Bill Text: TX HB1933 | 2013-2014 | 83rd Legislature | Introduced


Bill Title: Relating to condominium association records and meetings.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-04-23 - Left pending in committee [HB1933 Detail]

Download: Texas-2013-HB1933-Introduced.html
  83R9157 AJA-D
 
  By: Allen H.B. No. 1933
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to condominium association records and meetings.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 81.209(b), Property Code, is amended to
  read as follows:
         (b)  Notwithstanding a provision in a declaration, master
  deed, or master lease, the books and records of a condominium
  regime, including [The] accounts and supporting vouchers and any
  other financial records, [of a condominium regime] shall be made
  available to the apartment owners in accordance with Section
  81.2091 [for examination on working days at convenient,
  established, and publicly announced hours].
         SECTION 2.  Subchapter C, Chapter 81, Property Code, is
  amended by adding Sections 81.2091 and 81.2092 to read as follows:
         Sec. 81.2091.  AVAILABILITY AND RETENTION OF RECORDS. (a)  
  This section applies to all condominium regimes and controls over
  other law not specifically applicable to a condominium regime.
         (b)  A condominium regime's council of owners shall make the
  books and records of the council, including financial records, open
  to and reasonably available for examination by an apartment owner,
  or a person designated in a writing signed by the owner as the
  owner's agent, attorney, or certified public accountant, in
  accordance with this section.  An owner is entitled to obtain from
  the council copies of information contained in the books and
  records.
         (c)  Except as provided by this subsection, an attorney's
  files and records relating to the council of owners are not records
  of the council and are not subject to inspection by an apartment
  owner or production in a legal proceeding.  If a document in an
  attorney's files and records relating to the council would be
  responsive to a legally authorized request to inspect or copy
  council documents, the document shall be produced by using the copy
  from the attorney's files and records if the council has not
  maintained a separate copy of the document.  This subsection does
  not require production of a document that constitutes attorney work
  product or that is privileged as an attorney-client communication.
         (d)  An apartment owner or the owner's authorized
  representative described by Subsection (b) must submit a written
  request for access or information under Subsection (b) by certified
  mail, with sufficient detail describing the council of owners'
  books and records requested, to the mailing address of the council
  or the council's authorized representative.  The request must
  contain an election either to inspect the books and records before
  obtaining copies or to have the council forward copies of the
  requested books and records and:
               (1)  if an inspection is requested, the council, on or
  before the 10th business day after the date the council receives the
  request, shall send written notice of dates during normal business
  hours that the owner may inspect the requested books and records to
  the extent those books and records are in the possession, custody,
  or control of the council; or
               (2)  if copies of identified books and records are
  requested, the council shall, to the extent those books and records
  are in the possession, custody, or control of the council, produce
  the requested books and records for the requesting party on or
  before the 10th business day after the date the council receives the
  request, except as otherwise provided by this section.
         (e)  If the council of owners is unable to produce the books
  or records requested under Subsection (d) on or before the 10th
  business day after the date the council receives the request, the
  council must provide to the requestor written notice that:
               (1)  informs the requestor that the council is unable
  to produce the information on or before the 10th business day after
  the date the council received the request; and
               (2)  states a date by which the information will be sent
  or made available for inspection to the requesting party that is not
  later than the 15th business day after the date notice under this
  subsection is given.
         (f)  If an inspection is requested or required, the
  inspection shall take place at a mutually agreed on time during
  normal business hours, and the requesting party shall identify the
  books and records for the council of owners to copy and forward to
  the requesting party.
         (g)  A council of owners may produce books and records
  requested under this section in hard copy, electronic, or other
  format reasonably available to the council.
         (h)  A council of owners must adopt a records production and
  copying policy that prescribes the costs the council will charge
  for the compilation, production, and reproduction of information
  requested under this section.  The prescribed charges may include
  all reasonable costs of materials, labor, and overhead but may not
  exceed costs that would be applicable for an item under 1 T.A.C.
