Bill Text: TX SB1612 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to construction contract trust funds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-25 - Filed [SB1612 Detail]
Download: Texas-2025-SB1612-Introduced.html
| 89R4650 SCR-F | ||
| By: Johnson | S.B. No. 1612 | |
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| 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) Except as provided by this subsection, funds reserved | ||
| or required to be reserved under Section 53.101 are trust funds | ||
| under this chapter. Funds reserved or required to be reserved under | ||
| Section 53.101 for the construction or repair of a new or existing | ||
| single-family house, duplex, triplex, or quadruplex, to be used for | ||
| residential purposes, including improvements appurtenant to the | ||
| residence, are not trust funds under this chapter. | ||
| 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, 2025. | ||
