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.