| 1 | 1 | | 85R7290 BEE-D |
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| 2 | 2 | | By: Muñoz, Jr. H.B. No. 1341 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to property owners' associations; imposing a civil |
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| 8 | 8 | | penalty. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 209.005, Property Code, is amended by |
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| 11 | 11 | | amending Subsection (e) and adding Subsection (l-1) to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (e) An owner or the owner's authorized representative |
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| 14 | 14 | | described by Subsection (c) must submit a [written] request for |
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| 15 | 15 | | access or information under Subsection (c) by [certified] mail, |
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| 16 | 16 | | e-mail, or telephone, providing [with] sufficient detail |
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| 17 | 17 | | describing the property owners' association's books and records |
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| 18 | 18 | | requested[, to the mailing address of the association or authorized |
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| 19 | 19 | | representative as reflected on the most current management |
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| 20 | 20 | | certificate filed under Section 209.004]. The request must contain |
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| 21 | 21 | | an election either to inspect the books and records before |
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| 22 | 22 | | obtaining copies or to have the property owners' association |
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| 23 | 23 | | forward copies of the requested books and records and: |
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| 24 | 24 | | (1) if an inspection is requested, the association, on |
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| 25 | 25 | | or before the 10th business day after the date the association |
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| 26 | 26 | | receives the request, shall send written notice of dates during |
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| 27 | 27 | | normal business hours that the owner may inspect the requested |
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| 28 | 28 | | books and records to the extent those books and records are in the |
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| 29 | 29 | | possession, custody, or control of the association; or |
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| 30 | 30 | | (2) if copies of identified books and records are |
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| 31 | 31 | | requested, the association shall, to the extent those books and |
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| 32 | 32 | | records are in the possession, custody, or control of the |
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| 33 | 33 | | association, produce the requested books and records for the |
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| 34 | 34 | | requesting party on or before the 10th business day after the date |
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| 35 | 35 | | the association receives the request, except as otherwise provided |
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| 36 | 36 | | by this section. |
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| 37 | 37 | | (l-1) Notwithstanding Subsection (k), a property owners' |
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| 38 | 38 | | association must release or allow inspection of any records of |
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| 39 | 39 | | payments made by the association to a managing company of the |
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| 40 | 40 | | subdivision to pay the company's employees to work on behalf of the |
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| 41 | 41 | | association on association property. |
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| 42 | 42 | | SECTION 2. Section 209.0051, Property Code, is amended by |
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| 43 | 43 | | amending Subsection (d) and adding Subsection (f-1) to read as |
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| 44 | 44 | | follows: |
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| 45 | 45 | | (d) The board shall keep a record of each regular or special |
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| 46 | 46 | | board meeting in the form of written minutes of the meeting. The |
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| 47 | 47 | | meeting records must include all communications from members |
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| 48 | 48 | | relating to the meeting, including copies of e-mails, letters, or |
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| 49 | 49 | | faxes submitted to the board for consideration at the meeting. The |
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| 50 | 50 | | board shall make meeting records, including approved minutes, |
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| 51 | 51 | | available to a member for inspection and copying on the member's |
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| 52 | 52 | | written request to the property owners' association's managing |
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| 53 | 53 | | agent at the address appearing on the most recently filed |
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| 54 | 54 | | management certificate or, if there is not a managing agent, to the |
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| 55 | 55 | | board. |
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| 56 | 56 | | (f-1) A member is entitled to speak for at least 30 minutes |
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| 57 | 57 | | at each regular or special board meeting. |
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| 58 | 58 | | SECTION 3. Section 209.014(a), Property Code, is amended to |
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| 59 | 59 | | read as follows: |
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| 60 | 60 | | (a) Notwithstanding any provision in a dedicatory |
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| 61 | 61 | | instrument, a board of a property owners' association shall call an |
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| 62 | 62 | | annual meeting of the members of the association. The board must |
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| 63 | 63 | | send to each member a written notice of the date, hour, and place of |
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| 64 | 64 | | the annual meeting not later than the 10th day before the date of |
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| 65 | 65 | | the meeting. |
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| 66 | 66 | | SECTION 4. Chapter 209, Property Code, is amended by adding |
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| 67 | 67 | | Section 209.017 to read as follows: |
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| 68 | 68 | | Sec. 209.017. CIVIL PENALTY. (a) A property owners' |
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| 69 | 69 | | association that violates a provision of this chapter is liable to |
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| 70 | 70 | | the state for a civil penalty of not more than $25,000. |
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| 71 | 71 | | (b) The attorney general, a district attorney, or a county |
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| 72 | 72 | | attorney may bring an action against the property owners' |
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| 73 | 73 | | association in the district court of a district in which all or part |
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| 74 | 74 | | of the subdivision is located to enforce this chapter and to collect |
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| 75 | 75 | | the penalty under this section. |
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| 76 | 76 | | SECTION 5. Section 209.017, Property Code, as added by this |
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| 77 | 77 | | Act, applies only to a violation that occurs on or after the |
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| 78 | 78 | | effective date of this Act. |
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| 79 | 79 | | SECTION 6. This Act takes effect September 1, 2017. |
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