| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 89R7916 PRL-F | |
| 2 | 2 | By: Johnson S.B. No. 1615 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | ||
| 6 | 6 | ||
| 7 | 7 | A BILL TO BE ENTITLED | |
| 8 | 8 | AN ACT | |
| 9 | 9 | relating to the application of funds under construction contracts. | |
| 10 | 10 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 11 | 11 | SECTION 1. Section 162.031, Property Code, is amended by | |
| 12 | 12 | adding Subsection (a-1) to read as follows: | |
| 13 | 13 | (a-1) A trustee who retains or otherwise diverts trust funds | |
| 14 | 14 | due to a dispute, including an alleged default, arising under a | |
| 15 | 15 | construction contract other than the contract in connection with | |
| 16 | 16 | which the trust funds were received by or placed under the control | |
| 17 | 17 | or direction of the trustee has misapplied the trust funds. | |
| 18 | 18 | SECTION 2. The changes in law made by this Act apply only to | |
| 19 | 19 | a contract that is entered into on or after the effective date of | |
| 20 | 20 | this Act. | |
| 21 | 21 | SECTION 3. This Act takes effect September 1, 2025. |