81R6293 PMO-F

By: Turner of Harris H.B. No. 3128

A BILL TO BE ENTITLED

AN ACT

relating to service of process or notices by a municipality with a population of more than 1.9 million on certain condominiums.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 82.055, Property Code, is amended to read as follows:

Sec. 82.055. CONTENTS OF DECLARATION FOR ALL CONDOMINIUMS. The declaration for a condominium must contain:

(1) the name of the condominium, which must include the word "condominium" or be followed by the words "a condominium" or a phrase that includes the word "condominium," and the name of the association;

(2) the name of each county in which any part of the condominium is located;

(3) a legally sufficient description of the real property included in the condominium;

(4) a description of the boundaries of each unit created by the declaration, including the unit's identifying number;

(5) a statement of the maximum number of units that the declarant reserves the right to create;

(6) a description of the limited common elements other than those listed in Sections 82.052(2) and (4);

(7) a description of any real property, except real property subject to development rights, that may be allocated subsequently as limited common elements, together with a statement that the property may be so allocated;

(8) an allocation to each unit of its allocated interests;

(9) any restrictions on use, occupancy, or alienation of the units;

(10) a description of and the recording data for recorded easements and licenses appurtenant to or included in the condominium or to which any portion of the condominium is or may become subject by reservation in the declaration;

(11) the method of amending the declaration;

(12) a plat or plan or the recording data of a plat or plan that has been recorded in the real property or condominium plat records;

(13) a statement of the association's obligation under Section 82.111(i) to rebuild or repair any part of the condominium after a casualty or any other disposition of the proceeds of a casualty insurance policy;

(14) a description of any development rights and other special declarant rights reserved by the declarant, together with a legally sufficient description of the real property to which each of those rights applies, and a time limit within which each of those rights must be exercised;

(15) if any development right may be exercised with respect to different parcels of real property at different times, a statement to that effect, together with:

(A) either a statement fixing the boundaries of those portions and regulating the order in which those portions may be subjected to the exercise of each development right, or a statement that no assurances are made in those regards; and

(B) a statement as to whether, if any development right is exercised in any portion of the real property subject to that development right, that development right must be exercised in all or in any other portion of the remainder of that real property;

(16) the name, physical address, and mailing address of the registered agent for service of process for any condominium located in a municipality with a population of more than 1.9 million;

(17) all matters required by this chapter to be stated in the declaration; and

(18) [(17)] any other matters the declarant considers appropriate.

SECTION 2. Subchapter B, Chapter 82, Property Code, is amended by adding Section 82.0551 to read as follows:

Sec. 82.0551. ALTERNATE AGENT FOR SERVICE OF PROCESS. The secretary of state is the agent for service of process for an association that fails to comply with Section 82.055(16).

SECTION 3. Section 82.116, Property Code, is amended by amending Subsections (a) and (b) and adding Subsection (d) to read as follows:

(a) An association shall record in each county in which any portion of the condominium is located a certificate, signed and acknowledged by an officer of the association, stating:

(1) the name of the condominium;

(2) the name of the association;

(3) the location of the condominium;

(4) the recording data for the declaration;

(5) the mailing address of the association, or the name and mailing address of the person or entity managing the association; [and]

(6) the name, physical address, and mailing address of the registered agent for service of process for any condominium located in a municipality with a population of more than 1.9 million; and

(7) other information the association considers appropriate.

(b) The association shall record a management certificate not later than the 30th day after the date the association has notice of a change in any information in a recorded certificate required by Subsection (a) [Subdivisions (a)(1)-(5)].

(d) The secretary of state is the agent for service of process for an association that fails to comply with Subsection (a)(6).

SECTION 4. Section 54.035, Local Government Code, is amended by amending Subsections (a), (d), (e), and (f) and adding Subsection (a-1) to read as follows:

(a) Except as provided in Subsection (a-1), notice [Notice] of all proceedings before the commission panels must be given:

(1) by personal delivery, by certified mail with return receipt requested, or by delivery by the United States Postal Service using signature confirmation service, to the record owners of the affected property, and each holder of a recorded lien against the affected property, as shown by the records in the office of the county clerk of the county in which the affected property is located if the address of the lienholder can be ascertained from the deed of trust establishing the lien or [and/or] other applicable instruments on file in the office of the county clerk; and

(2) to all unknown owners, by posting a copy of the notice on the front door of each improvement situated on the affected property or as close to the front door as practicable.

(a-1) Notice of all proceedings relating to a condominium as defined by Section 81.002 or 82.003, Property Code, before the commission panels must be given by personal delivery, by certified mail with return receipt requested, or by delivery by the United States Postal Service using signature confirmation service, to the registered agent for service of process identified under Section 82.116, Property Code.

(d) A municipality must exercise due diligence to determine the identity and address of a property owner, [or] lienholder, or registered agent to whom the municipality is required to give notice.

(e) A municipality exercises due diligence in determining the identity and address of a property owner, [or] lienholder, or registered agent when it searches the following records:

(1) county real property records of the county in which the property is located;

(2) appraisal district records of the appraisal district in which the property is located;

(3) records of the secretary of state, if the property owner, [or] lienholder, or registered agent is a corporation, partnership, or other business association;

(4) assumed name records of the county in which the property is located;

(5) tax records of the municipality; and

(6) utility records of the municipality.

(f) When a municipality mails a notice in accordance with this section to a property owner, [or] lienholder, or registered agent and the United States Postal Service returns the notice as "refused" or "unclaimed," the validity of the notice is not affected, and the notice is considered delivered.

SECTION 5. Section 214.001, Local Government Code, is amended by amending Subsections (b) and (r) and adding Subsection (b-1) to read as follows:

(b) The ordinance must:

(1) establish minimum standards for the continued use and occupancy of all buildings regardless of the date of their construction;

(2) subject to Subsection (b-1), provide for giving proper notice to the owner of a building; and

(3) provide for a public hearing to determine whether a building complies with the standards set out in the ordinance.

(b-1) In the case of a condominium, as defined by Section 81.002 or 82.003, Property Code, located in a municipality with a population of more than 1.9 million, providing notice to the registered agent for service of process identified under Section 82.116, Property Code, satisfies the notice requirement under this section.

(r) When a municipality mails a notice in accordance with this section to a property owner, lienholder, [or] mortgagee, or registered agent identified under Section 82.116, Property Code, and the United States Postal Service returns the notice as "refused" or "unclaimed," the validity of the notice is not affected, and the notice is considered delivered.

SECTION 6. (a) The change in law made by this Act to Section 82.055, Property Code, applies to a condominium for which a declaration is recorded on or after September 1, 2009.

(b) Not later than November 1, 2009, a condominium association shall file an amended management certificate providing the name and addresses of the registered agent for service of process as required by Section 82.116, Property Code, as amended by this Act.

SECTION 7. This Act takes effect September 1, 2009.