  Section 70.3.  The policy required by this subsection must be
  recorded as a dedicatory instrument in accordance with Section
  202.006.  A council of owners may not charge an apartment owner for
  the compilation, production, or reproduction of information
  requested under this section unless the policy prescribing those
  costs has been recorded as required by this subsection.  An owner is
  responsible for costs related to the compilation, production, and
  reproduction of the requested information in the amounts prescribed
  by the policy adopted under this subsection.  The council may
  require advance payment of the estimated costs of compilation,
  production, and reproduction of the requested information.  If the
  estimated costs are lesser or greater than the actual costs, the
  council shall submit a final invoice to the owner on or before the
  30th business day after the date the information is delivered.  If
  the final invoice includes additional amounts due from the owner,
  the additional amounts, if not reimbursed to the council before the
  30th business day after the date the invoice is sent to the owner,
  may be added to the owner's account as an assessment.  If the
  estimated costs exceeded the final invoice amount, the owner is
  entitled to a refund, and the refund shall be issued to the owner
  not later than the 30th business day after the date the invoice is
  sent to the owner.
         (i)  A council of owners must estimate costs under this
  section using amounts prescribed by the policy adopted under
  Subsection (h).
         (j)  Except as provided by Subsection (k) and to the extent
  the information is provided in the meeting minutes, the council of
  owners is not required to release or allow inspection of any books
  or records that identify violation history of an individual
  apartment owner, an owner's personal financial information,
  including records of payment or nonpayment of amounts due the
  council, an owner's contact information, other than the owner's
  address, or information related to an employee of the council,
  including personnel files.  Information may be released in an
  aggregate or summary manner that would not identify an individual
  property owner.
         (k)  The books and records described by Subsection (j) shall
  be released or made available for inspection if:
               (1)  the express written approval of the apartment
  owner whose records are the subject of the request for inspection is
  provided to the council of owners; or
               (2)  a court orders the release of the books and records
  or orders that the books and records be made available for
  inspection.
         (l)  A council of owners of a condominium regime composed of
  more than 14 apartments shall adopt and comply with a document
  retention policy that includes, at a minimum, the following
  requirements:
               (1)  certificates of formation, bylaws, restrictive
  covenants, including a declaration, master deed, or master lease,
  and all amendments to those instruments shall be retained
  permanently;
               (2)  financial books and records shall be retained for
  seven years;
               (3)  account records of current apartment owners shall
  be retained for five years;
               (4)  contracts with a term of one year or more shall be
  retained for four years after the expiration of the contract term;
               (5)  minutes of meetings of the council of owners or the
  council's board of administration shall be retained for seven
  years; and
               (6)  tax returns and audit records shall be retained
  for seven years.
         (m)  A member of a council of owners who is denied access to
  or copies of council 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 included in the condominium regime is located requesting
  relief in accordance with this subsection.  If the justice of the
  peace finds that the member is entitled to access to or copies of
  the records, the justice of the peace may grant one or more of the
  following remedies:
               (1)  a judgment ordering the council to release or
  allow access to the books or records;
               (2)  a judgment against the council for court costs and
  attorney's fees incurred in connection with seeking a remedy under
  this section; or
               (3)  a judgment authorizing the apartment owner or the
  owner's assignee to deduct the amounts awarded under Subdivision
  (2) from any future regular or special assessments payable to the
  council.
         (n)  If the council of owners prevails in an action under
  Subsection (m), the council is entitled to a judgment for court
  costs and attorney's fees incurred by the council in connection
  with the action.
         (o)  On or before the 10th business day before the date a
  person brings an action against a council of owners under this
  section, the person must send written notice to the council of the
  person's intent to bring the action.  The notice must:
               (1)  be sent certified mail, return receipt requested,
  or delivered by the United States Postal Service with signature
  confirmation service to the mailing address of the council or the
  council's authorized representative; and
               (2)  describe with sufficient detail the books and
  records being requested.
