Bill Text: TX HB589 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to mechanic's, contractor's, or materialman's liens; authorizing a fee; changing the eligibility for community supervision.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2019-04-23 - Left pending in committee [HB589 Detail]
Download: Texas-2019-HB589-Introduced.html
86R1809 BEE-F | ||
By: Deshotel | H.B. No. 589 |
|
||
|
||
relating to mechanic's, contractor's, or materialman's liens; | ||
authorizing a fee; changing the eligibility for community | ||
supervision. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 3503.051(3), Insurance Code, is amended | ||
to read as follows: | ||
(3) "Notice of claim" means a written notification by | ||
a claimant who makes a claim for payment from the surety | ||
company. The term does not include a routine statutory notice | ||
required by [ |
||
|
||
SECTION 2. Section 53.001, Property Code, is amended by | ||
amending Subdivisions (2), (12), (13), and (14) and adding | ||
Subdivisions (1-a), (2-a), (3-a), (5-a), (5-b), (5-c), (5-d), | ||
(5-e), (5-f), (7-a), (7-b), (7-c), and (12-a) to read as follows: | ||
(1-a) "Contractual retainage" means an agreed amount or | ||
percentage of money in a construction contract or subcontract that | ||
is withheld from a payment and not due to be paid until completion | ||
of the contract or on an agreed date. | ||
(2) "Improved" means, in reference to real property, | ||
having an improvement, as defined by this section. | ||
(2-a) "Improvement" means a house, building, or other | ||
improvement to the real property of an owner. The term includes: | ||
(A) improvements constructed adjacent to the | ||
real property under an original contract with the owner, including | ||
[ |
||
sidewalks and streets or appurtenant to the real property; | ||
(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; [ |
||
(E) planting orchard trees, grubbing out | ||
orchards and replacing trees, and pruning of orchard trees; | ||
(F) levees or embankments erected for the | ||
reclamation of overflow land along a river or creek; and | ||
(G) railroads. | ||
(3-a) "Lien website" means the Internet website | ||
established under Subchapter A-1. | ||
(5-a) "Notice of commencement" means a notice | ||
described by Section 53.125. | ||
(5-b) "Notice of completion or termination" means a | ||
notice described by Section 53.059. | ||
(5-c) "Notice of demand" means a notice described by | ||
Section 53.0521. | ||
(5-d) "Notice of furnishing" means a notice described | ||
by Section 53.0561. | ||
(5-e) "Notice of nonpayment" means a notice described | ||
by Section 53.0562. | ||
(5-f) "Notice of unpaid balance" means a notice | ||
described by Section 53.0563. | ||
(7-a) "Owner" means a person who owns any interest in | ||
real property or an authorized agent, trustee, or receiver of the | ||
person. | ||
(7-b) "Payment request" includes any bill, billing | ||
statement, invoice, or application for payment given by an original | ||
contractor or a subcontractor for work. | ||
(7-c) "Reputed owner" means a person who is: | ||
(A) identified as an owner in a notice of | ||
commencement required under this chapter or in an original contract | ||
or a subcontract for an improvement; or | ||
(B) generally considered or reputed to be the | ||
owner of the real property being improved. | ||
(12) "Specially fabricated material" means material | ||
fabricated for use as a component of the construction or repair of | ||
an improvement so as to be reasonably unsuitable for use elsewhere. | ||
(12-a) "Subcontract" means a contract between: | ||
(A) an original contractor and a subcontractor; | ||
or | ||
(B) a subcontractor and another subcontractor. | ||
(13) "Subcontractor" means a person who has furnished | ||
labor or materials to fulfill an obligation to an original | ||
contractor or to a subcontractor of any tier to perform all or part | ||
of the work required by an original contract. | ||
(14) "Work" means any part of labor done, material | ||
furnished, or materials specially fabricated for the construction | ||
or repair of an improvement performed under an original contract. | ||
SECTION 3. Section 53.003, Property Code, is amended by | ||
amending Subsections (a) and (c) and adding Subsection (e) to read | ||
as follows: | ||
(a) This section applies to notices required by this chapter | ||
[ |
||
any written communication required under this chapter. | ||
(c) A notice may be sent by registered or certified mail. If | ||
a notice is sent by registered or certified mail, the effective date | ||
of the notice is the date of deposit or mailing of the notice in the | ||
United States mail in the form required [ |
||
|
||
law requires receipt of the notice by the person to whom it is | ||
directed. | ||
(e) This subsection applies only if a notice of commencement | ||
has been posted under Section 53.125 and does not apply to a notice | ||
of demand or a notice of bond. A notice may be posted on the lien | ||
website under the protocols established for the website. If an | ||
e-mail address is provided to the owner or reputed owner in a notice | ||
of furnishing by a person under Section 53.0561, a notice may be | ||
provided to that person by e-mail with an electronic record of | ||
delivery. The effective date of a notice is the date the notice is | ||
posted on the lien website under the website's protocols or the date | ||
the e-mail is sent. An e-mail sent to a recipient in accordance | ||
with this subsection is prima facie evidence of delivery of a | ||
message to an e-mail address to which it is sent. | ||
SECTION 4. Subchapter A, Chapter 53, Property Code, is | ||
amended by adding Section 53.004 to read as follows: | ||
Sec. 53.004. COMPUTATION OF TIME. In computing the period | ||
of days in which to provide a notice or to take an action required | ||
under this chapter, if the last day of the period is a Saturday, | ||
Sunday, or legal holiday, the period is extended to include the next | ||
day that is not a Saturday, Sunday, or legal holiday. | ||
SECTION 5. Chapter 53, Property Code, is amended by adding | ||
Subchapter A-1 to read as follows: | ||
SUBCHAPTER A-1. LIEN WEBSITE | ||
Sec. 53.011. LIEN WEBSITE. (a) The secretary of state | ||
shall: | ||
(1) establish and maintain a lien website through the | ||
state electronic Internet portal, as defined by Section 2054.003, | ||
Government Code; and | ||
(2) establish protocols for posting and receiving | ||
notices under this chapter through the lien website. | ||
(b) The secretary of state may adopt rules and forms | ||
necessary to implement this subchapter. | ||
Sec. 53.012. POSTING ON LIEN WEBSITE. (a) The lien website | ||
must provide an online form for each notice or written | ||
communication required by this chapter that complies with the | ||
content requirements of this chapter for the notice or | ||
communication. | ||
(b) The lien website must allow a person to electronically: | ||
(1) obtain a form; | ||
(2) complete and post the notice or written | ||
communication on the lien website efficiently; and | ||
(3) for an owner, original contractor, or | ||
subcontractor, opt to automatically receive notice of new postings | ||
by e-mail. | ||
Sec. 53.013. SEARCHING LIEN WEBSITE. The lien website must | ||
allow a person to search the notices and written communications | ||
posted on the lien website with a full or partial: | ||
(1) owner name; | ||
(2) project name; | ||
(3) project address; | ||
(4) project real property legal description; | ||
(5) original contractor name; or | ||
(6) name of the person on whose behalf a notice or | ||
written communication is posted. | ||
Sec. 53.014. FEES. (a) Notwithstanding Section 2054.2591, | ||
Government Code, and except as provided by Subsection (b), the | ||
secretary of state may not charge a fee for a person to: | ||
(1) electronically obtain a form or post a notice or | ||
written communication on the lien website; or | ||
(2) use the search functions of the lien website. | ||
(b) The secretary of state may charge a fee for a person to | ||
post a notice of commencement on the lien website. | ||
SECTION 6. Section 53.021(a), Property Code, is amended to | ||
read as follows: | ||
(a) A person has a lien if: | ||
(1) the person labors, specially fabricates material, | ||
or furnishes labor or materials for construction or repair in this | ||
state of an[ |
||
[ |
||
[ |
||
|
||
[ |
||
(2) the person labors, specially fabricates the | ||
material, or furnishes the labor or materials under or arising out | ||
[ |
||
between the person and: | ||
(A) [ |
||
trustee, or receiver; | ||
(B) a [ |
||
(C) a subcontractor. | ||
SECTION 7. Section 53.022, Property Code, is amended by | ||
amending Subsection (a) and adding Subsections (b-1) and (e) to | ||
read as follows: | ||
(a) The lien extends to the interest of the owner or the | ||
owner's successor in interest in the real property, house, | ||
building, fixtures, or improvements, the land reclaimed from | ||
overflow, or the railroad and all of its properties, and to each lot | ||
of land necessarily connected or reclaimed. | ||
(b-1) If an improvement is constructed on real property that | ||
is adjacent to the real property of the owner who entered into the | ||
original contract for the improvements and the adjacent property is | ||
not owned by the owner, the lien extends only to the interest | ||
described by Subsection (a) and not to the adjacent property. | ||
(e) A lien arising from work performed on common elements of | ||
a condominium governed by Chapter 81 or 82 extends to each unit | ||
owning an interest in the common elements being improved, and is | ||
apportioned based on the relative ownership interests of each unit | ||
in the common elements being improved, if: | ||
(1) the inception of the lien is after the date the | ||
declaration establishing the condominium was recorded; and | ||
(2) the work was performed under a contract with the | ||
council of owners, the unit owners' association of the condominium, | ||
or all of the owners of the units owning an interest in the common | ||
elements being improved. | ||
SECTION 8. Section 53.024, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.024. LIMITATION ON SUBCONTRACTOR'S LIEN. The | ||
amount of a lien claimed by a subcontractor may not exceed: | ||
