Plain English summary not yet available
The full original text is available below. Check back soon as we process this bill.
  89R11482 SCR-F     By: Hinojosa of Hidalgo S.B. No. 1530       A BILL TO BE ENTITLED   AN ACT   relating to the time period for which certain funds payable under a   construction contract must be reserved for the benefit of   mechanic's lien claimants.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 53.101, Property Code, is amended by   amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  During the progress of work under an original contract   for which a mechanic's lien may be claimed and for the period   described by Subsection (a-1) [ 30 days after the work under the   contract is completed ], the owner shall reserve:                (1)  10 percent of the contract price of the work to the   owner; or                (2)  10 percent of the value of the work, measured by   the proportion that the work done bears to the work to be done,   using the contract price or, if there is no contract price, using   the reasonable value of the completed work.           (a-1)     After the completion of work under an original   contract for which a mechanic's lien may be claimed, the owner shall   reserve the funds described by Subsection (a) for a period ending   the earlier of:                 (1)     the 31st day after the date the work under the   contract is completed; or                 (2)  the 61st day after the date:                       (A)     a certificate of occupancy is issued for the   improvement; or                       (B)     the improvement is first used for its   intended purpose.          SECTION 2.  The changes in law made by this Act apply only to   a contract entered into on or after the effective date of this Act.   A contract entered into before the effective date of this Act is   governed by the law as it existed immediately before the effective   date of this Act, and that law is continued in effect for that   purpose.          SECTION 3.  This Act takes effect September 1, 2025.