By Ellis                                               S.B. No. 489
         76R3445 MLS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to providing an informal method of dispute resolution for
 1-3     members of property owners' associations.
 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 202.010 to read as follows:
 1-7           Sec. 202.010.  HEARING BEFORE PROPERTY OWNERS' ASSOCIATION.
 1-8     (a)  A property owners' association shall establish a dispute
 1-9     resolution committee to conduct hearings on disputes relating to a
1-10     fine or penalty imposed on a property owner by the association.
1-11           (b)  A property owners' association shall adopt rules
1-12     relating to hearings conducted by a dispute resolution committee.
1-13     The rules must:
1-14                 (1)  provide a property owner with notice of a hearing
1-15     as provided by Rule 21a, Texas Rules of Civil Procedure;
1-16                 (2)  provide for the recording of a hearing by a court
1-17     reporter or by audio or video recording;
1-18                 (3)  require the property owners' association to retain
1-19     a record of a hearing for at least two years after the  date  of
1-20     the final determination of the matter in dispute; and
1-21                 (4)  allow a property owner to appeal the decision of
1-22     the dispute  resolution committee to the entire board of the
1-23     property owners' association before the association may institute
1-24     any legal proceeding, including an alternative dispute resolution
 2-1     procedure, relating to the fine or penalty in dispute.
 2-2           SECTION 2.  This Act takes effect September 1, 1999.
 2-3           SECTION 3.  The importance of this legislation and the
 2-4     crowded condition of the calendars in both houses create an
 2-5     emergency and an imperative public necessity that the
 2-6     constitutional rule requiring bills to be read on three several
 2-7     days in each house be suspended, and this rule is hereby suspended.