Bill Text: TX HB1864 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to the beneficiaries of trust funds paid or received in connection with an improvement on specific real property.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Engrossed - Dead) 2023-05-15 - Referred to Business & Commerce [HB1864 Detail]

Download: Texas-2023-HB1864-Engrossed.html

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88R19858 SHH-F
By: Slawson, Vasut, Isaac, Cole H.B. No. 1864

A BILL TO BE ENTITLED
AN ACT
relating to the beneficiaries of trust funds paid or received in
connection with an improvement on specific real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.003(a), Property Code, is amended to
read as follows:
(a) A person who is an [An] artisan, laborer, mechanic,
contractor, subcontractor, or materialman who labors or who
furnishes labor or material for the construction or repair of an
improvement on specific real property in this state, or the
assignee of that person, is a beneficiary of any trust funds paid or
received in connection with the improvement.
SECTION 2. Subchapter A, Chapter 162, Property Code, is
amended by adding Section 162.0031 to read as follows:
Sec. 162.0031. BENEFICIARY'S ASSIGNMENT OF INTEREST IN
UNPAID TRUST FUNDS. An assignment by a beneficiary of the
beneficiary's interest in unpaid trust funds under this chapter may
not be enforced unless:
(1) the assignment is:
(A) made in writing not earlier than the date the
assignee has paid the beneficiary in good and sufficient funds for
the assignment; and
(B) not made as part of the beneficiary's
construction contract; and
(2) the assignee is a beneficiary, trustee, or
property owner under the contract for the construction or repair of
an improvement on real property in connection with which the
payment of trust funds is made.
SECTION 3. This Act takes effect September 1, 2023.