(1) an amount equal to the proportion of the total | ||
subcontract price, including all additional amounts to which the | ||
subcontractor is entitled as an adjustment to the subcontract, that | ||
the sum of the labor performed, materials furnished, materials | ||
specially fabricated, reasonable overhead costs incurred, and | ||
proportionate profit margin bears to the total subcontract price; | ||
minus | ||
(2) the sum of previous payments received by the | ||
claimant on the subcontract. | ||
SECTION 9. Section 53.026(a), Property Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Section 53.0561, a [ |
||
labors, specially fabricates materials, or furnishes labor or | ||
materials under a direct contractual relationship with another | ||
person is considered to be in direct contractual relationship with | ||
the owner and has a lien as an original contractor, if: | ||
(1) the owner [ |
||
|
||
|
||
other person can effectively control the owner through ownership of | ||
voting stock, interlocking directorships, or otherwise; or | ||
(2) the owner contracted with the other person for the | ||
construction or repair of a house, building, or improvements [ |
||
|
||
|
||
|
||
[ |
||
|
||
and the contract was made without good faith intention of the | ||
parties that the other person was to perform the contract. | ||
SECTION 10. Section 53.052, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.052. FILING OF LIEN CLAIM AFFIDAVIT. (a) Except as | ||
provided by Subsection (b) or Section 53.0521, an original | ||
contractor or a subcontractor, including an employee described by | ||
Section 53.0563(a)(1), [ |
||
this chapter must file a lien claim [ |
||
Subsection (c) [ |
||
|
||
than the 15th day of the fourth calendar month after the date the | ||
work under the original contract is completed or the original | ||
contract is terminated [ |
||
(b) Except as provided by Section 53.0521, an original | ||
contractor or a subcontractor, including an employee described by | ||
Section 53.0563(a)(1), [ |
||
a residential construction project must file a lien claim [ |
||
affidavit as provided by Subsection (c) [ |
||
|
||
day of the third calendar month after the date the work under the | ||
original contract is completed or the original contract is | ||
terminated [ |
||
(c) A lien claim affidavit must be filed with the county | ||
clerk of the county in which the property is located or into which | ||
the railroad extends. The county clerk shall record the affidavit | ||
in records kept for that purpose and shall index and cross-index the | ||
affidavit in the names of the claimant, the original contractor, | ||
and the owner. Failure of the county clerk to properly record or | ||
index a filed affidavit does not invalidate the lien. | ||
(d) For purposes of this section, an original contract is | ||
terminated on the date an owner posts a notice of termination on the | ||
lien website. If a notice of commencement has not been filed and | ||
posted under Section 53.125, the owner must send a notice of | ||
termination to each person who has given the owner a notice of | ||
furnishing. | ||
SECTION 11. Subchapter C, Chapter 53, Property Code, is | ||
amended by adding Section 53.0521 to read as follows: | ||
Sec. 53.0521. NOTICE OF DEMAND. (a) If work under an | ||
original contract has been completed or the original contract has | ||
been terminated, an owner may send a notice of demand to the | ||
original contractor or a subcontractor requesting the contractor or | ||
subcontractor to file a lien claim affidavit. If the notice of | ||
demand is based on the termination of the original contract, the | ||
notice must state that the original contract was terminated and the | ||
date of the termination. An owner may not send the notice of demand | ||
before the original contract has been terminated. A notice of | ||
demand sent to a subcontractor before work under the original | ||
contract has been completed is effective only as to a claimant who | ||
has completed the claimant's work on or before the date the notice | ||
is sent and is void as to any other claimant. | ||
(b) For purposes of this section, an original contract is | ||
terminated on the date an owner posts a notice of termination on the | ||
lien website. If a notice of commencement has not been filed and | ||
posted under Section 53.125, the owner must send a notice of | ||
termination to each person who has provided a notice of furnishing. | ||
(c) A notice of demand: | ||
(1) must be sent by registered or certified mail to: | ||
(A) an original contractor at the contractor's | ||
last known address; or | ||
(B) a subcontractor at the subcontractor's | ||
address provided by the notice of furnishing; and | ||
(2) may not be given by posting on the lien website or | ||
by e-mail. | ||
(d) If an owner sends a notice of demand, a claimant who has | ||
completed the claimant's work must, not later than the 30th day | ||
after the date the notice is sent, file a lien claim affidavit for a | ||
claim the claimant has not included in a previously filed lien claim | ||
affidavit. | ||
(e) A claimant who has not completed the claimant's work on | ||
the date the owner sends a notice of demand must file a lien claim | ||
affidavit as provided by Section 53.052(a) or (b), as applicable. | ||
(f) An original contractor or a subcontractor waives any | ||
statutory lien rights that have not been perfected if the | ||
contractor or subcontractor does not comply with this section. | ||
(g) A notice of demand must be conspicuously printed in bold | ||
type and in all capital letters not smaller than 10-point type and | ||
must state the following: | ||
"NOTICE OF DEMAND | ||
"WARNING: THIS NOTICE BRIEFLY SUMMARIZES LEGAL REQUIREMENTS | ||
STATED BY SECTION 53.0521, PROPERTY CODE. YOU SHOULD CONSULT AN | ||
ATTORNEY TO FULLY UNDERSTAND YOUR RIGHTS AND OBLIGATIONS. | ||
"THE OWNER IS DEMANDING THAT YOU FILE A LIEN CLAIM AFFIDAVIT | ||
NOT LATER THAN THE 30TH DAY AFTER THE DATE THIS NOTICE WAS SENT TO | ||
YOU. IF THE ORIGINAL CONTRACT HAS BEEN TERMINATED OR IF YOU | ||
COMPLETED YOUR WORK ON OR BEFORE THE DATE THIS NOTICE WAS SENT TO | ||
YOU, YOU ARE REQUIRED, NOT LATER THAN THE 30TH DAY AFTER THE DATE | ||
THIS NOTICE WAS SENT TO YOU, TO FILE YOUR LIEN CLAIM AFFIDAVIT FOR | ||
ANY CLAIMS YOU HAVE NOT INCLUDED IN A LIEN CLAIM AFFIDAVIT YOU HAVE | ||
PREVIOUSLY FILED OR YOU MAY LOSE ANY STATUTORY LIEN RIGHTS THAT YOU | ||
HAVE NOT PREVIOUSLY PERFECTED. | ||
"IF THE ORIGINAL CONTRACT IS NOT TERMINATED OR YOU HAVE NOT | ||
COMPLETED YOUR WORK, THE DEADLINE TO FILE YOUR LIEN CLAIM AFFIDAVIT | ||
IS PROVIDED BY SECTION 53.052(a) OR (b), PROPERTY CODE." | ||
SECTION 12. The heading to Section 53.054, Property Code, | ||
is amended to read as follows: | ||
Sec. 53.054. CONTENTS OF LIEN CLAIM AFFIDAVIT. | ||
SECTION 13. Sections 53.054(a) and (c), Property Code, are | ||
amended to read as follows: | ||
(a) The lien claim affidavit must be signed by the person | ||
claiming the lien or by another person on the claimant's behalf and | ||
must contain substantially: | ||
(1) a sworn statement of the amount of the claim; | ||
(2) the name and last known address of the owner or | ||
reputed owner; | ||
(3) a general statement of the kind of work done and | ||
materials furnished by the claimant [ |
||
|
||
|
||
(4) the name and last known address of the person by | ||
whom the claimant was employed or to whom the claimant furnished the | ||
materials or labor; | ||
(5) the name and last known address of the original | ||
contractor; | ||
(6) a description, legally sufficient for | ||
identification, of the property sought to be charged with the lien; | ||
(7) the claimant's name, mailing address, and, if | ||
different, physical address; and | ||
(8) for a claimant other than an original contractor, | ||
a statement identifying the date each notice of furnishing or | ||
notice of unpaid balance, as applicable, [ |
||
[ |
||
|
||
(c) The affidavit is not required to set forth individual | ||
items of work done or material furnished or specially fabricated. | ||
The affidavit may use any broad descriptive terms, abbreviations, | ||
or symbols customary in the trade to describe the work done or | ||
material furnished. | ||
SECTION 14. Section 53.055, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.055. NOTICE OF FILED LIEN CLAIM AFFIDAVIT. (a) A | ||
person who files a lien claim [ |
||
affidavit by registered or certified mail to the owner or reputed | ||
owner at the owner's last known business or residence address or | ||
post a copy on the lien website not later than the 10th [ |
||
after the date the affidavit is filed with the county clerk. | ||
(b) If the person is not an original contractor, and the | ||
person has not posted a copy of the affidavit on the lien website | ||
under Subsection (a), the person must also send a copy of the | ||
affidavit to the original contractor at the original contractor's | ||
last known business or residence address in [ |
||
manner and time that the affidavit must be sent to the owner or | ||
reputed owner under Subsection (a) [ |
||
SECTION 15. Subchapter C, Chapter 53, Property Code, is | ||
amended by adding Sections 53.0561, 53.0562, 53.0563, and 53.059 to | ||
read as follows: | ||
Sec. 53.0561. NOTICE OF FURNISHING. (a) Except as provided | ||
by Section 53.0563: | ||
(1) a person who contracts with a person other than the | ||
owner and who has a lien as an original contractor under Section | ||
53.026(a) must give a notice of furnishing to the owner or reputed | ||
owner for the lien to be valid; and | ||
(2) a person other than an original contractor must | ||
give a notice of furnishing to the owner or reputed owner and the | ||
original contractor for the lien to be valid. | ||
(b) The notice of furnishing must include: | ||
(1) a general description of the labor or material | ||
furnished or to be furnished by the person giving the notice of | ||
furnishing and, for specially fabricated material, a separate | ||
description of the specially fabricated material, that may include | ||
a list of individual items of work or material or use terms, | ||
abbreviations, or symbols customary in the trade; | ||
(2) the name, address, and telephone number of the | ||
person giving the notice of furnishing; | ||
(3) the e-mail address of the person giving the notice | ||
