Bill Text: TX HB1933 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to condominium association records and meetings.
Sponsorship: Partisan Bill (Democrat 1)
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 | |
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| 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 [ |
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| other financial records, [ |
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| available to the apartment owners in accordance with Section | ||
| 81.2091 [ |
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| 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. | ||
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| 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 [ |
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| method of communication, including electronic and telephonic, | ||
| without prior notice to owners under Subsection (f), if[ |
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| every other director, or [ |
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| 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 [ |
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| without prior notice to owners under Subsection (f), consider or | ||
| vote on [ |
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| (1) fines; | ||
| (2) [ |
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| (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 [ |
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| architectural control approval; [ |
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| (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[ |
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| (j) [ |
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| 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 [ |
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| (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. | ||
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| 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 [ |
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| available to the unit owners in accordance with Section 82.1141 [ |
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| 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. | ||
