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.