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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of a property owner's association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 209, Property Code, is amended by adding |
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Sections 209.014 and 209.015 to read as follows: |
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Sec. 209.014. CONTRACT WITH MANAGEMENT COMPANY. (a) |
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Except as provided by Subsection (b), a property owners' |
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association or a person in privity with a property owners' |
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association may not contract with or compensate any person to |
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manage, enforce, or represent the association in connection with |
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enforcing restrictions, bylaws, rules, or guidelines. |
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(b) If expressly described in a budget approved by the |
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board, a property owners' association or a person in privity with a |
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property owners' association may pay a management company a flat |
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fee plus actual postage costs for enforcing all restrictions, |
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bylaws, rules, or guidelines, not involving the payment of |
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assessments, for the budget period. |
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Sec. 209.015. CONFLICTS OF INTEREST. A person who is a |
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member of the board of a property owners' association or related |
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within the third degree by consanguinity or within the second |
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degree by affinity to a member of the board may not be compensated |
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for providing legal representation or management services to the |
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association. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |