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House Bill 1390 |
House Author: Deshotel et al. |
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Effective: 9-1-11 |
Senate Sponsor: Estes |
House Bill 1390 amends provisions of the Property Code relating to the procedures for making a claim for retainage under certain construction contracts between a property owner and an original contractor. The bill changes the conditions under which such a claim accrues, amends provisions relating to a notice for a contractual retainage claim made by a derivative claimant, and establishes conditions under which the claimant has a lien on, and the owner is personally liable to the claimant for, the retained funds. It amends provisions relating to a subcontractor's authority to claim a lien if the property owner fails to send a required notice to the subcontractor within a specified period after an original contract is terminated or the original contractor abandons performance under the original contract.
House Bill 1390 expands the information the owner, on written request, must provide to any person furnishing labor or materials for the construction project to include the date on which the original contract for the project was executed. A subcontractor who requests and does not receive that date within a prescribed period is not required to comply with the notification requirements for a contractual retainage claim and may perfect a lien for retainage by filing a lien affidavit as provided by state law. The original contractor also is required to provide that date on written request by a person who furnished work under the original contract. The bill expands and amends the grounds for objecting to the validity or enforceability of a retainage claim or lien for purposes of a summary motion to remove an invalid or unenforceable lien.