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House Bill 629 |
House Author: Solomons et al. |
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Effective: 9-1-05 |
Senate Sponsor: Brimer |
House Bill 629 amends the Property Code to require notice by a property owner to certain subcontractors on a construction project relating to termination of work or abandonment of performance by the original contractor for purposes of establishing a mechanic's, contractor's, or materialman's lien on retained funds. The bill requires the property owner, not later than the 10th day after the date an original contract is terminated or the original contractor abandons performance under the original contract, to notify each subcontractor who, before the date of termination or abandonment, gave the requisite notice to establish a lien and who submits a written request by certified or registered mail for notice of termination or abandonment. The bill also specifies what the notice must contain. It provides that a notice sent within the prescribed period is prima facie evidence of the date the original contract was terminated or work was abandoned for purposes of the law, and it provides that a subcontractor who fails to file a timely lien affidavit has a lien to the extent authorized by law if the owner did not provide the notice of termination or abandonment. The provisions do not apply to a residential construction project. Finally, the bill provides that a claimant has a lien on retained funds if the claimant sends the required notices and files an affidavit claiming a lien not later than the 30th day after the earlier of the date the work is completed, the original contract is terminated, or the original contractor abandons performance under the original contract. Under previous law, the claimant was required to file the affidavit within 30 days after the work was completed.