HBA-MSH H.B. 1423 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1423
By: Bailey
Business & Industry
4/6/2001
Introduced



BACKGROUND AND PURPOSE

Disputes often arise between property owners and property owners'
associations, and many of these disputes are resolved by civil litigation.
Disputes may relate to deed restrictions or bylaws and regulations of the
association.  Many of these disputes could be resolved through a mediation
process and costly hearings could be avoided.  House Bill 1423 requires the
mediation of certain disputes involving property owners' associations, and
sets forth provisions for mediation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1423 amends the Property Code relating to mandatory mediation
for certain disputes involving a property owner and a property owners'
association. 

The bill prohibits a person from filing such an action involving a property
owners' association (association) unless the dispute resolution procedures
of the property owners' association have been exhausted or the dispute has
been submitted to mediation or the defendant has refused to participate in
mediation or failed to respond to a notice of claim.  The prohibition does
not apply to an action for injunctive relief in which there is an immediate
threat of irreparable harm or to an action relating to the title to
residential property. (Secs. 209.002 and 209.003).  The bill requires that
a complaint filed involving an association must contain an affidavit
stating that dispute resolution procedures or mediation have failed to
resolve the  complaint or that the defendant has refused to participate in
mediation (Sec. 209.004).  A person filing a claim relating to
interpretation, application, or enforcement of a restriction or bylaw
adopted by the association must serve a notice of the claim on each person
against whom the claim is made (Sec. 209.005).  The bill provides for the
selection of a mediator by the parties involved in the complaint, or if
necessary by a district court having jurisdiction (Sec. 209.006).  The bill
sets forth provisions regarding the proceedings, mediation, deadlines for
completion, and the qualifications of a mediator (Secs. 209.007, and
209.008). The bill requires the mediator to provide a written statement
after the completion of mediation specifying the agreement reached (Sec.
209.009).  The person making the claim is responsible for all costs
associated with mediation (Sec. 209.010).  The bill provides that the
statute of limitations on a claim is tolled during the mediation
proceedings (Sec. 209.011). 

The bill also amends the Civil Practice and Remedies Code to update a
statutory reference. 

EFFECTIVE DATE

September 1, 2001.