BILL ANALYSIS H.B. 4984 By: Lujan Trade, Workforce & Economic Development Committee Report (Unamended) BACKGROUND AND PURPOSE Mechanic's, contractor's, and materialman's liens are legal tools used to collect payment for goods and services, which protect the interests of general contractors, subcontractors, and suppliers in the construction industry. However, the bill author has informed the committee that the complexity, hurdles, and insufficiencies in Texas lien law can pose challenges for claimants who choose to secure their liens, resulting in slow payment and unpaid construction projects. The bill author has further informed the committee that one of these issues in the current lien procedure is that the deadline for submitting notice of mechanic's, contractor's, or materialman's liens is not prohibited from falling on non-business days. H.B. 4984 addresses this problem by requiring such a deadline to be extended to the next business day if it falls on a weekend or legal holiday, standardizing the procedure for providing notice across the construction industry. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 4984 amends the Property Code to establish that in determining the deadline to provide a notice or to take any action required under statutory provisions relating to a mechanic's, contractor's, or materialman's lien, if the deadline is a Saturday, Sunday, or legal holiday, the period is extended to include the next day that is not a Saturday, Sunday, or legal holiday. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 4984
By: Lujan
Trade, Workforce & Economic Development
Committee Report (Unamended)
H.B. 4984
By: Lujan
Trade, Workforce & Economic Development
Committee Report (Unamended)
BACKGROUND AND PURPOSE Mechanic's, contractor's, and materialman's liens are legal tools used to collect payment for goods and services, which protect the interests of general contractors, subcontractors, and suppliers in the construction industry. However, the bill author has informed the committee that the complexity, hurdles, and insufficiencies in Texas lien law can pose challenges for claimants who choose to secure their liens, resulting in slow payment and unpaid construction projects. The bill author has further informed the committee that one of these issues in the current lien procedure is that the deadline for submitting notice of mechanic's, contractor's, or materialman's liens is not prohibited from falling on non-business days. H.B. 4984 addresses this problem by requiring such a deadline to be extended to the next business day if it falls on a weekend or legal holiday, standardizing the procedure for providing notice across the construction industry.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 4984 amends the Property Code to establish that in determining the deadline to provide a notice or to take any action required under statutory provisions relating to a mechanic's, contractor's, or materialman's lien, if the deadline is a Saturday, Sunday, or legal holiday, the period is extended to include the next day that is not a Saturday, Sunday, or legal holiday.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BACKGROUND AND PURPOSE
Mechanic's, contractor's, and materialman's liens are legal tools used to collect payment for goods and services, which protect the interests of general contractors, subcontractors, and suppliers in the construction industry. However, the bill author has informed the committee that the complexity, hurdles, and insufficiencies in Texas lien law can pose challenges for claimants who choose to secure their liens, resulting in slow payment and unpaid construction projects. The bill author has further informed the committee that one of these issues in the current lien procedure is that the deadline for submitting notice of mechanic's, contractor's, or materialman's liens is not prohibited from falling on non-business days. H.B. 4984 addresses this problem by requiring such a deadline to be extended to the next business day if it falls on a weekend or legal holiday, standardizing the procedure for providing notice across the construction industry.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 4984 amends the Property Code to establish that in determining the deadline to provide a notice or to take any action required under statutory provisions relating to a mechanic's, contractor's, or materialman's lien, if the deadline is a Saturday, Sunday, or legal holiday, the period is extended to include the next day that is not a Saturday, Sunday, or legal holiday.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.