of furnishing, if the person wants to receive notices of postings on | ||
the lien website; | ||
(4) the name, address, and telephone number of the | ||
person with whom the person giving the notice of furnishing | ||
contracted to furnish the labor or material; and | ||
(5) a conspicuous statement in bold type as follows: | ||
"THIS IS NOT A LIEN OR A CLAIM FOR A LIEN. THIS IS ONLY A | ||
NOTICE TO THE OWNER THAT A SUBCONTRACTOR IS FURNISHING OR INTENDS TO | ||
FURNISH LABOR OR MATERIAL TO THE PROJECT. THIS NOTICE IS REQUIRED TO | ||
PRESERVE THE SUBCONTRACTOR'S LIEN RIGHTS UNDER CHAPTER 53, PROPERTY | ||
CODE." | ||
(c) Except as provided by Subsection (d), the notice of | ||
furnishing does not preserve a lien right for labor performed or | ||
material furnished or specially fabricated earlier than 60 days | ||
before the date the notice is provided as required by this section. | ||
(d) If the owner has filed and posted a notice of | ||
commencement under Section 53.125 before the subcontractor begins | ||
performing labor or furnishing or specially fabricating material, | ||
the notice of furnishing does not preserve a lien right for labor | ||
performed or material furnished or specially fabricated by the | ||
subcontractor earlier than 30 days before the date the notice of | ||
furnishing is provided. | ||
(e) Only one notice of furnishing to an owner or reputed | ||
owner is required for all labor or material furnished or to be | ||
furnished by each subcontractor. If a subcontractor contracts to | ||
perform work for the improvement of the owner's property under more | ||
than one original contract, the subcontractor must identify each | ||
original contract in the notice of furnishing or must furnish | ||
separate notices of furnishing for each original contract. | ||
(f) The notice of furnishing is not invalid if, after the | ||
date of the notice, the subcontractor furnishes labor or material | ||
that is not within the scope of the notice's general description of | ||
the labor and material furnished or to be furnished. | ||
(g) A notice of furnishing that does not include the | ||
subcontractor's e-mail address is not invalid. | ||
Sec. 53.0562. NOTICE OF NONPAYMENT. (a) Except as provided | ||
by Subsection (b), a subcontractor may give an owner or reputed | ||
owner a notice of nonpayment for any amount of a payment request | ||
that remains unpaid for at least 60 days after the date the | ||
subcontractor gives the payment request. | ||
(b) A notice of nonpayment is not effective for the unpaid | ||
amount of a payment request that is contractual retainage, provided | ||
that the contractual retainage does not exceed 10 percent of the | ||
amount of the payment request. | ||
(c) Except as provided by Subsection (d), an owner is liable | ||
and the owner's property is subject to a lien by the subcontractor | ||
under Section 53.0841(b)(3) after the owner is given the notice of | ||
nonpayment. | ||
(d) An owner is not liable and the owner's property is not | ||
subject to a lien as provided by Subsection (c) if the subcontractor | ||
gives the notice of nonpayment earlier than the 60th day after the | ||
date the subcontractor gave a payment request, a part of which | ||
remains unpaid, to the person to whom the subcontractor furnished | ||
the subcontractor's work. | ||
(e) A subcontractor who gives a notice of nonpayment must | ||
give a copy of the notice to: | ||
(1) the original contractor; and | ||
(2) if the subcontractor did not contract for the | ||
subcontractor's work with the original contractor, the person to | ||
whom the subcontractor furnished the subcontractor's work. | ||
(f) Failure by a subcontractor to give a notice of | ||
nonpayment does not limit an owner's liability under Sections | ||
53.0841(b)(1) and (2). | ||
(g) A copy of a statement or bill in the usual and customary | ||
form is sufficient as notice under this section. | ||
Sec. 53.0563. NOTICE OF UNPAID BALANCE. (a) Sections | ||
53.0561 and 53.125 do not apply, and a claimant must give the notice | ||
described by Subsection (b) in writing, if: | ||
(1) the claimant is an employee of an original | ||
contractor or a subcontractor and personally labored in the | ||
construction or repair of the improvement, and the claimant's claim | ||
is for wages for the personal labor furnished; or | ||
(2) the improvement is a house of not more than four | ||
self-contained units intended for residential purposes on a single | ||
lot or tract of land, or related land development activity on the | ||
lot or tract necessary for the development of the house. | ||
(b) Except as provided by this subsection, the claimant must | ||
give the owner or reputed owner, with a copy to the original | ||
contractor, a notice of the unpaid balance not later than the 15th | ||
day of the third month following each month in which all or part of | ||
the labor was performed, material was furnished, or material was | ||
specially fabricated by the claimant. For residential construction | ||
projects governed by Subchapter K, the claimant must give the | ||
notice of unpaid balance not later than the 15th day of the second | ||
month following each month in which all or part of the labor was | ||
performed, material was furnished, or material was specially | ||
fabricated by the claimant. | ||
(c) A notice under this section is not required for the | ||
unpaid amount of a payment request that is contractual retainage. | ||
(d) A copy of a statement or bill in the usual and customary | ||
form is sufficient as notice under this section. | ||
Sec. 53.059. NOTICE OF COMPLETION OR TERMINATION. (a) If | ||
an owner has filed and posted on the lien website a notice of | ||
commencement under Section 53.125 and the work under an original | ||
contract has been completed or the original contract has been | ||
terminated, the owner may file with the county clerk of the county | ||
in which the owner's property is located a notice of completion or | ||
termination, as applicable, and post the notice on the lien | ||
website. The notice must contain: | ||
(1) the name and address of the owner; | ||
(2) the name and address of each original contractor | ||
covered by the notice; | ||
(3) a description, legally sufficient for | ||
identification, of the real property on which the improvements are | ||
located; | ||
(4) a description of the work furnished under an | ||
original contract covered by the notice; | ||
(5) a statement that the work under an original | ||
contract covered by the notice has been completed or that the | ||
original contract was terminated; and | ||
(6) the date of the completion or termination. | ||
(b) Not later than the 10th day after the notice of | ||
completion or termination is filed with the county clerk and posted | ||
on the lien website as provided by Subsection (a), the owner must | ||
send a copy of the notice: | ||
(1) to each original contractor identified in the | ||
notice; and | ||
(2) by e-mail to each person who has provided a notice | ||
of furnishing to the owner and has provided an e-mail address to the | ||
owner. | ||
(c) For purposes of Section 53.052, the later of the date | ||
the notice of completion or termination is filed or the date the | ||
notice is posted on the lien website is considered the date the work | ||
under an original contract identified in the notice is completed or | ||
the original contract is terminated, as applicable. This | ||
subsection does not apply to a person to whom the notice of | ||
completion or termination was not sent as required by this section. | ||
(d) Except as provided by Subsection (e), the notice of | ||
completion must contain the following statement in bold type in all | ||
capital letters: | ||
"A CLAIMANT WILL LOSE THE RIGHT TO PERFECT A LIEN IF THE | ||
CLAIMANT DOES NOT FILE A LIEN CLAIM AFFIDAVIT ON OR BEFORE THE 15TH | ||
DAY OF THE FOURTH MONTH AFTER THE DATE OF COMPLETION OF THE WORK." | ||
(e) The notice of completion for a residential construction | ||
project must contain the following statement in bold type in all | ||
capital letters: | ||
"A CLAIMANT WILL LOSE THE RIGHT TO PERFECT A LIEN IF THE | ||
CLAIMANT DOES NOT FILE A LIEN CLAIM AFFIDAVIT ON OR BEFORE THE 15TH | ||
DAY OF THE THIRD MONTH AFTER THE DATE OF COMPLETION OF THE WORK." | ||
SECTION 16. Section 53.081, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.081. AUTHORITY TO WITHHOLD FUNDS FOR BENEFIT OF | ||
CLAIMANTS. [ |
||
subcontractor or if an owner receives notice under Section 53.055 | ||
or 53.0563 [ |
||
may withhold from payments due or to become due to the original | ||
contractor an amount necessary to pay the claim for which the owner | ||
[ |
||
[ |
||
|
||
|
||
[ |
||
|
||
|
||
|
||
[ |
||
|
||
|
||
|
||
|
||
SECTION 17. Section 53.082, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.082. TIME FOR WHICH FUNDS ARE WITHHELD. An owner | ||
may retain funds under Section 53.081 until: | ||
(1) the time for filing a lien claim affidavit has | ||
passed; | ||
(2) [ |
||
(3) [ |
||
discharged [ |
||
(4) the claim is [ |
||
be invalid by a final judgment of a court [ |
||
|
||
[ |
||
|
||
[ |
||
|
||
SECTION 18. Subchapter D, Chapter 53, Property Code, is | ||
amended by adding Sections 53.0831 and 53.0841 to read as follows: | ||
Sec. 53.0831. DEMAND FOR NOTICE OF DISPUTE; PAYMENT OF | ||
CLAIM. (a) An owner against whom a lien claim affidavit is filed by | ||
a claimant other than an original contractor may send to the | ||
original contractor and to any person identified by the claimant as | ||
required by Section 53.054(a)(4) a written demand to receive notice | ||
of whether the original contractor or the person intends to dispute | ||
the claim. | ||
(b) An owner must send a copy of the lien claim affidavit | ||
with a written demand sent under Subsection (a). | ||
(c) The owner may pay a claim when the claim becomes due if | ||
the owner: | ||
(1) sends the written demand and copy of the lien claim | ||
affidavit as provided by this section; and | ||
(2) does not, before the 30th day after the date the | ||
demand is received, receive written notice from the original | ||
contractor or the person of the intent to dispute the claim. | ||
Sec. 53.0841. LIABILITY FOR LIENS. (a) Except as provided | ||
by Subsections (b) and (c), if a claim has been reduced to final | ||
judgment, the owner is liable and the owner's property is subject to | ||
