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A BILL TO BE ENTITLED
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AN ACT
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relating to condominium association records and meetings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 81.209(b), Property Code, is amended to |
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read as follows: |
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(b) Notwithstanding a provision in a declaration, master |
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deed, or master lease, the books and records of a condominium |
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regime, including [The] accounts and supporting vouchers and any |
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other financial records, [of a condominium regime] shall be made |
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available to the apartment owners in accordance with Section |
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81.2091 [for examination on working days at convenient,
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established, and publicly announced hours]. |
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SECTION 2. Subchapter C, Chapter 81, Property Code, is |
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amended by adding Sections 81.2091 and 81.2092 to read as follows: |
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Sec. 81.2091. AVAILABILITY AND RETENTION OF RECORDS. (a) |
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This section applies to all condominium regimes and controls over |
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other law not specifically applicable to a condominium regime. |
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(b) A condominium regime's council of owners shall make the |
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books and records of the council, including financial records, open |
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to and reasonably available for examination by an apartment owner, |
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or a person designated in a writing signed by the owner as the |
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owner's agent, attorney, or certified public accountant, in |
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accordance with this section. An owner is entitled to obtain from |
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the council copies of information contained in the books and |
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records. |
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(c) Except as provided by this subsection, an attorney's |
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files and records relating to the council of owners are not records |
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of the council and are not subject to inspection by an apartment |
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owner or production in a legal proceeding. If a document in an |
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attorney's files and records relating to the council would be |
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responsive to a legally authorized request to inspect or copy |
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council documents, the document shall be produced by using the copy |
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from the attorney's files and records if the council has not |
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maintained a separate copy of the document. This subsection does |
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not require production of a document that constitutes attorney work |
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product or that is privileged as an attorney-client communication. |
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(d) An apartment owner or the owner's authorized |
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representative described by Subsection (b) must submit a written |
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request for access or information under Subsection (b) by certified |
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mail, with sufficient detail describing the council of owners' |
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books and records requested, to the mailing address of the council |
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or the council's authorized representative. The request must |
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contain an election either to inspect the books and records before |
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obtaining copies or to have the council forward copies of the |
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requested books and records and: |
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(1) if an inspection is requested, the council, on or |
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before the 10th business day after the date the council receives the |
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request, shall send written notice of dates during normal business |
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hours that the owner may inspect the requested books and records to |
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the extent those books and records are in the possession, custody, |
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or control of the council; or |
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(2) if copies of identified books and records are |
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requested, the council shall, to the extent those books and records |
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are in the possession, custody, or control of the council, produce |
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the requested books and records for the requesting party on or |
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before the 10th business day after the date the council receives the |
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request, except as otherwise provided by this section. |
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(e) If the council of owners is unable to produce the books |
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or records requested under Subsection (d) on or before the 10th |
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business day after the date the council receives the request, the |
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council must provide to the requestor written notice that: |
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(1) informs the requestor that the council is unable |
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to produce the information on or before the 10th business day after |
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the date the council received the request; and |
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(2) states a date by which the information will be sent |
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or made available for inspection to the requesting party that is not |
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later than the 15th business day after the date notice under this |
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subsection is given. |
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(f) If an inspection is requested or required, the |
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inspection shall take place at a mutually agreed on time during |
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normal business hours, and the requesting party shall identify the |
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books and records for the council of owners to copy and forward to |
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the requesting party. |
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(g) A council of owners may produce books and records |
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requested under this section in hard copy, electronic, or other |
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format reasonably available to the council. |
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(h) A council of owners must adopt a records production and |
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copying policy that prescribes the costs the council will charge |
