Texas 2017 - 85th Regular

Texas Senate Bill SB1506 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R2003 BEE-F
2	2	By: Hinojosa S.B. No. 1506
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to mechanic's, contractor's, or materialman's liens;
8	8	authorizing a fee; changing the eligibility for community
9	9	supervision.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 3503.051(3), Insurance Code, is amended
12	12	to read as follows:
13	13	(3) "Notice of claim" means a written notification by
14	14	a claimant who makes a claim for payment from the surety
15	15	company. The term does not include a routine statutory notice
16	16	required by [Section 53.056(b), 53.057, 53.058, 53.252(b), or
17	17	53.253, Property Code, or] Section 2253.047, Government Code.
18	18	SECTION 2. Section 53.001, Property Code, is amended by
19	19	amending Subdivisions (2), (12), (13), and (14) and adding
20	20	Subdivisions (2-a), (3-a), (5-a), (5-b), (5-c), (7-a), and (7-b) to
21	21	read as follows:
22	22	(2) "Improved" means, in reference to real property,
23	23	having an improvement, as defined by this section.
24	24	(2-a) "Improvement" means a house, building, or other
25	25	improvement to the real property of an owner. The term includes:
26	26	(A) improvements constructed adjacent to the
27	27	real property under an original contract with the owner, including
28	28	[abutting] sidewalks and streets and utilities in or on those
29	29	sidewalks and streets;
30	30	(B) clearing, grubbing, draining, or fencing of
31	31	land;
32	32	(C) wells, cisterns, tanks, reservoirs, or
33	33	artificial lakes or pools made for supplying or storing water;
34	34	(D) pumps, siphons, and windmills or other
35	35	machinery or apparatuses used for raising water for stock, domestic
36	36	use, or irrigation; [and]
37	37	(E) planting orchard trees, grubbing out
38	38	orchards and replacing trees, and pruning of orchard trees;
39	39	(F) levees or embankments erected for the
40	40	reclamation of overflow land along a river or creek; and
41	41	(G) railroads.
42	42	(3-a) "Lien website" means the Internet website
43	43	established under Subchapter A-1.
44	44	(5-a) "Notice of commencement" means a notice
45	45	described by Section 53.125.
46	46	(5-b) "Notice of demand" means a notice described by
47	47	Section 53.0521.
48	48	(5-c) "Notice of furnishing" is a notice required
49	49	under Section 53.0561.
50	50	(7-a) "Owner" means a person who owns any interest in
51	51	real property or an authorized agent, trustee, or receiver of the
52	52	person.
53	53	(7-b) "Reputed owner" means a person who is:
54	54	(A) identified as an owner in a notice of
55	55	commencement required under this chapter or in an original contract
56	56	for an improvement; or
57	57	(B) generally considered or reputed to be the
58	58	owner of the real property being improved.
59	59	(12) "Specially fabricated material" means material
60	60	fabricated for use as a component of the construction or repair of
61	61	an improvement so as to be reasonably unsuitable for use elsewhere.
62	62	(13) "Subcontractor" means a person who has furnished
63	63	labor or materials to fulfill an obligation to an original
64	64	contractor or to a subcontractor of any tier to perform all or part
65	65	of the work required by an original contract.
66	66	(14) "Work" means any part of labor done, material
67	67	furnished, or materials specially fabricated for the construction
68	68	or repair of an improvement performed under an original contract.
69	69	SECTION 3. Section 53.003, Property Code, is amended by
70	70	amending Subsections (a) and (c) and adding Subsection (e) to read
71	71	as follows:
72	72	(a) This section applies to notices required by this chapter
73	73	[Subchapters B through G and K]. In this section, "notice" includes
74	74	any written communication required under this chapter.
75	75	(c) If a notice is sent by registered or certified mail,
76	76	deposit or mailing of the notice in the United States mail in the
77	77	form required constitutes compliance with the notice requirement.
78	78	The effective date of the notice is the date the notice is deposited
79	79	in the United States mail. This subsection does not apply if the
80	80	law requires receipt of the notice by the person to whom it is
81	81	directed.
82	82	(e) A notice to an owner may be filed on the lien website
83	83	under the protocols established for the website for receipt of the
84	84	notice. A notice may be sent by an owner by filing the notice on the
85	85	lien website or by e-mail with an electronic record of delivery to
86	86	the e-mail address provided to the owner in a notice of furnishing
87	87	by a person required to be provided with the notice. The effective
88	88	date of the notice is the date the notice is sent to the lien website
89	89	under the website's protocols or the date the e-mail is sent. An
90	90	e-mail sent to a recipient is prima facie evidence of delivery of a
91	91	message to an e-mail address to which it is sent.
92	92	SECTION 4. Subchapter A, Chapter 53, Property Code, is
93	93	amended by adding Section 53.004 to read as follows:
94	94	Sec. 53.004. COMPUTATION OF TIME. In computing the period
95	95	of days in which to provide a notice or to take an action required
96	96	under this chapter, if the last day of the period is a Saturday,
97	97	Sunday, or legal holiday, the period is extended to include the next
98	98	day that is not a Saturday, Sunday, or legal holiday.
99	99	SECTION 5. Chapter 53, Property Code, is amended by adding
100	100	Subchapter A-1 to read as follows:
101	101	SUBCHAPTER A-1. LIEN WEBSITE
102	102	Sec. 53.011. LIEN WEBSITE. (a) The secretary of state
103	103	shall establish and maintain a lien website through the state
104	104	electronic Internet portal, as defined by Section 2054.003,
105	105	Government Code.
106	106	(b) The secretary of state may adopt rules and forms
107	107	necessary to implement this subchapter.
108	108	Sec. 53.012. POSTING ON LIEN WEBSITE. The lien website must
109	109	provide an online form for each notice or written communication
110	110	required by this chapter that complies with the content
111	111	requirements of this chapter for the notice or communication. The
112	112	lien website must allow a person to electronically obtain a form and
113	113	post the notice or written communication on the lien website.
114	114	Sec. 53.013. SEARCHING LIEN WEBSITE. The lien website must
115	115	allow a person to search the notices and written communications
116	116	posted on the website with a full or partial:
117	117	(1) owner name;
118	118	(2) project name;
119	119	(3) project address;
120	120	(4) project real property legal description;
121	121	(5) original contractor name; or
122	122	(6) name of person posting a notice or written
123	123	communication.
124	124	Sec. 53.014. FEES. (a) Notwithstanding Section 2054.2591,
125	125	Government Code, and except as provided by Subsection (b), the
126	126	secretary of state may not charge a fee for a person to:
127	127	(1) electronically obtain a form or post a notice or
128	128	written communication on the lien website; or
129	129	(2) use the search functions of the lien website.
130	130	(b) The secretary of state may charge a fee for a person to
131	131	post a notice of commencement on the lien website.
132	132	SECTION 6. Section 53.021(a), Property Code, is amended to
133	133	read as follows:
134	134	(a) A person has a lien if:
135	135	(1) the person labors, specially fabricates material,
136	136	or furnishes labor or materials for construction or repair in this
137	137	state of an[:
138	138	[(A) a house, building, or] improvement;
139	139	[(B) a levee or embankment to be erected for the
140	140	reclamation of overflow land along a river or creek; or
141	141	[(C) a railroad;] and
142	142	(2) the person labors, specially fabricates the
143	143	material, or furnishes the labor or materials under or arising out
144	144	[by virtue] of an express [a] contract or contract implied by law
145	145	between the person and [with] the owner or the owner's agent,
146	146	trustee, receiver, contractor, or subcontractor.
147	147	SECTION 7. Section 53.022, Property Code, is amended by
148	148	amending Subsection (a) and adding Subsections (b-1) and (e) to
149	149	read as follows:
150	150	(a) The lien extends to the interest of the owner or the
151	151	owner's successor in interest to the real property in the house,
152	152	building, fixtures, or improvements, the land reclaimed from
153	153	overflow, or the railroad and all of its properties, and to each lot
154	154	of land necessarily connected or reclaimed.
155	155	(b-1) If an improvement is constructed on real property that
156	156	is adjacent to the real property of the owner who entered into the
157	157	original contract for the improvements and the adjacent property is
158	158	not owned by the owner, the lien extends only to the real property
159	159	of the owner and not to the adjacent property.
160	160	(e) A lien arising from work performed on common elements of
161	161	a condominium governed by Chapter 81 or 82 extends to each unit
162	162	owning an interest in the common elements being improved, and is
163	163	apportioned based on the relative ownership interests of each unit
164	164	in the common elements being improved, if:
165	165	(1) the inception of the lien is after the date the
166	166	declaration establishing the condominium was recorded; and
167	167	(2) the work was performed under a contract with the
168	168	council of owners, the unit owners' association of the condominium,
169	169	or all of the owners of the units owning an interest in the common
170	170	elements being improved.
171	171	SECTION 8. Section 53.024, Property Code, is amended to
172	172	read as follows:
173	173	Sec. 53.024. LIMITATION ON SUBCONTRACTOR'S LIEN. The
174	174	amount of a lien claimed by a subcontractor may not exceed:
175	175	(1) an amount equal to the proportion of the total
176	176	subcontract price, including all additional amounts to which the
177	177	subcontractor is entitled as an adjustment to the subcontract, that
178	178	the sum of the labor performed, materials furnished, materials
179	179	specially fabricated, reasonable overhead costs incurred, and
180	180	proportionate profit margin bears to the total subcontract price;
181	181	minus
182	182	(2) the sum of previous payments received by the
183	183	claimant on the subcontract.
