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  By: Solomons, et al. (Senate Sponsor - West) H.B. No. 1976
         (In the Senate - Received from the House May 18, 2009;
  May 19, 2009, read first time and referred to Committee on
  Intergovernmental Relations; May 23, 2009, reported adversely,
  with favorable Committee Substitute by the following vote:  Yeas 3,
  Nays 2; May 23, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 1976 By:  West
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the operation of property owners' associations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 5.006, Property Code, is
  amended to read as follows:
         (a)  In an action based on breach of a restrictive covenant
  pertaining to real property or a statute pertaining to real
  property subject to a restrictive covenant or to restrictive
  covenants to which real property is subject, the court may [shall]
  allow to a prevailing party [who asserted the action] reasonable
  attorney's fees in addition to the party's costs and claim.
         SECTION 2.  Section 5.012, Property Code, is amended by
  amending Subsection (a) and adding Subsections (f) and (g) to read
  as follows:
         (a)  A seller of residential real property that is subject to
  membership in a property owners' association and that comprises not
  more than one dwelling unit located in this state shall give to the
  purchaser of the property a written notice that reads substantially
  similar to the following:
  NOTICE OF MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION CONCERNING THE
  PROPERTY AT (street address) (name of residential community)
         As a purchaser of property in the residential community in
  which this property is located, you are obligated to be a member of
  a property owners' association. Restrictive covenants governing
  the use and occupancy of the property and all [a] dedicatory
  instruments [instrument] governing the establishment, maintenance,
  or [and] operation of this residential community have been or will
  be recorded in the Real Property Records of the county in which the
  property is located. Copies of the restrictive covenants and
  dedicatory instruments [instrument] may be obtained from the county
  clerk.
         You are obligated to pay assessments to the property owners'
  association. The amount of the assessments is subject to change.
  Your failure to pay the assessments could result in a lien on and
  the foreclosure of your property.
         Section 207.003, Property Code, entitles an owner to receive
  copies of any document that governs the establishment, maintenance,
  or operation of a subdivision, including, but not limited to,
  restrictions, bylaws, rules and regulations, and a resale
  certificate from a property owners' association. A resale
  certificate contains information including, but not limited to,
  statements specifying the amount and frequency of regular
  assessments and the style and cause number of lawsuits to which the
  property owners' association is a party. These documents must be
  made available to you by the seller on your request.
  Date: ____________________________________________
         Signature of Purchaser             
         (f)  On the purchaser's request for a resale certificate from
  the seller, the seller shall:
               (1)  promptly deliver a copy of a current resale
  certificate if one has been issued for the property under Chapter
  207; or
               (2)  if the seller does not have a current resale
  certificate:
                     (A)  request the property owners' association or
  its agent to issue a resale certificate under Chapter 207; and
                     (B)  promptly deliver a copy of the resale
  certificate to the purchaser on receipt of the resale certificate
  from the property owners' association or its agent.
         (g)  The seller or the purchaser, as agreed to by the
  parties, shall pay the fee to the property owners' association or
  its agent for issuing the resale certificate. The property owners'
  association may not process payment for a resale certificate
  requested under Chapter 207 until the certificate is available for
  delivery. The association may not charge a fee if the certificate
  is not provided in the time prescribed by Section 207.003(a).
         SECTION 3.  Subsection (c), Section 5.017, Property Code, is
  amended to read as follows:
         (c)  This section does not apply to a deed restriction or
  other covenant running with the land that requires a fee associated
  with the conveyance of property in a subdivision that is payable:
               (1)  to:
                     (A) [(1)]  a property owners' association that
  manages or regulates the subdivision or the association's managing
  agent if the subdivision contains more than one platted lot;
                     (B) [(2)]  an entity organized under Section
  501(c)(3), Internal Revenue Code of 1986; [or]
                     (C) [(3)]  a governmental entity; or
                     (D)  an entity other than a property owners'
  association that operates a golf course and country club in or
  adjacent to the subdivision if property owners in the subdivision
  are required by deed restriction to obtain and maintain a
  membership in the golf course and country club; or
               (2)  for the benefit or in consideration of a
  conservation easement created under Chapter 183, Natural Resources
  Code, located in a county with a population of at least 500,000 and
  not more than one million.
         SECTION 4.  Subdivision (1), Section 202.001, Property Code,
  is amended to read as follows:
               (1)  "Dedicatory instrument" means each document
  governing [instrument covering] the establishment, maintenance, or
  [and] operation of a residential subdivision, planned unit
  development, condominium or townhouse regime, or any similar
  planned development. The term includes:
                     (A)  a declaration or similar instrument
  subjecting real property to:
                           (i)  restrictive covenants, bylaws, or
  similar instruments governing the administration or operation of a
  property owners' association;
                           (ii)  [, to] properly adopted rules and
  regulations of the property owners' association; or
                           (iii)  [, or to] all lawful amendments to the
  covenants, bylaws, instruments, rules, or regulations; and
                     (B)  bylaws, rules, regulations, or guidelines
  adopted by a property owners' association under an instrument
  described by Paragraph (A).
         SECTION 5.  Section 202.004, Property Code, is amended by
  adding Subsections (d) and (e) to read as follows:
         (d)  In evaluating an alleged or potential violation of a
  restrictive covenant, the property owners' association or other
  representative designated by an owner of real property may,
  notwithstanding any provision in a dedicatory instrument, grant a
  variance and in doing so not enforce the restrictive covenant if the
  property owners' association board, in the board's reasonable
  judgment, determines:
               (1)  the property owners' association's position is not
  sufficiently strong to justify taking any action or further action;
               (2)  the provision alleged to have been violated may be
  inconsistent with applicable law;
               (3)  the alleged violation is not of such a material or
  visible nature as to be objectionable to a reasonable person or to
  justify expending the property owners' association's resources;
               (4)  enforcement of the provision is not in the
  association's best interests, based on hardship, expense, or other
  reasonable criteria; or
               (5)  the facts of the particular circumstances, such as
  topography of the owner's land or unforeseen circumstances unique
  to the particular owner, justify the variance.
         (e)  A determination by the property owners' association
  board to grant a variance under Subsection (d) may not be considered
  a waiver of the association's ability to enforce any dedicatory
  instrument provision in the future.
         SECTION 6.  Section 202.006, Property Code, is amended to
  read as follows:
         Sec. 202.006.  PUBLIC RECORDS. (a)  A property owners'
  association shall file all [the] dedicatory instruments
  [instrument] in the real property records of each county in which
  the property to which the dedicatory instruments relate [instrument
  relates] is located.
         (b)  A dedicatory instrument that is not filed in accordance
  with this section has no effect until filed.
         SECTION 7.  Chapter 202, Property Code, is amended by adding
  Sections 202.008, 202.010, 202.011, 202.012, 202.013, 202.014, and
  202.015 to read as follows:
         Sec. 202.008.  ASSOCIATION'S RIGHT OF ENTRY. (a)  Except as
  provided by this section, a provision in a dedicatory instrument
  that provides a property owners' association the right or authority
  to enter onto an owner's private property to enforce or abate an
  alleged violation of a restrictive covenant is void as against
  public policy except for entry:
               (1)  to cure a violation that involves an immediate
  threat to persons or property;
               (2)  after 10 days' written notice, to:
                     (A)  perform a forced mow; or
                     (B)  remove trash or debris; or
               (3)  in circumstances in which it is reasonably
  determined the property has been abandoned and not maintained for
  at least 30 days.
         (b)  This section does not prohibit a provision in a
  dedicatory instrument allowing a property owners' association a
  right of entry on the property of an owner that is limited to a
  dedicated access or other easement contained in a final plat or an
  easement filed of record.
         (c)  This section does not apply to:
               (1)  an association regulated under Title 7;
               (2)  a property owners' association that funds through
  assessments:
                     (A)  insurance on residences;
                     (B)  one or more utility payments for residences;
  or
                     (C)  exterior maintenance of residences; or
               (3)  a property owners' association that is a mixed use
  master association that existed before January 1, 1974, and that
  does not have the authority under a dedicatory instrument or other
  governing document to impose fines.
         Sec. 202.010.  CERTAIN PARKING RESTRICTIONS PROHIBITED.
  (a)  A provision in a dedicatory instrument that restricts or
  prohibits an owner from parking an operable, noncommercial, and
  personal automobile or truck on a public street is void as against
  public policy.
         (b)  A provision in a dedicatory instrument that restricts or
  prohibits an owner from parking the owner's operable,
  noncommercial, and personal automobile or truck in the owner's
  driveway is void as against public policy.
         (c)  For the purposes of this section, "noncommercial
  automobile" means a motor vehicle that may be legally driven on
  public roads under state law and that exhibits no commercial
  advertising other than standard dealer or manufacturer
  advertising.
         (d)  For the purposes of this section, a recreational
  vehicle, motor home, camper, all-terrain vehicle, trailer, or
  watercraft, a tow truck, cement mixer, or other similar commercial
  vehicle, or a vehicle that is more than 30 feet long is not
  considered to be a personal automobile or truck.
         (e)  This section does not apply to:
               (1)  an association regulated under Title 7; or
               (2)  a property owners' association that funds through
  assessments:
                     (A)  insurance on residences;
                     (B)  one or more utility payments for residences;
  or
                     (C)  exterior maintenance of residences.
         Sec. 202.011.  RIGHT OF FIRST REFUSAL PROHIBITED. (a)  In
  this section, "development period" means a period stated in a
  declaration during which a declarant reserves:
               (1)  a right to facilitate the development,
  construction, and marketing of the subdivision; and
               (2)  a right to direct the size, shape, and composition
  of the subdivision.
         (b)  To the extent a restrictive covenant provides a right of
  first refusal for the sale or lease of a residential unit or
  residential lot in favor of the property owners' association or the
  association's members, the covenant is void.
         (c)  This section does not apply to a restrictive covenant
  that provides a right of first refusal in favor of a developer or
  builder during the development period.
         Sec. 202.012.  REGULATION OF SOLAR ENERGY DEVICES. (a)  In
  this section, "solar energy device" has the meaning assigned by
  Section 171.107, Tax Code.
         (b)  Except as otherwise provided by this section, a property
  owners' association may not include or enforce a provision in a
  dedicatory instrument that prohibits or restricts a property owner
  from installing a solar energy device.
         (c)  A provision that violates Subsection (b) is void.
         (d)  This section does not prohibit the inclusion or
  enforcement of a provision in a dedicatory instrument that
  prohibits a solar energy device that:
               (1)  as adjudicated by a court:
                     (A)  threatens the public health or safety; or
                     (B)  violates a law;
               (2)  is located on property owned or maintained by the
  property owners' association;
               (3)  is located on property owned in common by the
  members of the property owners' association; or
               (4)  is located in an area on the property owner's
  property other than:
                     (A)  on the roof of the home; or
                     (B)  in a fenced yard or patio maintained by the
  property owner.
         Sec. 202.013.  RENTAL RESTRICTIONS. (a)  Except as provided
  by Subsection (b), a property owners' association may not amend a
  dedicatory instrument to prohibit or restrict the rental of
  property subject to the dedicatory instrument without the consent
  of at least 51 percent of the total votes allocated to property
  owners subject to the dedicatory instrument.
         (b)  An amendment to a dedicatory instrument may require:
               (1)  an owner to:
                     (A)  exercise due diligence in not leasing to an
  occupant who is a registered sex offender or who has a history of
  violent crime; or
                     (B)  terminate the possessory right of any tenant
  or occupant who is a registered sex offender or who has a history of
  violent crime;
               (2)  all leases to be subject to the dedicatory
  instruments of the property owners' association; or
               (3)  a minimum lease term of not more than six months.
         Sec. 202.014.  RESTRICTIONS REQUIRING CAPITAL IMPROVEMENTS.
  (a)  A dedicatory instrument may not be amended to retroactively
  require a person who owns property subject to the dedicatory
  instrument at the time the amendment is adopted to make a capital
  improvement to the owner's property that is not required before the
  amendment. A provision of a dedicatory instrument requiring an
  owner to make a capital improvement to the owner's property may only
  be adopted by a vote of at least 67 percent of the total votes
  allocated to property owners subject to the dedicatory instrument
  and may be applicable only to owners purchasing property subject to
  the dedicatory instrument after the provision is adopted.
         (b)  For the purposes of this section, "capital improvement"
  means items such as additional tree plantings, additional sodding,
  fence construction, hardscape installation, new construction, or
  any similar capital improvement. The term does not include repair
  or maintenance of existing improvements or the removal of
  conditions that are in violation of a dedicatory instrument.
         Sec. 202.015.  INJUNCTION; DAMAGES. (a)  If a property
  owners' association or other representative designated by the
  property owners' association has violated, is violating, or is
  threatening to violate this chapter, a member of the property
  owners' association may bring a civil action against the property
  owners' association but may not bring an action against an
  association's officer or board member individually.
         (b)  A member of a property owners' association bringing an
  action under this section may seek:
               (1)  injunctive relief;
               (2)  damages in an amount equal to the greater of:
                     (A)  actual damages arising from the violation; or
                     (B)  $1,500 for each violation; or
               (3)  both injunctive relief and damages as provided in
  this subsection.
