| 2 | | - | (In the Senate - Filed January 17, 2025; February 13, 2025, |
|---|
| 3 | | - | read first time and referred to Committee on Business & Commerce; |
|---|
| 4 | | - | April 9, 2025, reported favorably by the following vote: Yeas 10, |
|---|
| 5 | | - | Nays 0; April 9, 2025, sent to printer.) |
|---|
| 6 | | - | Click here to see the committee vote |
|---|
| 3 | + | |
|---|
| 4 | + | |
|---|
| 7 | 5 | | |
|---|
| 8 | 6 | | |
|---|
| 9 | 7 | | A BILL TO BE ENTITLED |
|---|
| 10 | 8 | | AN ACT |
|---|
| 11 | 9 | | relating to the beneficiaries of trust funds paid or received in |
|---|
| 12 | 10 | | connection with an improvement on specific real property. |
|---|
| 13 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 14 | 12 | | SECTION 1. Section 162.003(a), Property Code, is amended to |
|---|
| 15 | 13 | | read as follows: |
|---|
| 16 | 14 | | (a) A person who is an [An] artisan, laborer, mechanic, |
|---|
| 17 | 15 | | contractor, subcontractor, or materialman who labors or who |
|---|
| 18 | 16 | | furnishes labor or material for the construction or repair of an |
|---|
| 19 | 17 | | improvement on specific real property in this state, or the |
|---|
| 20 | 18 | | assignee of that person, is a beneficiary of any trust funds paid or |
|---|
| 21 | 19 | | received in connection with the improvement. |
|---|
| 22 | 20 | | SECTION 2. Subchapter A, Chapter 162, Property Code, is |
|---|
| 23 | 21 | | amended by adding Section 162.0031 to read as follows: |
|---|
| 24 | 22 | | Sec. 162.0031. BENEFICIARY'S ASSIGNMENT OF INTEREST IN |
|---|
| 25 | 23 | | UNPAID TRUST FUNDS. An assignment by a beneficiary of the |
|---|
| 26 | 24 | | beneficiary's interest in unpaid trust funds under this chapter may |
|---|
| 27 | 25 | | not be enforced unless: |
|---|
| 28 | 26 | | (1) the assignment is: |
|---|
| 29 | 27 | | (A) made in writing not earlier than the date the |
|---|
| 30 | 28 | | assignee has paid the beneficiary in good and sufficient funds for |
|---|
| 31 | 29 | | the assignment; and |
|---|
| 32 | 30 | | (B) not made as part of the beneficiary's |
|---|
| 33 | 31 | | construction contract; and |
|---|
| 34 | 32 | | (2) the assignee is a beneficiary, trustee, or |
|---|
| 35 | 33 | | property owner under the contract for the construction or repair of |
|---|
| 36 | 34 | | an improvement on real property in connection with which the |
|---|
| 37 | 35 | | payment of trust funds is made. |
|---|
| 38 | 36 | | SECTION 3. This Act takes effect September 1, 2025. |
|---|