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for the compilation, production, and reproduction of information |
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requested under this section. The prescribed charges may include |
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all reasonable costs of materials, labor, and overhead but may not |
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exceed costs that would be applicable for an item under 1 T.A.C. |
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Section 70.3. The policy required by this subsection must be |
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recorded as a dedicatory instrument in accordance with Section |
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202.006. A council of owners may not charge an apartment owner for |
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the compilation, production, or reproduction of information |
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requested under this section unless the policy prescribing those |
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costs has been recorded as required by this subsection. An owner is |
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responsible for costs related to the compilation, production, and |
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reproduction of the requested information in the amounts prescribed |
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by the policy adopted under this subsection. The council may |
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require advance payment of the estimated costs of compilation, |
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production, and reproduction of the requested information. If the |
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estimated costs are lesser or greater than the actual costs, the |
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council shall submit a final invoice to the owner on or before the |
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30th business day after the date the information is delivered. If |
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the final invoice includes additional amounts due from the owner, |
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the additional amounts, if not reimbursed to the council before the |
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30th business day after the date the invoice is sent to the owner, |
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may be added to the owner's account as an assessment. If the |
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estimated costs exceeded the final invoice amount, the owner is |
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entitled to a refund, and the refund shall be issued to the owner |
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not later than the 30th business day after the date the invoice is |
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sent to the owner. |
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(i) A council of owners must estimate costs under this |
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section using amounts prescribed by the policy adopted under |
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Subsection (h). |
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(j) Except as provided by Subsection (k) and to the extent |
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the information is provided in the meeting minutes, the council of |
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owners is not required to release or allow inspection of any books |
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or records that identify violation history of an individual |
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apartment owner, an owner's personal financial information, |
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including records of payment or nonpayment of amounts due the |
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council, an owner's contact information, other than the owner's |
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address, or information related to an employee of the council, |
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including personnel files. Information may be released in an |
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aggregate or summary manner that would not identify an individual |
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property owner. |
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(k) The books and records described by Subsection (j) shall |
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be released or made available for inspection if: |
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(1) the express written approval of the apartment |
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owner whose records are the subject of the request for inspection is |
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provided to the council of owners; or |
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(2) a court orders the release of the books and records |
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or orders that the books and records be made available for |
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inspection. |
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(l) A council of owners of a condominium regime composed of |
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more than 14 apartments shall adopt and comply with a document |
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retention policy that includes, at a minimum, the following |
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requirements: |
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(1) certificates of formation, bylaws, restrictive |
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covenants, including a declaration, master deed, or master lease, |
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and all amendments to those instruments shall be retained |
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permanently; |
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(2) financial books and records shall be retained for |
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seven years; |
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(3) account records of current apartment owners shall |
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be retained for five years; |
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(4) contracts with a term of one year or more shall be |
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retained for four years after the expiration of the contract term; |
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(5) minutes of meetings of the council of owners or the |
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council's board of administration shall be retained for seven |
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years; and |
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(6) tax returns and audit records shall be retained |
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for seven years. |
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(m) A member of a council of owners who is denied access to |
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or copies of council books or records to which the member is |
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entitled under this section may file a petition with the justice of |
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the peace of a justice precinct in which all or part of the property |
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that is included in the condominium regime is located requesting |
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relief in accordance with this subsection. If the justice of the |
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peace finds that the member is entitled to access to or copies of |
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the records, the justice of the peace may grant one or more of the |
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following remedies: |
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(1) a judgment ordering the council to release or |
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allow access to the books or records; |
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(2) a judgment against the council for court costs and |
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attorney's fees incurred in connection with seeking a remedy under |