         (c)  The court may increase an award under Subsection (b)(2)
  to an amount not to exceed three times the amount awarded under
  Subsection (b)(2) if the court finds that violations have occurred
  with a frequency that constitutes a pattern or practice.
         (d)  Each day a violation continues is not considered a
  separate violation for purposes of an assessment of damages.
         (e)  The court may award damages to a property owners'
  association for a suit brought by a member of the property owners'
  association that the court finds frivolous or groundless in an
  amount that is not more than the greater of:
               (1)  three times the association's actual damages; or
               (2)  $4,500.
         (f)  On or before the 30th day before the date a person files
  a suit under this section, the person must provide notice to the
  other party of the person's intent to file suit under this section.
  The notice must be sent certified mail, return receipt requested,
  or delivered by the United States Postal Service with signature
  confirmation service.
         SECTION 8.  Subsection (b), Section 207.003, Property Code,
  is amended to read as follows:
         (b)  A resale certificate under Subsection (a) must contain:
               (1)  a statement of any right of first refusal, other
  than a right of first refusal that is prohibited by statute, and any
  [or] other restraint contained in the restrictions or restrictive
  covenants that restricts the owner's right to transfer the owner's
  property;
               (2)  the frequency and amount of any regular
  assessments;
               (3)  the amount and purpose of any special assessment
  that is due after the date the resale certificate is prepared;
               (4)  the total of all amounts due and unpaid to the
  property owners' association that are attributable to the owner's
  property;
               (5)  capital expenditures, if any, approved by the
  property owners' association for the property owners' association's
  current fiscal year;
               (6)  the amount of reserves, if any, for capital
  expenditures;
               (7)  the property owners' association's current
  operating budget and balance sheet;
               (8)  the total of any unsatisfied judgments against the
  property owners' association;
               (9)  the style and cause number of any pending lawsuit
  in which the property owners' association is a party, other than a
  lawsuit relating to unpaid property taxes of an individual member
  of the association [defendant];
               (10)  a copy of a certificate of insurance showing the
  property owners' association's property and liability insurance
  relating to the common areas and common facilities;
               (11)  a description of any conditions on the owner's
  property that the property owners' association board has actual
  knowledge are in violation of the restrictions applying to the
  subdivision or the bylaws or rules of the property owners'
  association;
               (12)  a summary or copy of notices received by the
  property owners' association from any governmental authority
  regarding health or housing code violations existing on the
  preparation date of the certificate relating to the owner's
  property or any common areas or common facilities owned or leased by
  the property owners' association;
               (13)  the amount of any administrative transfer fee
  charged by the property owners' association for a change of
  ownership of property in the subdivision;
               (14)  the name, mailing address, and telephone number
  of the property owners' association's managing agent, if any; [and]
               (15)  a statement indicating whether the restrictions
  allow foreclosure of a property owners' association's lien on the
  owner's property for failure to pay assessments; and
               (16)  a statement of all fees associated with the
  transfer of ownership, including a description of each fee, to whom
  each fee is paid, and the amount of each fee.
         SECTION 9.  Section 209.003, Property Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  The following provisions of this chapter do not apply to
  a property owners' association that is a mixed use master
  association that existed before January 1, 1974, and that does not
  have the authority under a dedicatory instrument or other governing
  document to impose fines:
               (1)  Section 209.005(b);
               (2)  Section 209.0056;
               (3)  Section 209.0057;
               (4)  Section 209.0058;
               (5)  Section 209.00591;
               (6)  Section 209.00593;
               (7)  Section 209.006(c);
               (8)  Section 209.0062; and
               (9)  Section 209.014.
         SECTION 10.  Chapter 209, Property Code, is amended by
  adding Sections 209.0035 and 209.0041 to read as follows:
         Sec. 209.0035.  INJUNCTION; DAMAGES. (a)  If a property
  owners' association or other representative designated by the
  property owners' association has violated, is violating, or is
  threatening to violate this chapter, a member of the property
  owners' association may bring a civil action against the property
  owners' association but may not bring an action against an
  association's officer or board member individually.
         (b)  A member of a property owners' association bringing an
  action under this section may seek:
               (1)  injunctive relief;
               (2)  damages in an amount equal to the greater of:
                     (A)  actual damages arising from the violation; or
                     (B)  $1,500 for each violation; or
               (3)  both injunctive relief and damages as provided in
  this subsection.
         (c)  The court may increase an award under Subsection (b)(2)
  to an amount not to exceed three times the amount awarded under
  Subsection (b)(2) if the court finds that violations have occurred
  with a frequency that constitutes a pattern or practice.
         (d)  Each day a violation continues is not considered a
  separate violation for purposes of assessment of damages.
         (e)  The court may award damages to a property owners'
  association for a suit brought by a member of the property owners'
  association that the court finds frivolous or groundless in an
  amount that is not more than the greater of:
               (1)  three times the association's actual damages; or
               (2)  $4,500.
         (f)  On or before the 30th day before the date a person files
  a suit under this section, the person must provide notice to the
  other party of the person's intent to file suit under this section.
  The notice must be sent certified mail, return receipt requested,
  or delivered by the United States Postal Service with signature
  confirmation service.
         Sec. 209.0041.  AMENDMENT OF DEDICATORY INSTRUMENTS.
  (a)  This section applies to a residential subdivision in which
  property owners are subject to mandatory membership in a property
  owners' association.
         (b)  This section applies to all dedicatory instruments
  regardless of the date on which the dedicatory instruments were
  created.
         (c)  This section does not apply to the amendment of a
  dedicatory instrument during a development period, as defined by
  Section 202.011.
         (d)  To the extent of any conflict with another provision of
  this title, this section prevails.
         (e)  Except as provided by Subsection (f), a dedicatory
  instrument may be amended only by a vote of at least 51 percent of
  the total votes allocated to property owners in the property
  owners' association, in addition to any governmental approval
  required by law.
         (f)  A rule or guideline that affects land owned, leased,
  maintained, or otherwise controlled by the property owners'
  association may be adopted or amended by majority vote of the
  association board. A rule or guideline that impacts the use and
  enjoyment of personal or real property owned exclusively by the
  owner or that may result in a fine or loss of privilege of a member
  of the association may be adopted or amended only by a vote of at
  least 51 percent of the total votes allocated to property owners who
  cast votes by any permissible method in an association-wide vote.