a claim for the contract price minus any amounts paid to the | ||
original contractor. | ||
(b) In addition to the liability under Subsection (a), the | ||
owner's liability and the owner's property subject to the amount of | ||
the lien by a subcontractor is the sum of: | ||
(1) the greater of: | ||
(A) 10 percent of the value of the contract price | ||
of the work to the owner; or | ||
(B) 10 percent of the value of the work, measured | ||
by the proportion that the work done bears to the work to be done, | ||
using the contract price or, if there is no contract price, using | ||
the reasonable value of the completed work; | ||
(2) any money paid to the original contractor after | ||
the owner was authorized to withhold funds under this subchapter; | ||
and | ||
(3) for a subcontractor who gives notice under Section | ||
53.0562, any money paid to the original contractor after the notice | ||
is given. | ||
(c) In addition to the liability under Subsections (a) and | ||
(b), an owner is personally liable for an award of costs and | ||
attorney's fees under Section 53.156. | ||
(d) An owner's personal liability is not affected by a | ||
subsequent foreclosure or other transfer of the owner's interest in | ||
all or part of the property. | ||
(e) Subject to Section 53.122(b), the aggregate amount of | ||
liens of the original contractor and the subcontractors, including | ||
liens of employees as described by Section 53.0563(a)(1), may not | ||
exceed the contract price of the original contract, as may be | ||
modified, for the work. Duplicated claims asserted by claimants | ||
within the same chain of contract may not be added more than once in | ||
determining the aggregate amount of liens. | ||
(f) A purchaser of property subject to a lien claim under | ||
this chapter is not personally liable for the lien claim in a | ||
foreclosure action brought by a claimant, except the purchaser may | ||
be held liable for costs and attorney's fees awarded under Section | ||
53.156. | ||
SECTION 19. The heading to Section 53.085, Property Code, | ||
is amended to read as follows: | ||
Sec. 53.085. BILLS-PAID AFFIDAVIT REQUIRED. | ||
SECTION 20. Sections 53.085(a), (b), (c), and (d), Property | ||
Code, are amended to read as follows: | ||
(a) Any person who performs work [ |
||
|
||
shall, if requested and as a condition of payment for such work | ||
[ |
||
party's agent, a bills-paid [ |
||
claimed for payment and stating that the person has paid each of the | ||
person's subcontractors, laborers, or materialmen in full for all | ||
labor and materials provided to the person for the construction or | ||
repair. In the event, however, that the person has not paid each of | ||
the person's subcontractors, laborers, or materialmen in full, the | ||
person shall state in the affidavit the amount owed and the name | ||
and, if known, the address and telephone number of each | ||
subcontractor, laborer, or materialman to whom the payment is owed. | ||
(b) The seller of any real property shall, upon request by | ||
the purchaser or the purchaser's agent prior to closing of the | ||
purchase of the real property, provide to the purchaser or the | ||
purchaser's agent, a written affidavit stating that the seller has | ||
paid each of the seller's contractors, laborers, or materialmen in | ||
full for all labor done and materials provided to the seller through | ||
the date specified in the affidavit for any construction or repair | ||
of improvements on the real property and that the seller is not | ||
indebted to any person, firm, or corporation by reason of any such | ||
construction or repair through the date specified in the affidavit. | ||
In the event that the seller has not paid each of the seller's | ||
contractors, laborers, or materialmen in full for labor done and | ||
material provided through the date specified in the affidavit, the | ||
seller shall state in the affidavit the amount owed and the name | ||
and, if known, the address and telephone number of each contractor, | ||
laborer, or materialman to whom the payment is owed. | ||
(c) The affidavit may include: | ||
(1) a waiver or release of lien rights or payment bond | ||
claims by the affiant that is conditioned on the receipt of actual | ||
payment or collection of funds when payment is made by check or | ||
draft, as provided by Subchapter L; | ||
(2) a warranty or representation that certain bills or | ||
classes of bills will be paid by the affiant from funds paid in | ||
reliance on the affidavit and an identification of the specific | ||
bills that the affiant will not pay from the fund; and | ||
(3) an indemnification by the affiant for any loss or | ||
expense resulting from false or incorrect information in the | ||
affidavit. | ||
(d) A person, including a seller, commits an offense if the | ||
person intentionally, knowingly, or recklessly makes a false or | ||
misleading statement in an affidavit under this section. An | ||
offense under this section is a misdemeanor. A person adjudged | ||
guilty of an offense under this section shall be punished by a fine | ||
not to exceed $4,000 or confinement in jail for a term not to exceed | ||
one year or both a fine and confinement. [ |
||
|
||
SECTION 21. Section 53.122(a), Property Code, is amended to | ||
read as follows: | ||
(a) Perfected [ |
||
|
||
inception date are on equal footing without reference to the date of | ||
filing the lien claim affidavit [ |
||
SECTION 22. Section 53.124, Property Code, is amended by | ||
amending Subsections (a), (b), (c), (d), and (e) and adding | ||
Subsection (f) to read as follows: | ||
(a) Except as provided by Subsection (c) or (e), for | ||
purposes of Section 53.123, the time of inception of a mechanic's | ||
lien is the commencement of construction or repair of improvements | ||
or delivery of materials to the land on which the improvements are | ||
to be located and on which the materials are to be used. | ||
(b) The construction, repair, or materials under Subsection | ||
(a) must be visible from inspection of the land on which the | ||
improvements are being made. | ||
(c) The later of the date the notice of commencement is | ||
filed or is posted on the lien website is the time of inception of a | ||
mechanic's lien for the work or material described by the notice | ||
that is performed or furnished on or after the later of the date the | ||
notice is filed or posted. For work performed or material furnished | ||
before the date a notice of commencement is filed and posted and for | ||
work excluded by the notice of commencement, the time of inception | ||
of a mechanic's lien is provided by Subsection (a). For work under | ||
an original contract entered into after a notice of completion is | ||
filed and posted under Section 53.059, the time of inception of a | ||
mechanic's lien is the date provided by Subsection (a) or the date a | ||
new notice of commencement is filed and posted. [ |
||
|
||
|
||
|
||
|
||
|
||
[ |
||
[ |
||
|
||
|
||
[ |
||
|
||
[ |
||
[ |
||
(d) A lien, encumbrance, or mortgage securing an interest in | ||
the land that is filed with the county clerk on or before the date | ||
the notice of commencement is filed has priority over a mechanic's | ||
lien with a time of inception that is the date of the notice of | ||
commencement, regardless of the order in which the notice of | ||
commencement and lien, encumbrance, or mortgage are filed with the | ||
county clerk. [ |
||
|
||
|
||
|
||
|
||
|
||
(e) The time of inception of a lien that is created under | ||
Section 53.021(c)[ |
||
claim [ |
||
of a lien claimed by a person entitled to a lien under Section | ||
53.021(c)[ |
||
determined by the date of recording. A lien created under Section | ||
53.021(c)[ |
||
grantee or purchaser who acquires an interest in the real property | ||
before the time of inception of the lien. | ||
(f) Unless the landscaping work for which a person may have | ||
a lien under Section 53.021(d) or the demolition services for which | ||
a person may have a lien under Section 53.021(e) are included in a | ||
notice of commencement, the time of inception of a lien under | ||
Section 53.021(d) or (e) is the date of recording of a lien claim | ||
affidavit under Section 53.052, and priority is determined by the | ||
date of recording. Except as provided by this subsection, a lien | ||
created under Section 53.021(d) or (e) is not valid against a | ||
grantee or purchaser who acquires an interest in the real property | ||
before the time of inception of the lien. | ||
SECTION 23. Subchapter F, Chapter 53, Property Code, is | ||
amended by adding Section 53.125 to read as follows: | ||
Sec. 53.125. NOTICE OF COMMENCEMENT. (a) An owner may file | ||
a notice of commencement with the county clerk of the county in | ||
which the real property being improved under an original contract | ||
is located. An owner who elects to file a notice of commencement | ||
must post the notice on the lien website. A notice under this | ||
section must be acknowledged and be in a form that substantially | ||
complies with the following: | ||
"NOTICE OF COMMENCEMENT | ||
"Improvements will be made to certain real property, and in | ||
accordance with Chapter 53, Property Code, the following | ||
information is provided by this notice of commencement: | ||
"(1) Legal description and, if applicable, street | ||
address of property: _______________. | ||
"(2) Project name and brief description of work to be | ||
performed or materials to be furnished: _______________. | ||
"(3) Work or materials not included in this notice of | ||
commencement: _______________. | ||
"(4) Owner information or lessee information if the | ||
lessee contracted for the work: | ||
(A) Name and address: _______________. | ||
(B) Interest in property (check appropriate | ||
box): | ||
□ Fee simple title | ||
□ Lease | ||
□ Other (explain): _______________. | ||
(C) Name and address of fee simple titleholder to | ||
property (if different from owner listed above): _______________. | ||
"(5) Original contractor(s) for work or designated | ||
portions of the work (repeat as necessary): | ||
(A) Name and address: _______________. | ||
(B) Contractor's phone number: _______________. | ||
"(6) Surety or sureties for original contractor (if | ||
applicable, a copy of the payment bond is attached): | ||
