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.