184	184	SECTION 9. Section 53.026(a), Property Code, is amended to
185	185	read as follows:
186	186	(a) Except as provided by Section 53.0561, a [A] person who
187	187	labors, specially fabricates materials, or furnishes labor or
188	188	materials under a direct contractual relationship with another
189	189	person is considered to be in direct contractual relationship with
190	190	the owner and has a lien as an original contractor, if:
191	191	(1) the owner [contracted with the other person for
192	192	the construction or repair of a house, building, or improvements
193	193	and the owner] can effectively control that other person or that
194	194	other person can effectively control the owner through ownership of
195	195	voting stock, interlocking directorships, or otherwise; or
196	196	(2) the owner contracted with the other person for the
197	197	construction or repair of a house, building, or improvements [and
198	198	that other person can effectively control the owner through
199	199	ownership of voting stock, interlocking directorships, or
200	200	otherwise; or
201	201	[(3) the owner contracted with the other person for
202	202	the construction or repair of a house, building, or improvements]
203	203	and the contract was made without good faith intention of the
204	204	parties that the other person was to perform the contract.
205	205	SECTION 10. Section 53.052, Property Code, is amended to
206	206	read as follows:
207	207	Sec. 53.052. FILING OF LIEN CLAIM AFFIDAVIT. (a) Except as
208	208	provided by Subsection (b) or Section 53.0521, an original
209	209	contractor or subcontractor [the person] claiming a [the] lien
210	210	under this chapter must file a lien claim [an] affidavit as provided
211	211	by Subsection (c) [with the county clerk of the county in which the
212	212	property is located or into which the railroad extends] not later
213	213	than the 15th day of the fourth calendar month after the date the
214	214	work under the original contract is completed or the original
215	215	contract is terminated [day on which the indebtedness accrues].
216	216	(b) Except as provided by Section 53.0521, an original
217	217	contractor or subcontractor [A person] claiming a lien on [arising
218	218	from] a residential construction project must file a lien claim
219	219	[an] affidavit as provided by Subsection (c) [with the county clerk
220	220	of the county in which the property is located] not later than the
221	221	15th day of the third calendar month after the date the work under
222	222	the original contract is completed or the original contract is
223	223	terminated [day on which the indebtedness accrues].
224	224	(c) A lien claim affidavit must be filed with the county
225	225	clerk of the county in which the property is located or into which
226	226	the railroad extends. The county clerk shall record the affidavit
227	227	in records kept for that purpose and shall index and cross-index the
228	228	affidavit in the names of the claimant, the original contractor,
229	229	and the owner. Failure of the county clerk to properly record or
230	230	index a filed affidavit does not invalidate the lien.
231	231	(d) For purposes of this section, an original contract is
232	232	terminated on the date an owner posts a notice of termination on the
233	233	lien website. If a notice of commencement has not been filed and
234	234	posted as required by Section 53.125, the owner must send a notice
235	235	of termination to each person who has filed a notice of furnishing.
236	236	SECTION 11. Subchapter C, Chapter 53, Property Code, is
237	237	amended by adding Section 53.0521 to read as follows:
238	238	Sec. 53.0521. NOTICE OF DEMAND. (a) If work under an
239	239	original contract has been completed or the original contract has
240	240	been terminated, an owner may send a notice of demand to the
241	241	original contractor or subcontractor requesting the contractor or
242	242	subcontractor to file a lien claim affidavit. If the notice is
243	243	based on the termination of the original contract, the notice must
244	244	state that the original contract was terminated and the date of the
245	245	termination. An owner may not send the notice before the original
246	246	contract has been terminated. A notice sent before work under the
247	247	original contract has been completed is effective only as to a
248	248	claimant that has completed the claimant's work and is void as to
249	249	any other claimant.
250	250	(b) For purposes of this section, an original contract is
251	251	terminated on the date an owner posts a notice of termination on the
252	252	lien website. If a notice of commencement has not been filed and
253	253	posted as required by Section 53.125, the owner must send a notice
254	254	of termination to each person who has filed a notice of furnishing.
255	255	(c) Notwithstanding Section 53.003, a notice of demand must
256	256	be sent by registered or certified mail to a subcontractor at the
257	257	subcontractor's address provided by the notice of furnishing or to
258	258	an original contractor at the original contractor's last known
259	259	address.
260	260	(d) If an owner sends a notice of demand, a claimant that has
261	261	completed the claimant's work must, not later than the 30th day
262	262	after the date the notice of demand is sent, file a lien claim
263	263	affidavit for a claim the claimant has not included in a previously
264	264	filed lien claim affidavit.
265	265	(e) A claimant that has not completed the claimant's work on
266	266	the date the owner sends a notice of demand must file a lien claim
267	267	affidavit as provided by Section 53.052(a) or (b), as applicable.
268	268	(f) An original contractor or subcontractor waives any
269	269	statutory lien rights that have not been perfected if the
270	270	contractor or subcontractor does not comply with this section.
271	271	(g) A notice of demand must be conspicuously printed in bold
272	272	type and in all capital letters not smaller than 10-point type and
273	273	must state the following:
274	274	"NOTICE OF DEMAND
275	275	"WARNING: THIS NOTICE BRIEFLY SUMMARIZES LEGAL REQUIREMENTS
276	276	STATED BY SECTION 53.0521, PROPERTY CODE. YOU SHOULD CONSULT AN
277	277	ATTORNEY TO FULLY UNDERSTAND YOUR RIGHTS AND OBLIGATIONS.
278	278	"THE OWNER IS DEMANDING THAT YOU FILE A LIEN CLAIM AFFIDAVIT
279	279	NOT LATER THAN THE 30TH DAY AFTER THE DATE THIS NOTICE WAS SENT TO
280	280	YOU. IF THE ORIGINAL CONTRACT HAS BEEN TERMINATED OR IF YOU HAVE
281	281	COMPLETED YOUR WORK, YOU ARE REQUIRED, NOT LATER THAN THE 30TH DAY
282	282	AFTER THE DATE THIS NOTICE WAS SENT TO YOU, TO FILE YOUR LIEN CLAIM
283	283	AFFIDAVIT FOR ANY CLAIMS YOU HAVE NOT INCLUDED IN A LIEN CLAIM
284	284	AFFIDAVIT YOU HAVE PREVIOUSLY FILED OR YOU MAY LOSE ANY STATUTORY
285	285	LIEN RIGHTS THAT YOU HAVE NOT PREVIOUSLY PERFECTED.
286	286	"IF THE ORIGINAL CONTRACT IS NOT TERMINATED OR YOU HAVE NOT
287	287	COMPLETED YOUR WORK, THE DEADLINE TO FILE YOUR LIEN CLAIM AFFIDAVIT
288	288	IS PROVIDED BY SECTION 53.052(a) OR (b), PROPERTY CODE."
289	289	SECTION 12. The heading to Section 53.054, Property Code,
290	290	is amended to read as follows:
291	291	Sec. 53.054. CONTENTS OF LIEN CLAIM AFFIDAVIT.
292	292	SECTION 13. Section 53.054, Property Code, is amended by
293	293	amending Subsections (a) and (c) to read as follows:
294	294	(a) The lien claim affidavit must be signed by the person
295	295	claiming the lien or by another person on the claimant's behalf and
296	296	must contain substantially:
297	297	(1) a sworn statement of the amount of the claim;
298	298	(2) the name and last known address of the owner or
299	299	reputed owner;
300	300	(3) a general statement of the kind of work done and
301	301	materials furnished by the claimant [and, for a claimant other than
302	302	an original contractor, a statement of each month in which the work
303	303	was done and materials furnished for which payment is requested];
304	304	(4) the name and last known address of the person by
305	305	whom the claimant was employed or to whom the claimant furnished the
306	306	materials or labor;
307	307	(5) the name and last known address of the original
308	308	contractor;
309	309	(6) a description, legally sufficient for
310	310	identification, of the property sought to be charged with the lien;
311	311	(7) the claimant's name, mailing address, and, if
312	312	different, physical address; and
313	313	(8) for a claimant other than an original contractor,
314	314	a statement identifying the date each notice of furnishing [the
315	315	claim] was sent to the owner [and the method by which the notice was
316	316	sent].
317	317	(c) The affidavit is not required to set forth individual
318	318	items of work done or material furnished or specially fabricated.
319	319	The affidavit may use any broad descriptive terms, abbreviations,
320	320	or symbols customary in the trade to describe the work done or
321	321	material furnished.
322	322	SECTION 14. Section 53.055, Property Code, is amended to
323	323	read as follows:
324	324	Sec. 53.055. NOTICE OF FILED LIEN CLAIM AFFIDAVIT. (a) A
325	325	person who files a lien claim [an] affidavit must send a copy of the
326	326	affidavit by registered or certified mail to the owner or reputed
327	327	owner at the owner's last known business or residence address or
328	328	file a copy with the lien website not later than the 10th [fifth]
329	329	day after the date the affidavit is filed with the county clerk.
330	330	(b) If the person is not an original contractor, and the
331	331	person has not filed a copy of the affidavit with the lien website
332	332	under Subsection (a), the person must also send a copy of the
333	333	affidavit to the original contractor at the original contractor's
334	334	last known business or residence address in [within] the same
335	335	manner and time that the affidavit must be sent to the owner under
336	336	Subsection (a) [period].
337	337	SECTION 15. Subchapter C, Chapter 53, Property Code, is
338	338	amended by adding Section 53.0561 to read as follows:
339	339	Sec. 53.0561. NOTICE OF FURNISHING. (a) A person who
340	340	contracts with a person other than the owner and who has a lien as an
341	341	original contractor under Section 53.026(a) must give a notice of
342	342	furnishing to the owner or reputed owner for the lien to be valid. A
343	343	claimant other than an original contractor must give a notice of
344	344	furnishing to the owner or reputed owner and the original
345	345	contractor for the claimant's lien to be valid.