(A) Name and address: _______________. | ||
(B) Phone number: _______________. | ||
"(7) Lender(s) providing financing for the work that | ||
is securing a mortgage on or a security interest in the property | ||
(repeat as necessary): | ||
(A) Name and address: _______________. | ||
(B) Lender's phone number: _______________. | ||
"(8) Secretary of state's lien website address: | ||
_______________. | ||
"Date: ______________ | ||
"_____________ (Owner name) | ||
"By:_______________ (Signature) | ||
"(Insert acknowledgment)." | ||
(b) Incorrect information contained in the notice of | ||
commencement furnished by an owner does not adversely affect the | ||
rights of a lien claimant reasonably relying on the information | ||
against the owner or the property of the owner. If a subcontractor | ||
performs labor or furnishes materials or specially fabricated | ||
materials described by the notice of commencement and the notice of | ||
commencement does not identify the original contractor under which | ||
the labor was performed or materials were furnished or specially | ||
fabricated at the time the subcontractor first performs the labor | ||
or furnishes or specially fabricates the materials, the notice of | ||
furnishing by the subcontractor preserves the lien claimant's | ||
rights for the period provided by Section 53.0561(c). | ||
(c) The owner shall send a copy of the notice of | ||
commencement to each subcontractor not later than the fifth day | ||
after the date the owner receives a written request for a copy from | ||
the subcontractor, unless the subcontractor has received a physical | ||
copy of the notice. | ||
(d) Unless a notice of commencement has been filed and | ||
posted under this section, a subcontractor who has not received a | ||
physical copy of the notice may request in writing a copy from the | ||
original contractor or a subcontractor with whom the requesting | ||
subcontractor has privity of contract. If the original contractor | ||
or subcontractor has a copy of the notice, the original contractor | ||
or subcontractor shall send a copy of the notice to the requesting | ||
subcontractor not later than the fifth day after the date of receipt | ||
of the written request. If the requesting subcontractor does not | ||
receive a copy of the notice as required by this section, the person | ||
failing to send the copy under this subsection is liable to the | ||
requesting subcontractor for all actual expenses reasonably | ||
incurred by the requesting subcontractor in obtaining the | ||
information that would have been contained in the notice. | ||
(e) A notice of commencement posted on the lien website may | ||
be amended by the owner by posting the amended notice on the lien | ||
website. The effective date of the amended notice is the date the | ||
amended notice is posted on the lien website. The owner shall send | ||
notice of the amended notice to a person who has provided a notice | ||
of furnishing to the owner before the effective date of the amended | ||
notice of commencement. | ||
SECTION 24. Section 53.151(b), Property Code, is amended to | ||
read as follows: | ||
(b) A surety issuing a payment bond or performance bond in | ||
connection with the work [ |
||
other creditors of its principal to contract funds to the extent of | ||
any loss it suffers or incurs. That priority does not excuse the | ||
surety from paying any obligations that it may have under its | ||
payment bonds. | ||
SECTION 25. Section 53.153(a), Property Code, is amended to | ||
read as follows: | ||
(a) If a lien claim [ |
||
|
||
original contractor shall defend at the original contractor's [ |
||
own expense a suit brought on the claim unless the owner is in | ||
breach of the owner's contractual obligations to the original | ||
contractor under the original contract. | ||
SECTION 26. Section 53.154, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.154. FORECLOSURE. (a) A mechanic's lien may be | ||
foreclosed only on judgment of a court of competent jurisdiction | ||
foreclosing the lien and ordering the sale of the property subject | ||
to the lien. | ||
(b) A suit to foreclose the lien must be brought in a court | ||
of competent jurisdiction in the county in which the real property | ||
that is subject to the lien is located. | ||
SECTION 27. Section 53.157, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.157. DISCHARGE OF LIEN. A lien claim [ |
||
|
||
53.052 may be discharged of record by: | ||
(1) recording a lien release signed by the claimant | ||
under Section 53.152; | ||
(2) failing to institute suit to foreclose the lien | ||
[ |
||
prescribed by Section 53.158, 53.175, or 53.208; | ||
(3) recording the original or certified copy of a | ||
final judgment or decree of a court of competent jurisdiction | ||
providing for the discharge; | ||
(4) filing the bond and notice in compliance with | ||
Subchapter H; | ||
(5) filing the bond in compliance with Subchapter I; | ||
or | ||
(6) recording a certified copy of the order removing | ||
the lien under Section 53.160 and a certificate from the clerk of | ||
the court that states that no bond or deposit as described by | ||
Section 53.161 was filed by the claimant within 30 days after the | ||
date the order was entered. | ||
SECTION 28. Section 53.158, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.158. PERIOD FOR BRINGING SUIT TO FORECLOSE LIEN. | ||
(a) Except as provided by Subsection (b), suit must be brought to | ||
foreclose the lien not later than the first anniversary of [ |
||
|
||
claim affidavit under Section 53.052 [ |
||
|
||
|
||
|
||
(b) The period of limitations under Subsection (a) may be | ||
extended to not later than the second anniversary of the last date | ||
the claimant may file the affidavit if the claimant enters into a | ||
written agreement with the then-current record owner of the | ||
property to extend the period and files the written agreement with | ||
the clerk of the county in which all or part of the property is | ||
located before the expiration of the period provided by Subsection | ||
(a). [ |
||
|
||
|
||
|
||
|
||
|
||
SECTION 29. Sections 53.159(a), (b), (c), (d), and (f), | ||
Property Code, are amended to read as follows: | ||
(a) If a notice of commencement has not been filed and | ||
posted under Section 53.125, an [ |
||
shall furnish the following information within a reasonable time, | ||
but not later than the 10th day after the date the request is | ||
received, to any person furnishing labor or materials for the | ||
project: | ||
(1) a description of the real property being improved | ||
legally sufficient to identify it; | ||
(2) whether there is a surety bond and if so, the name | ||
and last known address of the surety and a copy of the bond; | ||
(3) whether there are any prior recorded liens or | ||
security interests on the real property being improved and if so, | ||
the name and address of the person having the lien or security | ||
interest; and | ||
(4) the date on which the original contract for the | ||
project was executed. | ||
(b) If a notice of commencement has not been filed and | ||
posted under Section 53.125, an [ |
||
written request by a person who furnished work under the original | ||
contract, shall furnish to the person the following information | ||
within a reasonable time, but not later than the 10th day after the | ||
date the request is received: | ||
(1) the name and last known address of the person to | ||
whom the original contractor furnished labor or materials for the | ||
construction project; | ||
(2) whether the original contractor has furnished or | ||
has been furnished a payment bond for any of the work on the | ||
construction project and if so, the name and last known address of | ||
the surety and a copy of the bond; and | ||
(3) the date on which the original contract for the | ||
project was executed. | ||
(c) A subcontractor, on written request by an owner of the | ||
property being improved, the original contractor, a surety on a | ||
bond covering the original contract, or any person furnishing work | ||
under the subcontract, shall furnish to the person the following | ||
information within a reasonable time, but not later than the 10th | ||
day after the date the request is received: | ||
(1) the name and last known address of each person from | ||
whom the subcontractor purchased labor or materials for the | ||
construction project, other than those materials that were | ||
furnished to the project from the subcontractor's inventory; | ||
(2) the name and last known address of each person to | ||
whom the subcontractor furnished labor or materials for the | ||
construction project; [ |
||
(3) whether the subcontractor has furnished or has | ||
been furnished a payment bond for any of the work on the | ||
construction project and if so, the name and last known address of | ||
the surety and a copy of the bond; and | ||
(4) the date the subcontractor first performed labor, | ||
furnished materials, or furnished specially fabricated materials | ||
for the construction project for which any claim for payment is | ||
being sought. | ||
(d) Not later than the 30th day after the date a written | ||
request is received from the owner, the contractor under whom a | ||
claim of lien or under whom a bond is made, or a surety on a bond on | ||
which a claim is made, a claimant for a lien or under a bond shall | ||
furnish to the requesting person a copy of any applicable written | ||
agreement, purchase order, or contract and any billing, statement, | ||
or payment request of the claimant reflecting the amount claimed | ||
and the work performed by the claimant for which the claim is made. | ||
[ |
||
|
||
|
||
(f) A person, other than a claimant requested to furnish | ||
information under Subsection (d), who fails to furnish information | ||
as required by this section not posted on the lien website is liable | ||
to the requesting person for that person's reasonable and necessary | ||
costs incurred in procuring the requested information. | ||
SECTION 30. Sections 53.160(b), (c), and (d), Property | ||
Code, are amended to read as follows: | ||
(b) The grounds for objecting to the validity or | ||
enforceability of the claim or lien for purposes of the motion are | ||
limited to the following: | ||
(1) notice of furnishing or notice of unpaid balance | ||
[ |
||
required by Section 53.0561 or 53.0563 [ |
