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By:  Solomons, et al.                                             H.B. No. 629



A BILL TO BE ENTITLED

AN ACT

relating to notice required for a mechanic's, contractor's, or 
materialman's lien in certain circumstances.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 53.103, Property Code, is amended to 
read as follows:    
	Sec. 53.103.  LIEN ON RETAINED FUNDS.  A claimant has a lien 
on the retained funds if the claimant:
		(1)  sends the notices required by this chapter in the 
time and manner required; and
		(2)  files an affidavit claiming a lien not later than 
the 30th day after the earlier of the date:
			(A)  the work is completed;                                    
			(B)  the original contract is terminated; or                          
			(C)  the original contractor abandons performance 
under the original contract.
	SECTION 2.  Subchapter E, Chapter 53, Property Code, is 
amended by adding Section 53.107 to read as follows:
	Sec. 53.107.  NOTICE RELATING TO TERMINATION OF WORK OR 
ABANDONMENT OF PERFORMANCE BY ORIGINAL CONTRACTOR OR OWNER.  (a)  
Not later than the 10th day after the date an original contract is 
terminated or the original contractor abandons performance under 
the original contract, the owner shall give notice to each 
subcontractor who, before the date of termination or abandonment, 
has:
		(1)  given notice to the owner as provided by Section 
53.056, 53.057, or 53.058; or
		(2)  sent to the owner by certified or registered mail a 
written request for notice of termination or abandonment.
	(b)  The notice must contain:                                           
		(1)  the name and address of the owner;                                
		(2)  the name and address of the original contractor;                  
		(3)  a description, legally sufficient for 
identification, of the real property on which the improvements are 
located;
		(4)  a general description of the improvements agreed 
to be furnished under the original contract;
		(5)  a statement that the original contract has been 
terminated or that performance under the contract has been 
abandoned;
		(6)  the date of the termination or abandonment; and                   
		(7)  a conspicuous statement that a claimant may not 
have a lien on the retained funds unless the claimant files an 
affidavit claiming a lien not later than the 30th day after the date 
of the termination or abandonment.
	(c)  A notice sent on or before the 10th day after the date of 
termination or abandonment is prima facie evidence of the date the 
original contract was terminated or work was abandoned for purposes 
of this subchapter.
	(d)  A subcontractor who fails to file a lien affidavit in 
the time prescribed by Section 53.103(2) has a lien to the extent 
authorized under this subchapter if:
		(1)  the subcontractor otherwise complies with this 
chapter; and     
		(2)  the owner did not provide the subcontractor notice 
as required by this section.
	(e)  This section does not apply to a residential 
construction project.
	SECTION 3.  This Act applies only to a subcontractor who 
claims a lien as provided by Subchapter E, Chapter 53, Property 
Code, as amended by this Act, if that claim arises under an original 
contract entered into on or after the effective date of this Act.  A 
claim that arises under a contract entered into before the 
effective date of this Act is governed by the law as it existed 
immediately before the effective date of this Act, and that law is 
continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.