346	346	(b) The notice of furnishing must include:
347	347	(1) a general description of the labor or material
348	348	furnished or to be furnished by the claimant and, for specially
349	349	fabricated material, a separate description of the specially
350	350	fabricated material, that may include a list of individual items of
351	351	work or material or use terms, abbreviations, or symbols customary
352	352	in the trade;
353	353	(2) the name, address, and telephone number of the
354	354	claimant;
355	355	(3) the e-mail address of the claimant, if the
356	356	claimant wants to receive notices of filings on the lien website;
357	357	(4) the name, address, and telephone number of the
358	358	person with whom the claimant contracted to furnish the labor or
359	359	material;
360	360	(5) a legal description, street address, or other
361	361	description that identifies the real property to which the labor or
362	362	material was furnished or will be furnished; and
363	363	(6) a conspicuous statement in bold type as follows:
364	364	"THIS IS NOT A LIEN OR A CLAIM FOR A LIEN. THIS IS ONLY A
365	365	NOTICE TO THE OWNER THAT A CONTRACTOR IS FURNISHING OR INTENDS TO
366	366	FURNISH LABOR OR MATERIAL TO THE PROJECT. THIS NOTICE IS REQUIRED TO
367	367	PRESERVE THE CONTRACTOR'S LIEN RIGHTS UNDER CHAPTER 53, PROPERTY
368	368	CODE."
369	369	(c) Except as provided by Subsection (d), the notice of
370	370	furnishing does not preserve a lien right for labor performed or
371	371	material furnished or specially fabricated earlier than 45 days
372	372	before the date the notice is provided as required by this section.
373	373	(d) If the owner has filed and posted a notice of
374	374	commencement as required by Section 53.125 before the subcontractor
375	375	begins performing labor or furnishing or specially fabricating
376	376	material, the notice of furnishing does not preserve a lien right
377	377	for labor performed or material furnished or specially fabricated
378	378	by the subcontractor earlier than 15 days before the date the notice
379	379	of furnishing is provided.
380	380	(e) Only one notice of furnishing to an owner is required
381	381	for all labor or material furnished or to be furnished by each
382	382	subcontractor. If a subcontractor contracts to perform work for
383	383	the improvement of the owner's property under more than one
384	384	original contract, the subcontractor must identify each original
385	385	contract in the notice of furnishing or must furnish separate
386	386	notices of furnishing for each original contract.
387	387	(f) The notice of furnishing is not invalid if, after the
388	388	date of the notice, the subcontractor furnishes labor or material
389	389	that is not within the scope of the notice's general description of
390	390	the labor and material furnished or to be furnished.
391	391	(g) A notice of furnishing that does not include the
392	392	subcontractor's e-mail address is not invalid.
393	393	SECTION 16. Subchapter C, Chapter 53, Property Code, is
394	394	amended by adding Section 53.059 to read as follows:
395	395	Sec. 53.059. NOTICE OF COMPLETION. (a) If an owner has
396	396	filed or has posted on the lien website a notice of commencement as
397	397	required by Section 53.125 and the work under an original contract
398	398	has been completed or the original contract has been terminated,
399	399	the owner may file a notice of completion with the county clerk of
400	400	the county in which the owner's property is located and post the
401	401	notice on the lien website. The notice must contain:
402	402	(1) the name and address of the owner;
403	403	(2) the name and address of each original contractor
404	404	covered by the notice;
405	405	(3) a description, legally sufficient for
406	406	identification, of the real property on which the improvements are
407	407	located;
408	408	(4) a description of the work furnished under an
409	409	original contract covered by the notice;
410	410	(5) a statement that the work under an original
411	411	contract covered by the notice has been completed or that the
412	412	original contract was terminated; and
413	413	(6) the date of the completion or termination.
414	414	(b) Not later than the 10th day after the notice of
415	415	completion is posted on the lien website, the owner must send a copy
416	416	of the notice:
417	417	(1) to each original contractor identified in the
418	418	notice; and
419	419	(2) by e-mail to each claimant that has sent a notice
420	420	of furnishing to the owner and has provided an e-mail address to the
421	421	owner.
422	422	(c) For purposes of Section 53.052, the later of the date
423	423	the notice of completion is filed or the date the notice is posted
424	424	on the lien website is considered the date the work under an
425	425	original contract identified in the notice is completed or the
426	426	original contract is terminated. This subsection does not apply to
427	427	a person to whom the notice of completion was not sent as required
428	428	by this section.
429	429	(d) Except as provided by Subsection (e), the notice of
430	430	completion must contain the following statement in bold type in all
431	431	capital letters:
432	432	"A CLAIMANT WILL LOSE THE RIGHT TO PERFECT A LIEN IF THE
433	433	CLAIMANT DOES NOT FILE A LIEN CLAIM AFFIDAVIT ON OR BEFORE THE 15TH
434	434	DAY OF THE FOURTH MONTH AFTER THE DATE OF COMPLETION OF THE WORK."
435	435	(e) The notice of completion for a residential construction
436	436	project must contain the following statement in bold type in all
437	437	capital letters:
438	438	"A CLAIMANT WILL LOSE THE RIGHT TO PERFECT A LIEN IF THE
439	439	CLAIMANT DOES NOT FILE A LIEN CLAIM AFFIDAVIT ON OR BEFORE THE 15TH
440	440	DAY OF THE THIRD MONTH AFTER THE DATE OF COMPLETION OF THE WORK."
441	441	SECTION 17. Section 53.081, Property Code, is amended to
442	442	read as follows:
443	443	Sec. 53.081. AUTHORITY TO WITHHOLD FUNDS FOR BENEFIT OF
444	444	CLAIMANTS. [(a)] If a lien claim affidavit is filed by a
445	445	subcontractor or if an owner receives notice under Section 53.055
446	446	[53.056, 53.057, 53.058, 53.252, or 53.253], the owner may withhold
447	447	from payments due or to become due to the original contractor an
448	448	amount necessary to pay the claim stated in the lien claim
449	449	affidavit, except to the extent that the owner is already
450	450	withholding payment for the amount of the claim from the original
451	451	contractor as retainage or otherwise [for which he receives
452	452	notice].
453	453	[(b) If notice is sent in a form that substantially complies
454	454	with Section 53.056 or 53.252, the owner may withhold the funds
455	455	immediately on receipt of the notice.
456	456	[(c) If notice is sent under Section 53.057, the owner may
457	457	withhold funds immediately on receipt of a copy of the claimant's
458	458	affidavit prepared in accordance with Sections 53.052 through
459	459	53.055.
460	460	[(d) If notice is sent under Section 53.058, the owner may
461	461	withhold funds immediately on receipt of the notices sent under
462	462	Subsection (e) of that section. If notice is sent as provided by
463	463	Section 53.253(b), the owner may withhold funds immediately on
464	464	receipt of the notice sent as required by Section 53.252.]
465	465	SECTION 18. Section 53.082, Property Code, is amended to
466	466	read as follows:
467	467	Sec. 53.082. TIME FOR WHICH FUNDS ARE WITHHELD. The owner
468	468	may retain funds under Section 53.081 until [Unless] payment is
469	469	made under Section 53.0831 [53.083] or the claim is otherwise
470	470	settled or [,] discharged [, indemnified against] under Section
471	471	53.157 [Subchapter H or I,] or determined to be invalid by a final
472	472	judgment of a court[, the owner shall retain the funds withheld
473	473	until:
474	474	[(1) the time for filing the affidavit of mechanic's
475	475	lien has passed; or
476	476	[(2) if a lien affidavit has been filed, until the lien
477	477	claim has been satisfied or released].
478	478	SECTION 19. Subchapter D, Chapter 53, Property Code, is
479	479	amended by adding Section 53.0831 to read as follows:
480	480	Sec. 53.0831. DEMAND FOR NOTICE OF DISPUTE; PAYMENT OF
481	481	CLAIM. (a) If a lien claim affidavit is filed by a claimant, the
482	482	owner may demand in writing that the original contractor notify the
483	483	owner of whether the original contractor intends to dispute the
484	484	claim. The owner shall send a copy of the demand to the claimant and
485	485	shall furnish the original contractor with a copy of the lien claim
486	486	affidavit.
487	487	(b) If the original contractor does not give the owner and
488	488	the claimant written notice of the original contractor's intent to
489	489	dispute the claim before the 30th day after the date of receipt of
490	490	the demand, the original contractor is considered to agree to the
491	491	demand and the owner may pay the claim when the claim becomes due.
492	492	SECTION 20. Subchapter D, Chapter 53, Property Code, is
493	493	amended by adding Section 53.0841 to read as follows:
494	494	Sec. 53.0841. PERSONAL LIABILITY FOR LIENS. (a) Except as
495	495	provided by Subsection (b), an owner is personally liable for the
496	496	aggregate amount of the liens perfected on the owner's property
497	497	under this chapter. An owner's personal liability is not affected
498	498	by a subsequent foreclosure or other transfer of the owner's
499	499	interest in all or part of the property.
500	500	(b) Subject to Section 53.122(b), the aggregate amount of
501	501	liens of the original contractor and the subcontractors may not
502	502	exceed the contract price of the original contract, as may be
503	503	modified, for the work. Duplicated claims asserted by claimants
504	504	within the same chain of contract may not be added more than once in
505	505	determining the aggregate amount of liens. For purposes of this
506	506	section, a payment by the owner to the original contractor does not
507	507	reduce the aggregate liability of the owner for liens.
508	508	(c) A purchaser of property subject to a lien claim under
509	509	this chapter is not personally liable for the lien claim in a
510	510	foreclosure action brought by a claimant, except the purchaser may
511	511	be held liable for costs and attorney's fees awarded under Section
512	512	53.156.
513	513	SECTION 21. The heading to Section 53.085, Property Code,
514	514	is amended to read as follows:
515	515	Sec. 53.085. BILLS-PAID AFFIDAVIT REQUIRED.
516	516	SECTION 22. Section 53.085, Property Code, is amended by
517	517	amending Subsections (a), (b), (c), and (d) to read as follows:
518	518	(a) Any person who performs work [furnishes labor or
519	519	materials for the construction of improvements on real property]
520	520	shall, if requested and as a condition of payment for such work
521	521	[labor or materials], provide to the requesting party, or the
522	522	party's agent, a bills-paid [an] affidavit acknowledging the amount
523	523	claimed for payment and stating that the person has paid each of the
524	524	person's subcontractors, laborers, or materialmen in full for all
525	525	labor and materials provided to the person for the construction. In
526	526	the event, however, that the person has not paid each of the
527	527	person's subcontractors, laborers, or materialmen in full, the
528	528	person shall state in the affidavit the amount owed and the name
529	529	and, if known, the address and telephone number of each
530	530	subcontractor, laborer, or materialman to whom the payment is owed.