         (g)  A property owners' association board by majority vote
  may adopt ministerial, office-related procedural policies, such as
  payment plan guidelines under Section 209.0062, a collections
  policy, an enforcement policy, or other similar ministerial,
  office-related procedural policies. The policy may outline
  circumstances under which or the manner by which enforcement
  remedies may be carried out but may not otherwise impact the use and
  enjoyment of personal or real property owned exclusively by the
  owner. The policy may not:
               (1)  create a power to:
                     (A)  levy a fine; or
                     (B)  impose a loss of a privilege on a member of
  the association; or
               (2)  expand the association's powers beyond the powers
  granted by any other dedicatory instrument.
         (h)  All ballots cast in a vote that results in an amendment
  to a restrictive covenant, bylaw, or rule are records of the
  association subject to inspection under Section 209.005.
         (i)  This section supersedes any contrary requirement in a
  dedicatory instrument.
         (j)  This section does not apply to a property owners'
  association that is subject to Chapter 552, Government Code, by
  application of Section 552.0036, Government Code.
         SECTION 11.  Section 209.005, Property Code, is amended to
  read as follows:
         Sec. 209.005.  ASSOCIATION RECORDS. (a)  This section does
  not apply to a property owners' association that is subject to
  Chapter 552, Government Code, by application of Section 552.0036,
  Government Code.
         (b)  Notwithstanding a provision in a dedicatory instrument,
  a [A] property owners' association shall make the books and records
  of the association, including financial records, open to and
  reasonably available for examination by [to] an owner [in
  accordance with Section B, Article 2.23, Texas Non-Profit
  Corporation Act (Article 1396-2.23, Vernon's Texas Civil
  Statutes)]. An owner is entitled to obtain from the association
  copies of information contained in the books and records.
         (c)  [(a-1)     A property owners' association described by
  Section 552.0036(2), Government Code, shall make the books and
  records of the association, including financial records,
  reasonably available to any person requesting access to the books
  or records in accordance with Chapter 552, Government
  Code.     Subsection (a) does not apply to a property owners'
  association to which this subsection applies.
         [(b)]  An attorney's files and records relating to the
  association, excluding invoices requested by an owner under Section
  209.008(d), are not:
               (1)  records of the association;
               (2)  subject to inspection by the owner; or
               (3)  subject to production in a legal proceeding.
         (d)  In addition to the requirements of Subsection (b), a
  property owners' association shall make the association's books and
  records, including financial records and invoices, available in a
  building:
               (1)  in which the books and records are appropriately
  stored; and
               (2)  that is:
                     (A)  staffed during normal business hours;
                     (B)  accessible to members of the association
  during normal business hours; and
                     (C)  located on property commonly owned by the
  association within the boundaries of the subdivision governed by
  the association.
         (e)  If a building described by Subsection (d) does not exist
  on property described by Subsection (d), the property owners'
  association shall make the books and records available in
  accordance with Subsections (g) and (h).
         (f)  A party requesting association books or records shall
  submit the request in writing:
               (1)  in person by hand delivery to a current board
  member;
               (2)  to the mailing address of the association or
  authorized representative as provided on the most current
  management certificate filed under Section 209.004; or
               (3)  in person to a managing agent as reflected on the
  most current management certificate filed under Section 209.004.
         (g)  A property owners' association shall make books and
  records requested under Subsection (b) available to the requesting
  party within a reasonable time of the property owners'
  association's receipt of the request.
         (h)  A reasonable time for providing information requested
  under Subsection (b) is considered to be 10 business days after the
  date the property owners' association receives a request, except as
  otherwise provided by this section.
         (i)  If the property owners' association is unable to produce
  a requested book or record on or before the 10th business day after
  the date the request is received, the property owners' association
  must provide to the requestor written notice that:
               (1)  informs the requestor that the property owners'
  association is unable to produce the information on or before the
  10th business day after the date of the receipt of the request; and
               (2)  states a date by which the information will be
  available for inspection that occurs not later than the 30th day
  after the date notice under this subsection is given.
         (j)  A property owners' association shall make books and
  records requested under this section available to the requestor in
  one or more of the following formats, as specified by the requestor:
               (1)  an electronic format:
                     (A)  delivered to an electronic mail address
  provided by the requestor; or
                     (B)  delivered in a disc or other standard
  electronic format:
                           (i)  to the mailing address of the
  requestor; or
                           (ii)  if the requesting party does not
  provide a mailing address, to the address of the requestor's
  property in the subdivision; or
               (2)  a hard-copy format:
                     (A)  delivered to the mailing address of the
  requestor; or
                     (B)  if the requesting party does not provide a
  mailing address:
                           (i)  mailed to the address of the requestor's
  property in the subdivision; or
                           (ii)  made available at a location not more
  than 25 miles from the boundary of the subdivision governed by the
  association.
         (k)  This section does not require a property owners'
  association to staff a building described by Subsection (d).
         (l)  A property owners' association may charge an owner for
  copies of the requested information in an amount that reasonably
  includes all costs related to reproducing the information,
  including costs of materials, labor, and overhead.
         (m)  Any information maintained by the association that is
  released under this section may not identify an individual member
  of an association or an individual's personal financial
  information. Information may be released in an aggregate manner
  that would not identify an individual property owner.
         (n)  All ballots cast in an election that results in an
  amendment to a dedicatory instrument, as required by Section
  209.0041, are records of the property owners' association subject
  to inspection under this section.
         (o)  All ballots cast in an election of property owners'
  association board or other committee members are considered records
  of the association but may not be made available for inspection
  under this section, except for the purposes of a recount under
  Section 209.0057(e), without a court order or subpoena. The
  association shall take reasonable measures to safeguard the
  security and privacy of those ballots.
         (p)  A property owners' association shall:
               (1)  keep all records as to changes to the dedicatory
  instruments in perpetuity;
               (2)  maintain and secure all ballots in
  association-wide elections for four years; and
               (3)  maintain records related to financial matters of
  the association, including assessments, fines, foreclosures, and
  enforcement actions, for at least seven years.
         (q)  A member of a property owners' 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 against the property owners'
  association for a penalty of not more than $1,500;
               (2)  a judgment against the property owners'
  association for court costs and attorney's fees incurred in
  connection with seeking a remedy under this section; or
               (3)  a judgment authorizing the owner or the owner's
  assignee to deduct the amounts awarded under Subdivisions (1) and
  (2) from any future regular or special assessments payable to the
  property owners' association.
         (r)  For the purposes of this section, "business day" means a
  day other than Saturday, Sunday, or a state or federal holiday.
         (s)  On or before the 10th day before the date a person files
  a suit under this section, the person must provide notice to the
  other party of the person's intent to file suit under this section.