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this section; or |
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(3) a judgment authorizing the apartment owner or the |
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owner's assignee to deduct the amounts awarded under Subdivision |
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(2) from any future regular or special assessments payable to the |
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council. |
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(n) If the council of owners prevails in an action under |
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Subsection (m), the council is entitled to a judgment for court |
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costs and attorney's fees incurred by the council in connection |
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with the action. |
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(o) On or before the 10th business day before the date a |
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person brings an action against a council of owners under this |
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section, the person must send written notice to the council of the |
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person's intent to bring the action. The notice must: |
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(1) be sent certified mail, return receipt requested, |
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or delivered by the United States Postal Service with signature |
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confirmation service to the mailing address of the council or the |
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council's authorized representative; and |
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(2) describe with sufficient detail the books and |
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records being requested. |
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(p) A council of owners may not foreclose an assessment lien |
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if the debt securing the lien consists solely of amounts added to |
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the apartment owner's account as an assessment under Subsection |
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(h). |
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(q) For the purposes of this section, "business day" means a |
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day other than Saturday, Sunday, or a state or federal holiday. |
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Sec. 81.2092. MEETINGS. (a) In this section: |
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(1) "Board" means the board of directors or the body, |
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regardless of name, designated to act on behalf of the council of |
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owners. |
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(2) "Board meeting": |
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(A) means a deliberation between a quorum of the |
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voting board of the council of owners, or between a quorum of the |
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voting board and another person, during which council business is |
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considered and the board takes formal action; and |
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(B) does not include the gathering of a quorum of |
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the board at a social function unrelated to the business of the |
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council or the attendance by a quorum of the board at a regional, |
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state, or national convention, ceremonial event, or press |
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conference, if formal action is not taken and any discussion of |
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council business is incidental to the social function, convention, |
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ceremonial event, or press conference. |
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(b) Meetings of the council of owners must be held at least |
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once each year. Unless the declaration provides otherwise, special |
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meetings of the council may be called by the president, a majority |
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of the board, or apartment owners having at least 20 percent of the |
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votes in the council. |
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(c) Meetings of the council and regular and special board |
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meetings must be open to apartment owners, subject to the right of |
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the board to adjourn a meeting of the board and reconvene in closed |
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executive session to consider actions involving personnel, pending |
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or threatened litigation, contract negotiations, enforcement |
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actions, confidential communications with the council's attorney, |
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matters involving the invasion of privacy of individual apartment |
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owners, or matters that are to remain confidential by request of the |
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affected parties and agreement of the board. Following an |
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executive session, any decision made in the executive session must |
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be summarized orally and placed in the minutes, in general terms, |
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without breaching the privacy of individual owners, violating any |
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privilege, or disclosing information that was to remain |
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confidential at the request of the affected parties. The oral |
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summary must include a general explanation of expenditures approved |
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in executive session. |
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(d) Except for a meeting held by electronic or telephonic |
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means under Subsection (i), a board meeting must be held in a county |
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in which all or part of the condominium is located or in a county |
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adjacent to that county. |
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(e) The board shall keep a record of each regular or special |
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board meeting in the form of written minutes of the meeting. The |
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board shall make meeting records, including approved minutes, |
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available to a member of the council of owners for inspection and |
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copying on the member's written request to the council's managing |
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agent at the address appearing on the most recently filed |
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management certificate or, if there is not a managing agent, to the |
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board. |
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(f) Members of the council of owners shall be given notice |
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of the date, hour, place, and general subject of a regular or |
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special board meeting, including a general description of any |
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matter to be brought up for deliberation in executive session. The |
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notice shall be: |
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(1) mailed to each apartment owner not later than the |