531	531	(b) The seller of any real property shall, upon request by
532	532	the purchaser or the purchaser's agent prior to closing of the
533	533	purchase of the real property, provide to the purchaser or the
534	534	purchaser's agent, a written affidavit stating that the seller has
535	535	paid each of the seller's contractors, laborers, or materialmen in
536	536	full for all labor done and materials provided to the seller through
537	537	the date specified in the affidavit for any construction or repair
538	538	of improvements on the real property and that the seller is not
539	539	indebted to any person, firm, or corporation by reason of any such
540	540	construction or repair through the date specified in the affidavit.
541	541	In the event that the seller has not paid each of the seller's
542	542	contractors, laborers, or materialmen in full for labor done and
543	543	material provided through the date specified in the affidavit, the
544	544	seller shall state in the affidavit the amount owed and the name
545	545	and, if known, the address and telephone number of each contractor,
546	546	laborer, or materialman to whom the payment is owed.
547	547	(c) The affidavit may include:
548	548	(1) a waiver or release of lien rights or payment bond
549	549	claims by the affiant that is conditioned on the receipt of actual
550	550	payment or collection of funds when payment is made by check or
551	551	draft, as provided by Subchapter L;
552	552	(2) a warranty or representation that certain bills or
553	553	classes of bills will be paid by the affiant from funds paid in
554	554	reliance on the affidavit and an identification of the specific
555	555	bills that the affiant will not pay from the fund; and
556	556	(3) an indemnification by the affiant for any loss or
557	557	expense resulting from false or incorrect information in the
558	558	affidavit.
559	559	(d) A person, including a seller, commits an offense if the
560	560	person intentionally, knowingly, or recklessly makes a false or
561	561	misleading statement in an affidavit under this section. An
562	562	offense under this section is a misdemeanor. A person adjudged
563	563	guilty of an offense under this section shall be punished by a fine
564	564	not to exceed $4,000 or confinement in jail for a term not to exceed
565	565	one year or both a fine and confinement. [A person may not receive
566	566	community supervision for the offense.]
567	567	SECTION 23. Section 53.122(a), Property Code, is amended to
568	568	read as follows:
569	569	(a) Perfected [Except as provided by Subchapter E and
570	570	Section 53.124(e), perfected] mechanic's liens that have the same
571	571	inception date are on equal footing without reference to the date of
572	572	filing the lien claim affidavit [claiming the lien].
573	573	SECTION 24. Section 53.124, Property Code, is amended by
574	574	amending Subsections (a), (c), (d), and (e) and adding Subsection
575	575	(f) to read as follows:
576	576	(a) Except as provided by Subsection (c) or (e), for
577	577	purposes of Section 53.123, the time of inception of a mechanic's
578	578	lien is the commencement of construction or repair of improvements
579	579	or delivery of materials to the land on which the improvements are
580	580	to be located and on which the materials are to be used.
581	581	(c) The later of the date the notice of commencement is
582	582	filed or is posted on the lien website is the time of inception of a
583	583	mechanic's lien for the work or material described by the notice
584	584	that is performed or furnished on or after the later of the date the
585	585	notice is filed or posted. For work or material performed or
586	586	furnished before the date a notice of commencement is filed or
587	587	posted and for work excluded by the notice of commencement, the time
588	588	of inception of a mechanic's lien is provided by Subsection (a).
589	589	For work under an original contract entered into after a notice of
590	590	completion is filed and posted under Section 53.059, the time of
591	591	inception of a mechanic's lien is the date provided by Subsection
592	592	(a) or the date a new notice of commencement is posted. [An owner
593	593	and original contractor may jointly file an affidavit of
594	594	commencement with the county clerk of the county in which the land
595	595	is located not later than the 30th day after the date of actual
596	596	commencement of construction of the improvements or delivery of
597	597	materials to the land. The affidavit must contain:
598	598	[(1) the name and address of the owner;
599	599	[(2) the name and address of each original contractor,
600	600	known at the time to the owner, that is furnishing labor, service,
601	601	or materials for the construction of the improvements;
602	602	[(3) a description, legally sufficient for
603	603	identification, of the property being improved;
604	604	[(4) the date the work actually commenced; and
605	605	[(5) a general description of the improvement.]
606	606	(d) If a lien, encumbrance, or mortgage securing an interest
607	607	in the land is filed with the county clerk on or before the date the
608	608	notice is posted, the lien, encumbrance, or mortgage has priority
609	609	over a mechanic's lien with a time of inception that is the date of
610	610	the notice, regardless of the order in which the instruments are
611	611	filed with the county clerk. [An affidavit filed in compliance with
612	612	this section is prima facie evidence of the date of the commencement
613	613	of the improvement described in the affidavit. The time of
614	614	inception of a mechanic's lien arising from work described in an
615	615	affidavit of commencement is the date of commencement of the work
616	616	stated in the affidavit.]
617	617	(e) The time of inception of a lien that is created under
618	618	Section 53.021(c)[, (d), or (e)] is the date of recording of a lien
619	619	claim [an] affidavit [of lien] under Section 53.052. The priority
620	620	of a lien claimed by a person entitled to a lien under Section
621	621	53.021(c)[, (d), or (e)] with respect to other mechanic's liens is
622	622	determined by the date of recording. A lien created under Section
623	623	53.021(c)[, (d), or (e)] is not valid or enforceable against a
624	624	grantee or purchaser who acquires an interest in the real property
625	625	before the time of inception of the lien.
626	626	(f) Unless the landscaping work for which a person may have
627	627	a lien under Section 53.021(d) or the demolition services for which
628	628	a person may have a lien under Section 53.021(e) are included in a
629	629	notice of commencement, the time of inception of a lien under
630	630	Section 53.021(d) or (e) is the date of recording of a lien claim
631	631	affidavit under Section 53.052, and priority is determined by the
632	632	date of recording. Except as provided by this subsection, a lien
633	633	created under Section 53.021(d) or (e) is not valid against a
634	634	grantee or purchaser who acquires an interest in the real property
635	635	before the time of inception of the lien.
636	636	SECTION 25. Subchapter F, Chapter 53, Property Code, is
637	637	amended by adding Section 53.125 to read as follows:
638	638	Sec. 53.125. NOTICE OF COMMENCEMENT. (a) An owner must
639	639	file a notice of commencement with the county clerk of the county in
640	640	which the real property being improved under an original contract
641	641	is located and post the notice on the lien website. The notice must
642	642	be acknowledged and be in a form that substantially complies with
643	643	the following:
644	644	"NOTICE OF COMMENCEMENT
645	645	"Improvements will be made to certain real property, and in
646	646	accordance with Chapter 53, Property Code, the following
647	647	information is provided by this notice of commencement:
648	648	"(1) Legal description and, if applicable, street
649	649	address of property: _______________.
650	650	"(2) Brief description of work to be performed or
651	651	materials to be furnished: _______________.
652	652	"(3) Work or materials not included in this notice of
653	653	commencement: _______________.
654	654	"(4) Owner information or lessee information if the
655	655	lessee contracted for the work:
656	656	(A) Name and address: _______________.
657	657	(B) Interest in property (check appropriate
658	658	box):
659	659	□ Fee simple title
660	660	□ Lease
661	661	□ Other (explain): _______________.
662	662	(C) Name and address of fee simple titleholder to
663	663	property (if different from owner listed above): _______________.
664	664	"(5) Original contractor(s) for work or designated
665	665	portions of the work (repeat as necessary):
666	666	(A) Name and address: _______________.
667	667	(B) Contractor's phone number: _______________.
668	668	"(6) Surety or sureties for original contractor (if
669	669	applicable, a copy of the payment bond is attached):
670	670	(A) Name and address: _______________.
671	671	(B) Phone number: _______________.
672	672	"(7) Lender(s) providing financing for the work that
673	673	is securing a mortgage on or a security interest in the property
674	674	(repeat as necessary):
675	675	(A) Name and address: _______________.
676	676	(B) Lender's phone number: _______________.
677	677	"(8) Secretary of state's lien website address:
678	678	_______________.
679	679	"Date: ______________
680	680	"_____________ (Owner name)
681	681	"By:_______________ (Signature)
682	682	"(Insert acknowledgment)."
683	683	(b) Incorrect information contained in the notice of
684	684	commencement furnished by an owner does not adversely affect the
685	685	rights of a lien claimant reasonably relying on the information
686	686	against the owner or the property of the owner. If a subcontractor
687	687	performs labor or furnishes materials or specially fabricated
688	688	materials described by the notice of commencement and the notice of
689	689	commencement does not identify the original contractor under which
690	690	the labor was performed or materials were furnished or specially
691	691	fabricated at the time the subcontractor first performs the labor
692	692	or furnishes or specially fabricates the materials, the notice of
693	693	furnishing by the subcontractor preserves the lien claimant's
694	694	rights for the period provided by Section 53.0561(c).
695	695	(c) The owner shall send a copy of the notice of
696	696	commencement to each subcontractor not later than the fifth day
697	697	after the date the owner receives a written request for a copy from
698	698	the subcontractor, unless the subcontractor has received a physical
699	699	copy of the notice.
700	700	(d) Unless a notice of commencement has been filed and
701	701	posted as required by this section, a subcontractor who has not
702	702	received a physical copy of the notice may request in writing a copy
703	703	from the original contractor or a subcontractor with whom the
704	704	requesting subcontractor has privity of contract. If the original
705	705	contractor or subcontractor has a copy of the notice, the original
706	706	contractor or subcontractor shall send a copy of the notice to the
707	707	requesting subcontractor not later than the fifth day after the
708	708	date of receipt of the written request. If the requesting
709	709	subcontractor does not receive a copy of the notice as required by
710	710	this section, the person failing to send the copy under this
711	711	subsection is liable to the requesting subcontractor for all actual
712	712	expenses reasonably incurred by the requesting subcontractor in
713	713	obtaining the information that would have been contained in the
714	714	notice.
