BILL ANALYSIS
C.S.H.B. 593
By: Greenberg
4-25-95
Committee Report (Substituted)
BACKGROUND
Present law does not provide enough safeguards against false liens
being filed against property. It is necessary to strengthen
requirements that homeowners are notified when a lien is file. A
criminal penalty is also required to deter persons from filing
false liens.
PURPOSE
This bill will require that proof of an attempt to notify the
property owner be provided at the time the lien is filed. In
addition, information regarding the relationship between the
property owner and the contractor as well as a personal
identification document or a business identification document. A
class C misdemeanor is committed if a person knowingly makes a
false statement on an affidavit.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.
SECTION BY SECTION ANALYSIS
SECTION 1: Amends Subchapter C, Chapter 53, Property code, by
amending Section 53.054 and adding Section 53.0511 entitled NOTICE
and Section 53.060 entitled PENALTY.
Section 53.0511. (a) Requires a person who is filing a lien
must to provide the owner of the property or reputed owner a
written notice and copy of the lien affidavit by certified mail
with a request for return receipt.
(b) States that service of notice is complete when the notice
is mailed, postage pre-paid to the last known address of the
reputed owner.
(c) States that this section does not apply to a person
required to give notice to an owner or reputed owner under Section
53.056, 53.057, or 53.054.
Section 53.054. (a) States that an affidavit must be signed by
the person claiming the lien or by another person on the claimants
behalf and must contain the following:
(1) a sworn statement of the claim, including the amount;
(2) the name of the owner or reputed owner;
(3) a general statement of the kind of work done and
materials furnished by the claimant;
(4) the name of the person by whom the claimant was employed
or to whom the claimant furnished the materials or labor;
(5) the name of the original contractor;
(6) a description of the property sought to be charged with
the lien;
(7) the claimant's business address; and
(8) a description of the business relationship between the
claimant and the owner or reputed owner.
(b) Provides that the claimant may attach to the affidavit a
copy of any applicable written agreement or contract.
(c) Establishes that the claimant must attach to the affidavit
a copy of the notice and return receipt or, if the return receipt
has not been received, a copy of the receipt for certified mail
issued by the post office.
(d) Provides that the affidavit is not required to set forth
individual items of work done or material furnished or specially
fabricated. Allows usage of any abbreviations or symbols.
Reletters these subsections accordingly.
Section 53.060. (a) Creates an offense if a person knowingly
makes a false statement on an affidavit filed under this
subchapter.
(b) An offense under this section is a Class C misdemeanor
(c) Provides that conduct proscribed under this section
constitutes an offense under another law of this state, the state
may elect the offense for which it will prosecute the person.
SECTION 2. States that a lien affidavit filed before the 30th
day after the effective date is subject to law as it existed
immediately prior to the effective date of this Act.
SECTION 3. Effective Date: September 1, 1995.
SECTION 4. Emergency Clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The major points of difference between H.B. 593, as introduced and
the committee substitute are:
Section 53.0511(a) adds that the person filing the lien must
provide in addition to the written notice, a copy of the lien
affidavit, which are to be certified by mail with a request for
return receipt to the owner of the property.
Section 53.0511(c) is added which exempts individuals from
this notice requirement if they are required to send notice under
Section 53.056, 53.057, or 53.058.
Section 53.054(b), the language is changed so that it is
permissive on the inclusion of a copy of the contract. Deletes the
requirement for a copy of a personal identification document,
including a driver's license, business identification number,
assumed name certificate, articles of incorporation, association,
or organization, or a certificate of limited partnership.
Section 53.054 (c) is added stating the claimant must attach
a copy of the notice and return receipt to the affidavit. Reletters
this Section accordingly.
Section 53.060(c) is added stating that the state may chose
which offense to prosecute if the offense is similar to another
offense under laws of this state.
SUMMARY OF COMMITTEE ACTION
H.B. 593 was considered by the Committee on Business and Industry
in public hearing on April 18, 1995. Testifying in support of the
bill was Dana DeBeauvoir, representing County and District Clerks
Association. Testifying against the bill were Durward Curlee,
representing Association of General Contractors; Robert Bass,
representing Lumberman's Association of Texas; Tony Prets,
representing Lumberman's Association; Steve Winn, representing
himself; Glenn L. Randle, representing Mechanical Contractors of
Texas, Inc.; and Michael Stewart, representing Texas Aggregates and
Concrete Association. No one testified on the bill. A complete
committee substitute to the bill was offered. The substitute was
withdrawn without objection. H.B. 593 was left pending before the
committee. H.B. 593 was reconsidered by the committee on pending
business in a public hearing on April 25, 1995. The committee
considered a complete committee substitute to the bill. The
committee substitute was adopted without objection. H.B. 593 was
reported favorably, as substituted with the recommendation that it
do pass and be printed, by a record vote of 8 (eight) ayes, 0
(zero) nays, 0 (zero) present-not-voting, 1 (one) absent.