Bell Alert
June 29, 2011The 82nd Legislative First Called Special Session
The Sine Die of the 82nd Texas Legislative First Called Special Session occurred today June 29, 2011.
SB 1 - The “Fiscal Matters” Bill
SB1 is necessary to fund state government for the coming biennium. This bill included a provision that will extend the business tax exemption for small-business owners whose gross receipts fall under $1 million in a tax year. The bill now heads to the governor for his signature.
The Governor has signed the bills below by the June 19th deadline.
HB 2093 by Thompson/Van de Putte - The CCIP Bill with Indemnification Provisions
HB 2093 now requires that in a controlled insurance program, which provided liability insurance, provide at least three years of completed operations coverage. Contractors are usually liable for ten years being the statute of repose for construction projects in Texas. It also substantially limits the ability of parties to construction contracts to shift risks for their own negligence onto the contractors performing the work. This benefits general contractors, subcontractors, and everyone else in the construction chain. This bill excludes homebuilders, municipal projects, oil and gas projects and railroad work from its effects. However, these groups already have laws in effect which achieve similar purposes.
HB 1390 by Deshotel/Estes - The Mechanic’s Lien for Retainage Bill
Texas law has, for a long time, mandated that owners on projects withhold retainage in the amount of 10% from payments to general contractors. Texas lien law has always required that in order to be entitled to claim a lien against property for unpaid retainage, a subcontractor was required to send notice of unpaid account, throughout the project, or a notice of retainage agreement, at the beginning of the project. This has always been a problem because the required form of a notice of unpaid account includes a demand for payment, which offends general contractors who are properly withholding retainage until completion of the job, or a statutory notice of retainage agreement at the beginning of the project, which irritates general contractors because it tends to disclose the value of their subcontracts, information which they rightfully consider proprietary. Under the provisions of HB 1390, subcontractors will now be entitled to claim mechanic’s liens as to retainage for a reasonable period after completion or abandonment of a construction project, without having to first send notices to project owners. This common-sense approach is appropriate, because everybody in the construction process knows, or should know, that retainage is being withheld, and dishonest property owners should not get away without paying retainage just because a subcontractor missed its notice date as to retainage only. This legislation will bring Texas into line with many other states.
SB 1630 by Birdwell/Fletcher - The Residential Appliance Installation Pool Maintenance Bill
This bill passed and our language limiting their scope of work to pool related electrical devices that use single-phase power of 240 volts or less and is located on residential property, a business property, or a property owned by a municipality that is intended for swimming and recreational bathing is still in the bill.
SB 539 by Carona/Kleinschmidt - Attorney’s Fees for Mechanic’s Lien Bill
This bill makes a change in the provisions to the law relating to enforcement of mechanic’s liens. Today, the law allows that a court "may" award attorney’s fees as may be equitable and just in the adjudication of mechanic’s lien issues. With this legislation, the word "may" is replaced with the word “shall” in the statute thus requiring that a court award attorney’s fees to the prevailing party in a mechanic’s lien action.
HB1456 by Orr/Deuell - The Lien/Bond Claim Release and Waiver Forms Bill
This bill has for the first time created significant statutory requirements for the contents of lien and bond claim waivers used in the course of construction including useful limits on the content of such forms and a statutory requirement that for a waiver in consideration of payment to be effective, the payment must actually have been received. This legislation should be of significant value to subcontractors in protecting their rights against dishonorable contractors.
HB 3287 by Giddings/Carona - The TDLR Bill
This bill allows the Department of Licensing and Regulation to prescribe time between inspections conducted by them and allows a person whose license has expired for more than 90 days but less than three years to renew their license by paying a higher fee and taking the required continuing education has passed.
HB 1625 by Brown/Carona - The Continuing Education for Electrical Sign Apprentices Bill
This bill adds electrical sign apprentices to the requirement of four hours of continuing education annually.
