SRC-JBJ S.B. 489 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 489
76R3445 MLS-DBy: Ellis
State Affairs
2/22/1999
As Filed


DIGEST 

Currently, a dispute between a homeowner and a property owners' association
may proceed straight to court without an informal dispute resolution.  A
dispute resolution provides a cost-effective means for the homeowner and
the association to resolve conflicts, such as a fine or penalty.  S.B. 489
would require an informal method of dispute resolution prior to any legal
action for members of property owners' associations. 

PURPOSE

As proposed, S.B. 489 requires informal dispute resolution for property
owners' associations. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to a property owners' association in
SECTION 1 (Section 202.010(b), Chapter 202, Property Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 202, Property Code, by adding Section 202.010,
as follows: 

Sec. 202.010.  HEARING BEFORE PROPERTY OWNERS' ASSOCIATION.  Requires a
property owners' association to establish a dispute resolution committee to
conduct hearings on disputes relating to a fine or penalty imposed on a
property owner by the association.  Requires the association to adopt rules
relating to hearings conducted by a dispute resolution committee. Sets
forth required substantive criteria for the rules.   

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.