715	715	(e) A notice of commencement posted on the lien website may
716	716	be amended by the owner by sending the amended notice to the lien
717	717	website. The effective date of the amended notice is the date the
718	718	amended notice is posted on the lien website. The owner shall send
719	719	notice of the amended notice to contractors who have sent a notice
720	720	of furnishing to the owner before the effective date of the amended
721	721	notice of commencement.
722	722	SECTION 26. Section 53.151(b), Property Code, is amended to
723	723	read as follows:
724	724	(b) A surety issuing a payment bond or performance bond in
725	725	connection with the work [improvements] has a priority claim over
726	726	other creditors of its principal to contract funds to the extent of
727	727	any loss it suffers or incurs. That priority does not excuse the
728	728	surety from paying any obligations that it may have under its
729	729	payment bonds.
730	730	SECTION 27. Section 53.153(a), Property Code, is amended to
731	731	read as follows:
732	732	(a) If an affidavit claiming a mechanic's lien is filed by a
733	733	person other than the original contractor, the original contractor
734	734	shall defend at the original contractor's [his] own expense a suit
735	735	brought on the claim unless the owner is in breach of the owner's
736	736	contractual obligations to the original contractor under the
737	737	original contract.
738	738	SECTION 28. Section 53.154, Property Code, is amended to
739	739	read as follows:
740	740	Sec. 53.154. FORECLOSURE. (a) A mechanic's lien may be
741	741	foreclosed only on judgment of a court of competent jurisdiction
742	742	foreclosing the lien and ordering the sale of the property subject
743	743	to the lien.
744	744	(b) A suit to foreclose the lien must be brought in a court
745	745	of competent jurisdiction in the county in which the real property
746	746	that is subject to the lien is located.
747	747	SECTION 29. Section 53.157, Property Code, is amended to
748	748	read as follows:
749	749	Sec. 53.157. DISCHARGE OF LIEN. A mechanic's lien or
750	750	affidavit claiming a mechanic's lien filed under Section 53.052 may
751	751	be discharged of record by:
752	752	(1) recording a lien release signed by the claimant
753	753	under Section 53.152;
754	754	(2) failing to institute suit to foreclose the lien
755	755	[in the county in which the property is located] within the period
756	756	prescribed by Section 53.158, 53.175, or 53.208;
757	757	(3) recording the original or certified copy of a
758	758	final judgment or decree of a court of competent jurisdiction
759	759	providing for the discharge;
760	760	(4) filing the bond and notice in compliance with
761	761	Subchapter H;
762	762	(5) filing the bond in compliance with Subchapter I;
763	763	or
764	764	(6) recording a certified copy of the order removing
765	765	the lien under Section 53.160 and a certificate from the clerk of
766	766	the court that states that no bond or deposit as described by
767	767	Section 53.161 was filed by the claimant within 30 days after the
768	768	date the order was entered.
769	769	SECTION 30. Section 53.158, Property Code, is amended to
770	770	read as follows:
771	771	Sec. 53.158. PERIOD FOR BRINGING SUIT TO FORECLOSE LIEN.
772	772	(a) Except as provided by Subsection (b), suit must be brought to
773	773	foreclose the lien not later than the first anniversary of [within
774	774	two years after] the last date [day] a claimant may file the lien
775	775	claim affidavit under Section 53.052 [or within one year after
776	776	completion, termination, or abandonment of the work under the
777	777	original contract under which the lien is claimed, whichever is
778	778	later].
779	779	(b) The period of limitations under Subsection (a) may be
780	780	extended to not later than the second anniversary of the last date
781	781	the claimant may file the affidavit if the claimant enters into a
782	782	written agreement with the then current record owner of the
783	783	property to extend the period and files the written agreement with
784	784	the clerk of the county where all or part of the property is located
785	785	before the expiration of the period provided by Subsection (a).
786	786	[For a claim arising from a residential construction project, suit
787	787	must be brought to foreclose the lien within one year after the last
788	788	day a claimant may file a lien affidavit under Section 53.052 or
789	789	within one year after completion, termination, or abandonment of
790	790	the work under the original contract under which the lien is
791	791	claimed, whichever is later.]
792	792	SECTION 31. Section 53.159, Property Code, is amended by
793	793	amending Subsections (a), (b), (c), (d), and (f) to read as follows:
794	794	(a) If a notice of commencement has not been filed and
795	795	posted as required by Section 53.125, an [An] owner, on written
796	796	request, shall furnish the following information within a
797	797	reasonable time, but not later than the 10th day after the date the
798	798	request is received, to any person furnishing labor or materials
799	799	for the project:
800	800	(1) a description of the real property being improved
801	801	legally sufficient to identify it;
802	802	(2) whether there is a surety bond and if so, the name
803	803	and last known address of the surety and a copy of the bond;
804	804	(3) whether there are any prior recorded liens or
805	805	security interests on the real property being improved and if so,
806	806	the name and address of the person having the lien or security
807	807	interest; and
808	808	(4) the date on which the original contract for the
809	809	project was executed.
810	810	(b) If a notice of commencement has not been filed and
811	811	posted as required by Section 53.125, an [An] original contractor,
812	812	on written request by a person who furnished work under the original
813	813	contract, shall furnish to the person the following information
814	814	within a reasonable time, but not later than the 10th day after the
815	815	date the request is received:
816	816	(1) the name and last known address of the person to
817	817	whom the original contractor furnished labor or materials for the
818	818	construction project;
819	819	(2) whether the original contractor has furnished or
820	820	has been furnished a payment bond for any of the work on the
821	821	construction project and if so, the name and last known address of
822	822	the surety and a copy of the bond; and
823	823	(3) the date on which the original contract for the
824	824	project was executed.
825	825	(c) A subcontractor, on written request by an owner of the
826	826	property being improved, the original contractor, a surety on a
827	827	bond covering the original contract, or any person furnishing work
828	828	under the subcontract, shall furnish to the person the following
829	829	information within a reasonable time, but not later than the 10th
830	830	day after the date the request is received:
831	831	(1) the name and last known address of each person from
832	832	whom the subcontractor purchased labor or materials for the
833	833	construction project, other than those materials that were
834	834	furnished to the project from the subcontractor's inventory;
835	835	(2) the name and last known address of each person to
836	836	whom the subcontractor furnished labor or materials for the
837	837	construction project; [and]
838	838	(3) whether the subcontractor has furnished or has
839	839	been furnished a payment bond for any of the work on the
840	840	construction project and if so, the name and last known address of
841	841	the surety and a copy of the bond; and
842	842	(4) the date the subcontractor first performed labor,
843	843	furnished materials, or specially fabricated materials for the
844	844	construction project for which any claim for payment is being
845	845	sought.
846	846	(d) Not later than the 30th day after the date a written
847	847	request is received from the owner, the contractor under whom a
848	848	claim of lien or under whom a bond is made, or a surety on a bond on
849	849	which a claim is made, a claimant for a lien or under a bond shall
850	850	furnish to the requesting person a copy of any applicable written
851	851	agreement, purchase order, or contract and any billing, statement,
852	852	or payment request of the claimant reflecting the amount claimed
853	853	and the work performed by the claimant for which the claim is made.
854	854	[If requested, the claimant shall provide the estimated amount due
855	855	for each calendar month in which the claimant has performed labor or
856	856	furnished materials.]
857	857	(f) A person, other than a claimant requested to furnish
858	858	information under Subsection (d), who fails to furnish information
859	859	as required by this section not posted on the lien website is liable
860	860	to the requesting person for that person's reasonable and necessary
861	861	costs incurred in procuring the requested information.
862	862	SECTION 32. Section 53.160, Property Code, is amended by
863	863	amending Subsections (b) and (c) to read as follows:
864	864	(b) The grounds for objecting to the validity or
865	865	enforceability of the claim or lien for purposes of the motion are
866	866	limited to the following:
867	867	(1) notice of furnishing [claim] was not furnished to
868	868	the owner or original contractor as required by Section 53.0561
869	869	[53.056, 53.057, 53.058, 53.252, or 53.253];
870	870	(2) a lien claim [an] affidavit [claiming a lien]
871	871	failed to comply with Section 53.054 or was not filed as required by
872	872	Section 53.052;
873	873	(3) notice of the filed lien claim affidavit was not
874	874	furnished to the owner or original contractor as required by
875	875	Section 53.055 and the owner or original contractor was materially
876	876	prejudiced by the violation;
877	877	(4) [the deadlines for perfecting a lien claim for
878	878	retainage under this chapter have expired and the owner complied
879	879	with the requirements of Section 53.101 and paid the retainage and
880	880	all other funds owed to the original contractor before:
881	881	[(A) the claimant perfected the lien claim; and
882	882	[(B) the owner received a notice of the claim as
883	883	required by this chapter;
884	884	[(5) all funds subject to the notice of a claim to the
885	885	owner and a notice regarding the retainage have been deposited in
886	886	the registry of the court and the owner has no additional liability
887	887	to the claimant;
888	888	[(6)] when the lien claim affidavit was filed on
889	889	homestead property:
890	890	(A) no contract was executed or filed as required
891	891	by Section 53.254; or
892	892	(B) the lien claim affidavit [claiming a lien]
893	893	failed to contain the notice as required by Section 53.254; [or
894	894	[(C) the notice of the claim failed to include
895	895	the statement required by Section 53.254;] and
896	896	(5) [(7)] the claimant executed a valid and
897	897	enforceable waiver or release of the claim or lien claimed in the
898	898	affidavit.