         (p)  A council of owners may not foreclose an assessment lien
  if the debt securing the lien consists solely of amounts added to
  the apartment owner's account as an assessment under Subsection
  (h).
         (q)  For the purposes of this section, "business day" means a
  day other than Saturday, Sunday, or a state or federal holiday.
         Sec. 81.2092.  MEETINGS. (a) In this section:
               (1)  "Board" means the board of directors or the body,
  regardless of name, designated to act on behalf of the council of
  owners.
               (2)  "Board meeting":
                     (A)  means a deliberation between a quorum of the
  voting board of the council of owners, or between a quorum of the
  voting board and another person, during which council business is
  considered and the board takes formal action; and
                     (B)  does not include the gathering of a quorum of
  the board at a social function unrelated to the business of the
  council or the attendance by a quorum of the board at a regional,
  state, or national convention, ceremonial event, or press
  conference, if formal action is not taken and any discussion of
  council business is incidental to the social function, convention,
  ceremonial event, or press conference.
         (b)  Meetings of the council of owners must be held at least
  once each year. Unless the declaration provides otherwise, special
  meetings of the council may be called by the president, a majority
  of the board, or apartment owners having at least 20 percent of the
  votes in the council.
         (c)  Meetings of the council and regular and special board
  meetings must be open to apartment owners, subject to the right of
  the board to adjourn a meeting of the board and reconvene in closed
  executive session to consider actions involving personnel, pending
  or threatened litigation, contract negotiations, enforcement
  actions, confidential communications with the council's attorney,
  matters involving the invasion of privacy of individual apartment
  owners, or matters that are to remain confidential by request of the
  affected parties and agreement of the board. Following an
  executive session, any decision made in the executive session must
  be summarized orally and placed in the minutes, in general terms,
  without breaching the privacy of individual owners, violating any
  privilege, or disclosing information that was to remain
  confidential at the request of the affected parties.  The oral
  summary must include a general explanation of expenditures approved
  in executive session.
         (d)  Except for a meeting held by electronic or telephonic
  means under Subsection (i), a board meeting must be held in a county
  in which all or part of the condominium is located or in a county
  adjacent to that county.
         (e)  The board shall keep a record of each regular or special
  board meeting in the form of written minutes of the meeting.  The
  board shall make meeting records, including approved minutes,
  available to a member of the council of owners for inspection and
  copying on the member's written request to the council's managing
  agent at the address appearing on the most recently filed
  management certificate or, if there is not a managing agent, to the
  board.
         (f)  Members of the council of owners shall be given notice
  of the date, hour, place, and general subject of a regular or
  special board meeting, including a general description of any
  matter to be brought up for deliberation in executive session.  The
  notice shall be:
               (1)  mailed to each apartment owner not later than the
  10th day or earlier than the 60th day before the date of the
  meeting; or
               (2)  provided at least 72 hours before the start of the
  meeting by:
                     (A)  posting the notice in a conspicuous manner
  reasonably designed to provide notice to council members:
                           (i)  in a place located on the condominium
  regime's common property or, with the property owner's consent, on
  other conspicuously located privately owned property within the
  condominium regime; or
                           (ii)  on any Internet website maintained by
  the council or other Internet media; and
                     (B)  sending the notice by e-mail to each owner
  who has registered an e-mail address with the council.
         (g)  It is an owner's duty to keep an updated e-mail address
  registered with the council under Subsection (f)(2)(B).
         (h)  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 of the
  continuation in at least one manner prescribed by Subsection
  (f)(2)(A) within two hours after adjourning the meeting being
  continued.