||
|
||
(2) a lien claim [ |
||
failed to comply with Section 53.054 or was not filed as required by | ||
Section 53.052; | ||
(3) notice of the filed lien claim affidavit was not | ||
furnished to the owner or original contractor as required by | ||
Section 53.055 and the owner or original contractor was materially | ||
prejudiced by the violation; | ||
(4) [ |
||
|
||
|
||
|
||
[ |
||
[ |
||
|
||
[ |
||
|
||
|
||
|
||
[ |
||
homestead property: | ||
(A) no contract was executed or filed as required | ||
by Section 53.254; or | ||
(B) the lien claim affidavit [ |
||
failed to contain the notice as required by Section 53.254; [ |
||
[ |
||
|
||
(5) [ |
||
enforceable waiver or release of the claim or lien claimed in the | ||
affidavit. | ||
(c) The claimant is not required to file a response. The | ||
claimant and any other party that has appeared in the proceeding | ||
must be notified not later than the 21st day [ |
||
before the date of the hearing on the motion. A motion may not be | ||
heard before the 21st day after the date the claimant answers or | ||
appears in the proceeding. | ||
(d) At the hearing on the motion, the burden is on: | ||
(1) the claimant to prove that the notice of a filed | ||
lien claim [ |
||
owner, reputed owner, and original contractor as required by | ||
Section 53.055 [ |
||
(2) the movant to establish that the lien should be | ||
removed for any other ground authorized by this section. | ||
SECTION 31. Section 53.161(f), Property Code, is amended to | ||
read as follows: | ||
(f) If the claimant fails to file the bond or the deposit in | ||
lieu of the bond in compliance with this section, the owner may | ||
file: | ||
(1) a certified copy of the order; and | ||
(2) a certificate from the clerk of the court stating | ||
that: | ||
(A) no bond or deposit in lieu of the bond was | ||
filed before the later of: | ||
(i) the 30th day [ |
||
date the order was entered by the court; or | ||
(ii) the date ordered by the court under | ||
Subsection (b); and | ||
(B) no order staying the order to remove the lien | ||
was entered by the court. | ||
SECTION 32. Section 53.172, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.172. BOND REQUIREMENTS. The bond must: | ||
(1) describe the property on which the liens are | ||
claimed; | ||
(2) refer to each lien claimed in a manner sufficient | ||
to identify it; | ||
(3) be in an amount that is double the amount of the | ||
liens referred to in the bond unless the total amount claimed in the | ||
liens exceeds $60,000 [ |
||
an amount that is the greater of 1-1/2 times the amount of the liens | ||
or the sum of $60,000 [ |
||
(4) be payable to the parties claiming the liens; | ||
(5) be executed by: | ||
(A) the party filing the bond as principal; and | ||
(B) a corporate surety authorized and admitted to | ||
do business under the law in this state and licensed by this state | ||
to execute the bond as surety, subject to Section 3503.005, | ||
Insurance Code [ |
||
|
||
|
||
(6) be conditioned substantially that the principal | ||
and sureties will pay to the named obligees or to their assignees | ||
the amount that the named obligees would have been entitled to | ||
recover if their claims had been proved to be valid and enforceable | ||
liens on the property. | ||
SECTION 33. Sections 53.173(c) and (d), Property Code, are | ||
amended to read as follows: | ||
(c) The notice: | ||
(1) must be served on each obligee by mailing a copy of | ||
the notice and the bond to the obligee by certified United States | ||
mail, return receipt requested, addressed to the claimant at the | ||
address stated in the lien claim affidavit for the obligee; and | ||
(2) may not be given by posting on the lien website or | ||
by e-mail. | ||
(d) If the claimant's lien claim affidavit does not state | ||
the claimant's address, the notice is not required to be mailed to | ||
the claimant. | ||
SECTION 34. Section 53.201(b), Property Code, is amended to | ||
read as follows: | ||
(b) If a valid bond is filed, a claimant may not file suit | ||
against the owner or the owner's property and the owner is not | ||
authorized to withhold funds or pay a claimant on demand [ |
||
|
||
SECTION 35. Section 53.202, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.202. BOND REQUIREMENTS. The bond must: | ||
(1) be in a penal sum at least equal to the total of the | ||
original contract amount; | ||
(2) be in favor of the owner; | ||
(3) have the written approval of the owner endorsed on | ||
it; | ||
(4) be executed by: | ||
(A) the original contractor as principal; and | ||
(B) a corporate surety authorized and admitted to | ||
do business in this state and licensed by this state to execute | ||
bonds as surety, subject to Section 3503.005, Insurance Code [ |
||
|
||
|
||
(5) be conditioned on prompt payment for all labor, | ||
subcontracts, materials, specially fabricated materials, and | ||
normal and usual extras not exceeding 15 percent of the contract | ||
price; and | ||
(6) clearly and prominently display on the bond or on | ||
an attachment to the bond: | ||
(A) the name, mailing address, physical address, | ||
and telephone number, including the area code, of the surety | ||
company to which any notice of claim should be sent; or | ||
(B) the toll-free telephone number maintained by | ||
the Texas Department of Insurance under Subchapter B, Chapter 521, | ||
Insurance Code, and a statement that the address of the surety | ||
company to which any notice of claim should be sent may be obtained | ||
from the Texas Department of Insurance by calling the toll-free | ||
telephone number. | ||
SECTION 36. Sections 53.206(a) and (b), Property Code, are | ||
amended to read as follows: | ||
(a) To perfect a claim against a bond in a manner other than | ||
that prescribed by Subchapter C or K for fixing a lien, a person | ||
must: | ||
(1) give to the original contractor a notice of | ||
furnishing or a notice of unpaid balance, unless the person has | ||
contracted directly with the original contractor [ |
||
|
||
(2) give to the surety on the bond a written notice of | ||
the amount and nature of the claim and a copy of the notice to the | ||
original contractor within the period required for filing a lien | ||
claim affidavit under Section 53.052 [ |
||
|
||
|
||
(b) To perfect a claim under this section, a person is not | ||
required to [ |
||
[ |
||
|
||
|
||
|
||
[ |
||
|
||
|
||
[ |
||
county clerk. | ||
SECTION 37. Section 53.254(f), Property Code, is amended to | ||
read as follows: | ||
(f) A lien claim [ |
||
subchapter that relates to a homestead must contain the following | ||
notice conspicuously printed, stamped, or typed in a size equal to | ||
at least 10-point boldface or the computer equivalent, at the top of | ||
the page: | ||
"NOTICE: THIS IS NOT A LIEN. THIS IS ONLY AN AFFIDAVIT | ||
CLAIMING A LIEN. | ||
"If a subcontractor or supplier who furnishes materials or | ||
performs labor for construction of improvements on your property is | ||
not paid, your property may be subject to a lien for: | ||
(1) the unpaid amount if you fail to withhold payment | ||
to your contractor that is sufficient to cover the unpaid claim | ||
after you receive notice of a filed lien claim affidavit; and | ||
(2) an amount up to 10 percent of the contract price or | ||
10 percent of the value of the work performed by your contractor." | ||
SECTION 38. Section 53.255(b), Property Code, is amended to | ||
read as follows: | ||
(b) The disclosure statement must read substantially | ||
similar to the following: | ||
"KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. You | ||
are about to enter into a transaction to build a new home or remodel | ||
existing residential property. Texas law requires your contractor | ||
to provide you with this brief overview of some of your rights, | ||
responsibilities, and risks in this transaction. | ||
"CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may | ||
not require you to convey your real property to your contractor as a | ||
condition to the agreement for the construction of improvements on | ||
your property. | ||
"KNOW YOUR CONTRACTOR. Before you enter into your agreement | ||
for the construction of improvements to your real property, make | ||
sure that you have investigated your contractor. Obtain and verify | ||
references from other people who have used the contractor for the | ||
type and size of construction project on your property. | ||
"GET IT IN WRITING. Make sure that you have a written | ||
agreement with your contractor that includes: (1) a description of | ||
the work the contractor is to perform; (2) the required or | ||
estimated time for completion of the work; (3) the cost of the work | ||
or how the cost will be determined; and (4) the procedure and | ||
method of payment, including [ |
||
|
||
promise, warranty, or representation to you concerning the work the | ||
contractor is to perform, make sure that promise, warranty, or | ||
representation is specified in the written agreement. An oral | ||
promise that is not included in the written agreement may not be | ||
enforceable under Texas law. | ||
"READ BEFORE YOU SIGN. Do not sign any document before you | ||
have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN | ||
UNTRUE STATEMENT. Take your time in reviewing documents. If you | ||
borrow money from a lender to pay for the improvements, you are | ||
entitled to have the loan closing documents furnished to you for | ||
review at least one business day before the closing. Do not waive | ||
this requirement unless a bona fide emergency or another good cause | ||
exists, and make sure you understand the documents before you sign | ||
them. If you fail to comply with the terms of the documents, you | ||
could lose your property. You are entitled to have your own | ||
attorney review any documents. If you have any question about the | ||
meaning of a document, consult an attorney. | ||
"GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before | ||
construction commences, your contractor is required to provide you | ||
with a list of the subcontractors and suppliers the contractor | ||
intends to use on your project. Your contractor is required to | ||
supply updated information on any subcontractors and suppliers | ||
added after the list is provided. Your contractor is not required | ||
