79R2538 PAM-F


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: (A) the work is completed; or (B) for a project that is not a residential construction project, the earlier of: (i) the date the work is completed; or (ii) the date the original contractor terminates work or 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. (a) Not later than the 10th day after the date an original contractor terminates work or 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 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.