Bill Text: TX HB217 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the limitation on the amount of a subcontractor's lien for labor or materials.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-02-23 - Referred to Business & Industry [HB217 Detail]
Download: Texas-2023-HB217-Introduced.html
88R1454 DRS-F | ||
By: Murr | H.B. No. 217 |
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relating to the limitation on the amount of a subcontractor's lien | ||
for labor or materials. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 53.024, Property Code, is amended to | ||
read as follows: | ||
Sec. 53.024. LIMITATION ON SUBCONTRACTOR'S LIEN. The | ||
amount of a lien claimed by a subcontractor may not exceed the | ||
lesser of: | ||
(1) an amount equal to the proportion of the total | ||
subcontract price that the sum of the labor performed, materials | ||
furnished, materials specially fabricated, reasonable overhead | ||
costs incurred, and proportionate profit margin bears to the total | ||
subcontract price,[ |
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claimant on the subcontract; or | ||
(2) the contract price minus previous payments | ||
received by the original contractor and the claimant on the | ||
subcontract. | ||
SECTION 2. The change in law made by this Act applies only | ||
to an original contract entered into on or after the effective date | ||
of this Act. An original contract entered into before the effective | ||
date of this Act is governed by the law in effect on the date the | ||
contract was entered into, and the former law is continued in effect | ||
for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2023. |