899	899	(c) The claimant is not required to file a response. The
900	900	claimant and any other party that has appeared in the proceeding
901	901	must be notified not later than the 21st day [by at least 21 days]
902	902	before the date of the hearing on the motion. A motion may not be
903	903	heard before the 21st day after the date the claimant answers or
904	904	appears in the proceeding.
905	905	SECTION 33. Section 53.161(f), Property Code, is amended to
906	906	read as follows:
907	907	(f) If the claimant fails to file the bond or the deposit in
908	908	lieu of the bond in compliance with this section, the owner may
909	909	file:
910	910	(1) a certified copy of the order; and
911	911	(2) a certificate from the clerk of the court stating
912	912	that:
913	913	(A) no bond or deposit in lieu of the bond was
914	914	filed before the later of:
915	915	(i) the 30th day [within 30 days] after the
916	916	date the order was entered by the court; or
917	917	(ii) the date ordered by the court under
918	918	Subsection (b); and
919	919	(B) no order staying the order to remove the lien
920	920	was entered by the court.
921	921	SECTION 34. Section 53.172, Property Code, is amended to
922	922	read as follows:
923	923	Sec. 53.172. BOND REQUIREMENTS. The bond must:
924	924	(1) describe the property on which the liens are
925	925	claimed;
926	926	(2) refer to each lien claimed in a manner sufficient
927	927	to identify it;
928	928	(3) be in an amount that is double the amount of the
929	929	liens referred to in the bond unless the total amount claimed in the
930	930	liens exceeds $60,000 [$40,000], in which case the bond must be in
931	931	an amount that is the greater of 1-1/2 times the amount of the liens
932	932	or the sum of $60,000 [$40,000] and the amount of the liens;
933	933	(4) be payable to the parties claiming the liens;
934	934	(5) be executed by:
935	935	(A) the party filing the bond as principal; and
936	936	(B) a corporate surety authorized and admitted to
937	937	do business under the law in this state and licensed by this state
938	938	to execute the bond as surety, subject to Section 3503.005,
939	939	Insurance Code [1, Chapter 87, Acts of the 56th Legislature,
940	940	Regular Session, 1959 (Article 7.19-1, Vernon's Texas Insurance
941	941	Code)]; and
942	942	(6) be conditioned substantially that the principal
943	943	and sureties will pay to the named obligees or to their assignees
944	944	the amount that the named obligees would have been entitled to
945	945	recover if their claims had been proved to be valid and enforceable
946	946	liens on the property.
947	947	SECTION 35. Section 53.201(b), Property Code, is amended to
948	948	read as follows:
949	949	(b) If a valid bond is filed, a claimant may not file suit
950	950	against the owner or the owner's property and the owner is not
951	951	authorized to withhold funds or pay a claimant on demand [relieved
952	952	of obligations] under Subchapter D [or E].
953	953	SECTION 36. Section 53.202, Property Code, is amended to
954	954	read as follows:
955	955	Sec. 53.202. BOND REQUIREMENTS. The bond must:
956	956	(1) be in a penal sum at least equal to the total of the
957	957	original contract amount;
958	958	(2) be in favor of the owner;
959	959	(3) have the written approval of the owner endorsed on
960	960	it;
961	961	(4) be executed by:
962	962	(A) the original contractor as principal; and
963	963	(B) a corporate surety authorized and admitted to
964	964	do business in this state and licensed by this state to execute
965	965	bonds as surety, subject to Section 3503.005, Insurance Code [1,
966	966	Chapter 87, Acts of the 56th Legislature, Regular Session, 1959
967	967	(Article 7.19-1, Vernon's Texas Insurance Code)];
968	968	(5) be conditioned on prompt payment for all labor,
969	969	subcontracts, materials, specially fabricated materials, and
970	970	normal and usual extras not exceeding 15 percent of the contract
971	971	price; and
972	972	(6) clearly and prominently display on the bond or on
973	973	an attachment to the bond:
974	974	(A) the name, mailing address, physical address,
975	975	and telephone number, including the area code, of the surety
976	976	company to which any notice of claim should be sent; or
977	977	(B) the toll-free telephone number maintained by
978	978	the Texas Department of Insurance under Subchapter B, Chapter 521,
979	979	Insurance Code, and a statement that the address of the surety
980	980	company to which any notice of claim should be sent may be obtained
981	981	from the Texas Department of Insurance by calling the toll-free
982	982	telephone number.
983	983	SECTION 37. Section 53.206, Property Code, is amended by
984	984	amending Subsections (a) and (b) to read as follows:
985	985	(a) To perfect a claim against a bond in a manner other than
986	986	that prescribed by Subchapter C or K for fixing a lien, a person
987	987	must:
988	988	(1) give to the original contractor a notice of
989	989	furnishing, unless the person has contracted directly with the
990	990	original contractor [all applicable notices under the appropriate
991	991	subchapter]; and
992	992	(2) give to the surety on the bond a written notice of
993	993	the amount and nature of the claim and a copy of the notice to the
994	994	original contractor within the time period required for filing a
995	995	lien claim affidavit under Section 53.052 [, instead of the owner,
996	996	all notices under the appropriate subchapter required to be given
997	997	to the owner].
998	998	(b) To perfect a claim under this section, a person is not
999	999	required to [:
1000	1000	[(1) give notice to the surety under Section 53.057,
1001	1001	unless the claimant has a direct contractual relationship with the
1002	1002	original contractor and the agreed retainage is in excess of 10
1003	1003	percent of the contract;
1004	1004	[(2) give notice to the surety under Section 53.058(b)
1005	1005	or, if the claim relates to a residential construction project,
1006	1006	under Section 53.253(c); or
1007	1007	[(3)] file any affidavit with the county clerk.
1008	1008	SECTION 38. Section 53.255(b), Property Code, is amended to
1009	1009	read as follows:
1010	1010	(b) The disclosure statement must read substantially
1011	1011	similar to the following:
1012	1012	"KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. You
1013	1013	are about to enter into a transaction to build a new home or remodel
1014	1014	existing residential property. Texas law requires your contractor
1015	1015	to provide you with this brief overview of some of your rights,
1016	1016	responsibilities, and risks in this transaction.
1017	1017	"CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may
1018	1018	not require you to convey your real property to your contractor as a
1019	1019	condition to the agreement for the construction of improvements on
1020	1020	your property.
1021	1021	"KNOW YOUR CONTRACTOR. Before you enter into your agreement
1022	1022	for the construction of improvements to your real property, make
1023	1023	sure that you have investigated your contractor. Obtain and verify
1024	1024	references from other people who have used the contractor for the
1025	1025	type and size of construction project on your property.
1026	1026	"GET IT IN WRITING. Make sure that you have a written
1027	1027	agreement with your contractor that includes: (1) a description of
1028	1028	the work the contractor is to perform; (2) the required or
1029	1029	estimated time for completion of the work; (3) the cost of the work
1030	1030	or how the cost will be determined; and (4) the procedure and
1031	1031	method of payment, including [provisions for statutory retainage
1032	1032	and] conditions for final payment. If your contractor made a
1033	1033	promise, warranty, or representation to you concerning the work the
1034	1034	contractor is to perform, make sure that promise, warranty, or
1035	1035	representation is specified in the written agreement. An oral
1036	1036	promise that is not included in the written agreement may not be
1037	1037	enforceable under Texas law.
1038	1038	"READ BEFORE YOU SIGN. Do not sign any document before you
1039	1039	have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN
1040	1040	UNTRUE STATEMENT. Take your time in reviewing documents. If you
1041	1041	borrow money from a lender to pay for the improvements, you are
1042	1042	entitled to have the loan closing documents furnished to you for
1043	1043	review at least one business day before the closing. Do not waive
1044	1044	this requirement unless a bona fide emergency or another good cause
1045	1045	exists, and make sure you understand the documents before you sign
1046	1046	them. If you fail to comply with the terms of the documents, you
1047	1047	could lose your property. You are entitled to have your own
1048	1048	attorney review any documents. If you have any question about the
1049	1049	meaning of a document, consult an attorney.
1050	1050	"GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before
1051	1051	construction commences, your contractor is required to provide you
1052	1052	with a list of the subcontractors and suppliers the contractor
1053	1053	intends to use on your project. Your contractor is required to
1054	1054	supply updated information on any subcontractors and suppliers
1055	1055	added after the list is provided. Your contractor is not required
1056	1056	to supply this information if you sign a written waiver of your
1057	1057	rights to receive this information.
1058	1058	"MONITOR THE WORK. Lenders and governmental authorities may
1059	1059	inspect the work in progress from time to time for their own
1060	1060	purposes. These inspections are not intended as quality control
1061	1061	inspections. Quality control is a matter for you and your
1062	1062	contractor. To ensure that your home is being constructed in
1063	1063	accordance with your wishes and specifications, you should inspect
1064	1064	the work yourself or have your own independent inspector review the
1065	1065	work in progress.
1066	1066	"MONITOR PAYMENTS. If you use a lender, your lender is
1067	1067	required to provide you with a periodic statement showing the money
1068	1068	disbursed by the lender from the proceeds of your loan. Each time
1069	1069	your contractor requests payment from you or your lender for work
1070	1070	performed, your contractor is also required to furnish you with a
1071	1071	disbursement statement that lists the name and address of each
1072	1072	subcontractor or supplier that the contractor intends to pay from
1073	1073	the requested funds. Review these statements and make sure that the
1074	1074	money is being properly disbursed.
