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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on the amount of a subcontractor's lien |
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for labor or materials. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 53.024, Property Code, is amended to |
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read as follows: |
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Sec. 53.024. LIMITATION ON SUBCONTRACTOR'S LIEN. The |
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amount of a lien claimed by a subcontractor may not exceed the |
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lesser of: |
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(1) an amount equal to the proportion of the total |
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subcontract price that the sum of the labor performed, materials |
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furnished, materials specially fabricated, reasonable overhead |
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costs incurred, and proportionate profit margin bears to the total |
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subcontract price,[;] minus |
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[(2)] the sum of previous payments received by the |
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claimant on the subcontract; or |
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(2) the contract price minus previous payments |
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received by the original contractor and the claimant on the |
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subcontract. |
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SECTION 2. The change in law made by this Act applies only |
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to an original contract entered into on or after the effective date |
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of this Act. An original contract entered into before the effective |
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date of this Act is governed by the law in effect on the date the |
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contract was entered into, and the former law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |