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) 2019-02-20 - Referred to Business & Industry [HB589 Detail]

Download: Texas-2019-HB589-Introduced.html
  86R1809 BEE-F
 
  By: Deshotel H.B. No. 589
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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 53.056(b), 53.057, 53.058, 53.252(b), or
  53.253, Property Code, or] Section 2253.047, Government Code.
         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
  [abutting] sidewalks and streets and utilities in or on those
  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; [and]
                     (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 
  [Subchapters B through G and K].  In this section, "notice" includes
  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 [constitutes compliance
  with the notice requirement]. This subsection does not apply if the
  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[:
                     [(A)  a house, building, or] improvement;
                     [(B)     a levee or embankment to be erected for the
  reclamation of overflow land along a river or creek; or
                     [(C)  a railroad;] and
               (2)  the person labors, specially fabricates the
  material, or furnishes the labor or materials under or arising out
  [by virtue] of an express [a] contract or contract implied by law
  between the person and:
                     (A)  [with] the owner or the owner's agent,
  trustee, or receiver;
                     (B)  a [,] contractor; [,] or
                     (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 [A] person who
  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 [contracted with the other person for
  the construction or repair of a house, building, or improvements
  and the owner] can effectively control that other person or that
  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
  that other person can effectively control the owner through
  ownership of voting stock, interlocking directorships, or
  otherwise; or
               [(3)     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), [the person] claiming a [the] lien under
  this chapter must file a lien claim [an] affidavit as provided by
  Subsection (c) [with the county clerk of the county in which the
  property is located or into which the railroad extends] not later
  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 [day on which the indebtedness accrues].
         (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 person] claiming a lien on [arising from]
  a residential construction project must file a lien claim [an]
  affidavit as provided by Subsection (c) [with the county clerk of
  the county in which the property is located] not later than the 15th
  day of the third calendar month after the date the work under the
  original contract is completed or the original contract is
  terminated [day on which the indebtedness accrues].
         (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 [and, for a claimant other than
  an original contractor, a statement of each month in which the work
  was done and materials furnished for which payment is requested];
               (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, [the claim] was given
  [sent] to the owner or reputed owner [and the method by which the
  notice was sent].
         (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 [an] affidavit must send a copy of the
  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 [fifth] day
  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 [within] the same
  manner and time that the affidavit must be sent to the owner or
  reputed owner under Subsection (a) [period].
         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.  [(a)] If a lien claim affidavit is filed by a
  subcontractor or if an owner receives notice under Section 53.055
  or 53.0563 [53.056, 53.057, 53.058, 53.252, or 53.253], the owner
  may withhold from payments due or to become due to the original
  contractor an amount necessary to pay the claim for which the owner
  [he] receives notice or that is stated in the lien claim affidavit.
         [(b)     If notice is sent in a form that substantially complies
  with Section 53.056 or 53.252, the owner may withhold the funds
  immediately on receipt of the notice.
         [(c)     If notice is sent under Section 53.057, the owner may
  withhold funds immediately on receipt of a copy of the claimant's
  affidavit prepared in accordance with Sections 53.052 through
  53.055.
         [(d)     If notice is sent under Section 53.058, the owner may
  withhold funds immediately on receipt of the notices sent under
  Subsection (e) of that section. If notice is sent as provided by
  Section 53.253(b), the owner may withhold funds immediately on
  receipt of the notice sent as required by Section 53.252.]
         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)  [Unless] payment is made under Section 53.0831;
               (3)  [53.083 or] the claim is otherwise settled or [,]
  discharged [, indemnified against] under Section 53.157; or
               (4)  the claim is [Subchapter H or I, or] determined to
  be invalid by a final judgment of a court [, the owner shall retain
  the funds withheld until:
               [(1)     the time for filing the affidavit of mechanic's
  lien has passed; or
               [(2)     if a lien affidavit has been filed, until the lien
  claim has been satisfied or released].
