By:  King of Zavala                                               H.B. No. 2995


A BILL TO BE ENTITLED
AN ACT
relating to staff leasing services licenseholders as persons who may obtain a mechanic's lien on real property or perfect a claim against a statutory payment bond. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 53.001, Property Code, is amended to read as follows: Sec. 53.001. DEFINITIONS. In this chapter: (1) "Contract price" means the cost to the owner for any part of construction or repair performed under an original contract. (2) "Improvement" includes: (A) abutting sidewalks and streets and utilities in or on those sidewalks and streets; (B) clearing, grubbing, draining, or fencing of land; (C) wells, cisterns, tanks, reservoirs, or artificial lakes or pools made for supplying or storing water; (D) pumps, siphons, and windmills or other machinery or apparatuses used for raising water for stock, domestic use, or irrigation; and (E) planting orchard trees, grubbing out orchards and replacing trees, and pruning of orchard trees. (3) "Labor" means labor used in the direct prosecution of the work. (4) "Material" means all or part of: (A) the material, machinery, fixtures, or tools incorporated into the work, consumed in the direct prosecution of the work, or ordered and delivered for incorporation or consumption; (B) rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct prosecution of the work at the site of the construction or repair; or (C) power, water, fuel, and lubricants consumed or ordered and delivered for consumption in the direct prosecution of the work. (5) "Mechanic's lien" means the lien provided by this chapter. (6) "Original contract" means an agreement to which an owner is a party either directly or by implication of law. (7) "Original contractor" means a person contracting with an owner either directly or through the owner's agent. (8) "Residence" means a single-family house, duplex, triplex, or quadruplex or a unit in a multiunit structure used for residential purposes that is: (A) owned by one or more adult persons; and (B) used or intended to be used as a dwelling by one of the owners. (9) "Residential construction contract" means a contract between an owner and a contractor in which the contractor agrees to construct or repair the owner's residence, including improvements appurtenant to the residence. (10) "Residential construction project" means a project for the construction or repair of a new or existing residence, including improvements appurtenant to the residence, as provided by a residential construction contract. (11) "Retainage" means an amount representing part of a contract payment that is not required to be paid to the claimant within the month following the month in which labor is performed, material is furnished, or specially fabricated material is delivered. The term does not include retainage under Subchapter E. (12) "Specially fabricated material" means material fabricated for use as a component of the construction or repair so as to be reasonably unsuitable for use elsewhere. (13) "Subcontractor" means a person who has furnished labor or materials to fulfill an obligation to an original contractor or to a subcontractor to perform all or part of the work required by an original contract. The term includes a staff leasing services company holding a license under Chapter 91, Labor Code, whose employees perform labor to fulfill an obligation to an original contractor or to a subcontractor. (14) "Work" means any part of construction or repair performed under an original contract. (15) "Completion" of an original contract means the actual completion of the work, including any extras or change orders reasonably required or contemplated under the original contract, other than warranty work or replacement or repair of the work performed under the contract. SECTION 2. Section 2253.001, Government Code, is amended to read as follows: Sec. 2253.001. DEFINITIONS. In this chapter: (1) "Governmental entity" means a governmental or quasi-governmental authority authorized by state law to make a public work contract, including: (A) the state, a county, or a municipality; (B) a department, board, or agency of the state, a county, or a municipality; and (C) a school district or a subdivision of a school district. (2) "Payment bond beneficiary" means a person for whose protection and use this chapter requires a payment bond. (3) "Prime contractor" means a person, firm, or corporation that makes a public work contract with a governmental entity. (4) "Public work contract" means a contract for constructing, altering, or repairing a public building or carrying out or completing any public work. (5) "Public work labor" means labor used directly to carry out a public work. (6) "Public work material" means: (A) material used, or ordered and delivered for use, directly to carry out a public work; (B) specially fabricated material; (C) reasonable rental and actual running repair costs for construction equipment used, or reasonably required and delivered for use, directly to carry out work at the project site; or (D) power, water, fuel, and lubricants used, or ordered and delivered for use, directly to carry out a public work. (7) "Retainage" means the part of the payments under a public work contract that are not required to be paid within the month after the month in which the public work labor is performed or public work material is delivered under the contract. (8) "Specially fabricated material" means material ordered by a prime contractor or subcontractor that is: (A) specially fabricated for use in a public work; and (B) reasonably unsuitable for another use. (9) "Subcontractor" means a person, firm, or corporation that provides public work labor or material to fulfill an obligation to a prime contractor or to a subcontractor for the performance and installation of any of the work required by a public work contract. The term includes a staff leasing services company holding a license under Chapter 91, Labor Code, whose employees perform public work labor to fulfill an obligation to a prime contractor or to a subcontractor. SECTION 3. This Act takes effect September 1, 2005, and applies only to labor performed under or by virtue of a contract entered into on or after that date. Labor performed under or by virtue of a contract entered into before that date is governeed by the law in effect immediately before that date, and that law is continued in effect for that purpose.