By Ellis S.B. No. 318
76R3658 MLS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring use of an alternative dispute resolution
1-3 procedure to establish a property owners' association lien for
1-4 assessments.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 202, Property Code, is amended by adding
1-7 Section 202.006 to read as follows:
1-8 Sec. 202.006. ALTERNATIVE DISPUTE RESOLUTION REQUIRED TO
1-9 ESTABLISH LIEN FOR ASSESSMENTS. (a) Except as provided by
1-10 Subsection (b), a property owners' association may not file a lien
1-11 on real property for an assessment levied by the property owners'
1-12 association against the real property unless the association
1-13 submits to an alternative dispute resolution procedure to establish
1-14 the existence and amount of the debt owed.
1-15 (b) The property owners' association must provide written
1-16 notice to the property owner of its intention to initiate an
1-17 alternative dispute resolution procedure. The property owner shall
1-18 participate in the alternative dispute resolution procedure. If the
1-19 property owner refuses to participate in the alternative dispute
1-20 resolution procedure, the property owners' association is not
1-21 required to comply with this section.
1-22 (c) The property owners' association and the property owner
1-23 may agree on the type of alternative dispute resolution procedure.
1-24 If the parties fail to reach an agreement before the 30th day after
2-1 the date the property owners' association notifies the property
2-2 owner of its intention to initiate an alternative dispute
2-3 resolution procedure, either party may file a petition in a
2-4 district court in the county in which all or part of the property
2-5 is located requesting the court to refer the dispute to an
2-6 alternative dispute resolution procedure. The court shall refer the
2-7 dispute before the 31st day after the date the petition is filed.
2-8 (d) If the property owner agrees to be bound by the decision
2-9 reached in the alternative dispute resolution procedure, the cost
2-10 of the alternative dispute resolution procedure shall be paid by
2-11 the property owners' association.
2-12 SECTION 2. This Act takes effect September 1, 1999.
2-13 SECTION 3. The importance of this legislation and the
2-14 crowded condition of the calendars in both houses create an
2-15 emergency and an imperative public necessity that the
2-16 constitutional rule requiring bills to be read on three several
2-17 days in each house be suspended, and this rule is hereby suspended.