1075	1075	"CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if
1076	1076	a subcontractor or supplier who furnishes labor or materials for
1077	1077	the construction of improvements on your property is not paid, you
1078	1078	may be [become] liable and your property may be subject to a lien
1079	1079	for the unpaid amount, even if you have not contracted directly with
1080	1080	the subcontractor or supplier. To minimize your [avoid] liability,
1081	1081	you should take the following actions:
1082	1082	(1) If you receive a written notice from a
1083	1083	subcontractor or supplier that describes the labor or materials to
1084	1084	be furnished for your improvements (referred to as a "notice of
1085	1085	furnishing"), you should keep that notice in a safe place for at
1086	1086	least four months after the completion of your improvements [, you
1087	1087	should withhold payment from your contractor for the amount of the
1088	1088	claim stated in the notice until the dispute between your
1089	1089	contractor and the subcontractor or supplier is resolved]. If your
1090	1090	lender is disbursing money directly to your contractor, you should
1091	1091	immediately provide a copy of the notice of furnishing to your
1092	1092	lender [and instruct the lender to withhold payment in the amount of
1093	1093	the claim stated in the notice. If you continue to pay the
1094	1094	contractor after receiving the written notice without withholding
1095	1095	the amount of the claim, you may be liable and your property may be
1096	1096	subject to a lien for the amount you failed to withhold]. Confirm
1097	1097	that your contractor has received a copy of each notice of
1098	1098	furnishing.
1099	1099	(2) As a condition to each payment to be made to the
1100	1100	contractor, including the final payment, you may require the
1101	1101	contractor to furnish a lien waiver from each subcontractor or
1102	1102	supplier who sent a notice of furnishing, conditioned only on
1103	1103	receipt of payment to the subcontractor in the amount specified by
1104	1104	the lien waiver. The lien waiver should be in the form required by
1105	1105	statute (Chapter 53, Property Code). [During construction and for
1106	1106	30 days after final completion, termination, or abandonment of the
1107	1107	contract by the contractor, you should withhold or cause your
1108	1108	lender to withhold 10 percent of the amount of payments made for the
1109	1109	work performed by your contractor. This is sometimes referred to as
1110	1110	"statutory retainage.' If you choose not to withhold the 10 percent
1111	1111	for at least 30 days after final completion, termination, or
1112	1112	abandonment of the contract by the contractor and if a valid claim
1113	1113	is timely made by a claimant and your contractor fails to pay the
1114	1114	claim, you may be personally liable and your property may be subject
1115	1115	to a lien up to the amount that you failed to withhold.]
1116	1116	"If a claim is not paid within a certain time period, the
1117	1117	claimant is required to file a mechanic's lien affidavit in the real
1118	1118	property records in the county where the property is located. A
1119	1119	mechanic's lien affidavit is not a lien on your property, but the
1120	1120	filing of the affidavit could result in a court imposing a lien on
1121	1121	your property if the claimant is successful in litigation to
1122	1122	enforce the lien claim.
1123	1123	"SOME CLAIMS MAY NOT BE VALID. When [you receive a written
1124	1124	notice of a claim or when] a mechanic's lien affidavit is filed on
1125	1125	your property, you should know your legal rights and
1126	1126	responsibilities regarding the claim. Not all claims are valid. In
1127	1127	order to perfect a valid lien, [A notice of a claim by] a
1128	1128	subcontractor or supplier is required to send you a notice of
1129	1129	furnishing and a copy of the subcontractor's or supplier's recorded
1130	1130	[be sent, and the] mechanic's lien affidavit [is required to be
1131	1131	filed,] within strict time periods. The notice of furnishing and
1132	1132	the affidavit must contain certain information. All claimants may
1133	1133	not fully comply with the legal requirements to collect on a claim.
1134	1134	If your property is a homestead and you did not enter into a written
1135	1135	contract with your contractor that complies with the statutory
1136	1136	requirements for a lien on a homestead, your contractor, the
1137	1137	subcontractor, or the supplier may not claim a valid lien on your
1138	1138	property. [If you have paid the contractor in full before receiving
1139	1139	a notice of a claim and have fully complied with the law regarding
1140	1140	statutory retainage, you may not be liable for that claim.]
1141	1141	Accordingly, you should consult your attorney when you receive a
1142	1142	written notice of a claim to determine the true extent of your
1143	1143	liability or potential liability for that claim.
1144	1144	"OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. [When you
1145	1145	receive a notice of claim, do not release withheld funds without
1146	1146	obtaining a signed and notarized release of lien and claim from the
1147	1147	claimant.] You can [also] reduce the risk of having a claim filed by
1148	1148	a subcontractor or supplier by requiring as a condition of each
1149	1149	payment made by you or your lender that your contractor furnish you
1150	1150	with an affidavit stating that all bills have been paid. Under
1151	1151	Texas law, on final completion of the work and before final payment,
1152	1152	the contractor is required to furnish you with an affidavit stating
1153	1153	that all bills have been paid. If the contractor discloses any
1154	1154	unpaid bill in the affidavit, you should withhold payment in the
1155	1155	amount of the unpaid bill until you receive a waiver of lien or
1156	1156	release from that subcontractor or supplier.
1157	1157	"OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain
1158	1158	a title insurance policy to insure that the title to your property
1159	1159	and the existing improvements on your property are free from liens
1160	1160	claimed by subcontractors and suppliers. If your policy is issued
1161	1161	before the improvements are completed and covers the value of the
1162	1162	improvements to be completed, you should obtain, on the completion
1163	1163	of the improvements and as a condition of your final payment,
1164	1164	a 'completion of improvements' policy endorsement. This
1165	1165	endorsement will protect your property from liens claimed by
1166	1166	subcontractors and suppliers that may arise from the date the
1167	1167	original title policy is issued to the date of the endorsement."
1168	1168	SECTION 39. Section 53.259, Property Code, is amended by
1169	1169	amending Subsections (a) and (c) to read as follows:
1170	1170	(a) As a condition of final payment under a residential
1171	1171	construction contract, the original contractor shall, at the time
1172	1172	the final payment is tendered, execute and deliver to the owner, or
1173	1173	the owner's agent, an affidavit acknowledging the amount claimed
1174	1174	for payment and stating that the original contractor has paid each
1175	1175	person in full for all labor and materials used in the construction
1176	1176	of improvements on the real property. If the original contractor
1177	1177	has not paid each person in full, the original contractor shall
1178	1178	state in the affidavit the amount owed and the name and, if known,
1179	1179	the address and telephone number of each person to whom a payment is
1180	1180	owed.
1181	1181	(c) A person commits an offense if the person intentionally,
1182	1182	knowingly, or recklessly makes a false or misleading statement in
1183	1183	an affidavit under this section. An offense under this section is a
1184	1184	misdemeanor. A person adjudged guilty of an offense under this
1185	1185	section shall be punished by a fine not to exceed $4,000 or
1186	1186	confinement in jail for a term not to exceed one year or both a fine
1187	1187	and confinement. [A person may not receive community supervision
1188	1188	for the offense.]
1189	1189	SECTION 40. Section 53.281, Property Code, is amended to
1190	1190	read as follows:
1191	1191	Sec. 53.281. WAIVER AND RELEASE OF LIEN OR PAYMENT BOND
1192	1192	CLAIM. (a) Except as provided by Section 53.287, any [Any] waiver
1193	1193	and release of a lien or payment bond claim under this chapter is
1194	1194	unenforceable unless a waiver and release is executed and delivered
1195	1195	in accordance with this subchapter.
1196	1196	(b) A waiver and release is effective to release the owner,
1197	1197	the owner's property, the contractor, and the surety on a payment
1198	1198	bond from claims and liens only if:
1199	1199	(1) the waiver and release substantially complies with
1200	1200	one of the forms prescribed by Section 53.284;
1201	1201	(2) the waiver and release is signed by the claimant or
1202	1202	the claimant's authorized agent and acknowledged [notarized]; and
1203	1203	(3) in the case of a conditional release, evidence of
1204	1204	payment to the claimant exists.
1205	1205	(c) A waiver and release that substantially complies with a
1206	1206	form required by Section 53.284 may be combined with a bills-paid
1207	1207	affidavit that substantially conforms to the requirements of
1208	1208	Section 53.085 or 53.259.
1209	1209	SECTION 41. Section 53.283, Property Code, is amended to
1210	1210	read as follows:
1211	1211	Sec. 53.283. UNCONDITIONAL WAIVER AND RELEASE: PAYMENT
1212	1212	REQUIRED. (a) A person may not require a claimant or potential
1213	1213	claimant to execute an unconditional waiver and release for a
1214	1214	progress payment or final payment amount unless the claimant or
1215	1215	potential claimant received payment in that amount in good and
1216	1216	sufficient funds.
1217	1217	(b) Notwithstanding Subsection (a), a contractual
1218	1218	requirement for a claimant to waive or release the claimant's lien
1219	1219	rights under this chapter before performance of the work for which
1220	1220	the claim for payment is asserted is void.
1221	1221	(c) A claimant may tender an unconditional waiver and
1222	1222	release for payment before the actual receipt of a payment to be
1223	1223	delivered in trust to an attorney, title insurance company, title
1224	1224	insurance agent, or federally insured financial institution acting
1225	1225	as an escrow agent. The escrow agent may deliver the waiver and
1226	1226	release only after the claimant has confirmed receipt of payment in
1227	1227	good and sufficient funds.
1228	1228	SECTION 42. Section 53.284, Property Code, is amended by
1229	1229	amending Subsections (b), (c), (d), and (e) and adding Subsection
1230	1230	(f) to read as follows:
1231	1231	(b) If a claimant or potential claimant is required to
1232	1232	execute a waiver and release in exchange for or to induce the
1233	1233	payment of a progress payment and is not paid in exchange for the
1234	1234	waiver and release or if a single payee check or joint payee check
1235	1235	is given in exchange for the waiver and release, the waiver and
1236	1236	release must read:
1237	1237	"CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
1238	1238	"Project ___________________
1239	1239	"Job No. ___________________
1240	1240	"On receipt by the signer of this document of a check from
1241	1241	________________ (maker of check) in the sum of $__________ payable
1242	1242	to _____________________ (payee or payees of check) and when the
1243	1243	check has been properly endorsed and has been paid by the bank on
1244	1244	which it is drawn, this document becomes effective to release any
1245	1245	mechanic's lien right, any right arising from a payment bond that
1246	1246	complies with a state or federal statute, any common law payment
1247	1247	bond right, any claim for payment, and any rights under any similar
1248	1248	ordinance, rule, or statute related to claim or payment rights for
1249	1249	persons in the signer's position that the signer has on the property
1250	1250	of ________________ (owner) located at ______________________
1251	1251	(location) for [to] the following project [extent]:
1252	1252	______________________ (project [job] description).