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10th day or earlier than the 60th day before the date of the |
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meeting; or |
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(2) provided at least 72 hours before the start of the |
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meeting by: |
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(A) posting the notice in a conspicuous manner |
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reasonably designed to provide notice to council members: |
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(i) in a place located on the condominium |
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regime's common property or, with the property owner's consent, on |
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other conspicuously located privately owned property within the |
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condominium regime; or |
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(ii) on any Internet website maintained by |
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the council or other Internet media; and |
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(B) sending the notice by e-mail to each owner |
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who has registered an e-mail address with the council. |
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(g) It is an owner's duty to keep an updated e-mail address |
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registered with the council under Subsection (f)(2)(B). |
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(h) If the board recesses a regular or special board meeting |
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to continue the following regular business day, the board is not |
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required to post notice of the continued meeting if the recess is |
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taken in good faith and not to circumvent this section. If a |
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regular or special board meeting is continued to the following |
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regular business day, and on that following day the board continues |
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the meeting to another day, the board shall give notice of the |
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continuation in at least one manner prescribed by Subsection |
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(f)(2)(A) within two hours after adjourning the meeting being |
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continued. |
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(i) A board may meet by any method of communication, |
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including electronic and telephonic, without prior notice to |
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apartment owners under Subsection (f), if each board member may |
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hear and be heard by every other board member, or the board may take |
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action by unanimous written consent to consider routine and |
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administrative matters or a reasonably unforeseen emergency or |
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urgent necessity that requires immediate board action. Any action |
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taken without notice to owners under Subsection (f) must be |
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summarized orally, including an explanation of any known actual or |
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estimated expenditures approved at the meeting, and documented in |
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the minutes of the next regular or special board meeting. The board |
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may not, without prior notice to owners under Subsection (f), |
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consider or vote on: |
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(1) fines; |
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(2) damage assessments; |
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(3) initiation of foreclosure actions; |
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(4) initiation of enforcement actions, excluding |
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temporary restraining orders or violations involving a threat to |
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health or safety; |
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(5) increases in assessments; |
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(6) levying of special assessments; |
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(7) appeals from a denial of architectural control |
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approval; or |
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(8) a suspension of a right of a particular council |
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member before the member has an opportunity to attend a board |
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meeting to present the member's position, including any defense, on |
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the issue. |
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(j) Notice of a meeting of the council of owners must be |
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given as provided by the bylaws, or, if the bylaws do not provide |
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for notice, notice must be given to each apartment owner in the same |
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manner in which notice of a board meeting is given to members under |
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this section. |
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SECTION 3. Section 82.108, Property Code, is amended to |
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read as follows: |
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Sec. 82.108. MEETINGS. (a) In this section: |
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(1) "Board meeting": |
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(A) means a deliberation between a quorum of the |
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voting board of the association, or between a quorum of the voting |
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board and another person, during which association business is |
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considered and the board takes formal action; and |
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(B) does not include the gathering of a quorum of |
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the board at a social function unrelated to the business of the |
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association or the attendance by a quorum of the board at a |
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regional, state, or national convention, ceremonial event, or press |
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conference, if formal action is not taken and any discussion of |
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association business is incidental to the social function, |
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convention, ceremonial event, or press conference. |
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(2) "Development period" means a period of declarant |
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control described by Section 82.103(c). |
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(b) Meetings of the association must be held at least once |
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each year. Unless the declaration provides otherwise, special |
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meetings of the association may be called by the president, a |
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majority of the board, or unit owners having at least 20 percent of |
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the votes in the association. |
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(c) [(b)] Meetings of the association and regular and |
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special board meetings must be open to unit owners, subject to the |
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right of the board to adjourn a meeting of the board and reconvene |
