HBA-NRS H.B. 2592 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2592
By: Davis, John
Licensing & Administrative Procedures
3/16/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, property owners' associations are authorized to enter into
contracts with attorneys using contingent fee agreements to uphold
restrictions, rules, and bylaws of the associations. Violations of property
owners' association restrictions, rules, and bylaws can result in a lien
being placed on the violator's property in the subdivision under the
jurisdiction of the association which sometimes results in attorneys
gaining financially from the lien. House Bill 2592 prohibits an attorney
from entering into a contingent fee contract to represent a property
owners' association in matters involving violations of restrictions
applicable to the subdivision represented by the association or the
association's bylaws and rules. 

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 2592 prohibits an attorney from entering into a contingent fee
contract to represent a property owners' association in matters involving
violations of restrictions applicable to the subdivision represented by the
association or the association's bylaws and rules. 

EFFECTIVE DATE

September 1, 2001.