1253	1253	"This release covers a progress payment for all labor,
1254	1254	services, equipment, or materials furnished to the property or to
1255	1255	__________________ (person with whom signer contracted) as
1256	1256	indicated in the attached statement(s) or progress payment
1257	1257	request(s), except for unpaid retention or [,] pending
1258	1258	modifications and changes [, or other items furnished].
1259	1259	"Before any recipient of this document relies on this
1260	1260	document, the recipient should verify evidence of payment to the
1261	1261	signer.
1262	1262	"The signer warrants that the signer has already paid or will
1263	1263	use the funds received from this progress payment to promptly pay in
1264	1264	full all of the signer's laborers, subcontractors, materialmen, and
1265	1265	suppliers for all work, materials, equipment, or services provided
1266	1266	for or to the above referenced project in regard to the attached
1267	1267	statement(s) or progress payment request(s).
1268	1268	"Date ____________________________
1269	1269	"_________________________________ (Company name)
1270	1270	"By ______________________________ (Signature)
1271	1271	"_________________________________ (Title)
1272	1272	"(Insert acknowledgment)"
1273	1273	(c) If a claimant or potential claimant is required to
1274	1274	execute an unconditional waiver and release to prove the receipt of
1275	1275	good and sufficient funds for a progress payment and the claimant or
1276	1276	potential claimant asserts in the waiver and release that the
1277	1277	claimant or potential claimant has been paid the progress payment,
1278	1278	the waiver and release must:
1279	1279	(1) contain a notice at the top of the document,
1280	1280	printed in bold type at least as large as the largest type used in
1281	1281	the document, but not smaller than 10-point type, that reads:
1282	1282	"NOTICE:
1283	1283	"This document waives rights unconditionally and states that
1284	1284	you have been paid for giving up those rights. It is prohibited for
1285	1285	a person to require you to sign this document if you have not been
1286	1286	paid the payment amount set forth below. If you have not been paid,
1287	1287	use a conditional release form."; and
1288	1288	(2) below the notice, read:
1289	1289	"UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
1290	1290	"Project ___________________
1291	1291	"Job No. ___________________
1292	1292	"The signer of this document has been paid and has received a
1293	1293	progress payment in the sum of $___________ for all labor,
1294	1294	services, equipment, or materials furnished to the property or to
1295	1295	_____________________ (person with whom signer contracted) on the
1296	1296	property of _______________________ (owner) located at
1297	1297	______________________ (location) for [to] the following project
1298	1298	[extent]: ______________________ (project [job] description). The
1299	1299	signer therefore waives and releases any mechanic's lien right, any
1300	1300	right arising from a payment bond that complies with a state or
1301	1301	federal statute, any common law payment bond right, any claim for
1302	1302	payment, and any rights under any similar ordinance, rule, or
1303	1303	statute related to claim or payment rights for persons in the
1304	1304	signer's position that the signer has on the above referenced
1305	1305	project to the following extent:
1306	1306	"This release covers a progress payment for all labor,
1307	1307	services, equipment, or materials furnished to the property or to
1308	1308	__________________ (person with whom signer contracted) as
1309	1309	indicated in the attached statement(s) or progress payment
1310	1310	request(s), except for unpaid retention or [,] pending
1311	1311	modifications and changes [, or other items furnished].
1312	1312	"The signer warrants that the signer has already paid or will
1313	1313	use the funds received from this progress payment to promptly pay in
1314	1314	full all of the signer's laborers, subcontractors, materialmen, and
1315	1315	suppliers for all work, materials, equipment, or services provided
1316	1316	for or to the above referenced project in regard to the attached
1317	1317	statement(s) or progress payment request(s).
1318	1318	"Date ____________________________
1319	1319	"_________________________________ (Company name)
1320	1320	"By ______________________________ (Signature)
1321	1321	"_________________________________ (Title)
1322	1322	"(Insert acknowledgment)"
1323	1323	(d) If a claimant or potential claimant is required to
1324	1324	execute a waiver and release in exchange for or to induce the
1325	1325	payment of a final payment and is not paid in good and sufficient
1326	1326	funds in exchange for the waiver and release or if a single payee
1327	1327	check or joint payee check is given in exchange for the waiver and
1328	1328	release, the waiver and release must read:
1329	1329	"CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT
1330	1330	"Project ___________________
1331	1331	"Job No. ___________________
1332	1332	"On receipt by the signer of this document of a check from
1333	1333	________________ (maker of check) in the sum of $____________
1334	1334	payable to _____________________ (payee or payees of check) and
1335	1335	when the check has been properly endorsed and has been paid by the
1336	1336	bank on which it is drawn, this document becomes effective to
1337	1337	release any mechanic's lien right, any right arising from a payment
1338	1338	bond that complies with a state or federal statute, any common law
1339	1339	payment bond right, any claim for payment, and any rights under any
1340	1340	similar ordinance, rule, or statute related to claim or payment
1341	1341	rights for persons in the signer's position that the signer has on
1342	1342	the property of _____________________ (owner) located at
1343	1343	______________________ (location) for [to] the following project
1344	1344	[extent]: ______________________ (project [job] description).
1345	1345	"This release covers the final payment to the signer for all
1346	1346	labor, services, equipment, or materials furnished to the property
1347	1347	or to __________________ (person with whom signer contracted).
1348	1348	"Before any recipient of this document relies on this
1349	1349	document, the recipient should verify evidence of payment to the
1350	1350	signer.
1351	1351	"The signer warrants that the signer has already paid or will
1352	1352	use the funds received from this final payment to promptly pay in
1353	1353	full all of the signer's laborers, subcontractors, materialmen, and
1354	1354	suppliers for all work, materials, equipment, or services provided
1355	1355	for or to the above referenced project up to the date of this waiver
1356	1356	and release.
1357	1357	"Date ____________________________
1358	1358	"_________________________________ (Company name)
1359	1359	"By ______________________________ (Signature)
1360	1360	"_________________________________ (Title)
1361	1361	"(Insert acknowledgment)"
1362	1362	(e) If a claimant or potential claimant is required to
1363	1363	execute an unconditional waiver and release to prove the receipt of
1364	1364	good and sufficient funds for a final payment and the claimant or
1365	1365	potential claimant asserts in the waiver and release that the
1366	1366	claimant or potential claimant has been paid the final payment, the
1367	1367	waiver and release must:
1368	1368	(1) contain a notice at the top of the document,
1369	1369	printed in bold type at least as large as the largest type used in
1370	1370	the document, but not smaller than 10-point type, that reads:
1371	1371	"NOTICE:
1372	1372	"This document waives rights unconditionally and states that
1373	1373	you have been paid for giving up those rights. It is prohibited for
1374	1374	a person to require you to sign this document if you have not been
1375	1375	paid the payment amount set forth below. If you have not been paid,
1376	1376	use a conditional release form."; and
1377	1377	(2) below the notice, read:
1378	1378	"UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT
1379	1379	"Project ___________________
1380	1380	"Job No. ___________________
1381	1381	"The signer of this document has been paid in full for all
1382	1382	labor, services, equipment, or materials furnished to the property
1383	1383	or to ___________________ (person with whom signer contracted) on
1384	1384	the property of ______________________ (owner) located at
1385	1385	______________________ (location) for [to] the following project
1386	1386	[extent]: ______________________ (project [job] description). The
1387	1387	signer therefore waives and releases any mechanic's lien right, any
1388	1388	right arising from a payment bond that complies with a state or
1389	1389	federal statute, any common law payment bond right, any claim for
1390	1390	payment, and any rights under any similar ordinance, rule, or
1391	1391	statute related to claim or payment rights for persons in the
1392	1392	signer's position.
1393	1393	"The signer warrants that the signer has already paid or will
1394	1394	use the funds received from this final payment to promptly pay in
1395	1395	full all of the signer's laborers, subcontractors, materialmen, and
1396	1396	suppliers for all work, materials, equipment, or services provided
1397	1397	for or to the above referenced project up to the date of this waiver
1398	1398	and release.
1399	1399	"Date ____________________________
1400	1400	"_________________________________ (Company name)
1401	1401	"By ______________________________ (Signature)
1402	1402	"_________________________________ (Title)
1403	1403	"(Insert acknowledgment)"
1404	1404	(f) If the owner has filed and posted a notice of
1405	1405	commencement as required by Section 53.125, the owner may require,
1406	1406	as a condition for final payment, a claimant who has filed a notice
1407	1407	of furnishing to file with the lien website a conditional waiver and
1408	1408	release on final payment described by Subsection (d).
1409	1409	SECTION 43. The following provisions of the Property Code
1410	1410	are repealed:
1411	1411	(1) Section 53.001(11);
1412	1412	(2) Section 53.022(b);
1413	1413	(3) Section 53.025;
1414	1414	(4) Section 53.053;
1415	1415	(5) Section 53.056;
1416	1416	(6) Section 53.057;
1417	1417	(7) Section 53.058;
1418	1418	(8) Section 53.083;
1419	1419	(9) Section 53.084;
1420	1420	(10) Subchapter E, Chapter 53;
1421	1421	(11) Section 53.206(c);
1422	1422	(12) Section 53.252;
1423	1423	(13) Section 53.253; and
1424	1424	(14) Section 53.254(g).
1425	1425	SECTION 44. The changes in law made by this Act apply only
1426	1426	to an original contract entered into on or after the effective date
1427	1427	of this Act. An original contract entered into before the effective
1428	1428	date of this Act is governed by the law as it existed immediately
1429	1429	before the effective date of this Act, and that law is continued in
1430	1430	effect for that purpose.
1431	1431	SECTION 45. This Act takes effect May 1, 2018.