to supply this information if you sign a written waiver of your | ||
rights to receive this information. | ||
"MONITOR THE WORK. Lenders and governmental authorities may | ||
inspect the work in progress from time to time for their own | ||
purposes. These inspections are not intended as quality control | ||
inspections. Quality control is a matter for you and your | ||
contractor. To ensure that your home is being constructed in | ||
accordance with your wishes and specifications, you should inspect | ||
the work yourself or have your own independent inspector review the | ||
work in progress. | ||
"MONITOR PAYMENTS. If you use a lender, your lender is | ||
required to provide you with a periodic statement showing the money | ||
disbursed by the lender from the proceeds of your loan. Each time | ||
your contractor requests payment from you or your lender for work | ||
performed, your contractor is also required to furnish you with a | ||
disbursement statement that lists the name and address of each | ||
subcontractor or supplier that the contractor intends to pay from | ||
the requested funds. Review these statements and make sure that the | ||
money is being properly disbursed. | ||
"CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if | ||
a subcontractor or supplier who furnishes labor or materials for | ||
the construction of improvements on your property is not paid, you | ||
may be [ |
||
for the unpaid amount, even if you have not contracted directly with | ||
the subcontractor or supplier. To minimize your [ |
||
you should take the following actions: | ||
(1) If you receive a written notice from a | ||
subcontractor or supplier, you should withhold payment from your | ||
contractor for the amount of the claim stated in the notice until | ||
the dispute between your contractor and the subcontractor or | ||
supplier is resolved. | ||
(2) If your lender is disbursing money directly to | ||
your contractor, you should immediately provide a copy of the | ||
notice to your lender and instruct the lender to withhold payment in | ||
the amount of the claim stated in the notice. If you continue to pay | ||
the contractor after receiving the written notice without | ||
withholding the amount of the claim, you may be liable and your | ||
property may be subject to a lien for the amount you failed to | ||
withhold. | ||
[ |
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
"If a claim is not paid within a certain time period, the | ||
claimant is required to file a [ |
||
the real property records in the county where the property is | ||
located. A [ |
||
property, but the filing of the affidavit could result in a court | ||
imposing a lien on your property if the claimant is successful in | ||
litigation to enforce the lien claim. | ||
"SOME CLAIMS MAY NOT BE VALID. When you receive a written | ||
notice of unpaid balance [ |
||
affidavit is filed on your property, you should know your legal | ||
rights and responsibilities regarding the claim. Not all claims are | ||
valid. [ |
||
|
||
|
||
|
||
fully comply with the legal requirements to collect on a claim. If | ||
your property is a homestead and you did not enter into a written | ||
contract with your contractor that complies with the statutory | ||
requirements for a lien on a homestead, your contractor, the | ||
subcontractor, or the supplier may not claim a valid lien on your | ||
property. [ |
||
|
||
|
||
Accordingly, you should consult your attorney when you receive a | ||
written notice of a claim to determine the true extent of your | ||
liability or potential liability for that claim. | ||
"OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. When you | ||
receive a notice of unpaid balance or a notice of a filed lien claim | ||
affidavit [ |
||
a signed and notarized release of lien and claim from the claimant. | ||
You can [ |
||
subcontractor or supplier by requiring as a condition of each | ||
payment made by you or your lender that your contractor furnish you | ||
with an affidavit stating that all bills have been paid. Under | ||
Texas law, on final completion of the work and before final payment, | ||
the contractor is required to furnish you with an affidavit stating | ||
that all bills have been paid. If the contractor discloses any | ||
unpaid bill in the affidavit, you should withhold payment in the | ||
amount of the unpaid bill until you receive a waiver of lien or | ||
release from that subcontractor or supplier. | ||
"OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain | ||
a title insurance policy to insure that the title to your property | ||
and the existing improvements on your property are free from liens | ||
claimed by subcontractors and suppliers. If your policy is issued | ||
before the improvements are completed and covers the value of the | ||
improvements to be completed, you should obtain, on the completion | ||
of the improvements and as a condition of your final payment, | ||
a 'completion of improvements' policy endorsement. This | ||
endorsement will protect your property from liens claimed by | ||
subcontractors and suppliers that may arise from the date the | ||
original title policy is issued to the date of the endorsement." | ||
SECTION 39. Sections 53.259(a) and (c), Property Code, are | ||
amended to read as follows: | ||
(a) As a condition of final payment under a residential | ||
construction contract, the original contractor shall, at the time | ||
the final payment is tendered, execute and deliver to the owner, or | ||
the owner's agent, an affidavit acknowledging the amount claimed | ||
for payment and stating that the original contractor has paid each | ||
person in full for all labor and materials used in the construction | ||
of improvements on the real property. If the original contractor | ||
has not paid each person in full, the original contractor shall | ||
state in the affidavit the amount owed and the name and, if known, | ||
the address and telephone number of each person to whom a payment is | ||
owed. | ||
(c) A person commits an offense if the person intentionally, | ||
knowingly, or recklessly makes a false or misleading statement in | ||
an affidavit under this section. An offense under this section is a | ||
misdemeanor. A person adjudged guilty of an offense under this | ||
section shall be punished by a fine not to exceed $4,000 or | ||
confinement in jail for a term not to exceed one year or both a fine | ||
and confinement. [ |
||
|
||
SECTION 40. Section 53.281, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.281. WAIVER AND RELEASE OF LIEN OR PAYMENT BOND | ||
CLAIM. (a) Except as provided by Section 53.287, any [ |
||
and release of a lien or payment bond claim under this chapter is | ||
unenforceable unless a waiver and release is executed and delivered | ||
in accordance with this subchapter. | ||
(b) A waiver and release is effective to release the owner, | ||
the owner's property, the contractor, and the surety on a payment | ||
bond from claims and liens only if: | ||
(1) the waiver and release substantially complies with | ||
one of the forms prescribed by Section 53.284; | ||
(2) the waiver and release is signed by the claimant or | ||
the claimant's authorized agent and acknowledged [ |
||
(3) in the case of a conditional release, evidence of | ||
payment to the claimant exists. | ||
(c) A waiver and release that substantially complies with a | ||
form required by Section 53.284 may be combined with a bills-paid | ||
affidavit that substantially conforms to the requirements of | ||
Section 53.085 or 53.259. | ||
SECTION 41. Section 53.282(b), Property Code, is amended to | ||
read as follows: | ||
(b) The filing of a lien rendered unenforceable by a lien | ||
waiver under Subsection (a)(3) does not violate Section 12.002, | ||
Civil Practice and Remedies Code, unless: | ||
(1) an owner or original contractor sends a written | ||
explanation of the basis for nonpayment, evidence of the | ||
contractual waiver of lien rights, and a notice of request for | ||
release of the lien to the claimant at the claimant's address stated | ||
in the lien claim affidavit; and | ||
(2) the lien claimant does not release the filed lien | ||
claim affidavit on or before the 14th day after the date the owner | ||
or the original contractor sends the items required by Subdivision | ||
(1). | ||
SECTION 42. Section 53.283, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.283. UNCONDITIONAL WAIVER AND RELEASE: PAYMENT | ||
REQUIRED. (a) A person may not require a claimant or potential | ||
claimant to execute an unconditional waiver and release for a | ||
progress payment or final payment amount unless the claimant or | ||
potential claimant received payment in that amount in good and | ||
sufficient funds. | ||
(b) Notwithstanding Subsection (a), a contractual | ||
requirement for a claimant to waive or release the claimant's lien | ||
rights under this chapter before performance of the work for which | ||
the claim for payment is asserted is void. | ||
(c) A claimant may tender an unconditional waiver and | ||
release for payment before the actual receipt of a payment to be | ||
delivered in trust to an attorney, title insurance company, title | ||
insurance agent, or federally insured financial institution acting | ||
as an escrow agent. The escrow agent may deliver the waiver and | ||
release only after the claimant has confirmed receipt of payment in | ||
good and sufficient funds. | ||
SECTION 43. Section 53.284, Property Code, is amended by | ||
amending Subsections (b), (c), (d), and (e) and adding Subsection | ||
(f) to read as follows: | ||
(b) If a claimant or potential claimant is required to | ||
execute a waiver and release in exchange for or to induce the | ||
payment of a progress payment and is not paid in exchange for the | ||
waiver and release or if a single payee check or joint payee check | ||
is given in exchange for the waiver and release, the waiver and | ||
release must read: | ||
"CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT | ||
"Project ___________________ | ||
"Job No. ___________________ | ||
"On receipt by the signer of this document of a check from | ||
________________ (maker of check) in the sum of $__________ payable | ||
to _____________________ (payee or payees of check) and when the | ||
check has been properly endorsed and has been paid by the bank on | ||