         (i)  A board may meet by any method of communication,
  including electronic and telephonic, without prior notice to
  apartment owners under Subsection (f), if each board member may
  hear and be heard by every other board member, or the board may take
  action by unanimous written consent to consider routine and
  administrative matters or a reasonably unforeseen emergency or
  urgent necessity that requires immediate board action. Any action
  taken without notice to owners under Subsection (f) must be
  summarized orally, including an explanation of any known actual or
  estimated expenditures approved at the meeting, and documented in
  the minutes of the next regular or special board meeting. The board
  may not, without prior notice to owners under Subsection (f),
  consider or vote on:
               (1)  fines;
               (2)  damage assessments;
               (3)  initiation of foreclosure actions;
               (4)  initiation of enforcement actions, excluding
  temporary restraining orders or violations involving a threat to
  health or safety;
               (5)  increases in assessments;
               (6)  levying of special assessments;
               (7)  appeals from a denial of architectural control
  approval; or
               (8)  a suspension of a right of a particular council
  member before the member has an opportunity to attend a board
  meeting to present the member's position, including any defense, on
  the issue.
         (j)  Notice of a meeting of the council of owners must be
  given as provided by the bylaws, or, if the bylaws do not provide
  for notice, notice must be given to each apartment owner in the same
  manner in which notice of a board meeting is given to members under
  this section.
         SECTION 3.  Section 82.108, Property Code, is amended to
  read as follows:
         Sec. 82.108.  MEETINGS. (a) In this section:
               (1)  "Board meeting":
                     (A)  means a deliberation between a quorum of the
  voting board of the association, or between a quorum of the voting
  board and another person, during which association business is
  considered and the board takes formal action; and
                     (B)  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, ceremonial event, or press
  conference, if formal action is not taken and any discussion of
  association business is incidental to the social function,
  convention, ceremonial event, or press conference.
               (2)  "Development period" means a period of declarant
  control described by Section 82.103(c).
         (b)  Meetings of the association must be held at least once
  each year. Unless the declaration provides otherwise, special
  meetings of the association may be called by the president, a
  majority of the board, or unit owners having at least 20 percent of
  the votes in the association.
         (c) [(b)]  Meetings of the association and regular and
  special board meetings must be open to unit owners, subject to the
  right of the board to adjourn a meeting of the board and reconvene
  in closed executive session to consider actions involving
  personnel, pending or threatened litigation, contract
  negotiations, enforcement actions, confidential communications
  with the association's attorney, matters involving the invasion of
  privacy of individual unit owners, or matters that are to remain
  confidential by request of the affected parties and agreement of
  the board. Following an executive session, any decision made in the
  executive session must be summarized orally and placed in the
  minutes, in general terms, without breaching the privacy of
  individual owners, violating any privilege, or disclosing
  information that was to remain confidential at the request of the
  affected parties.  The oral summary must include a general
  explanation of expenditures approved in executive session.
         (d)  Except for a meeting held by electronic or telephonic
  means under Subsection (i), a board meeting must be held in a county
  in which all or part of the condominium is located or in a county
  adjacent to that county.
         (e)  The board shall keep a record of each regular or special
  board meeting in the form of written minutes of the meeting.  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 association's managing agent at the address
  appearing on the most recently filed management certificate or, if
  there is not a managing agent, to the board.
         (f)  Members shall be given notice of the date, hour, place,
  and general subject of a regular or special board meeting,
  including a general description of any matter to be brought up for
  deliberation in executive session.  The notice shall be:
               (1)  mailed to each unit owner not later than the 10th
  day or earlier than the 60th day before the date of the meeting; or
               (2)  provided at least 72 hours before the start of the
  meeting by:
                     (A)  posting the notice in a conspicuous manner
  reasonably designed to provide notice to association members:
                           (i)  in a place located on the association's
  common property or, with the property owner's consent, on other
  conspicuously located privately owned property within the
  condominium regime; or
                           (ii)  on any Internet website maintained by
  the association or other Internet media; and
                     (B)  sending the notice by e-mail to each owner
  who has registered an e-mail address with the association.
         (g)  It is an owner's duty to keep an updated e-mail address
  registered with the association under Subsection (f)(2)(B).
         (h)  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 of the
  continuation in at least one manner prescribed by Subsection
  (f)(2)(A) within two hours after adjourning the meeting being
  continued.
