By Dutton H.B. No. 901 76R4457 PAM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring arbitration to establish a property owners' 1-3 association lien for assessments. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 202, Property Code, is amended by adding 1-6 Section 202.006 to read as follows: 1-7 Sec. 202.006. ARBITRATION REQUIRED TO ESTABLISH LIEN FOR 1-8 ASSESSMENTS. (a) Except as provided by Subsection (b), a property 1-9 owners' association may not file a lien on real property for an 1-10 assessment levied by the property owners' association against the 1-11 real property unless the association submits to binding arbitration 1-12 to establish the existence and amount of the debt owed. 1-13 (b) The property owners' association must provide written 1-14 notice by certified mail, return receipt requested, to the property 1-15 owner's last known mailing address, as reflected in the ownership 1-16 records maintained by the property owners' association, of its 1-17 intention to initiate arbitration proceedings. Not later than the 1-18 10th day after the date the property owner receives the notice, the 1-19 property owner shall notify the property owners' association as to 1-20 whether the property owner intends to or refuses to participate in 1-21 the arbitration proceedings. If the property owner refuses to 1-22 participate in the arbitration proceedings or fails to provide the 1-23 notice to the property owners' association within the 10-day 1-24 period, the property owners' association is not required to comply 2-1 with this section. 2-2 (c) The property owners' association and the property owner 2-3 may agree on the appointment of an arbitrator. If the parties fail 2-4 to reach an agreement before the 30th day after the date the 2-5 property owners' association notifies the property owner of its 2-6 intention to initiate arbitration proceedings, either party may 2-7 file a petition in a district court in the county in which all or 2-8 part of the property is located requesting the court to appoint a 2-9 qualified person to serve as arbitrator. The court shall appoint 2-10 an arbitrator before the 31st day after the date the petition is 2-11 filed. 2-12 (d) The cost of arbitration shall be paid as provided by the 2-13 arbitrator. 2-14 SECTION 2. This Act takes effect September 1, 1999. 2-15 SECTION 3. The importance of this legislation and the 2-16 crowded condition of the calendars in both houses create an 2-17 emergency and an imperative public necessity that the 2-18 constitutional rule requiring bills to be read on three several 2-19 days in each house be suspended, and this rule is hereby suspended.