| 1 | 1 | | 89R2055 CS-F |
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| 2 | 2 | | By: Harless H.B. No. 2226 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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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 beneficiaries of trust funds paid or received in |
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| 10 | 10 | | connection with an improvement on specific real property. |
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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 162.003(a), Property Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (a) A person who is an [An] artisan, laborer, mechanic, |
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| 15 | 15 | | contractor, subcontractor, or materialman who labors or who |
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| 16 | 16 | | furnishes labor or material for the construction or repair of an |
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| 17 | 17 | | improvement on specific real property in this state, or the |
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| 18 | 18 | | assignee of that person, is a beneficiary of any trust funds paid or |
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| 19 | 19 | | received in connection with the improvement. |
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| 20 | 20 | | SECTION 2. Subchapter A, Chapter 162, Property Code, is |
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| 21 | 21 | | amended by adding Section 162.0031 to read as follows: |
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| 22 | 22 | | Sec. 162.0031. BENEFICIARY'S ASSIGNMENT OF INTEREST IN |
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| 23 | 23 | | UNPAID TRUST FUNDS. An assignment by a beneficiary of the |
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| 24 | 24 | | beneficiary's interest in unpaid trust funds under this chapter may |
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| 25 | 25 | | not be enforced unless: |
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| 26 | 26 | | (1) the assignment is: |
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| 27 | 27 | | (A) made in writing not earlier than the date the |
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| 28 | 28 | | assignee has paid the beneficiary in good and sufficient funds for |
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| 29 | 29 | | the assignment; and |
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| 30 | 30 | | (B) not made as part of the beneficiary's |
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| 31 | 31 | | construction contract; and |
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| 32 | 32 | | (2) the assignee is a beneficiary, trustee, or |
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| 33 | 33 | | property owner under the contract for the construction or repair of |
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| 34 | 34 | | an improvement on real property in connection with which the |
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| 35 | 35 | | payment of trust funds is made. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2025. |
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