         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 [furnishes labor or
  materials for the construction of improvements on real property]
  shall, if requested and as a condition of payment for such work 
  [labor or materials], provide to the requesting party, or the
  party's agent, a bills-paid [an] affidavit acknowledging the amount
  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. [A person may not receive
  community supervision for the offense.]
         SECTION 21.  Section 53.122(a), Property Code, is amended to
  read as follows:
         (a)  Perfected [Except as provided by Subchapter E and
  Section 53.124(e), perfected] mechanic's liens that have the same
  inception date are on equal footing without reference to the date of
  filing the lien claim affidavit [claiming the lien].
         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.  [An owner and
  original contractor may jointly file an affidavit of commencement
  with the county clerk of the county in which the land is located not
  later than the 30th day after the date of actual commencement of
  construction of the improvements or delivery of materials to the
  land. The affidavit must contain:
               [(1)  the name and address of the owner;
               [(2)     the name and address of each original contractor,
  known at the time to the owner, that is furnishing labor, service,
  or materials for the construction of the improvements;
               [(3)     a description, legally sufficient for
  identification, of the property being improved;
               [(4)  the date the work actually commenced; and
               [(5)  a general description of the improvement.]
         (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.  [An affidavit filed in compliance with this section
  is prima facie evidence of the date of the commencement of the
  improvement described in the affidavit. The time of inception of a
  mechanic's lien arising from work described in an affidavit of
  commencement is the date of commencement of the work stated in the
  affidavit.]
         (e)  The time of inception of a lien that is created under
  Section 53.021(c)[, (d), or (e)] is the date of recording of a lien
  claim [an] affidavit [of lien] under Section 53.052. The priority
  of a lien claimed by a person entitled to a lien under Section
  53.021(c)[, (d), or (e)] with respect to other mechanic's liens is
  determined by the date of recording. A lien created under Section
  53.021(c)[, (d), or (e)] is not valid or enforceable against a
  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 [improvements] has a priority claim over
  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 [an] affidavit [claiming a mechanic's
  lien] is filed by a person other than the original contractor, the
  original contractor shall defend at the original contractor's [his]
  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 [mechanic's
  lien or] affidavit [claiming a mechanic's lien] filed under Section
  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
  [in the county in which the property is located] within the period
  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 [within
  two years after] the last date [day] a claimant may file the lien
  claim affidavit under Section 53.052 [or within one year after
  completion, termination, or abandonment of the work under the
  original contract under which the lien is claimed, whichever is
  later].
         (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).  [For a claim arising from a residential construction project,
  suit must be brought to foreclose the lien within one year after the
  last day a claimant may file a lien affidavit under Section 53.052
  or within one year after completion, termination, or abandonment of
  the work under the original contract under which the lien is
  claimed, whichever is later.]
         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 [An] owner, on written request,
  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 [An] original contractor, on
  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; [and]
               (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.
  [If requested, the claimant shall provide the estimated amount due
  for each calendar month in which the claimant has performed labor or
  furnished materials.]
         (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
  [claim] was not furnished to the owner or original contractor as
  required by Section 53.0561 or 53.0563 [53.056, 53.057, 53.058,
  53.252, or 53.253];
               (2)  a lien claim [an] affidavit [claiming a lien]
  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)  [the deadlines for perfecting a lien claim for
  retainage under this chapter have expired and the owner complied
  with the requirements of Section 53.101 and paid the retainage and
  all other funds owed to the original contractor before:
                     [(A)  the claimant perfected the lien claim; and
                     [(B)     the owner received a notice of the claim as
  required by this chapter;
               [(5)     all funds subject to the notice of a claim to the
  owner and a notice regarding the retainage have been deposited in
  the registry of the court and the owner has no additional liability
  to the claimant;
               [(6)]  when the lien claim affidavit was filed on
  homestead property:
                     (A)  no contract was executed or filed as required
  by Section 53.254; or
                     (B)  the lien claim affidavit [claiming a lien]
  failed to contain the notice as required by Section 53.254; [or
                     [(C)     the notice of the claim failed to include
  the statement required by Section 53.254;] and
               (5) [(7)]  the claimant executed a valid and
  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 [by at least 21 days]
  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 [and] affidavit was [of lien were] furnished to the
  owner, reputed owner, and original contractor as required by
  Section 53.055 [this chapter]; and
               (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 [within 30 days] after the
  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 [$40,000], in which case the bond must be in
  an amount that is the greater of 1-1/2 times the amount of the liens
  or the sum of $60,000 [$40,000] and the amount of the liens;
               (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 [1, Chapter 87, Acts of the 56th Legislature,
  Regular Session, 1959 (Article 7.19-1, Vernon's Texas Insurance
  Code)]; and
               (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 [relieved
  of obligations] under Subchapter D [or E].
