H.B. No. 3128
 
 
 
 
AN ACT
  relating to service of process on condominium unit owners and
  condominium unit owners' associations in certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 82.002(c), Property Code, is amended to
  read as follows:
         (c)  This section and the following sections apply to a
  condominium in this state for which the declaration was recorded
  before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053,
  82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113,
  82.114, 82.116, 82.118, 82.157, and 82.161. The definitions
  prescribed by Section 82.003 apply to a condominium in this state
  for which the declaration was recorded before January 1, 1994, to
  the extent the definitions do not conflict with the declaration.
  The sections listed in this subsection apply only with respect to
  events and circumstances occurring on or after January 1, 1994, and
  do not invalidate existing provisions of the declaration, bylaws,
  or plats or plans of a condominium for which the declaration was
  recorded before January 1, 1994.
         SECTION 2.  Subchapter C, Chapter 82, Property Code, is
  amended by adding Section 82.118 to read as follows:
         Sec. 82.118.  SERVICE OF PROCESS ON UNIT OWNERS. (a)  A unit
  owner of a condominium located wholly or partly in a municipality
  with a population of more than 1.9 million may be served with
  process by the municipality or the municipality's agent for a
  judicial or administrative proceeding initiated by the
  municipality and directly related to the unit owner's property
  interest in the condominium by serving the unit owner at the unit
  owner's last known address, according to the records of the
  appraisal district in which the condominium is located, by any
  means permitted by Rule 21a, Texas Rules of Civil Procedure.
         (b)  Notwithstanding Subsection (a), a unit owner may not
  offer proof in the judicial or administrative proceeding, or in a
  subsequent related proceeding, that otherwise proper service by
  mail of the notice was not received not later than three days after
  the date the notice was deposited in a post office or official
  depository under the care and custody of the United States Postal
  Service.
         SECTION 3.  Section 82.153(a), Property Code, is amended to
  read as follows:
         (a)  A condominium information statement must contain or
  accurately disclose:
               (1)  the name and principal address of the declarant
  and of the condominium;
               (2)  a general description of the condominium that
  includes the types of units and the maximum number of units;
               (3)  the minimum and maximum number of additional
  units, if any, that may be included in the condominium;
               (4)  a brief narrative description of any development
  rights reserved by a declarant and of any conditions relating to or
  limitations upon the exercise of development rights;
               (5)  copies of the declaration, articles of
  incorporation of the association, the bylaws, any rules of the
  association, and amendments to any of them, and copies of leases and
  contracts, other than loan documents, that are required by the
  declarant to be signed by purchasers at closing;
               (6)  a projected or pro forma budget for the
  association that complies with Subsection (b) for the first fiscal
  year of the association following the date of the first conveyance
  to a purchaser, identification of the person who prepared the
  budget, and a statement of the budget's assumptions concerning
  occupancy and inflation factors;
               (7)  a general description of each lien, lease, or
  encumbrance on or affecting the title to the condominium after
  conveyance by the declarant;
               (8)  a copy of each written warranty provided by the
  declarant;
               (9)  a description of any unsatisfied judgments against
  the association and any pending suits to which the association is a
  party or which are material to the land title and construction of
  the condominium of which a declarant has actual knowledge;
               (10)  a general description of the insurance coverage
  provided for the benefit of unit owners; [and]
               (11)  current or expected fees or charges to be paid by
  unit owners for the use of the common elements and other facilities
  related to the condominium; and
               (12)  for a condominium located wholly or partly in a
  municipality with a population of more than 1.9 million a statement
  that a unit owner:
                     (A)  as an alternative to personal service, may be
  served with process by the municipality or the municipality's agent
  for a judicial or administrative proceeding initiated by the
  municipality and directly related to the unit owner's property
  interest in the condominium by serving the unit owner at the unit
  owner's last known address, according to the records of the
  appraisal district in which the condominium is located, by any
  means permitted by Rule 21a, Texas Rules of Civil Procedure;
                     (B)  shall promptly notify the appraisal district
  of a change in the unit owner's mailing address; and
                     (C)  may not offer proof in the judicial or
  administrative proceeding, or in a subsequent related proceeding,
  that otherwise proper service by mail of the notice was not received
  not later than three days after the date the notice was deposited in
  a post office or official depository under the care and custody of
  the United States Postal Service.
