presented with the
69	69	evidence, the board member is immediately ineligible to serve in
70	70	that capacity, automatically considered removed from office, and
71	71	prohibited from future service as a board member of the
72	72	association.
73	73	SECTION 4. Chapter 209, Property Code, is amended by adding
74	74	Section 209.00595 to read as follows:
75	75	Sec. 209.00595. OFFICER OR BOARD MEMBER DUTIES. (a) Before
76	76	taking office, an officer or board member of a property owners'
77	77	association shall read:
78	78	(1) this chapter;
79	79	(2) the dedicatory instruments and written policies of
80	80	the property owners' association; and
81	81	(3) if applicable, Chapter 22, Business Organizations
82	82	Code.
83	83	(b) Not later than the 90th day after the date an officer or
84	84	board member is elected or appointed, the officer or board member
85	85	shall file a sworn statement with the secretary of the association
86	86	affirming that the officer or board member has complied with
87	87	Subsection (a).
88	88	(c) An officer or board member is required to comply with
89	89	Subsection (b) only after the officer or board member is first
90	90	elected or appointed, unless the officer or board member does not
91	91	serve continuously.
92	92	(d) An officer or board member who fails to comply with
93	93	Subsection (b) is temporarily suspended from office until the date
94	94	the officer or board member complies with that subsection. The
95	95	board may appoint another person to perform the duties of the office
96	96	until the earlier of the date the officer's or board member's term
97	97	of office expires or the date the officer or board member complies
98	98	with Subsection (b). The temporary appointee must comply with
99	99	Subsection (b).
100	100	(e) The association shall keep with the association records
101	101	under Section 209.005 each sworn statement filed under Subsection
102	102	(b) until at least the fifth anniversary of the date the officer or
103	103	board member who filed the statement was elected or appointed.
104	104	SECTION 5. (a) The changes in law made by this Act apply to
105	105	an officer or board member of a unit owners' association or a
106	106	property owners' association who is:
107	107	(1) elected or appointed to office on or after the
108	108	effective date of this Act; or
109	109	(2) serving in office on the effective date of this
110	110	Act.
111	111	(b) Not later than December 1, 2015, an officer or board
112	112	member of a unit owners' association or a property owners'
113	113	association serving in office on the effective date of this Act must
114	114	comply with the requirements imposed by Section 82.1031 or
115	115	209.00595, Property Code, as added by this Act, as applicable.
116	116	SECTION 6. This Act takes effect September 1, 2015.