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.