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A BILL TO BE ENTITLED
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AN ACT
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relating to the audit of the financial records of certain property |
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owners' associations. |
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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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Section 209.00501 to read as follows: |
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Sec. 209.00501. ANNUAL AUDIT OF ASSOCIATION FINANCIAL |
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RECORDS; PROVISION TO ASSOCIATION MEMBERS. (a) A property owners' |
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association shall: |
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(1) annually obtain an independent audit of the |
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association's financial records; and |
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(2) provide a copy of the audit to each member of the |
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association. |
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(b) An audit required by this section shall be performed by |
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a certified public accountant if required by: |
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(1) the association's bylaws; |
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(2) a vote of the board; or |
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(3) a majority vote of the members of the association |
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voting at a meeting of the association. |
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(c) For purposes of a vote of members of the association |
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described by Subsection (b)(3), a member may not cast more than one |
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vote, regardless of the number of lots the member owns and |
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notwithstanding any contrary provision in a dedicatory instrument |
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of an association relating to the allocation of votes to |
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association members. |
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SECTION 2. This Act takes effect September 1, 2023. |