| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 87R8630 NC-F | |
| 2 | 2 | By: Murr H.B. No. 2621 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the limitation on the amount of a subcontractor's lien | |
| 8 | 8 | for labor or materials. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Section 53.024, Property Code, is amended to | |
| 11 | 11 | read as follows: | |
| 12 | 12 | Sec. 53.024. LIMITATION ON SUBCONTRACTOR'S LIEN. The | |
| 13 | 13 | amount of a lien claimed by a subcontractor may not exceed the | |
| 14 | 14 | lesser of: | |
| 15 | 15 | (1) an amount equal to the proportion of the total | |
| 16 | 16 | subcontract price that the sum of the labor performed, materials | |
| 17 | 17 | furnished, materials specially fabricated, reasonable overhead | |
| 18 | 18 | costs incurred, and proportionate profit margin bears to the total | |
| 19 | 19 | subcontract price,[;] minus | |
| 20 | 20 | [(2)] the sum of previous payments received by the | |
| 21 | 21 | claimant on the subcontract; or | |
| 22 | 22 | (2) the contract price minus previous payments | |
| 23 | 23 | received by the original contractor and the claimant on the | |
| 24 | 24 | subcontract. | |
| 25 | 25 | SECTION 2. The change in law made by this Act applies only | |
| 26 | 26 | to an original contract entered into on or after the effective date | |
| 27 | 27 | of this Act. An original contract entered into before the effective | |
| 28 | 28 | date of this Act is governed by the law in effect on the date the | |
| 29 | 29 | contract was entered into, and the former law is continued in effect | |
| 30 | 30 | for that purpose. | |
| 31 | 31 | SECTION 3. This Act takes effect September 1, 2021. |