By: Solomons, et al. (Senate Sponsor - Brimer) H.B. No. 629
(In the Senate - Received from the House April 25, 2005;
May 6, 2005, read first time and referred to Committee on Business
and Commerce; May 16, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
May 16, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 629 By: Averitt
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 in compliance with this section 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.
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