Texas 2021 - 87th Regular

Texas House Bill HB2912 Latest Draft

Bill / Engrossed Version Filed 05/11/2021

                            By: Vasut, Jetton, White, et al. H.B. No. 2912


 A BILL TO BE ENTITLED
 AN ACT
 relating to a violation of the Texas Residential Property Owners
 Protection Act or a dedicatory instrument by a board member of a
 property owners' association and to the recall of a board member.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Chapter 209, Property Code, is amended by adding
 Section 209.017 to read as follows:
 Sec. 209.017.  BOARD MEMBER VIOLATION OF CHAPTER OR
 DEDICATORY INSTRUMENT. (a)  An owner may bring an action against a
 property owners' association for a violation of this chapter or a
 provision of the association's dedicatory instruments by a board
 member acting in the board member's official capacity.  The owner
 may file a petition against the association with the justice of the
 peace of a justice precinct in which all or part of the property
 that is governed by the association is located requesting relief
 under this section.
 (b)  If the justice of the peace finds that the board member
 violated this chapter or a dedicatory instrument while acting
 individually or with other board members, the justice of the peace
 may grant one or more of the following remedies:
 (1)  a judgment ordering the property owners'
 association to immediately remove the board member from the board;
 (2)  a judgment against the property owners'
 association for damages incurred by the owner resulting from the
 violation; or
 (3)  a judgment authorizing the owner to deduct the
 amounts awarded to the owner under Subdivision (2) or Subsection
 (c) from any future regular or special assessments payable to the
 property owners' association.
 (c)  The prevailing party in an action under this section is
 entitled to a judgment for court costs and reasonable attorney's
 fees incurred by the party in connection with the action.
 (d)  On or before the 10th business day before the date an
 owner brings an action against a property owners' association under
 this section, the owner must send written notice to the association
 of the owner's intent to bring the action.  The notice must:
 (1)  be sent certified mail, return receipt requested,
 or delivered by the United States Postal Service with signature
 confirmation service to the mailing address of the association or
 authorized representative as reflected on the most current
 management certificate filed under Section 209.004; and
 (2)  describe with sufficient detail the alleged
 violation.
 (e)  For the purposes of this section, "business day" means a
 day other than Saturday, Sunday, or a state or federal holiday.
 SECTION 2.  Chapter 209, Property Code, is amended by adding
 Section 209.00595 to read as follows:
 Sec. 209.00595.  RECALL OF BOARD MEMBERS.  (a)  Members of a
 property owners' association may require a meeting of the property
 owners' association for purposes of recalling a director pursuant
 to Section 22.155(3), Business Organizations Code.
 (b)  At a special meeting called pursuant to Subsection (a),
 a director of a property owners' association may be recalled and
 removed from office under any procedure provided for by Section
 22.211, Business Organizations Code.
 SECTION 3.  Section 209.017, Property Code, as added by this
 Act, applies only to a violation that occurs on or after the
 effective date of this Act.  A violation that occurs before the
 effective date of this Act is governed by the law as it existed
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.  For purposes of this section,
 a violation occurred before the effective date of this Act if any
 element of the violation occurred before that date.
 SECTION 4.  Section 209.00595, Property Code, as added by
 this Act, applies only to an action brought on or after the
 effective date of this Act.  An action brought before the effective
 date of this Act is governed by the law in effect at that time.
 SECTION 5.  This Act takes effect September l, 2021.