By Ellis                                               S.B. No. 490
         76R3656 MLS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the training and indemnification of board members of a
 1-3     property owners' association.
 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 202.009 to read as follows:
 1-7           Sec. 202.009.  BOARD MEMBER TRAINING; INDEMNIFICATION.  (a)
 1-8     The attorney general shall adopt rules establishing minimum
 1-9     standards for the training of board members of a property owners'
1-10     association.
1-11           (b)  Each board member of a property owners' association
1-12     shall attend a training program that meets the standards developed
1-13     under Subsection (a)  not later than six months after assuming the
1-14     duties of the board.
1-15           (c)  A property owners' association may not indemnify a board
1-16     member for liability imposed as damages because of an act, error,
1-17     or omission committed in the individual's capacity as a board
1-18     member unless the board member has completed a training program as
1-19     required by Subsection (b).
1-20           SECTION 2.  This Act takes effect January 1, 2000, except
1-21     that the attorney general shall adopt rules as required by Section
1-22     202.009(a), Property Code, as added by this Act, not later than
1-23     December 1, 1999.
1-24           SECTION 3.  The importance of this legislation and the
 2-1     crowded condition of the calendars in both houses create an
 2-2     emergency and an imperative public necessity that the
 2-3     constitutional rule requiring bills to be read on three several
 2-4     days in each house be suspended, and this rule is hereby suspended.