         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 [1,
  Chapter 87, Acts of the 56th Legislature, Regular Session, 1959
  (Article 7.19-1, Vernon's Texas 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 [all applicable
  notices under the appropriate subchapter]; and
               (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 [, instead of the owner, all
  notices under the appropriate subchapter required to be given to
  the owner].
         (b)  To perfect a claim under this section, a person is not
  required to [:
               [(1)     give notice to the surety under Section 53.057,
  unless the claimant has a direct contractual relationship with the
  original contractor and the agreed retainage is in excess of 10
  percent of the contract;
               [(2)     give notice to the surety under Section 53.058(b)
  or, if the claim relates to a residential construction project,
  under Section 53.253(c); or
               [(3)]  file a lien claim [any] affidavit with the
  county clerk.
         SECTION 37.  Section 53.254(f), Property Code, is amended to
  read as follows:
         (f)  A lien claim [An] affidavit [for lien] filed under this
  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 [provisions for statutory retainage
  and] conditions for final payment. If your contractor made a
  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 [become] liable and your property may be subject to a lien
  for the unpaid amount, even if you have not contracted directly with
  the subcontractor or supplier. To minimize your [avoid] liability,
  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.
               [(2)     During construction and for 30 days after final
  completion, termination, or abandonment of the contract by the
  contractor, you should withhold or cause your lender to withhold 10
  percent of the amount of payments made for the work performed by
  your contractor. This is sometimes referred to as "statutory
  retainage.' If you choose not to withhold the 10 percent for at
  least 30 days after final completion, termination, or abandonment
  of the contract by the contractor and if a valid claim is timely
  made by a claimant and your contractor fails to pay the claim, you
  may be personally liable and your property may be subject to a lien
  up to the amount that you failed to withhold.]
         "If a claim is not paid within a certain time period, the
  claimant is required to file a [mechanic's] lien claim affidavit in
  the real property records in the county where the property is
  located. A [mechanic's] lien claim affidavit is not a lien on your
  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 [a claim] or when a [mechanic's] lien claim 
  affidavit is filed on your property, you should know your legal
  rights and responsibilities regarding the claim. Not all claims are
  valid. [A notice of a claim by a subcontractor or supplier is
  required to be sent, and the mechanic's lien affidavit is required
  to be filed, within strict time periods. The notice and the
  affidavit must contain certain information.] All claimants may not
  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. [If you have paid the contractor in full before receiving
  a notice of a claim and have fully complied with the law regarding
  statutory retainage, you may not be liable for that claim.]
  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 [claim], do not release withheld funds without obtaining
  a signed and notarized release of lien and claim from the claimant.
  You can [also] reduce the risk of having a claim filed by a
  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. [A person may not receive community supervision
  for the offense.]
         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 [Any] waiver
  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 [notarized]; and
               (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 [to] the following project [extent]:
  ______________________ ([job] description of the type of work,
  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 [,] pending
  modifications and changes [, or other items furnished].
         "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 [to] the following project
  [extent]: ______________________ ([job] description of the type of
  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 [,] pending
  modifications and changes [, or other items furnished].
         "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 [to] the following project
  [extent]: ______________________ ([job] description of the type of
  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 [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 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 [to] the following project
  [extent]: ______________________ ([job] description of the type of
  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.
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