         (i)  A [The general nature of any business to be considered
  in executive session must first be announced at the open meeting.
         [(c)     Unless the declaration, bylaws, or articles of
  incorporation of the association provide otherwise:
               [(1)  a meeting of the] board may meet [be held] by any
  method of communication, including electronic and telephonic,
  without prior notice to owners under Subsection (f), if[:
                     [(A)     notice of the meeting has been given in
  accordance with Subsection (e);
                     [(B)]  each director may hear and be heard by
  every other director, or [; and
                     [(C)     the meeting does not involve voting on a
  fine, damage assessment, appeal from a denial of architectural
  control approval, or suspension of a right of a particular
  association member before the member has an opportunity to attend a
  board meeting to present the member's position, including any
  defense, on the issue; and
               [(2)]  the board may take action [act] by unanimous
  written consent to consider routine and administrative matters or a
  reasonably unforeseen emergency or urgent necessity that requires
  immediate board action. Any action taken without notice to owners
  under Subsection (f) must be summarized orally, including an
  explanation of any known actual or estimated expenditures approved
  at the meeting, and documented in the minutes of the next regular or
  special board meeting. The board may not [of all the directors],
  without prior notice to owners under Subsection (f), consider or
  vote on [a meeting, if]:
               (1)  fines;
               (2)  [(A)     the board action does not involve voting on
  a fine,] damage assessments;
               (3)  initiation of foreclosure actions;
               (4)  initiation of enforcement actions, excluding
  temporary restraining orders or violations involving a threat to
  health or safety;
               (5)  increases in assessments;
               (6)  levying of special assessments;
               (7)  appeals [assessment, appeal] from a denial of
  architectural control approval; [,] or
               (8)  a suspension of a right of a particular
  association member before the member has an opportunity to attend a
  board meeting to present the member's position, including any
  defense, on the issue[; and
                     [(B)     a record of the board action is filed with
  the minutes of board meetings].
         (j) [(d)]  Notice of a meeting of the association must be
  given as provided by the bylaws, or, if the bylaws do not provide
  for notice, notice must be given to each unit owner in the same
  manner in which notice of a board meeting is given under this
  section [to members of a nonprofit corporation under Section A,
  Article 2.11, Texas Non-Profit Corporation Act (Article 1396-2.11,
  Vernon's Texas Civil Statutes)].
         (k)  This section applies to a meeting of an association
  board during the development period only if the meeting is
  conducted for the purpose of:
               (1)  adopting or amending the governing documents,
  including declarations, bylaws, rules, and regulations of the
  association;
               (2)  increasing the amount of regular assessments of
  the association or adopting or increasing a special assessment;
               (3)  electing non-developer board members of the
  association or establishing a process by which those members are
  elected; or
               (4)  changing the voting rights of members of the
  association.
         [(e)     Notice of a meeting of the board must be given as
  provided by the bylaws, or, if the bylaws do not provide for notice,
  notice must be given to each board member in the same manner in
  which notice is given to members of the board of a nonprofit
  corporation under Section B, Article 2.19, Texas Non-Profit
  Corporation Act (Article 1396-2.19, Vernon's Texas Civil
  Statutes).
         [(f)     An association, on the written request of a unit owner,
  shall inform the unit owner of the time and place of the next
  regular or special meeting of the board. If the association
  representative to whom the request is made does not know the time
  and place of the meeting, the association promptly shall obtain the
  information and disclose it to the unit owner or inform the unit
  owner where the information may be obtained.]
         SECTION 4.  Section 82.114(b), Property Code, is amended to
  read as follows:
         (b)  Notwithstanding a provision in a declaration, the books
  and records of the association, including [All] financial [and
  other] records, [of the association] shall be made [reasonably]
  available to the unit owners in accordance with Section 82.1141 [at
  its registered office or its principal office in this state for
  examination by a unit owner and the owner's agents. An attorney's
  files and records relating to the association are not records of the
  association and are not subject to inspection by unit owners or
  production in a legal proceeding].
         SECTION 5.  Subchapter C, Chapter 82, Property Code, is
  amended by adding Section 82.1141 to read as follows:
         Sec. 82.1141.  AVAILABILITY AND RETENTION OF RECORDS. (a)  
  This section applies to all condominium unit owners' associations
  and controls over other law not specifically applicable to a
  condominium unit owners' association.
         (b)  Notwithstanding a provision in a declaration, an
  association shall make the books and records of the association,
  including financial records, open to and reasonably available for
  examination by a unit owner, or a person designated in a writing
  signed by the owner as the owner's agent, attorney, or certified
  public accountant, in accordance with this section.  An owner is
  entitled to obtain from the association copies of information
  contained in the books and records.
         (c)  Except as provided by this subsection, an attorney's
  files and records relating to the association are not records of the
  association and are not subject to inspection by a unit owner or
  production in a legal proceeding.  If a document in an attorney's
  files and records relating to the association would be responsive
  to a legally authorized request to inspect or copy association
  documents, the document shall be produced by using the copy from the
  attorney's files and records if the association has not maintained
  a separate copy of the document.  This subsection does not require
  production of a document that constitutes attorney work product or
  that is privileged as an attorney-client communication.
         (d)  A unit owner or the owner's authorized representative
  described by Subsection (b) must submit a written request for
  access or information under Subsection (b) by certified mail, with
  sufficient detail describing the association's books and records
  requested, to the mailing address of the association or authorized
  representative as reflected on the most current management
  certificate filed under Section 82.116.  The request must contain
  an election either to inspect the books and records before
  obtaining copies or to have the association forward copies of the
  requested books and records and:
               (1)  if an inspection is requested, the association, on
  or before the 10th business day after the date the association
  receives the request, shall send written notice of dates during
  normal business hours that the owner may inspect the requested
  books and records to the extent those books and records are in the
  possession, custody, or control of the association; or
               (2)  if copies of identified books and records are
  requested, the association shall, to the extent those books and
  records are in the possession, custody, or control of the
  association, produce the requested books and records for the
  requesting party on or before the 10th business day after the date
  the association receives the request, except as otherwise provided
  by this section.
         (e)  If the association is unable to produce the books or
  records requested under Subsection (d) on or before the 10th
  business day after the date the association receives the request,
  the association must provide to the requestor written notice that:
               (1)  informs the requestor that the association is
  unable to produce the information on or before the 10th business day
  after the date the association received the request; and
               (2)  states a date by which the information will be sent
  or made available for inspection to the requesting party that is not
  later than the 15th business day after the date notice under this
  subsection is given.
         (f)  If an inspection is requested or required, the
  inspection shall take place at a mutually agreed on time during
  normal business hours, and the requesting party shall identify the
  books and records for the association to copy and forward to the
  requesting party.
         (g)  An association may produce books and records requested
  under this section in hard copy, electronic, or other format
  reasonably available to the association.
         (h)  An association board must adopt a records production and
  copying policy that prescribes the costs the association will
  charge for the compilation, production, and reproduction of
  information requested under this section.  The prescribed charges
  may include all reasonable costs of materials, labor, and overhead
  but may not exceed costs that would be applicable for an item under
  1 T.A.C. Section 70.3.  The policy required by this subsection must
  be recorded as a dedicatory instrument in accordance with Section
  202.006.  An association may not charge a unit owner for the
  compilation, production, or reproduction of information requested
  under this section unless the policy prescribing those costs has
  been recorded as required by this subsection.  An owner is
  responsible for costs related to the compilation, production, and
  reproduction of the requested information in the amounts prescribed
  by the policy adopted under this subsection.  The association may
  require advance payment of the estimated costs of compilation,
  production, and reproduction of the requested information.  If the
  estimated costs are lesser or greater than the actual costs, the
  association shall submit a final invoice to the owner on or before
  the 30th business day after the date the information is delivered.  
  If the final invoice includes additional amounts due from the
  owner, the additional amounts, if not reimbursed to the association
  before the 30th business day after the date the invoice is sent to
  the owner, may be added to the owner's account as an assessment.  If
  the estimated costs exceeded the final invoice amount, the owner is
  entitled to a refund, and the refund shall be issued to the owner
  not later than the 30th business day after the date the invoice is
  sent to the owner.
         (i)  An association must estimate costs under this section
  using amounts prescribed by the policy adopted under Subsection
  (h).
         (j)  Except as provided by Subsection (k) and to the extent
  the information is provided in the meeting minutes, the association
  is not required to release or allow inspection of any books or
  records that identify the violation history of an individual unit
  owner, an owner's personal financial information, including
  records of payment or nonpayment of amounts due the association, an
  owner's contact information, other than the owner's address, or
  information related to an employee of the association, including
  personnel files.  Information may be released in an aggregate or
  summary manner that would not identify an individual unit owner.
         (k)  The books and records described by Subsection (j) shall
  be released or made available for inspection if:
               (1)  the express written approval of the unit owner
  whose records are the subject of the request for inspection is
  provided to the association; or
               (2)  a court orders the release of the books and records
  or orders that the books and records be made available for
  inspection.
         (l)  An association composed of more than 14 units shall
  adopt and comply with a document retention policy that includes, at
  a minimum, the following requirements:
               (1)  certificates of formation, bylaws, restrictive
  covenants, and all amendments to the certificates of formation,
  bylaws, and covenants shall be retained permanently;
               (2)  financial books and records shall be retained for
  seven years;
               (3)  account records of current unit owners shall be
  retained for five years;
               (4)  contracts with a term of one year or more shall be
  retained for four years after the expiration of the contract term;
               (5)  minutes of meetings of the unit owners and the
  board shall be retained for seven years; and
               (6)  tax returns and audit records shall be retained
  for seven years.
         (m)  A member of an association who is denied access to or
  copies of association books or records to which the member is
  entitled under this section may file a petition with the justice of
  the peace of a justice precinct in which all or part of the 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 ordering the association to release or
  allow access to the books or records;
               (2)  a judgment against the association for court costs
  and attorney's fees incurred in connection with seeking a remedy
  under this section; or
               (3)  a judgment authorizing the unit owner or the
  owner's assignee to deduct the amounts awarded under Subdivision
  (2) from any future regular or special assessments payable to the
  association.
         (n)  If the association prevails in an action under
  Subsection (m), the association is entitled to a judgment for court
  costs and attorney's fees incurred by the association in connection
  with the action.
         (o)  On or before the 10th business day before the date a
  person brings an action against an association under this section,
  the person must send written notice to the association of the
  person's intent to bring the action.  The notice must:
               (1)  be sent certified mail, return receipt requested,
  or delivered by the United States Postal Service with signature
  confirmation service to the mailing address of the association or
  authorized representative as reflected on the most current
  management certificate filed under Section 82.116; and
               (2)  describe with sufficient detail the books and
  records being requested.
         (p)  An association may not foreclose an assessment lien if
  the debt securing the lien consists solely of amounts added to the
  unit owner's account as an assessment under Subsection (h).
         (q)  For the purposes of this section, "business day" means a
  day other than Saturday, Sunday, or a state or federal holiday.
         SECTION 6.  (a)  Sections 81.209(b) and 82.114(b), Property
  Code, as amended by this Act, and Sections 81.2091 and 82.1141,
  Property Code, as added by this Act, apply only with respect to
  information requested or sought on or after the effective date of
  this Act. Access to information requested or sought 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.
         (b)  The requirements of Sections 81.2091(l) and 82.1141(l),
  Property Code, as added by this Act, apply only with respect to
  books and records generated on or after the effective date of this
  Act. Books and records generated before the effective date of this
  Act are governed by the law applicable to the books and records
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 7.  This Act takes effect January 1, 2014.
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