84R6778 PMO-F
	By: Bohac	H.B. No. 971

	A BILL TO BE ENTITLED
	AN ACT
	relating to requirements governing officers and directors of
	condominium unit owners' associations and property owners'
	associations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter C, Chapter 81, Property Code, is
	amended by adding Section 81.2011 to read as follows:
	Sec. 81.2011.  BOARD MEMBERS AND OFFICERS. (a)  Each officer
	or member of a board of directors or other governing body, if any,
	of a condominium regime is:
	(1)  liable as a fiduciary of the unit owners for the
	officer's or member's acts or omissions; and
	(2)  subject to Sections 82.103(f) and (g), 82.1031,
	and 82.1032.
	(b)  For purposes of this section, a reference to "this
	chapter" in Section 82.1031 means Chapter 81 and Chapter 82.
	(c)  To the extent a fiduciary duty imposed by Subsection
	(a)(1) conflicts with a duty imposed by Chapter 22, Business
	Organizations Code, Subsection (a)(1) prevails.
	SECTION 2.  Section 82.103, Property Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1)  To the extent a duty imposed by Subsection (a)
	conflicts with a duty imposed by Chapter 22, Business Organizations
	Code, Subsection (a) prevails.
	SECTION 3.  Subchapter C, Chapter 82, Property Code, is
	amended by adding Sections 82.1031 and 82.1032 to read as follows:
	Sec. 82.1031.  BOARD MEMBER AND OFFICER DUTIES. (a) Before
	taking office, an officer or board member of a unit owners'
	association shall read:
	(1)  this chapter;
	(2)  the dedicatory instruments and written policies of
	the condominium regime and the unit owners' association; and
	(3)  if applicable, Chapter 22, Business Organizations
	Code.
	(b)  While in office, an officer or board member of a unit
	owners' association shall:
	(1)  uphold and comply with:
	(A)  this chapter;
	(B)  the dedicatory instruments and written
	policies of the condominium regime and the unit owners'
	association; and
	(C)  if applicable, Chapter 22, Business
	Organizations Code; and
	(2)  faithfully discharge the fiduciary duties the
	officer or board member owes to the unit owners.
	(c)  Not later than the 90th day after the date an officer or
	board member is elected or appointed, the officer or board member
	shall file a sworn statement with the secretary of the association
	affirming that the officer or board member:
	(1)  has complied with Subsection (a); and
	(2)  while serving as an officer or board member, will
	comply with Subsection (b).
	(d)  An officer or board member is required to comply with
	Subsection (c) only after the officer or board member is first
	elected or appointed, unless the officer or board member does not
	serve continuously.
	(e)  An officer or board member who fails to comply with
	Subsection (c) is temporarily suspended from office until the date
	the officer or board member complies with that subsection. The
	board may appoint another person to perform the duties of the office
	until the earlier of the date the officer's or board member's term
	of office expires or the date the officer or board member complies
	with Subsection (c). The temporary appointee must comply with
	Subsection (c).
	(f)  The association shall keep with the association records
	under Section 82.114 each sworn statement filed under Subsection
	(c) until at least the fifth anniversary of the date the officer or
	board member who filed the statement was elected or appointed.
	Sec. 82.1032.  REMOVAL FROM OFFICE. If the board of a unit
	owners' association is presented with written, documented evidence
	from a database or other record maintained by a governmental law
	enforcement authority that a board member of the association has
	been convicted of a felony or crime involving moral turpitude, the
	board member is immediately ineligible to serve in that capacity,
	automatically removed from office, and prohibited from future
	service as a board member of the association.
	SECTION 4.  Chapter 209, Property Code, is amended by adding
	Section 209.00595 to read as follows:
	Sec. 209.00595.  OFFICER OR BOARD MEMBER DUTIES. (a) Before
	taking office, an officer or board member of a property owners'
	association shall read:
	(1)  this chapter; and
	(2)  the dedicatory instruments and written policies of
	the property owners' association.
	(b)  While in office, an officer or board member of a
	property owners' association shall:
	(1)  uphold and comply with:
	(A)  this chapter; and
	(B)  the dedicatory instruments and written
	policies of the residential subdivision and the property owners'
	association; and
	(2)  faithfully discharge the officer's or board
	member's duties.
	(c)  Not later than the 90th day after the date an officer or
	board member is elected or appointed, the officer or board member
	shall file a sworn statement with the secretary of the association
	affirming that the officer or board member:
	(1)  has complied with Subsection (a); and
	(2)  while serving as an officer or board member, will
	comply with Subsection (b).
	(d)  An officer or board member is required to comply with
	Subsection (c) only after the officer or board member is first
	elected or appointed, unless the officer or board member does not
	serve continuously.
	(e)  An officer or board member who fails to comply with
	Subsection (c) is temporarily suspended from office until the date
	the officer or board member complies with that subsection. The
	board may appoint another person to perform the duties of the office
	until the earlier of the date the officer's or board member's term
	of office expires or the date the officer or board member complies
	with Subsection (c). The temporary appointee must comply with
	Subsection (c).
	(f)  The association shall keep with the association records
	under Section 209.005 each sworn statement filed under Subsection
	(c) until at least the fifth anniversary of the date the officer or
	board member who filed the statement was elected or appointed.
	SECTION 5.  (a)  The changes in law made by this Act apply to
	an officer or board member of a unit owners' association or a
	property owners' association who is:
	(1)  elected or appointed to office on or after the
	effective date of this Act; or
	(2)  serving in office on the effective date of this
	Act.
	(b)  Not later than December 1, 2015, an officer or board
	member of a unit owners' association or a property owners'
	association serving in office on the effective date of this Act must
	comply with the requirements imposed by Section 82.1031 or
	209.00595, Property Code, as added by this Act, as applicable.
	SECTION 6.  This Act takes effect September 1, 2015.