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A BILL TO BE ENTITLED
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AN ACT
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relating to the violation of certain laws and provisions of |
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governing instruments by, and the recall by property owners of, a |
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property owners' association board member. |
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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 209.00595 and 209.018 to read as follows: |
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Sec. 209.00595. RECALL OF BOARD MEMBERS. (a) Owners |
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holding at least 20 percent of all voting interests in a property |
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owners' association may petition the association and require a |
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special meeting to be called for the sole purpose of conducting a |
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recall election to recall a member of the board. The petition may |
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not name more than one board member to be subject to recall. Each |
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owner signing the petition shall provide the owner's printed name |
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and residential address and the date the owner signs the petition. |
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The petition must be sent by certified mail, return receipt |
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requested, to the registered agent of the property owners' |
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association and to the association at the address for the |
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association according to the most recently filed management |
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certificate. |
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(b) Not later than the 90th day after the date the property |
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owners' association receives the petition, the association shall |
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hold a meeting for the sole purpose of conducting the recall |
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election. |
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(c) If the majority of votes received in a recall election |
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are for the recall of the named board member, the member's position |
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on the board becomes vacant immediately. The board shall fill the |
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vacancy as provided by Section 209.00593. |
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Sec. 209.018. BOARD MEMBER VIOLATION OF CHAPTER OR |
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DEDICATORY INSTRUMENT. (a) An owner may bring an action against a |
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property owners' association for a violation of this chapter or a |
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provision of the association's dedicatory instruments by a board |
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member acting in the board member's official capacity. The owner |
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may file a petition against the association with the justice of the |
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peace of a justice precinct in which all or part of the property |
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that is governed by the association is located requesting relief |
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under this section. |
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(b) If the justice of the peace finds that the board member |
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violated this chapter or a dedicatory instrument while acting |
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individually or with other board members, the justice of the peace |
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may grant one or more of the following remedies: |
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(1) a judgment ordering the property owners' |
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association to immediately remove the board member from the board; |
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(2) a judgment against the property owners' |
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association for damages incurred by the owner resulting from the |
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violation; or |
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(3) a judgment authorizing the owner to deduct the |
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amounts awarded to the owner under Subdivision (2) or Subsection |
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(c) from any future regular or special assessments payable to the |
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property owners' association. |
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(c) The prevailing party in an action under this section is |
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entitled to a judgment for court costs and reasonable attorney's |
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fees incurred by the party in connection with the action. |
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(d) On or before the 10th business day before the date an |
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owner brings an action against a property owners' association under |
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this section, the owner must send written notice to the association |
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of the owner'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 association or |
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authorized representative as reflected on the most current |
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management certificate filed under Section 209.004; and |
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(2) describe with sufficient detail the alleged |
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violation. |
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(e) 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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SECTION 2. Section 209.018, Property Code, as added by this |
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Act, applies only to a violation that occurs on or after the |
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effective date of this Act. A violation that occurs before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. For purposes of this section, |
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a violation occurred before the effective date of this Act if any |
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element of the violation occurred before that date. |
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SECTION 3. This Act takes effect September l, 2023. |