which it is drawn, this document becomes effective to release any | ||
mechanic's lien right, any right arising from a payment bond that | ||
complies with a state or federal statute, any common law payment | ||
bond right, any claim for payment, and any rights under any similar | ||
ordinance, rule, or statute related to claim or payment rights for | ||
persons in the signer's position that the signer has on the property | ||
of ________________ (owner) located at ______________________ | ||
(location) for [ |
||
______________________ ([ |
||
materials, equipment, or services provided). | ||
"This release covers a progress payment for all labor, | ||
services, equipment, or materials furnished to the property or to | ||
__________________ (person with whom signer contracted) as | ||
indicated in the attached statement(s) or progress payment | ||
request(s), except for unpaid retention or [ |
||
modifications and changes [ |
||
"Before any recipient of this document relies on this | ||
document, the recipient should verify evidence of payment to the | ||
signer. | ||
"The signer warrants that the signer has already paid or will | ||
use the funds received from this progress payment to promptly pay in | ||
full all of the signer's laborers, subcontractors, materialmen, and | ||
suppliers for all work, materials, equipment, or services provided | ||
for or to the above referenced project in regard to the attached | ||
statement(s) or progress payment request(s). | ||
"Date ____________________________ | ||
"_________________________________ (Company name) | ||
"By ______________________________ (Signature) | ||
"_________________________________ (Title) | ||
"(Insert acknowledgment)" | ||
(c) If a claimant or potential claimant is required to | ||
execute an unconditional waiver and release to prove the receipt of | ||
good and sufficient funds for a progress payment and the claimant or | ||
potential claimant asserts in the waiver and release that the | ||
claimant or potential claimant has been paid the progress payment, | ||
the waiver and release must: | ||
(1) contain a notice at the top of the document, | ||
printed in bold type at least as large as the largest type used in | ||
the document, but not smaller than 10-point type, that reads: | ||
"NOTICE: | ||
"This document waives rights unconditionally and states that | ||
you have been paid for giving up those rights. It is prohibited for | ||
a person to require you to sign this document if you have not been | ||
paid the payment amount set forth below. If you have not been paid, | ||
use a conditional release form."; and | ||
(2) below the notice, read: | ||
"UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT | ||
"Project ___________________ | ||
"Job No. ___________________ | ||
"The signer of this document has been paid and has received a | ||
progress payment in the sum of $___________ for all labor, | ||
services, equipment, or materials furnished to the property or to | ||
_____________________ (person with whom signer contracted) on the | ||
property of _______________________ (owner) located at | ||
______________________ (location) for [ |
||
[ |
||
work, materials, equipment, or services provided). The signer | ||
therefore waives and releases any mechanic's lien right, any right | ||
arising from a payment bond that complies with a state or federal | ||
statute, any common law payment bond right, any claim for payment, | ||
and any rights under any similar ordinance, rule, or statute | ||
related to claim or payment rights for persons in the signer's | ||
position that the signer has on the above referenced project to the | ||
following extent: | ||
"This release covers a progress payment for all labor, | ||
services, equipment, or materials furnished to the property or to | ||
__________________ (person with whom signer contracted) as | ||
indicated in the attached statement(s) or progress payment | ||
request(s), except for unpaid retention or [ |
||
modifications and changes [ |
||
"The signer warrants that the signer has already paid or will | ||
use the funds received from this progress payment to promptly pay in | ||
full all of the signer's laborers, subcontractors, materialmen, and | ||
suppliers for all work, materials, equipment, or services provided | ||
for or to the above referenced project in regard to the attached | ||
statement(s) or progress payment request(s). | ||
"Date ____________________________ | ||
"_________________________________ (Company name) | ||
"By ______________________________ (Signature) | ||
"_________________________________ (Title) | ||
"(Insert acknowledgment)" | ||
(d) If a claimant or potential claimant is required to | ||
execute a waiver and release in exchange for or to induce the | ||
payment of a final payment and is not paid in good and sufficient | ||
funds in exchange for the waiver and release or if a single payee | ||
check or joint payee check is given in exchange for the waiver and | ||
release, the waiver and release must read: | ||
"CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT | ||
"Project ___________________ | ||
"Job No. ___________________ | ||
"On receipt by the signer of this document of a check from | ||
________________ (maker of check) in the sum of $____________ | ||
payable to _____________________ (payee or payees of check) and | ||
when the check has been properly endorsed and has been paid by the | ||
bank on which it is drawn, this document becomes effective to | ||
release any mechanic's lien right, any right arising from a payment | ||
bond that complies with a state or federal statute, any common law | ||
payment bond right, any claim for payment, and any rights under any | ||
similar ordinance, rule, or statute related to claim or payment | ||
rights for persons in the signer's position that the signer has on | ||
the property of _____________________ (owner) located at | ||
______________________ (location) for [ |
||
[ |
||
work, materials, equipment, or services provided). | ||
"This release covers the final payment to the signer for all | ||
labor, services, equipment, or materials furnished to the property | ||
or to __________________ (person with whom signer contracted). | ||
"Before any recipient of this document relies on this | ||
document, the recipient should verify evidence of payment to the | ||
signer. | ||
"The signer warrants that the signer has already paid or will | ||
use the funds received from this final payment to promptly pay in | ||
full all of the signer's laborers, subcontractors, materialmen, and | ||
suppliers for all work, materials, equipment, or services provided | ||
for or to the above referenced project up to the date of this waiver | ||
and release. | ||
"Date ____________________________ | ||
"_________________________________ (Company name) | ||
"By ______________________________ (Signature) | ||
"_________________________________ (Title) | ||
"(Insert acknowledgment)" | ||
(e) If a claimant or potential claimant is required to | ||
execute an unconditional waiver and release to prove the receipt of | ||
good and sufficient funds for a final payment and the claimant or | ||
potential claimant asserts in the waiver and release that the | ||
claimant or potential claimant has been paid the final payment, the | ||
waiver and release must: | ||
(1) contain a notice at the top of the document, | ||
printed in bold type at least as large as the largest type used in | ||
the document, but not smaller than 10-point type, that reads: | ||
"NOTICE: | ||
"This document waives rights unconditionally and states that | ||
you have been paid for giving up those rights. It is prohibited for | ||
a person to require you to sign this document if you have not been | ||
paid in full as stated [ |
||
have not been paid, use a conditional release form."; and | ||
(2) below the notice, read: | ||
"UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT | ||
"Project ___________________ | ||
"Job No. ___________________ | ||
"The signer of this document has been paid in full for all | ||
labor, services, equipment, or materials furnished to the property | ||
or to ___________________ (person with whom signer contracted) on | ||
the property of ______________________ (owner) located at | ||
______________________ (location) for [ |
||
[ |
||
work, materials, equipment, or services provided). The signer | ||
therefore waives and releases any mechanic's lien right, any right | ||
arising from a payment bond that complies with a state or federal | ||
statute, any common law payment bond right, any claim for payment, | ||
and any rights under any similar ordinance, rule, or statute | ||
related to claim or payment rights for persons in the signer's | ||
position. | ||
"The signer warrants that the signer has already paid or will | ||
use the funds received from this final payment to promptly pay in | ||
full all of the signer's laborers, subcontractors, materialmen, and | ||
suppliers for all work, materials, equipment, or services provided | ||
for or to the above referenced project up to the date of this waiver | ||
and release. | ||
"Date ____________________________ | ||
"_________________________________ (Company name) | ||
"By ______________________________ (Signature) | ||
"_________________________________ (Title) | ||
"(Insert acknowledgment)" | ||
(f) If the owner has filed and posted a notice of | ||
commencement under Section 53.125, the owner may require, as a | ||
condition for final payment, a claimant who has provided a notice of | ||
furnishing to post on the lien website a conditional waiver and | ||
release on final payment described by Subsection (d). | ||
SECTION 44. The following provisions of the Property Code | ||
are repealed: | ||
(1) Section 53.001(11); | ||
(2) Section 53.022(b); | ||
(3) Section 53.025; | ||
(4) Section 53.053; | ||
(5) Section 53.056; | ||
(6) Section 53.057; | ||
(7) Section 53.058; | ||
(8) Section 53.083; | ||
(9) Section 53.084; | ||
(10) Subchapter E, Chapter 53; | ||
(11) Section 53.206(c); | ||
(12) Section 53.252; | ||
(13) Section 53.253; and | ||
(14) Section 53.254(g). | ||
SECTION 45. The changes in law made by this Act apply only | ||
to an original contract entered into on or after the effective date | ||
of this Act. An original 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 46. This Act takes effect May 1, 2020. |