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