SRC-DPW S.B. 490 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 490
76R3656 MLS-DBy: Ellis
State Affairs
2/22/1999
As Filed


DIGEST 

Currently, the Senate State Affairs Committee's Interim Report recommends
that training of  a property owners' association board member is essential
to insure proper administration of property owners' association bylaws and
that members should not be indemnified for their actions unless they meet
certain training criteria.  This bill would require the training and
indemnification of board members of a property owners' association and
requires the attorney general to adopt rules establishing minimum standards
for the training of board members of a property owners' association. 

PURPOSE

As proposed, S.B. 490 requires the establishment of a training program for
board members of a property owners' association, and requires the board
members' completion of the program. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the attorney general in SECTION 1
(Section 202.009(a), Property Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 202, Property Code, by adding Section 202.009, as
follows: 

Sec. 202.009. BOARD MEMBER TRAINING; INDEMNIFICATION. Requires the attorney
general to adopt rules establishing standards for the training of board
members of a property owners' association. Requires board members to attend
the training program within six months after assuming the duties of the
board.  Prohibits a property owners' association from indemnifying a board
member for liability imposed as damages unless the board member has
completed the training program.  

SECTION 2. Effective date: January 1, 2000.  Requires the attorney general
to adopt rules as required by Section 202.009(a) no later than December 1,
1999. 

SECTION 3. Emergency clause.