HB 3065 and SB 1506 would make several changes to a mechanic’s, contractor’s or materialman’s liens, including eliminating statutory retainage. Some key components of the change involve notice requirements. Anyone working on a project would submit notice to the owner at the start of their work that they are engaged for the project. The early notice would provide owners with a list of persons working on a project who are able to file a lien, allowing owners to verify payment and get necessary releases after completion. A single statewide website would be established that could be used to track the notices, including allowing contractors, suppliers, and subcontractors to provide notice electronically.
The objectionable part of the bill provides that an owner would be personally liable for the aggregate amount of the liens perfected on the owner’s property up to the amount of the original contract, and payment by the owner to the original contractor would not reduce the aggregate liability of the owner for liens. It would eliminate statutory retainage. If a project used retainage, a lien would not be limited to the amount retained.
In addition to ICSC, groups opposing the bill include Houston Real Estate Council, Independent Bankers Association of Texas, Texas Apartment Association, Texas Association of Builders, Texas Bankers Association, Texas Building Owners and Managers Association (BOMA), Texas Land Title Association, and Texas Mortgage Bankers Association.