         SECTION 4.  Section 54.035, Local Government Code, is
  amended by amending Subsections (a), (d), (e), and (f) and adding
  Subsections (a-1) and (a-2) to read as follows:
         (a)  Except as provided by Subsections (a-1) and (a-2),
  notice [Notice] of all proceedings before the commission panels
  must be given:
               (1)  by personal delivery, by certified mail with
  return receipt requested, or by delivery by the United States
  Postal Service using signature confirmation service, to the record
  owners of the affected property, and each holder of a recorded lien
  against the affected property, as shown by the records in the office
  of the county clerk of the county in which the affected property is
  located if the address of the lienholder can be ascertained from the
  deed of trust establishing the lien or [and/or] other applicable
  instruments on file in the office of the county clerk; and
               (2)  to all unknown owners, by posting a copy of the
  notice on the front door of each improvement situated on the
  affected property or as close to the front door as practicable.
         (a-1)  Notice to a condominium association of a proceeding
  before a commission panel relating to a condominium, as defined by
  Section 81.002 or 82.003, Property Code, located wholly or partly
  in a municipality with a population of more than 1.9 million must be
  served by personal service, by certified mail, return receipt
  requested, or by the United States Postal Service using signature
  confirmation service, to the registered agent of the unit owners'
  association.
         (a-2)  Notice to an owner of a unit of a condominium, as
  defined by Section 81.002 or 82.003, Property Code, located wholly
  or partly in a municipality with a population of more than 1.9
  million must be given in accordance with Section 82.118, Property
  Code.
         (d)  A municipality must exercise due diligence to determine
  the identity and address of a property owner, [or] lienholder, or
  registered agent to whom the municipality is required to give
  notice.
         (e)  A municipality exercises due diligence in determining
  the identity and address of a property owner, [or] lienholder, or
  registered agent when it follows the procedures for service under
  Section 82.118, Property Code, or searches the following records:
               (1)  county real property records of the county in
  which the property is located;
               (2)  appraisal district records of the appraisal
  district in which the property is located;
               (3)  records of the secretary of state, if the property
  owner, [or] lienholder, or registered agent is a corporation,
  partnership, or other business association;
               (4)  assumed name records of the county in which the
  property is located;
               (5)  tax records of the municipality; and
               (6)  utility records of the municipality.
         (f)  When a municipality mails a notice in accordance with
  this section to a property owner, [or] lienholder, or registered
  agent and the United States Postal Service returns the notice as
  "refused" or "unclaimed," the validity of the notice is not
  affected, and the notice is considered delivered.
         SECTION 5.  Section 214.001, Local Government Code, is
  amended by amending Subsections (b) and (r) and adding Subsection
  (b-1) to read as follows:
         (b)  The ordinance must:
               (1)  establish minimum standards for the continued use
  and occupancy of all buildings regardless of the date of their
  construction;
               (2)  provide for giving proper notice, subject to
  Subsection (b-1), to the owner of a building; and
               (3)  provide for a public hearing to determine whether
  a building complies with the standards set out in the ordinance.
         (b-1)  For a condominium, as defined by Section 81.002 or
  82.003, Property Code, located wholly or partly in a municipality
  with a population of more than 1.9 million, notice to a unit owner
  in accordance with Section 82.118, Property Code, and notice to the
  registered agent for the unit owners' association in the manner
  provided for service of process to a condominium association under
  Section 54.035(a-1) satisfy the notice requirements under this
  section.
         (r)  When a municipality mails a notice in accordance with
  this section to a property owner, lienholder, [or] mortgagee, or
  registered agent and the United States Postal Service returns the
  notice as "refused" or "unclaimed," the validity of the notice is
  not affected, and the notice is considered delivered.
         SECTION 6.  This Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3128 was passed by the House on May 6,
  2009, by the following vote:  Yeas 144, Nays 2, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3128 was passed by the Senate on May
  27, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor