Bill Text: TX SB841 | 2025-2026 | 89th Legislature | Enrolled

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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.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2025-06-20 - Effective on 9/1/25 [SB841 Detail]

Download: Texas-2025-SB841-Enrolled.html

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S.B. No. 841

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 that
person's qualified assignee under Section 162.0031, 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;
(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; and
(3) written notice of the assignment is provided to
the property owner and the contractor on the project not later than
the seventh day after the date the assignment is made.
SECTION 3. This Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 841 passed the Senate on
April 24, 2025, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 22, 2025, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 841 passed the House, with
amendment, on May 20, 2025, by the following vote: Yeas 146,
Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor