HBA-ATS C.S.H.B. 2135 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2135
By: Solomons
Business & Industry
4/23/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under Section 53.021 (Persons Entitled to Lien), Property Code, a  person
may secure a mechanic's lien if that person furnishes labor or materials
for construction of a home, building, or improvement in this state under or
by virtue of a contract with the owner or the owner's agent, trustee,
receiver, contractor, or subcontractor.  The lien secures payment for the
labor done or material furnished for the construction or repair, and it
extends to the house, building, fixtures, or improvements.  If the lien is
perfected, the furnisher of labor or materials may enforce the lien on the
property.  In the late 1980's however, some liens held by suppliers of
labor, plant material, or other material for the installation of
landscaping were not honored by some title companies. 

C.S.H.B. 2135 entitles a person who provides labor, plant material, or
other supplies for the installation of landscaping for a house, building,
or improvement, under or by virtue of a written contract with the owner or
the owner's agent, trustee, or receiver to a mechanic's lien on the
property. 
 
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 53.021, Property Code, by adding Subsection (d),
to entitle a person who provides labor, plant material, or other supplies
for the installation of landscaping for a house, building, or improvement,
under or by virtue of a written contract with the owner or the owner's
agent, trustee, or receiver to a mechanic's lien on the property. 

SECTION 2.  Amends Section 53.124(e), Property Code, to remove the
specification that the lien is of an architect, engineer, or surveyor, and
adds reference to Subsection (d) (added by this Act), thus providing that
the time of inception of a lien that is created under Sections 53.021(c) or
(d) is the date of recording of an affidavit of lien under Section 53.052
(Filing of Affidavit), Property Code. Provides that the priority of a lien
claimed by a person entitled to a lien under Section 53.021 (c) or (d) with
respect to other mechanic's liens is determined by the date of recording.
Makes conforming changes. 

SECTION 3.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

This substitute adds new SECTION 2 (Section 53.124(e), Property Code),
which removes the specification that the lien is of an architect, engineer,
or surveyor, and adds reference to Subsection (d) (added by this Act), thus
providing that the time of inception of a lien that is created under
Sections 53.021(c) or (d) is the date of recording of an affidavit of lien
under Section 53.052 (Filing of Affidavit), Property Code. This substitute
provides that the priority of a lien claimed by a person  entitled to a
lien under Section 53.021 (c) or (d) with respect to other mechanic's liens
is determined by the date of recording. This substitute also makes
conforming changes. 

This substitute redesignates SECTIONS 2 and 3 from the original bill to
SECTIONS 3 and 4 of this substitute, respectively.