  The notice must be sent certified mail, return receipt requested,
  or delivered by the United States Postal Service with signature
  confirmation service.
         SECTION 12.  Chapter 209, Property Code, is amended by
  adding Sections 209.0051, 209.0056, 209.0057, 209.0058, 209.0059,
  209.00591, 209.00592, and 209.00593 to read as follows:
         Sec. 209.0051.  OPEN BOARD MEETINGS. (a)  This section does
  not apply to a property owners' association that is subject to
  Chapter 551, Government Code, by application of Section 551.0015,
  Government Code.
         (b)  In this section, "board meeting" means a deliberation
  between a quorum of the voting board of the property owners'
  association, or between a quorum of the voting board and another
  person, during which property owners' association business or
  policy over which the board has responsibility is discussed or
  considered or during which the board takes formal action. The term
  does not include the gathering of a quorum of the board at a social
  function unrelated to the business of the association, or the
  attendance by a quorum of the board at a regional, state, or
  national convention, workshop, ceremonial event, or press
  conference, if formal action is not taken and any discussion of
  association business is incidental to the social function,
  convention, workshop, ceremonial event, or press conference.
         (c)  Except as provided by this section, a meeting of the
  property owners' association board or a committee or subcommittee
  of the board is open to members of the property owners' association
  and shall be held in a county in which all or part of the property
  governed by the association is located or a county adjacent to that
  county.
         (d)  The board shall keep a record of each regular,
  emergency, or special board meeting in the form of written minutes
  or an audio recording of the meeting. A record of a meeting must
  state the subject of each motion or inquiry, regardless of whether
  the board takes action on the motion or inquiry, and indicate each
  vote, order, decision, or other action taken by the board. The
  board shall make meeting records, including approved minutes,
  available to a member for inspection and copying on the member's
  written request to the board or the board's representative. The
  board shall approve the minutes of a board meeting not later than
  the next regular board meeting.
         (e)  The board shall give members notice of the date, hour,
  place, and subject of a regular or special board meeting, including
  a general description of any matters to be brought up for
  deliberation in executive session. The notice shall be mailed to
  each member or:
               (1)  posted at least 72 hours before the start of the
  meeting in a conspicuous manner reasonably designed to provide
  notice to association members:
                     (A)  in a place located on the association's
  common property or other conspicuously located property within the
  association, with the property owner's consent; or
                     (B)  on any Internet website maintained by the
  association; and
               (2)  sent via e-mail to each owner who has registered an
  e-mail address with the property owners' association; it is an
  owner's duty to keep an e-mail address registered with the property
  owners' association updated.
         (f)  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 as required
  by this section of the meeting continued to that other day.
         (g)  If at a regular, emergency, administrative, or special
  meeting a member makes an inquiry regarding a subject for which
  notice has not been given as required by this section, the notice
  provisions of this section do not apply to:
               (1)  a statement by the board of specific factual
  information given in response to the inquiry; or
               (2)  a recitation of existing policy in response to the
  inquiry.
         (h)  Any deliberation of or decision relating to the subject
  of an inquiry made under Subsection (g) shall be limited to a
  proposal to place the subject on the agenda for a subsequent board
  meeting.
         (i)  In the event of a reasonably unforeseen emergency or
  urgent necessity that requires immediate board action, the board
  may meet in an emergency board meeting. Notice for an emergency
  board meeting may be given in at least one manner prescribed by
  Subsection (e)(1) at least two hours before the emergency session
  is convened and must clearly identify the emergency or urgent
  necessity for which the notice is given. A board in an emergency
  meeting may not consider fines, foreclosures, enforcement actions,
  increases in assessments, or any other foreseeable business or
  policy over which the board has responsibility. Any action taken in
  an emergency board meeting must be summarized orally, including an
  explanation of any known actual or estimated expenditures approved
  at the meeting, and documented in the minutes or tape recording of
  the next regular or special board meeting.
         (j)  A property owners' association board may hold an
  administrative session, and that session is not subject to the
  notice requirements of this section. In any administrative
  session, the board may not take action regarding issuance of fines,
  commencement of foreclosure proceedings, levying of a special
  assessment, increases in assessments, or approval of items not
  previously approved in the association's budget.
         (k)  Before the board calls an executive session, the board
  shall convene in a regular or special board meeting for which notice
  has been given as provided by this section. During that board
  meeting, the presiding board member may call an executive session
  by announcing that an executive session will be held to deliberate a
  matter described by Subsection (l) and identifying the specific
  subdivision of Subsection (l) under which the executive session
  will be held. A vote or other action item may not be taken in
  executive session.
         (l)  A board of a property owners' association may meet in
  executive session, to which the members do not have access, to
  deliberate:
               (1)  anticipated or pending litigation, settlement
  offers, or interpretations of the law with the association's legal
  counsel;
               (2)  complaints or charges against or issues regarding
  a board member or agent, employee, contractor, or other
  representative of the property owners' association;
               (3)  a payment plan under Section 209.0062;
               (4)  a foreclosure of a lien;
               (5)  an enforcement action against a member of the
  association, including for nonpayment of amounts due;
               (6)  the purchase, exchange, lease, or value of real
  property, if the board determines in good faith that deliberation
  in an open board meeting may have a detrimental effect on the
  association;
               (7)  business and financial issues relating to the
  negotiation of a contract, if the board determines in good faith
  that deliberation in an open board meeting may have a detrimental
  effect on the position of the association; or
               (8)  matters involving the invasion of privacy of an
  individual owner.
         Sec. 209.0056.  NOTICE OF ELECTION OR ASSOCIATION VOTE.
  (a)  On or before the 30th day before the date an election or vote
  is held by a property owners' association, the association shall
  give each owner of property in the property owners' association
  written notice of the election or vote.
         (b)  This section supersedes any contrary requirement in a
  dedicatory instrument.
         (c)  This section does not apply to a property owners'
  association that is subject to Chapter 552, Government Code, by
  application of Section 552.0036, Government Code.
         Sec. 209.0057.  TABULATION OF VOTES. (a)  This section does
  not apply to a property owners' association that is subject to
  Chapter 552, Government Code, by application of Section 552.0036,
  Government Code.
         (b)  On the written petition of owners having at least 10
  percent of all voting interests in a property owners' association
  for a vote tabulation under this subsection, received by the
  association at least 15 days before the first date that votes may be
  cast, to tabulate the votes in any matter subject to a vote of the
  members of a mandatory property owners' association, the
  association shall enter into a contract for the services of a person
  who is not a member of the association or related to a member of the
  association board within the third degree by consanguinity or
  affinity, as determined under Chapter 573, Government Code, and who
  is a current or former:
               (1)  county judge;
               (2)  county elections administrator;
               (3)  justice of the peace; or
               (4)  county voter registrar.
