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 The substitute was withdrawn without objection.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.