Texas 2023 - 88th Regular

Texas Senate Bill SB586

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

Impact

If enacted, SB586 would specifically impact statutes concerning real property and trust fund provisions. The inclusion of a broader range of potential beneficiaries is significant in that it aims to provide greater protection for individuals and businesses involved in construction and property improvement activities. By recognizing these parties as beneficiaries, the bill seeks to guarantee that they receive due payment and benefits from trust funds established for specific real property projects, which aligns with the broader objective of protecting labor interests in the construction sector.

Summary

Senate Bill 586, introduced by Senator Hughes, aims to clarify the beneficiaries of trust funds related to improvements on specific real property within Texas. The bill amends Section 162.003(a) of the Property Code to explicitly include artisans, laborers, mechanics, contractors, subcontractors, and materialmen as potential beneficiaries of trust funds received in connection with property improvement work. This legislation is intended to ensure that those who contribute labor or materials for construction and repair projects are protected under the trust fund provisions, thereby enhancing their rights in property improvement contexts.

Sentiment

The sentiment around SB586 appears to be largely positive, particularly among labor groups and contractors who view this bill as a necessary update that could provide them with additional security and assurance that they will be compensated fairly for their work. Advocates argue that it addresses a long-standing need to safeguard the rights of those providing essential labor and materials in the construction industry.

Contention

Discussion around the bill may involve some contention regarding the implications for property owners and general contractors. While proponents argue that it is a protection measure for workers, opponents might express concerns about potential increased costs or administrative burdens for those employing subcontractors. The balance between ensuring worker protections and the financial impacts on property projects remains a point that may need further exploration as the bill progresses through legislative processes.

Texas Constitutional Statutes Affected

Property Code

  • Chapter 162. Construction Payments, Loan Receipts, And Misapplication Of Trust Funds
    • Section: New Section

Companion Bills

TX HB1864

Identical Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

Previously Filed As

TX SB841

Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

TX HB1864

Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

TX HB2226

Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

TX LD1763

An Act Regarding Trustee Duties to Beneficiaries

TX HB3681

Relating to the acceptance of bids for certain contracts for improvements to real property from a person who received compensation for participating in the preparation of the bidding specifications.

TX HB1418

Relating to civil liability and responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.

TX HB2901

Relating to civil liability and responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.

TX SB219

Relating to civil liability and responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property or of a road or highway.

TX HB201

Allow specified hunting on landowner's property without a permit

TX HB2170

Relating to responsibility for defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.

Similar Bills

No similar bills found.