BILL ANALYSIS



C.S.H.B. 2620
By: Combs
4-25-95
Committee Report (Substituted)


BACKGROUND

Currently under Chapter 53 of the Property Code, many contracts
between contractors and subcontractors limit the subcontractor's
right to a lien against the premises owner.  This is done even
though the subcontractor is the one who completed the work.

PURPOSE

This bill gives the subcontractor the right to retain a lien and
would not allow the contractor to impede this right.

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.  Subchapter A, Chapter 53, Property Code, is
amended by adding Section 53.004 to read as follows:

     Sec. 53.004.  CONTRACT TERMS PROHIBITED.  A provision of a
contract or any other agreement between an owner and a contractor
or between a contractor and a subcontractor may not impair a
constractor's or subcontractor's right to a lien.

     SECTION 2.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The difference between H.B. 2620, as introduced and the committee
substitute are as follows:

SECTION 1.  The substitute establishes that in addition to an
agreement or provision of a contract between a contractor and a
subcontractor, a subcontractor's and contractor's right to a lien
is not impaired under an agreement or provision of a contract
between an owner and a contractor.

SUMMARY OF COMMITTEE ACTION

H.B. 2620 was considered by the Committee on Business and Industry
on April 18, 1995.  Testifying in support of H.B. 2620 was David
Pinkus, representing Small Business United of Texas.  The committee
considered a complete committee substitute to H.B. 2620.  The
substitute was withdrawn without objection.  H.B. 2620 was left
pending before the committee without objection.  H.B. 2620 was
reconsiderd by the committee on April 25, 1995.  The committee
considered a complete committee substitute to H.B. 2620.  The
substitute was adopted without objection.  H.B. 2620 was reported
favorably, as substituted with the recommendation it do pass and be
printed and be sent to the Committee on Local and Consent, by a
record vote of 8 (eight) ayes, 0 (zero) nays, 0 (zero) present-not-voting, 1 (one) absent.