         (c)  The name of each person tabulating votes of the members
  of a property owners' association and the results of the tabulation
  must be reflected in the minutes of the association.
         (d)  Any owner may, not later than the fifth day after the
  date of the initial tabulation of votes, require a recount of the
  votes. A demand for a recount must be submitted in writing either:
               (1)  in person to a property owners' association board
  member;
               (2)  by certified mail, return receipt requested, or by
  delivery by the United States Postal Service with signature
  confirmation service to the association's mailing address on the
  latest management certificate filed under Section 209.004; or
               (3)  in person to the association's managing agent as
  reflected on the latest management certificate filed under Section
  209.004.
         (e)  The property owners' association shall, at the expense
  of the owner requesting the recount, retain for the purpose of
  performing the recount the services of a person who is not a member
  of the association or related to a member of the association board
  within the third degree of consanguinity or affinity, as determined
  under Chapter 573, Government Code and who is a current or former:
               (1)  county judge;
               (2)  county elections administrator;
               (3)  justice of the peace; or
               (4)  county voter registrar.
         (f)  Any recount under Subsection (d) must be performed on or
  before the 30th day after the date of receipt of a request for and
  payment for a recount in accordance with Subsections (d) and (e).
  If the recount changes the results of the election, the association
  shall reimburse the requesting owner for the cost of the recount.
  Any action taken by the board in the period between the initial
  election vote tally and the completion of the recount may not be
  affected by any recount.
         Sec. 209.0058.  BALLOTS. (a)  Any vote cast in an election
  or vote by a member of a property owners' association must be in
  writing and signed by the member.
         (b)  Electronic votes cast under Section 209.00593
  constitute written and signed ballots.
         (c)  In an association-wide election, written and signed
  ballots are not required for uncontested races.
         Sec. 209.0059.  RIGHT TO VOTE. (a)  A provision in a
  dedicatory instrument that would disqualify a property owner from
  voting in an association election of board members or on any matter
  concerning the rights or responsibilities of the owner is void.
         (b)  This section does not apply to a property owners'
  association that is subject to Chapter 552, Government Code, by
  application of Section 552.0036, Government Code.
         Sec. 209.00591.  PROXY VOTING. A provision in any
  dedicatory instrument that provides for a proxy vote in any matter
  subject to a vote of the members of the property owners' association
  is void.
         Sec. 209.00592.  BOARD MEMBERSHIP. (a)  Except as provided
  by Subsection (b), a provision in a dedicatory instrument that
  restricts a property owner's right to run for a position on the
  board of the property owners' association is void.
         (b)  If a board is presented with written, documented
  evidence from a database or other record maintained by a
  governmental law enforcement authority that a board member has been
  convicted of a felony or crime involving moral turpitude, the board
  member is immediately ineligible to serve on the board of the
  property owners' association, automatically considered removed
  from the board, and prohibited from future service on the board.
         Sec. 209.00593.  VOTING; QUORUM. (a)  The voting rights of
  an owner may be cast or given:
               (1)  in person at a meeting of the property owners'
  association;
               (2)  by absentee ballot in accordance with this
  section; or
               (3)  by electronic ballot in accordance with this
  section.
         (b)  An absentee or electronic ballot:
               (1)  may be counted as an owner present and voting for
  the purpose of establishing a quorum only for items appearing on the
  ballot;
               (2)  may not be counted, even if properly delivered, if
  the owner attends any meeting to vote in person, so that any vote
  cast at a meeting by a property owner supersedes any vote submitted
  by absentee or electronic ballot previously submitted for that
  proposal; and
               (3)  may not be counted on the final vote of a proposal
  if the motion was amended at the meeting to be different from the
  exact language on the absentee or electronic ballot.
         (c)  A solicitation for votes by absentee ballot must
  include:
               (1)  an absentee ballot that contains each proposed
  action and provides an opportunity to vote for or against each
  proposed action;
               (2)  instructions for delivery of the completed
  absentee ballot, including the delivery location; and
               (3)  the following language: "By casting your vote via
  absentee ballot you will forgo the opportunity to consider and vote
  on any action from the floor on these proposals, if a meeting is
  held. This means that if there are amendments to these proposals
  your votes will not be counted on the final vote on these measures.
  If you desire to retain this ability, please attend any meeting in
  person. You may submit an absentee ballot and later choose to
  attend any meeting in person, in which case any in-person vote will
  prevail."
         (d)  For the purposes of this section, "electronic ballot"
  means a ballot:
               (1)  given by:
                     (A)  electronic mail;
                     (B)  facsimile; or
                     (C)  posting on an Internet website;
               (2)  for which the identity of the property owner
  submitting the ballot can be confirmed; and
               (3)  for which the property owner may receive a receipt
  of the electronic transmission and receipt of the owner's ballot.
         (e)  If an electronic ballot is posted on an Internet
  website, a notice of the posting shall be sent to each owner that
  contains instructions on obtaining access to the posting on the
  website.
         (f)  This section supersedes any contrary provision in a
  dedicatory instrument.
         (g)  This section does not apply to a property owners'
  association that is subject to Chapter 552, Government Code, by
  application of Section 552.0036, Government Code.
         SECTION 13.  Section 209.006, Property Code, is amended by
  amending Subsection (b) and adding Subsections (c), (d), (e), and
  (f) to read as follows:
         (b)  The notice must:
               (1)  describe the violation or property damage that is
  the basis for the suspension action, charge, or fine and state any
  amount due the association from the owner; [and]
               (2)  except as provided by Subsection (d), inform the
  owner that the owner:
                     (A)  is entitled to a reasonable period to cure
  the violation and avoid the fine [or suspension unless the owner was
  given notice and a reasonable opportunity to cure a similar
  violation within the preceding six months]; and
                     (B)  may request a hearing under Section 209.007
  on or before the 30th day after the date notice was delivered to the
  owner;
               (3)  specify the date by which the owner must cure the
  violation if the violation is of a curable nature and does not pose
  a threat to public health or safety;
               (4)  specify the dollar amount of any fine the
  association seeks to levy;
               (5)  specify each provision of the dedicatory
  instrument the owner is alleged to have violated; and
               (6)  be sent by certified mail, return receipt
  requested, or delivered by the United States Postal Service with
  signature confirmation service to the owner at the owner's last
  known address as shown on the association's records [receives the
  notice].
         (c)  The date specified in the notice under Subsection (b)(3)
  must provide a reasonable period of at least 30 days for the owner
  to cure the violation if the violation is of a curable nature and
  does not pose a threat to public health or safety.
