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TX SB1530
Bill
Status
2/21/2025
Primary Sponsor
Juan Hinojosa
Click for details
AI Summary
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Amends Section 53.101 of the Property Code to modify how long property owners must reserve 10% of construction contract funds for potential mechanic's lien claimants
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Changes the retention period from a flat 30 days after work completion to the earlier of two alternative deadlines
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Establishes new deadline options: either 31 days after contract work is completed, or 61 days after a certificate of occupancy is issued or the improvement is first used for its intended purpose
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Applies only to construction contracts entered into on or after September 1, 2025; existing contracts remain governed by prior law
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Maintains the existing requirement that owners reserve either 10% of the contract price or 10% of the value of work completed during the project
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
Referred to Business & Commerce
3/6/2025