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