| 1 | 1 | | 88R16855 DRS-D |
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| 2 | 2 | | By: Shaheen, Bailes H.B. No. 1252 |
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| 3 | 3 | | Substitute the following for H.B. No. 1252: |
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| 4 | 4 | | By: Lambert C.S.H.B. No. 1252 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the audit of the financial records of certain property |
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| 10 | 10 | | owners' associations. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Chapter 209, Property Code, is amended by adding |
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| 13 | 13 | | Section 209.00501 to read as follows: |
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| 14 | 14 | | Sec. 209.00501. ANNUAL AUDIT OF ASSOCIATION FINANCIAL |
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| 15 | 15 | | RECORDS; PROVISION TO ASSOCIATION MEMBERS. (a) A property owners' |
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| 16 | 16 | | association shall: |
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| 17 | 17 | | (1) annually obtain an independent audit of the |
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| 18 | 18 | | association's financial records; and |
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| 19 | 19 | | (2) provide a copy of the audit to each member of the |
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| 20 | 20 | | association. |
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| 21 | 21 | | (b) An audit required by this section shall be performed by |
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| 22 | 22 | | a certified public accountant if required by: |
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| 23 | 23 | | (1) the association's bylaws; |
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| 24 | 24 | | (2) a vote of the board; or |
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| 25 | 25 | | (3) a majority vote of the members of the association |
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| 26 | 26 | | voting at a meeting of the association. |
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| 27 | 27 | | (c) For purposes of a vote of members of the association |
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| 28 | 28 | | described by Subsection (b)(3), a member may not cast more than one |
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| 29 | 29 | | vote, regardless of the number of lots the member owns and |
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| 30 | 30 | | notwithstanding any contrary provision in a dedicatory instrument |
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| 31 | 31 | | of an association relating to the allocation of votes to |
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| 32 | 32 | | association members. |
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| 33 | 33 | | SECTION 2. This Act takes effect September 1, 2023. |
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