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in closed executive session to consider actions involving |
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personnel, pending or threatened litigation, contract |
|
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negotiations, enforcement actions, confidential communications |
|
|
with the association's attorney, matters involving the invasion of |
|
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privacy of individual unit owners, or matters that are to remain |
|
|
confidential by request of the affected parties and agreement of |
|
|
the board. Following an executive session, any decision made in the |
|
|
executive session must be summarized orally and placed in the |
|
|
minutes, in general terms, without breaching the privacy of |
|
|
individual owners, violating any privilege, or disclosing |
|
|
information that was to remain confidential at the request of the |
|
|
affected parties. The oral summary must include a general |
|
|
explanation of expenditures approved in executive session. |
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(d) Except for a meeting held by electronic or telephonic |
|
|
means under Subsection (i), a board meeting must be held in a county |
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in which all or part of the condominium is located or in a county |
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|
adjacent to that county. |
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|
(e) The board shall keep a record of each regular or special |
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|
board meeting in the form of written minutes of the meeting. The |
|
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board shall make meeting records, including approved minutes, |
|
|
available to a member for inspection and copying on the member's |
|
|
written request to the association's managing agent at the address |
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|
appearing on the most recently filed management certificate or, if |
|
|
there is not a managing agent, to the board. |
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(f) Members shall be given notice of the date, hour, place, |
|
|
and general subject of a regular or special board meeting, |
|
|
including a general description of any matter to be brought up for |
|
|
deliberation in executive session. The notice shall be: |
|
|
(1) mailed to each unit owner not later than the 10th |
|
|
day or earlier than the 60th day before the date of the meeting; or |
|
|
(2) provided at least 72 hours before the start of the |
|
|
meeting by: |
|
|
(A) posting the notice in a conspicuous manner |
|
|
reasonably designed to provide notice to association members: |
|
|
(i) in a place located on the association's |
|
|
common property or, with the property owner's consent, on other |
|
|
conspicuously located privately owned property within the |
|
|
condominium regime; or |
|
|
(ii) on any Internet website maintained by |
|
|
the association or other Internet media; and |
|
|
(B) sending the notice by e-mail to each owner |
|
|
who has registered an e-mail address with the association. |
|
|
(g) It is an owner's duty to keep an updated e-mail address |
|
|
registered with the association under Subsection (f)(2)(B). |
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(h) If the board recesses a regular or special board meeting |
|
|
to continue the following regular business day, the board is not |
|
|
required to post notice of the continued meeting if the recess is |
|
|
taken in good faith and not to circumvent this section. If a |
|
|
regular or special board meeting is continued to the following |
|
|
regular business day, and on that following day the board continues |
|
|
the meeting to another day, the board shall give notice of the |
|
|
continuation in at least one manner prescribed by Subsection |
|
|
(f)(2)(A) within two hours after adjourning the meeting being |
|
|
continued. |
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(i) A [The general nature of any business to be considered
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in executive session must first be announced at the open meeting.
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[(c)
Unless the declaration, bylaws, or articles of
|
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|
incorporation of the association provide otherwise:
|
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[(1) a meeting of the] board may meet [be held] by any |
|
|
method of communication, including electronic and telephonic, |
|
|
without prior notice to owners under Subsection (f), if[:
|
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|
[(A)
notice of the meeting has been given in
|
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|
accordance with Subsection (e);
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[(B)] each director may hear and be heard by |
|
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every other director, or [; and
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|
[(C)
the meeting does not involve voting on a
|
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fine, damage assessment, appeal from a denial of architectural
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|
control approval, or suspension of a right of a particular
|
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|
association member before the member has an opportunity to attend a
|
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|
board meeting to present the member's position, including any
|
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|
defense, on the issue; and
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|
[(2)] the board may take action [act] by unanimous |
|
|
written consent to consider routine and administrative matters or a |
|
|
reasonably unforeseen emergency or urgent necessity that requires |
|
|
immediate board action. Any action taken without notice to owners |
|
|
under Subsection (f) must be summarized orally, including an |
|
|
explanation of any known actual or estimated expenditures approved |
|
|
at the meeting, and documented in the minutes of the next regular or |
|
|
special board meeting. The board may not [of all the directors], |
|
|
without prior notice to owners under Subsection (f), consider or |
|
|
vote on [a meeting, if]: |
|
|
(1) fines; |
|
|
(2) [(A)
the board action does not involve voting on
|
|
|
a fine,] damage assessments; |
|
|
(3) initiation of foreclosure actions; |
|
|
(4) initiation of enforcement actions, excluding |
|
|
temporary restraining orders or violations involving a threat to |
|
|
health or safety; |
|
|
(5) increases in assessments; |
|
|
(6) levying of special assessments; |
|
|
(7) appeals [assessment, appeal] from a denial of |
|
|
architectural control approval; [,] or |
|
|
(8) a suspension of a right of a particular |
|
|
association member before the member has an opportunity to attend a |
|
|
board meeting to present the member's position, including any |
|
|
defense, on the issue[; and
|
|
|
[(B)
a record of the board action is filed with
|
|
|
the minutes of board meetings]. |
|
|
(j) [(d)] Notice of a meeting of the association must be |
|
|
given as provided by the bylaws, or, if the bylaws do not provide |
|
|
for notice, notice must be given to each unit owner in the same |
|
|
manner in which notice of a board meeting is given under this |
|
|
section [to members of a nonprofit corporation under Section A,
|
|
|
Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11,
|
|
|
Vernon's Texas Civil Statutes)]. |
|
|
(k) This section applies to a meeting of an association |
|
|
board during the development period only if the meeting is |
|
|
conducted for the purpose of: |
|
|
(1) adopting or amending the governing documents, |
|
|
including declarations, bylaws, rules, and regulations of the |
|
|
association; |
|
|
(2) increasing the amount of regular assessments of |
|
|
the association or adopting or increasing a special assessment; |
|
|
(3) electing non-developer board members of the |
|
|
association or establishing a process by which those members are |
|
|
elected; or |
|
|
(4) changing the voting rights of members of the |
|
|
association. |
|
|
[(e)
Notice of a meeting of the board must be given as
|
|
|
provided by the bylaws, or, if the bylaws do not provide for notice,
|
|
|
notice must be given to each board member in the same manner in
|
|
|
which notice is given to members of the board of a nonprofit
|
|
|
corporation under Section B, Article 2.19, Texas Non-Profit
|
|
|
Corporation Act (Article 1396-2.19, Vernon's Texas Civil
|
|
|
Statutes).
