87R3381 MWC-D
 
  By: Huffman S.B. No. 318
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the records of certain condominium unit owners'
  associations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 82.114(b), Property Code, is amended to
  read as follows:
         (b)  All financial and other records of the association shall
  be reasonably available at its registered office or its principal
  office in this state for examination and production in accordance
  with Section 82.1141 [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 2.  Subchapter C, Chapter 82, Property Code, is
  amended by adding Section 82.1141 to read as follows:
         Sec. 82.1141.  ACCESS TO ASSOCIATION RECORDS. (a) This
  section applies to all associations governed by this chapter and
  controls over other law not specifically applicable to an
  association.
         (b)  Notwithstanding a provision in a dedicatory instrument,
  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 unit owner as the unit owner's agent, attorney, or
  certified public accountant, in accordance with this section. A
  unit 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, excluding invoices
  requested by a unit owner for attorney's fees and other costs
  relating only to a matter for which the association seeks
  reimbursement of fees and costs, are not records of the association
  and are not subject to inspection by the 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 unit 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 unit 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. A unit 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 unit 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 unit owner, the additional amounts, if not reimbursed to
  the association before the 30th business day after the date the
  invoice is sent to the unit owner, may be added to the unit owner's
  account as an assessment. If the estimated costs exceeded the final
  invoice amount, the unit owner is entitled to a refund, and the
  refund shall be issued to the unit owner not later than the 30th
  business day after the date the invoice is sent to the unit 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 dedicatory instrument violation history
  of an individual unit owner of an association, a unit owner's
  personal financial information, including records of payment or
  nonpayment of amounts due the association, a unit owner's contact
  information, other than the unit 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)  In addition to retaining records as necessary for
  compliance with Section 82.114 an association shall adopt and
  comply with a document retention policy that includes, at a
  minimum, the following requirements:
               (1)  certificates of formation, bylaws, dedicatory
  instruments, and all amendments to the certificates of formation,
  bylaws, and dedicatory instruments 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
  condominium 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 unit
  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)  For the purposes of this section, "business day" means a
  day other than Saturday, Sunday, or a state or federal holiday.
         SECTION 3.  Section 82.1141, Property Code, as added by this
  Act, applies only to a request for association records or
  information made on or after the effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2021.