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  89R25967 SCR-F     By: Bell of Kaufman, Curry, Dorazio, H.B. No. 3290       Richardson, Campos     Substitute the following for H.B. No. 3290:     By:  Button C.S.H.B. No. 3290       A BILL TO BE ENTITLED   AN ACT   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.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 53.101, Property Code, is amended by   amending Subsection (a) and adding Subsections (a-1) and (a-2) to   read as follows:          (a)  During the progress of work under an original contract   for which a mechanic's lien may be claimed and for the period   described by Subsection (a-1) [ 30 days after the work under the   contract is completed ], the owner shall reserve:                (1)  10 percent of the contract price of the work to the   owner; or                (2)  10 percent of the value of the work, measured by   the proportion that the work done bears to the work to be done,   using the contract price or, if there is no contract price, using   the reasonable value of the completed work.           (a-1)     The owner shall reserve the funds described by   Subsection (a) for a period ending the earlier of:                 (1)     the 31st day after the date the work under the   contract is completed; or                 (2)  the 61st day after the date:                       (A)     a certificate of occupancy is issued for the   improvement; or                       (B)     the improvement is first used for its   intended purpose.           (a-2)     Subject to Section 28.003, the owner shall pay 50   percent of the funds reserved under Subsection (a) not later than   the day described by Subsection (a-1)(2).          SECTION 2.  The changes in law made by this Act apply only to   a contract entered into on or after the effective date of this Act.   A contract entered into before the effective date of this Act is   governed by the law as it existed immediately before the effective   date of this Act, and that law is continued in effect for that   purpose.          SECTION 3.  This Act takes effect September 1, 2025.