|
|
|
[(f)
An association, on the written request of a unit owner,
|
|
|
shall inform the unit owner of the time and place of the next
|
|
|
regular or special meeting of the board. If the association
|
|
|
representative to whom the request is made does not know the time
|
|
|
and place of the meeting, the association promptly shall obtain the
|
|
|
information and disclose it to the unit owner or inform the unit
|
|
|
owner where the information may be obtained.] |
|
|
SECTION 4. Section 82.114(b), Property Code, is amended to |
|
|
read as follows: |
|
|
(b) Notwithstanding a provision in a declaration, the books |
|
|
and records of the association, including [All] financial [and
|
|
|
other] records, [of the association] shall be made [reasonably] |
|
|
available to the unit owners in accordance with Section 82.1141 [at
|
|
|
its registered office or its principal office in this state for
|
|
|
examination by a unit owner and the owner's agents. An attorney's
|
|
|
files and records relating to the association are not records of the
|
|
|
association and are not subject to inspection by unit owners or
|
|
|
production in a legal proceeding]. |
|
|
SECTION 5. Subchapter C, Chapter 82, Property Code, is |
|
|
amended by adding Section 82.1141 to read as follows: |
|
|
Sec. 82.1141. AVAILABILITY AND RETENTION OF RECORDS. (a) |
|
|
This section applies to all condominium unit owners' associations |
|
|
and controls over other law not specifically applicable to a |
|
|
condominium unit owners' association. |
|
|
(b) Notwithstanding a provision in a declaration, an |
|
|
association shall make the books and records of the association, |
|
|
including financial records, open to and reasonably available for |
|
|
examination by a unit owner, or a person designated in a writing |
|
|
signed by the owner as the owner's agent, attorney, or certified |
|
|
public accountant, in accordance with this section. An owner is |
|
|
entitled to obtain from the association copies of information |
|
|
contained in the books and records. |
|
|
(c) Except as provided by this subsection, an attorney's |
|
|
files and records relating to the association are not records of the |
|
|
association and are not subject to inspection by a unit owner or |
|
|
production in a legal proceeding. If a document in an attorney's |
|
|
files and records relating to the association would be responsive |
|
|
to a legally authorized request to inspect or copy association |
|
|
documents, the document shall be produced by using the copy from the |
|
|
attorney's files and records if the association has not maintained |
|
|
a separate copy of the document. This subsection does not require |
|
|
production of a document that constitutes attorney work product or |
|
|
that is privileged as an attorney-client communication. |
|
|
(d) A unit owner or the owner's authorized representative |
|
|
described by Subsection (b) must submit a written request for |
|
|
access or information under Subsection (b) by certified mail, with |
|
|
sufficient detail describing the association's books and records |
|
|
requested, to the mailing address of the association or authorized |
|
|
representative as reflected on the most current management |
|
|
certificate filed under Section 82.116. The request must contain |
|
|
an election either to inspect the books and records before |
|
|
obtaining copies or to have the association forward copies of the |
|
|
requested books and records and: |
|
|
(1) if an inspection is requested, the association, on |
|
|
or before the 10th business day after the date the association |
|
|
receives the request, shall send written notice of dates during |
|
|
normal business hours that the owner may inspect the requested |
|
|
books and records to the extent those books and records are in the |
|
|
possession, custody, or control of the association; or |
|
|
(2) if copies of identified books and records are |
|
|
requested, the association shall, to the extent those books and |
|
|
records are in the possession, custody, or control of the |
|
|
association, produce the requested books and records for the |
|
|
requesting party on or before the 10th business day after the date |
|
|
the association receives the request, except as otherwise provided |
|
|
