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House Bill 2237 |
House Author: Burrows et al. |
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Effective: 1-1-22 |
Senate Sponsor: Johnson |
House Bill 2237 amends the Insurance Code and Property Code to revise and update provisions relating to mechanic's, contractor's, and materialman's liens, including provisions regarding the deadlines to file affidavits to claim a lien, the limitation period for bringing suit to foreclose a lien, and deadlines for notices of certain claims. Among other related provisions, the bill does the following:
· updates the definitions of "retainage," "subcontractor," and "work"; adds a definition of "purported original contractor"; expands the definitions of "improvement," "labor," and "residence"; and revises applicable provisions to reflect the revised definitions;
· clarifies that a person has a lien if the person provides certain labor or services under a contract with the owner or the owner's agent, trustee, receiver, contractor, or subcontractor;
· establishes that a lien secures payment for the labor done or materials furnished for design, survey, or demolition;
· requires an original contractor or a claimant other than an original contractor claiming a lien to file an affidavit with the county clerk in the county where the improvements are located and establishes the dates by which an applicable affidavit must be filed for residential construction projects and projects other than those projects;
· revises provisions requiring the retainage of certain amounts under an original contract for the benefit of lien claimants to instead require funds to be reserved for that benefit;
· changes the date a suit must be brought to foreclose a lien and provides for that period to be extended;
· changes the date by which a claimant must be notified of a motion to remove an invalid or unenforceable lien in an applicable hearing; and
· revises provisions relating to a bond to pay liens or claims by doing the following:
o removing the specification that the bond protects all persons with a claim related to a residential construction project;
o revising notice requirements to perfect a claim against such a bond; and
o establishing that a claimant that meets the notice requirements need not file an affidavit claiming a mechanic's lien in order to perfect its claim under the bond.