MECHANICS LIEN DEMAND & REFER

Amends the Counties Code. Creates a mechanics lien demand and referral pilot program. Provides that in counties with a code hearing unit, a recorder may adopt rules establishing a mechanics lien demand and referral process for residential property after a public hearing. Provides that if a recorder determines that a mechanics lien recorded in the grantor's index or the grantee's index is a defective lien, the recorder shall serve a Notice of Defective Lien by certified mail to the last known address of the owner. Provides that if the owner or legal representative of the owner of the residential property confirms in writing that the lien is not involved in pending litigation, the owner may request that the recorder refer the defective mechanics lien to the county's code hearing department for adjudication or serve a Demand to Commence Suit forcing the lienholder to either file suit, respond to the Demand, or forfeit the lien. Provides how the recorder is to serve a Demand to Commence Suit or file a Notice of Referral with the code hearing unit. Provides that if the mechanics lien is referred to the code hearing unit, the code hearing unit will set a hearing and notify the applicable parties. Provides if the recorder shows by clear and convincing evidence that the lien in question is a defective lien, the administrative law judge shall rule the lien is forfeited and that the lien no longer affects the chain of title of the property in any way. Limits liability. Includes other provisions. Repeals the provisions on January 1, 2022. Further amends the Counties Code making conforming changes in county code hearing unit provisions. Amends the Mechanics Lien Act making conforming changes.