Bill Text: TX HB1963 | 2023-2024 | 88th Legislature | Comm Sub

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Bill Title: Relating to construction contract trust funds.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2023-05-09 - Committee report sent to Calendars [HB1963 Detail]

Download: Texas-2023-HB1963-Comm_Sub.html

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88R4726 SHH-F
By: Leach H.B. No. 1963

A BILL TO BE ENTITLED
AN ACT
relating to construction contract trust funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.001, Property Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Funds reserved or required to be reserved under
Section 53.101 are trust funds.
SECTION 2. Section 162.003(a), Property Code, is amended to
read as follows:
(a) 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 is a beneficiary of any trust
funds:
(1) paid or received in connection with the
improvement; or
(2) reserved or required to be reserved under Section
53.101 in connection with the improvement.
SECTION 3. Subchapter B, Chapter 162, Property Code, is
amended by adding Section 162.034 to read as follows:
Sec. 162.034. ATTORNEY'S FEES AND COSTS. The court shall
award costs and reasonable attorney's fees to a beneficiary who
prevails in an action brought against a trustee under this chapter.
SECTION 4. (a) Except as provided by Subsection (b) of this
section, the changes in law made by this Act apply only to a
construction contract that is entered into on or after the
effective date of this Act.
(b) Section 162.034, Property Code, as added by this Act,
applies only to an action commenced on or after the effective date
of this Act.
SECTION 5. This Act takes effect September 1, 2023.