81R7057 PMO-F
By: Smith of Harris H.B. No. 1513
A BILL TO BE ENTITLED
AN ACT
relating to construction contract trust funds and the
misapplication of those funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.001, Property Code, is amended by
adding Subsection (d) to read as follows:
(d) Trust funds paid to a creditor under this chapter are
not property or an interest in property of a debtor who is a trustee
described by Section 162.002.
SECTION 2. Section 162.004, Property Code, is amended by
adding Subsection (c) to read as follows:
(c) Regardless of whether a construction contract is
covered by a statutory or common law payment bond, this chapter
applies to a public or private construction contract for the
improvement of specific real property in this state.
SECTION 3. Section 162.031, Property Code, is amended by
adding Subsection (d) to read as follows:
(d) A trustee who commingles trust funds with other funds in
the trustee's possession does not defeat a trust created by this
chapter.
SECTION 4. This Act takes effect September 1, 2009.