Texas 2009 - 81st Regular

Texas House Bill HB1209 Latest Draft

Bill / Engrossed Version Filed 02/01/2025

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                            By: McClendon, Gattis H.B. No. 1209


 A BILL TO BE ENTITLED
 AN ACT
 relating to construction payment trust funds and liens securing
 payment for certain labor, services, or material.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 53.054, Property Code, is amended by
 amending Subsection (a) and adding Subsections (d), (e), and (f) to
 read as follows:
 (a) The 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 the claim was sent
 to the owner and the method by which the notice was sent.
 (d)  The affidavit must distinguish between materials
 provided and work done and state the category or types of materials
 provided in a manner that distinguishes between permanent fixtures
 and removable items.
 (e)  For the purposes of Subsection (d), the categories and
 types of materials that are considered not removable include:
 (1) paint;
 (2) lumber for the framing of the structure;
 (3)  concrete used for foundations, parking, and
 driveways;
 (4) in-ground swimming pools;
 (5) tile floors;
 (6) wiring; and
 (7) rough-in plumbing.
 (f)  For the purposes of Subsection (d), the categories and
 types of materials that are considered removable include:
 (1) decking materials;
 (2) counters;
 (3) countertops;
 (4)  built-in appliances, including dishwashers,
 ovens, and ranges;
 (5) carpet and pad;
 (6) windows;
 (7) doors;
 (8) shower doors;
 (9) sinks, toilets, fixtures; and
 (10) draperies.
 SECTION 2. Section 162.001(c), Property Code, is amended to
 read as follows:
 (c) A fee payable to a contractor is not considered trust
 funds if:
 (1) the [If a] contractor and property owner have
 entered into a written construction contract for the improvement of
 specific real property in this state before the commencement of
 construction of the improvement and the contract provides for the
 payment by the owner of the costs of construction and a reasonable
 fee specified in the contract payable to the contractor; and
 (2) [,] the fee is earned as provided by the contract
 and paid to the contractor or disbursed from a construction account
 described by Section 162.006, if applicable [is not considered
 trust funds].
 SECTION 3. Section 162.003, Property Code, is amended to
 read as follows:
 Sec. 162.003. BENEFICIARIES OF TRUST FUNDS. (a) An
 artisan, laborer, mechanic, contractor, subcontractor, or
 materialman who labors or who furnishes labor or material for the
 construction or repair of an improvement on specific real property
 in this state is a beneficiary of any trust funds paid or received
 in connection with the improvement.
 (b)  A property owner is a beneficiary of trust funds
 described by Section 162.001 in connection with a residential
 construction contract, including funds deposited into a
 construction account described by Section 162.006.
 SECTION 4. Section 53.054, Property Code, as amended by
 this Act, applies only to an affidavit filed under Section 53.052,
 Property Code, on or after the effective date of this Act. An
 affidavit filed before the effective date of this Act is governed by
 the law in effect immediately before the effective date of this Act,
 and that law is continued in effect for that purpose.
 SECTION 5. The change in law made by this Act to Chapter
 162, Property Code, applies only to funds that become trust funds
 under Section 162.001, Property Code, as amended by this Act, on or
 after the effective date of this Act. Funds that become trust funds
 before the effective date of this Act are governed by the law in
 effect immediately before the effective date of this Act, and that
 law is continued in effect for that purpose.
 SECTION 6. This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution. If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2009.