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| 1 | 1 | By: Guillen H.B. No. 3712 | |
| 2 | 2 | ||
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | ||
| 6 | 6 | A BILL TO BE ENTITLED | |
| 7 | 7 | AN ACT | |
| 8 | 8 | relating to funds reserved for certain construction materials. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Section 53.101, Property Code, is amended by | |
| 11 | 11 | adding Subsection (a-1) to read as follows: | |
| 12 | 12 | (a-1) An owner, contractor, or subcontractor may not | |
| 13 | 13 | reserve funds under this section for specially fabricated material | |
| 14 | 14 | that: | |
| 15 | 15 | (1) has been delivered by a subcontractor and accepted | |
| 16 | 16 | by the owner, contractor, or subcontractor at the site or off-site; | |
| 17 | 17 | and | |
| 18 | 18 | (2) is covered by a manufacturer's warranty under a | |
| 19 | 19 | contract with the owner, contractor, or subcontractor. | |
| 20 | 20 | SECTION 2. The changes in law made by this Act apply only to | |
| 21 | 21 | an original contract that is entered into on or after the effective | |
| 22 | 22 | date of this Act. An original contract entered into before the | |
| 23 | 23 | effective date of this Act is governed by the law as it existed | |
| 24 | 24 | immediately before the effective date of this Act, and the former | |
| 25 | 25 | law is continued in effect for that purpose. | |
| 26 | 26 | SECTION 3. This Act takes effect September 1, 2025. |