HBA-MSH H.B. 1423 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1423 By: Bailey Business & Industry 4/6/2001 Introduced BACKGROUND AND PURPOSE Disputes often arise between property owners and property owners' associations, and many of these disputes are resolved by civil litigation. Disputes may relate to deed restrictions or bylaws and regulations of the association. Many of these disputes could be resolved through a mediation process and costly hearings could be avoided. House Bill 1423 requires the mediation of certain disputes involving property owners' associations, and sets forth provisions for mediation. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1423 amends the Property Code relating to mandatory mediation for certain disputes involving a property owner and a property owners' association. The bill prohibits a person from filing such an action involving a property owners' association (association) unless the dispute resolution procedures of the property owners' association have been exhausted or the dispute has been submitted to mediation or the defendant has refused to participate in mediation or failed to respond to a notice of claim. The prohibition does not apply to an action for injunctive relief in which there is an immediate threat of irreparable harm or to an action relating to the title to residential property. (Secs. 209.002 and 209.003). The bill requires that a complaint filed involving an association must contain an affidavit stating that dispute resolution procedures or mediation have failed to resolve the complaint or that the defendant has refused to participate in mediation (Sec. 209.004). A person filing a claim relating to interpretation, application, or enforcement of a restriction or bylaw adopted by the association must serve a notice of the claim on each person against whom the claim is made (Sec. 209.005). The bill provides for the selection of a mediator by the parties involved in the complaint, or if necessary by a district court having jurisdiction (Sec. 209.006). The bill sets forth provisions regarding the proceedings, mediation, deadlines for completion, and the qualifications of a mediator (Secs. 209.007, and 209.008). The bill requires the mediator to provide a written statement after the completion of mediation specifying the agreement reached (Sec. 209.009). The person making the claim is responsible for all costs associated with mediation (Sec. 209.010). The bill provides that the statute of limitations on a claim is tolled during the mediation proceedings (Sec. 209.011). The bill also amends the Civil Practice and Remedies Code to update a statutory reference. EFFECTIVE DATE September 1, 2001.