         (d)  Subsections (a) and (b) do not apply to a violation for
  which the owner has been previously given notice under this section
  and the opportunity to exercise any rights available under this
  section in the preceding six months.
         (e)  If the property owner does not cure the violation in the
  time provided under Subsection (c) and does not request a hearing
  under Subsection (b)(2)(B), the property owners' association may
  assess the fine and shall provide notice of the assessment to the
  owner. If the property owner cures the violation before the
  expiration period for cure specified under Subsection (c), any fine
  assessed for the violation is void.
         (f)  For purposes of this section, a violation is considered
  a threat to public health or safety if the violation could
  materially affect the physical health or safety of an ordinary
  resident.
         SECTION 14.  Chapter 209, Property Code, is amended by
  adding Sections 209.0061, 209.0062, 209.0063, and 209.0064 to read
  as follows:
         Sec. 209.0061.  ASSESSMENT OF FINES. (a)  A fine assessed
  by the property owners' association must be reasonable in the
  context of the nature and frequency of the violation and the effect
  of the violation on the subdivision as a whole. If the association
  allows fines for a continuing violation to accumulate against a lot
  or an owner, the association must establish a reasonable maximum
  fine amount for a continuing violation, at which point the total
  fine amount is capped.
         (b)  If a lot occupant other than the owner violates a
  provision of the dedicatory instrument, the property owners'
  association, in addition to exercising any of the association's
  powers against the owner, may assess a fine directly against the
  nonowner occupant in the same manner as provided for an owner but
  may not require payment from both the owner and a nonowner occupant
  for the same violation.
         (c)  If the property owners' association assesses a fine
  against a nonowner occupant under this section, the notice
  provisions of Section 209.006 and the hearing provisions of Section
  209.007 apply to the nonowner occupant in the same manner as those
  provisions apply to an owner.
         Sec. 209.0062.  ALTERNATIVE PAYMENT SCHEDULE FOR CERTAIN
  ASSESSMENTS. (a)  A property owners' association shall adopt
  reasonable guidelines to establish an alternative payment schedule
  by which an owner may make partial payments to the property owners'
  association for delinquent regular or special assessments or any
  other amount owed to the association without accruing additional
  monetary penalties. For purposes of this section, monetary
  penalties do not include reasonable costs associated with
  administering the payment plan or interest.
         (b)  For any approved special assessment in an amount greater
  than the equivalent of the sum of all regular assessments payable in
  the year the special assessment is approved, a property owners'
  association shall allow partial payments of the special assessment
  for 12 months unless the property owner requests a shorter payment
  period in writing at the time the property owner requests an
  alternative payment plan. A property owners' association may offer
  a reasonable discount for an owner making a one-time lump sum
  payment of the special assessment.
         (c)  For any approved special assessment in an amount greater
  than the equivalent of one-half the sum of all regular assessments
  payable in the year the special assessment is approved, a property
  owners' association shall allow partial payments of the special
  assessment for six months unless the property owner requests a
  shorter payment period in writing at the time the property owner
  requests an alternative payment plan. A property owners'
  association may offer a reasonable discount to an owner making a
  one-time lump sum payment of the special assessment.
         (d)  A property owners' association is not required to allow
  a payment plan for any amount that extends more than 12 months from
  the date of the owner's request for a payment plan or to enter into a
  payment plan with an owner who failed to honor the terms of a
  previous payment plan during the five years following an owner's
  default under a previous payment plan.
         (e)  A property owners' association shall file the
  association's guidelines under this section in the real property
  records of each county in which the subdivision is located.
         (f)  A property owners' association's failure to file as
  required by this section the association's guidelines in the real
  property records of each county in which the subdivision is located
  does not prohibit a property owner from receiving an alternative
  payment schedule by which the owner may make partial payments to the
  property owners' association for delinquent regular or special
  assessments or any other amount owed to the association without
  accruing additional monetary penalties, as defined by Subsection
  (a).
         Sec. 209.0063.  PRIORITY OF PAYMENTS. Unless otherwise
  provided in writing by the property owner at the time payment is
  made, a payment received by a property owners' association from the
  owner shall be applied to the owner's debt in the following order of
  priority:
               (1)  any delinquent assessment;
               (2)  any current assessment;
               (3)  any attorney's fees incurred by the association
  associated solely with assessments or any other charge that could
  provide the basis for foreclosure;
               (4)  any fines assessed by the association;
               (5)  any attorney's fees incurred by the association
  that are not subject to Subdivision (3); and
               (6)  any other amount owed to the association.
         Sec. 209.0064.  COLLECTIONS. A property owners' association
  must bring suit or otherwise initiate against an owner a collection
  action authorized by the dedicatory instruments or other law on or
  before the 10th anniversary of the date on which the cause of action
  for collection of the debt accrues. Section 16.004, Civil Practice
  and Remedies Code, does not apply to the collection of a debt owed
  by an owner to a property owners' association.
         SECTION 15.  Section 209.007, Property Code, is amended by
  amending Subsection (a) and adding Subsections (f), (g), (h), (i),
  and (j) to read as follows:
         (a)  If the owner is entitled to an opportunity to cure the
  violation, the owner has the right to submit a written request for a
  hearing to discuss and verify facts and resolve the matter in issue
  before a committee appointed by the board of the property owners'
  association or before the board if the board does not appoint a
  committee. The written request must contain a statement of the
  grounds on which the owner believes the owner is not in violation
  and citations of the dedicatory instrument for each violation
  alleged.
         (f)  If the parties fail to reach agreement in or after the
  hearing described by this section, the property owners' association
  must file suit to uphold and enforce any fine sought to be assessed.
  The suit must be filed in a justice court or small claims court not
  later than the 180th day after the date of the hearing described by
  this section or an appeal under Subsection (b), whichever is later.
  The complaint must list each violation and be accompanied by
  citation of the dedicatory instrument for each violation. If the
  property owners' association does not file suit within the time
  prescribed by this subsection, the association's right to collect
  the fine is considered waived.
         (g)  Not later than the 30th day after the date a suit is
  filed under Subsection (f), the court shall hold an evidentiary
  hearing on the matter. The parties are not entitled to any
  discovery.
         (h)  At the evidentiary hearing, the property owners'
  association has the burden of proving by a preponderance of the
  evidence that the property owner has violated a restrictive
  covenant.
         (i)  The court shall determine whether a violation has
  occurred and, if so, whether the fine for the violation is
  reasonable considering the type, duration, and severity of the
  violation.
         (j)  If the court finds that the position taken by either
  party is groundless or is taken in bad faith, the court may award
  the prevailing party's attorney's fees.
