| 1 | 1 | | 88R1454 DRS-F |
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| 2 | 2 | | By: Murr H.B. No. 217 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the limitation on the amount of a subcontractor's lien |
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| 8 | 8 | | for labor or materials. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 53.024, Property Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 53.024. LIMITATION ON SUBCONTRACTOR'S LIEN. The |
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| 13 | 13 | | amount of a lien claimed by a subcontractor may not exceed the |
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| 14 | 14 | | lesser of: |
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| 15 | 15 | | (1) an amount equal to the proportion of the total |
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| 16 | 16 | | subcontract price that the sum of the labor performed, materials |
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| 17 | 17 | | furnished, materials specially fabricated, reasonable overhead |
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| 18 | 18 | | costs incurred, and proportionate profit margin bears to the total |
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| 19 | 19 | | subcontract price,[;] minus |
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| 20 | 20 | | [(2)] the sum of previous payments received by the |
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| 21 | 21 | | claimant on the subcontract; or |
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| 22 | 22 | | (2) the contract price minus previous payments |
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| 23 | 23 | | received by the original contractor and the claimant on the |
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| 24 | 24 | | subcontract. |
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| 25 | 25 | | SECTION 2. The change in law made by this Act applies only |
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| 26 | 26 | | to an original contract entered into on or after the effective date |
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| 27 | 27 | | of this Act. An original contract entered into before the effective |
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| 28 | 28 | | date of this Act is governed by the law in effect on the date the |
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| 29 | 29 | | contract was entered into, and the former law is continued in effect |
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| 30 | 30 | | for that purpose. |
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| 31 | 31 | | SECTION 3. This Act takes effect September 1, 2023. |
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