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TX HB3290
Bill
Status
2/25/2025
Primary Sponsor
Keith Bell
Click for details
AI Summary
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Amends Section 53.101 of the Property Code to change how long property owners must reserve 10% of construction contract funds for potential mechanic's lien claims
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Replaces the previous 30-day post-completion retention period with a new dual-trigger system ending at the earlier of: 31 days after work completion, or 61 days after certificate of occupancy is issued or the improvement is first used for its intended purpose
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Requires owners to pay 50% of the reserved funds no later than the 61st day after certificate of occupancy or first use of the improvement
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Applies only to construction contracts entered into on or after the effective date; existing contracts remain governed by prior law
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Takes effect September 1, 2025
Legislative Description
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.
Property Interests
Last Action
Placed on General State Calendar
5/15/2025