SRC-AXB S.B. 318 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 318
76R3658  MLS-DBy: Ellis
State Affairs
2/12/1999
As Filed


DIGEST 

Currently, a property owners' association (association) can file a lien on
real property without submitting to an alternative dispute resolution
procedure (ADR) for establishing the existence and amount of debt owed.
The implementation of an ADR would save associations money.  This bill will
require submission to an ADR by both the association and the property owner
before filing a lien. 

PURPOSE

As proposed, S.B. 318 prohibits a property owners' association from filing
a lien before submitting to an alternative dispute resolution procedure to
determine the property owner's amount of debt. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 202, Property Code, by adding Section 202.006,
as follows: 

Sec.  202.006.  ALTERNATIVE DISPUTE RESOLUTION REQUIRED TO ESTABLISH LIEN
FOR ASSESSMENTS.  Prohibits a property owner's association (association)
from filing a lien on real property under certain conditions unless the
association submits to an alternative dispute resolution procedure
(procedure) to determine the amount of debt. Requires the association to
provide the property owner with written notice of the intention to initiate
a procedure, and requires the property owner's participation.  Sets forth
an ultimatum for the property owner's refusal to participate.  Authorizes
both the property owner and the association (the parties) to file a
petition requesting the court to refer the dispute to an alternative
procedure if the parties fail to agree on the type of procedure by a
certain date.  Requires the court to refer the dispute by a certain date.
Provides that if the property owner agrees to be bound by the procedure
decision, the association is required to bear the cost of the procedure. 

SECTION 2.  Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.