| 1 | 1 | | 88R23609 ATP-F |
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| 2 | 2 | | By: Turner H.B. No. 2928 |
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| 3 | 3 | | Substitute the following for H.B. No. 2928: |
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| 4 | 4 | | By: Cole C.S.H.B. No. 2928 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the payment or application of funds under construction |
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| 10 | 10 | | contracts. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 28.003, Property Code, is amended by |
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| 13 | 13 | | adding Subsection (c) to read as follows: |
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| 14 | 14 | | (c) For purposes of this section, a good faith dispute does |
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| 15 | 15 | | not include a dispute relating to a contract, work order, |
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| 16 | 16 | | contractual arrangement, or any other agreement between the parties |
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| 17 | 17 | | that is not related to the contract for construction under which |
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| 18 | 18 | | payment is requested or required. |
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| 19 | 19 | | SECTION 2. Section 162.031, Property Code, is amended by |
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| 20 | 20 | | adding Subsection (a-1) to read as follows: |
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| 21 | 21 | | (a-1) A trustee who retains or otherwise diverts trust funds |
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| 22 | 22 | | due to a dispute, including an alleged default, arising under a |
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| 23 | 23 | | construction contract other than the contract in connection with |
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| 24 | 24 | | which the trust funds were received by or placed under the control |
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| 25 | 25 | | or direction of the trustee has misapplied the trust funds. |
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| 26 | 26 | | SECTION 3. The changes in law made by this Act apply only to |
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| 27 | 27 | | a contract that is entered into on or after the effective date of |
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| 28 | 28 | | this Act. |
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| 29 | 29 | | SECTION 4. This Act takes effect September 1, 2023. |
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