by this section. |
|
|
(e) If the association is unable to produce the books or |
|
|
records requested under Subsection (d) on or before the 10th |
|
|
business day after the date the association receives the request, |
|
|
the association must provide to the requestor written notice that: |
|
|
(1) informs the requestor that the association is |
|
|
unable to produce the information on or before the 10th business day |
|
|
after the date the association received the request; and |
|
|
(2) states a date by which the information will be sent |
|
|
or made available for inspection to the requesting party that is not |
|
|
later than the 15th business day after the date notice under this |
|
|
subsection is given. |
|
|
(f) If an inspection is requested or required, the |
|
|
inspection shall take place at a mutually agreed on time during |
|
|
normal business hours, and the requesting party shall identify the |
|
|
books and records for the association to copy and forward to the |
|
|
requesting party. |
|
|
(g) An association may produce books and records requested |
|
|
under this section in hard copy, electronic, or other format |
|
|
reasonably available to the association. |
|
|
(h) An association board must adopt a records production and |
|
|
copying policy that prescribes the costs the association will |
|
|
charge for the compilation, production, and reproduction of |
|
|
information requested under this section. The prescribed charges |
|
|
may include all reasonable costs of materials, labor, and overhead |
|
|
but may not exceed costs that would be applicable for an item under |
|
|
1 T.A.C. Section 70.3. The policy required by this subsection must |
|
|
be recorded as a dedicatory instrument in accordance with Section |
|
|
202.006. An association may not charge a unit owner for the |
|
|
compilation, production, or reproduction of information requested |
|
|
under this section unless the policy prescribing those costs has |
|
|
been recorded as required by this subsection. An owner is |
|
|
responsible for costs related to the compilation, production, and |
|
|
reproduction of the requested information in the amounts prescribed |
|
|
by the policy adopted under this subsection. The association may |
|
|
require advance payment of the estimated costs of compilation, |
|
|
production, and reproduction of the requested information. If the |
|
|
estimated costs are lesser or greater than the actual costs, the |
|
|
association shall submit a final invoice to the owner on or before |
|
|
the 30th business day after the date the information is delivered. |
|
|
If the final invoice includes additional amounts due from the |
|
|
owner, the additional amounts, if not reimbursed to the association |
|
|
before the 30th business day after the date the invoice is sent to |
|
|
the owner, may be added to the owner's account as an assessment. If |
|
|
the estimated costs exceeded the final invoice amount, the owner is |
|
|
entitled to a refund, and the refund shall be issued to the owner |
|
|
not later than the 30th business day after the date the invoice is |
|
|
sent to the owner. |
|
|
(i) An association must estimate costs under this section |
|
|
using amounts prescribed by the policy adopted under Subsection |
|
|
(h). |
|
|
(j) Except as provided by Subsection (k) and to the extent |
|
|
the information is provided in the meeting minutes, the association |
|
|
is not required to release or allow inspection of any books or |
|
|
records that identify the violation history of an individual unit |
|
|
owner, an owner's personal financial information, including |
|
|
records of payment or nonpayment of amounts due the association, an |
|
|
owner's contact information, other than the owner's address, or |
|
|
information related to an employee of the association, including |
|
|
personnel files. Information may be released in an aggregate or |
|
|
summary manner that would not identify an individual unit owner. |
|
|
(k) The books and records described by Subsection (j) shall |
|
|
be released or made available for inspection if: |
|
|
(1) the express written approval of the unit owner |
|
|
whose records are the subject of the request for inspection is |
|
|
provided to the association; or |
|
|
(2) a court orders the release of the books and records |
