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.