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Texas Bills Introduced Could Affect Lien Law

There are several new bills floating around in the Texas Legislature that, if signed into law, will affect lien law in the state. Senate Bill 845 was referred to the Committee on Business and Commerce Friday, March 1 after its first reading. Its corresponding legislation, House Bill 1918, was introduced in the middle of February. Both relate to the discharge of mechanic's liens.

"Right now, there is some confusion in the case law related to when certain obligations imposed on an owner are extinguished … SB 845 would insert language throughout Chapter 53 that seems to be designed to clarify and confirm that an owner's liability is discharged and extinguished once a perfected lien or the claim secured by the lien is paid, settled, discharged, or indemnified against under the Property Code," states an article from Porter Hedges LLP.

SB 921 and HB 2346 will expand who has a right to claim a lien on property. The bill would allow interior designers registered under Chapter 53 Operations Code to have a lien on property, expanding the group from architects and engineers. If approved, both Acts involving lien clarification and expanded lien rights would take effect Sept. 1, 2019.

-Michael Miller, managing editor

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Wednesday, 22 May 2019