|
|
or orders that the books and records be made available for |
|
|
inspection. |
|
|
(l) An association composed of more than 14 units shall |
|
|
adopt and comply with a document retention policy that includes, at |
|
|
a minimum, the following requirements: |
|
|
(1) certificates of formation, bylaws, restrictive |
|
|
covenants, and all amendments to the certificates of formation, |
|
|
bylaws, and covenants shall be retained permanently; |
|
|
(2) financial books and records shall be retained for |
|
|
seven years; |
|
|
(3) account records of current unit owners shall be |
|
|
retained for five years; |
|
|
(4) contracts with a term of one year or more shall be |
|
|
retained for four years after the expiration of the contract term; |
|
|
(5) minutes of meetings of the unit owners and the |
|
|
board shall be retained for seven years; and |
|
|
(6) tax returns and audit records shall be retained |
|
|
for seven years. |
|
|
(m) A member of an association who is denied access to or |
|
|
copies of association books or records to which the member is |
|
|
entitled under this section may file a petition with the justice of |
|
|
the peace of a justice precinct in which all or part of the property |
|
|
that is governed by the association is located requesting relief in |
|
|
accordance with this subsection. If the justice of the peace finds |
|
|
that the member is entitled to access to or copies of the records, |
|
|
the justice of the peace may grant one or more of the following |
|
|
remedies: |
|
|
(1) a judgment ordering the association to release or |
|
|
allow access to the books or records; |
|
|
(2) a judgment against the association for court costs |
|
|
and attorney's fees incurred in connection with seeking a remedy |
|
|
under this section; or |
|
|
(3) a judgment authorizing the unit owner or the |
|
|
owner's assignee to deduct the amounts awarded under Subdivision |
|
|
(2) from any future regular or special assessments payable to the |
|
|
association. |
|
|
(n) If the association prevails in an action under |
|
|
Subsection (m), the association is entitled to a judgment for court |
|
|
costs and attorney's fees incurred by the association in connection |
|
|
with the action. |
|
|
(o) On or before the 10th business day before the date a |
|
|
person brings an action against an association under this section, |
|
|
the person must send written notice to the association of the |
|
|
person's intent to bring the action. The notice must: |
|
|
(1) be sent certified mail, return receipt requested, |
|
|
or delivered by the United States Postal Service with signature |
|
|
confirmation service to the mailing address of the association or |
|
|
authorized representative as reflected on the most current |
|
|
management certificate filed under Section 82.116; and |
|
|
(2) describe with sufficient detail the books and |
|
|
records being requested. |
|
|
(p) An association may not foreclose an assessment lien if |
|
|
the debt securing the lien consists solely of amounts added to the |
|
|
unit owner's account as an assessment under Subsection (h). |
|
|
(q) For the purposes of this section, "business day" means a |
|
|
day other than Saturday, Sunday, or a state or federal holiday. |
|
|
SECTION 6. (a) Sections 81.209(b) and 82.114(b), Property |
|
|
Code, as amended by this Act, and Sections 81.2091 and 82.1141, |
|
|
Property Code, as added by this Act, apply only with respect to |
|
|
information requested or sought on or after the effective date of |
|
|
this Act. Access to information requested or sought before the |
|
|
effective date of this Act is governed by the law in effect |
|
|
immediately before that date, and that law is continued in effect |
|
|
for that purpose. |
|
|
(b) The requirements of Sections 81.2091(l) and 82.1141(l), |
|
|
Property Code, as added by this Act, apply only with respect to |
|
|
books and records generated on or after the effective date of this |
|
|
Act. Books and records generated before the effective date of this |
|
|
Act are governed by the law applicable to the books and records |
|
|
immediately before the effective date of this Act, and that law is |
|
|
continued in effect for that purpose. |
|
|
SECTION 7. This Act takes effect January 1, 2014. |