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Amend CSHB 2120 (Senate committee report) by adding the 
following sections to the bill and renumbering subsequent sections 
accordingly:
	SECTION __.  Section 209.009, Property Code, is amended to 
read as follows:  
	Sec. 209.009.  FORECLOSURE SALE PROHIBITED IN CERTAIN 
CIRCUMSTANCES.  (a)  A property owners' association may not 
foreclose a property owners' association's assessment lien if the 
debt securing the lien consists solely of:
		(1)  fines assessed by the association; or                                    
		(2)  attorney's fees incurred by the association solely 
associated with fines assessed by the association.
	(b)  Unless otherwise provided in writing by the property 
owner, a payment received by a property owners' association from 
the owner shall be applied to the owner's debt in the following 
order of priority:
		(1)  any delinquent assessment;                                        
		(2)  any current assessment;                                           
		(3)  any fines assessed by the association; and                        
		(4)  any attorney's fees incurred by the association 
solely associated with fines assessed by the association.
	(c)  Subsection (b) does not apply to a payment received by a 
property owners' association if:
		(1)  membership in the property owners' association is 
mandatory for owners or for a defined class of owners of private 
real property in a defined geographic area in a county with a 
population of 3.3 million or more or in a county adjacent to a 
county with a population of 3.3 million or more;
		(2)  the property owners' association has the power to 
make mandatory special assessments for capital improvements or 
mandatory regular assessments; and
		(3)  the amount of the mandatory special or regular 
assessments is or has ever been based in whole or in part on the 
value at which the state or a local governmental body assesses the 
property for purposes of ad valorem taxation under Section 20, 
Article VIII, Texas Constitution.
	(d)  The county attorney or the district or county official 
authorized to initiate civil enforcement actions in the county may 
sue in a court of competent jurisdiction to enjoin or abate a 
violation of this section by a property owners' association.
	SECTION __.  The amendments to Section 209.009, Property 
Code, apply to a payment received by a property owners' association 
on or after the effective date of this Act.  A payment received 
before the effective date of this Act is governed by the law in 
effect when the payment was received, and the former law is 
continued in effect for that purpose.