Bill Text: TX HB2928 | 2023-2024 | 88th Legislature | Comm Sub

Texas House Bill 2928 (Prior Session Legislation)

Bill Title: Relating to the payment or application of funds under construction contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-05-11 - Placed on General State Calendar [HB2928 Detail]

Download: Texas-2023-HB2928-Comm_Sub.html

	88R23609 ATP-F

	By: Turner	H.B. No. 2928

	Substitute the following for H.B. No. 2928:

	By: Cole	C.S.H.B. No. 2928



	A BILL TO BE ENTITLED
	AN ACT
	relating to the payment or application of funds under construction
	contracts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 28.003, Property Code, is amended by
	adding Subsection (c) to read as follows:
	(c) For purposes of this section, a good faith dispute does
	not include a dispute relating to a contract, work order,
	contractual arrangement, or any other agreement between the parties
	that is not related to the contract for construction under which
	payment is requested or required.
	SECTION 2. Section 162.031, Property Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1) A trustee who retains or otherwise diverts trust funds
	due to a dispute, including an alleged default, arising under a
	construction contract other than the contract in connection with
	which the trust funds were received by or placed under the control
	or direction of the trustee has misapplied the trust funds.
	SECTION 3. The changes in law made by this Act apply only to
	a contract that is entered into on or after the effective date of
	this Act.
	SECTION 4. This Act takes effect September 1, 2023.