         SECTION 16.  Chapter 209, Property Code, is amended by
  adding Section 209.0091 to read as follows:
         Sec. 209.0091.  JUDICIAL FORECLOSURE REQUIRED. (a)  Except
  as provided by Subsection (c), a property owners' association may
  not foreclose a property owners' association assessment lien unless
  the association first obtains a court order in an application for
  expedited foreclosure under the rules adopted by the supreme court
  under Subsection (b). A property owners' association may use the
  procedure described by this subsection to foreclose any lien
  described by the association's dedicatory instruments.
         (b)  The supreme court, as an exercise of the court's
  authority under Section 74.024, Government Code, shall adopt rules
  establishing expedited foreclosure proceedings for use by a
  property owners' association in foreclosing an assessment lien of
  the association. The rules adopted under this subsection must be
  substantially similar to the rules adopted by the supreme court
  under Section 50(r), Article XVI, Texas Constitution.
         (c)  Expedited foreclosure is not required under this
  section if the owner of the property that is subject to foreclosure
  agrees in writing at the time the foreclosure is sought to waive
  expedited foreclosure under this section. A waiver under this
  subsection may not be required as a condition of the transfer of
  title to real property.
         (d)  A provision granting a right to foreclose a lien on real
  property for unpaid amounts due to a property owners' association
  may be removed from a dedicatory instrument or adopted in a
  dedicatory instrument by a vote of at least 51 percent of the total
  votes allocated to property owners in the property owners'
  association. Owners holding at least 10 percent of all voting
  interests in the property owners' association may petition the
  association and require a special meeting to be called for the
  purposes of taking a vote for the purposes of this section.
         SECTION 17.  Subsection (a), Section 209.010, Property Code,
  is amended to read as follows:
         (a)  A property owners' association that conducts a
  foreclosure sale of an owner's lot must send to the lot owner not
  later than the 30th day after the date of the foreclosure sale:
               (1)  a written notice stating the date and time the sale
  occurred and informing the lot owner of the owner's right to redeem
  the property under Section 209.011; and
               (2)  a copy of Section 209.011.
         SECTION 18.  Chapter 209, Property Code, is amended by
  adding Section 209.014 to read as follows:
         Sec. 209.014.  RESTRICTIONS ON OWNERSHIP VOID. A property
  owners' association may not prohibit an owner from owning multiple
  properties governed by the property owners' association if the
  cumulative voting rights of all of that owner's properties are 25
  percent or less of all voting interests in the property owners'
  association. This section does not apply during a development
  period as defined by Section 202.011.
         SECTION 19.  Subsection (a), Section 211.002, Property Code,
  is amended to read as follows:
         (a)  This chapter applies only to a residential real estate
  subdivision or any unit or parcel of a subdivision to which another
  chapter in this title that provides a procedure under which a
  subdivision's restrictions may be amended does not apply [located
  in whole or in part within an unincorporated area of a county if the
  county has a population of less than 65,000].
         SECTION 20.  Subsection (c), Section 202.004, Property Code,
  is amended to read as follows:
         (c)  For a violation of a restrictive covenant of a property
  owners' association that is a mixed use master association that
  existed before January 1, 1974, and that does not have the authority
  under a dedicatory instrument or other governing document to impose
  fines, a [A] court may assess civil damages [for the violation of a
  restrictive covenant] in an amount not to exceed $200 for each day
  of the violation.
         SECTION 21.  (a)  Subsection (a), Section 5.006, Property
  Code, as amended by this Act, applies only to an action filed on or
  after the effective date of this Act. An action filed before the
  effective date of this Act is governed by the law in effect
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         (b)  Section 5.012, Property Code, as amended by this Act,
  applies only to a sale of property that occurs on or after the
  effective date of this Act. For the purposes of this section, a
  sale of property occurs before the effective date of this Act if the
  executory contract binding the purchaser to purchase the property
  is executed before that date. A sale of property that occurs 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.
         (c)  Sections 202.015 and 209.0035, Property Code, as added
  by this Act, apply only to a cause of action that accrues on or after
  the effective date of this Act. A cause of action that accrues
  before the effective date of this Act is governed by the law in
  effect immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
         (d)  Subsection (c), Section 202.004, Property Code, as
  amended by this Act, applies only to an action brought on or after
  the effective date of this Act. An action brought before the
  effective date of this Act is governed by the law in effect
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         (e)  Section 202.006, Property Code, as amended by this Act,
  and Sections 202.008, 202.010, 202.011, 202.012, 202.014,
  209.0059, and 209.00591 and Subsection (a), Section 209.00592, and
  Section 209.014, Property Code, as added by this Act, apply to a
  provision in a dedicatory instrument or a restrictive covenant
  enacted before, on, or after the effective date of this Act, except
  that any action taken before the effective date of this Act based on
  an unfiled dedicatory instrument is not invalidated by Section
  202.006, Property Code, as amended by this Act.
         (f)  Section 209.005, Property Code, as amended by this Act,
  applies only to a request for information received by a property
  owners' association on or after the effective date of this Act. A
  request for information received by a property owners' association
  before the effective date of this Act is governed by the law in
  effect immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
         (g)  Sections 209.0061, 209.0062, and 209.0064, Property
  Code, as added by this Act, apply only to an assessment or other
  debt that becomes due on or after the effective date of this Act. An
  assessment or other debt that becomes due before the effective date
  of this Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         (h)  Section 209.0063, Property Code, as added by this Act,
  applies only to a payment received by a property owners'
  association on or after the effective date of this Act. A payment
  received by a property owners' association before the effective
  date of this Act is governed by the law in effect immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         (i)  Section 209.0091, Property Code, as added by this Act,
  applies only to a foreclosure sale that occurs after January 1,
  2010. A foreclosure sale that occurs on or before January 1, 2010,
  is governed by the law in effect immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         (j)  Subsection (a), Section 209.010, Property Code, as
  amended by this Act, applies only to a foreclosure sale conducted on
  or after the effective date of this Act. A foreclosure sale
  conducted before the effective date of this Act is governed by the
  law in effect immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         SECTION 22.  Not later than January 1, 2010, each property
  owners' association shall present for recording with the county
  clerk as prescribed by Section 202.006, Property Code, as amended
  by this Act, each dedicatory instrument governing the association
  that has not been previously recorded in the real property records
  of the county.
         SECTION 23.  Not later than January 1, 2010, the Supreme
  Court of Texas shall adopt rules of civil procedure under Section
  209.0091, Property Code, as added by this Act.
         SECTION 24.  This Act takes effect January 1, 2010.
 
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