Texas 2009 - 81st Regular

Texas House Bill HB1513 Compare Versions

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Old	New	Differences
1	1	H.B. No. 1513
2	2
3	3
4	4	AN ACT
5	5	relating to construction contract trust funds and the
6	6	misapplication of those funds.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 162.001(c), Property Code, is amended to
9	9	read as follows:
10	10	(c) A fee payable to a contractor is not considered trust
11	11	funds if:
12	12	(1) the [If a] contractor and property owner have
13	13	entered into a written construction contract for the improvement of
14	14	specific real property in this state before the commencement of
15	15	construction of the improvement and the contract provides for the
16	16	payment by the owner of the costs of construction and a reasonable
17	17	fee specified in the contract payable to the contractor; and
18	18	(2) [,] the fee is earned as provided by the contract
19	19	and paid to the contractor or disbursed from a construction account
20	20	described by Section 162.006, if applicable [is not considered
21	21	trust funds].
22	22	SECTION 2. Section 162.001, Property Code, is amended by
23	23	adding Subsection (d) to read as follows:
24	24	(d) Trust funds paid to a creditor under this chapter are
25	25	not property or an interest in property of a debtor who is a trustee
26	26	described by Section 162.002.
27	27	SECTION 3. Section 162.003, Property Code, is amended to
28	28	read as follows:
29	29	Sec. 162.003. BENEFICIARIES OF TRUST FUNDS. (a) An
30	30	artisan, laborer, mechanic, contractor, subcontractor, or
31	31	materialman who labors or who furnishes labor or material for the
32	32	construction or repair of an improvement on specific real property
33	33	in this state is a beneficiary of any trust funds paid or received
34	34	in connection with the improvement.
35	35	(b) A property owner is a beneficiary of trust funds
36	36	described by Section 162.001 in connection with a residential
37	37	construction contract, including funds deposited into a
38	38	construction account described by Section 162.006.
39	39	SECTION 4. Section 162.004, Property Code, is amended by
40	40	adding Subsection (c) to read as follows:
41	41	(c) Regardless of whether a construction contract is
42	42	covered by a statutory or common law payment bond, this chapter
43	43	applies to a public or private construction contract for the
44	44	improvement of specific real property in this state.
45	45	SECTION 5. Section 162.031, Property Code, is amended by
46	46	adding Subsection (d) to read as follows:
47	47	(d) A trustee who commingles trust funds with other funds in
48	48	the trustee's possession does not defeat a trust created by this
49	49	chapter.
50	50	SECTION 6. This Act takes effect September 1, 2009.
51	51	______________________________ ______________________________
52	52	President of the Senate Speaker of the House
53	53	I certify that H.B. No. 1513 was passed by the House on April
54	54	22, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
55	55	voting.
56	56	______________________________
57	57	Chief Clerk of the House
58	58	I certify that H.B. No. 1513 was passed by the Senate on May
59	59	19, 2009, by the following vote: Yeas 30, Nays 0.
60	60	______________________________
61	61	Secretary of the Senate
62	62	APPROVED: _____________________
63	63	Date
64	64	_____________________
65	65	Governor