Bill Text: TX HB2928 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
| 88R3409 SRA-F | ||
| By: Turner | H.B. No. 2928 | |
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| relating to the payment or application of funds under construction | ||
| contracts. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Section 272.001, Business & | ||
| Commerce Code, is amended to read as follows: | ||
| Sec. 272.001. VOIDABLE CONTRACT PROVISIONS [ |
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| SECTION 2. Section 272.001, Business & Commerce Code, is | ||
| amended by adding Subsection (c) to read as follows: | ||
| (c) If a construction contract contains a provision that | ||
| allows a party to the contract to wholly or partly withhold payment | ||
| owed under one contract to satisfy a claim or damages alleged under | ||
| another contract, that provision is voidable by the party whose | ||
| payment may be withheld under the provision. | ||
| SECTION 3. 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 4. 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 5. Subchapter B, Chapter 162, Property Code, is | ||
| amended by adding Section 162.034 to read as follows: | ||
| Sec. 162.034. ATTORNEY'S FEES. The court may award costs | ||
| and reasonable attorney's fees in an action brought under this | ||
| subchapter. | ||
| SECTION 6. (a) Except as provided by Subsection (b) of this | ||
| section, 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. | ||
| (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 7. This Act takes effect September 1, 2023. | ||
